(A) Definitions.
(1) For the purpose of this section, the following definitions shall apply unless the context clearly indicated or required a different meaning.
RESTRICTED DONATIONS. Those to which the donor has attached terms, conditions, or purposes. If the donation is RESTRICTED, the Common Council must agree in writing, to the terms, conditions, or purposes attached to the proposed donation.
UNRESTRICTED DONATIONS. Those to which the donor has not attached, terms, conditions, or purposes.
(2) Income or revenues in the form of tax distributions, tax receipts, fees, rentals, or contractual payments, and the like, are not considered donations.
(B) (1) Unrestricted donations into applicable operating fund, such as park, general, and the like, expenditure of such donated revenue from the operating fund shall be made only after an appropriation has been provided for the purpose of the expenditure. Claims must be filed and approved in the regular legal manner.
(2) A restricted donation shall be placed into a separate fund such fund shall be established by Common Council. Any appropriate descriptive name may be given the donated fund; claims must be filed and approved in the regular legal manner before disbursement can be made from the fund.
(3) Donations may be made in any form such as monetary, tools, equipment, labor, and the like, however it is up to the Common Council to accept or reject at an open public meeting.
(C) (1) Income from investments of restricted donations should be receipted into the same fund in which the principal of the donations has been receipted, provided it is to be used for the same purpose as the principal.
(2) However, if under the terms of the trust, the principal must be held in trust in perpetuity and only the income used by the governmental unit, there should be two funds established. One fund should be designated as “trust interest.” In this situation, expenditures would only be permitted from the Trust Interest (Income) Fund.
(3) The municipality’s fiscal officer should be the custodian of the unit’s funds and securities.
(Ord. 4 2017, passed 8-8-2017)