(A) Disbursement of funds shall be for public purposes only. Disbursements of such funds shall be to obtain goals sought by the Council, and not be for purposes primarily to benefit non-profit corporations. No donations, gifts or grants, whether by subsidy or otherwise, are permitted.
(B) No funds may be disbursed to non-profit corporations except by compliance with the following:
(1) The Council shall make a finding of fact, at a public meeting, of the following:
(a) The goal sought to be achieved by the disbursement of the funds is one which the Council would seek to attain whether or not the non-profit organization requested the right to perform the services in return for funds.
(b) The exact nature of the purpose to which the funds are to be used.
(c) That the consideration to be received by the town will be to the town residents and taxpayers alone. Funds will not be disbursed in return for consideration beneficial to other than town taxpayers and residents.
(d) That the consideration to be received by the town is approximately equal in value to the amount of funds given.
(e) Each non-profit corporation requesting town funding shall provide the town with all state and federal tax numbers issued by the state and federal taxing authorities with each application for funds and prior to receipt of any funds from the town. Any changes in the non-profit corporation tax status as a non-profit corporation or any change of the tax numbers assigned to each non-profit corporation shall be reported to the town within five days of each change.
(2) The requesting organization shall provide the factual basis for the finding required in division (1) above.
(3) No funds may be disbursed to a non-profit corporation except by written contract. The contract must include a requirement that the corporation provide auditable records to the town, monthly or on another regular basis, as determined by the town. The contract shall also include the stipulation that a failure of the recipient corporation to provide the proper documents upon request would be a breach of contract. Likewise, any unauthorized or unexplained expenditures of the money given by the town would be considered a breach of contract. The town is to retain control over the monies expended and, in the event of a breach of the contract, the contract shall require that the remaining funds be returned to the town. Additionally, at the town's request, the full amount of the funds given by the town shall be returned to the town, minus any amount equal to the consideration already received by the town.
(4) All contracts shall be in compliance with the Gift Clause of the Constitution of the State of Arizona, Article 9, Section 7, and relevant Arizona case law.
(`82 Code, Art. 3-5(E)) (Ord. 248, passed 8-22-85; Am. Ord. 843, passed 1-23-14)