The County Commission may amend a resolution it passed that would put a member of the commission on the board of the 501(c)(3)s that receive over 25 percent of their funding from the county. It would also require the agencies to follow county purchasing, travel and expense policies.
After the measure was passed 6-3, the county got a letter from the Humane Education Society saying it will not comply with the resolution.
Jerry Farinash, an attorney on the HES board, said, "On any given day, the HES houses between 400 and 500 animals which belong to Hamilton County. If it is the county's decision to discontinue using HES's services, the county will need to immediately provide HES with instructions as to a safe and proper facility to which its animals need to be delivered."
He said HES is under a fee for services contract with the county and "is not 'funded' by the county."
The measure requires that the agencies annually submit copies of all financial documents and records relating to its income and expense.
The commission finance committee on Wednesday discussed amending the resolution to say it applies only to those who receive $100,000 or more from the county.
Commission Finance Chairman Tim Boyd said that would mainly leave the HES, the Chattanooga Visitors Bureau and the Chamber of Commerce as the affected agencies.
County Mayor Jim Coppinger, in remarks apparently aimed at Commissioner Boyd, said certain staff members had been "unfairly criticized" by "misinformation."
He said that budgets "are just a plan" but that financial reports are what "mean the most to us."
The county mayor said of the agencies, "We're not interested in their budgets. We're interested in how stable they are."
Commissioner Boyd earlier said the county finance department could not answer the question about how many non-profits would be affected by the resolution because he said the county mayor "does not ask for budgets, only financial statements."
Commissioner Boyd afterward said, "I do not know of any well-managed organization that works off a financial statement, they work off budgets. I think it is 'fiscally irresponsible' for the mayor with the commission's approval to hand out over $14 million in county taxpayers' dollars to organizations without those same organizations submitting an operating budget to be placed with the county budget.
"Operating budgets (future) are a tool to help one manage an organization. Financial statements (past) show one where the money was spent and if the books are balanced, assets vs liabilities.
Both documents are equally important tools for managing an organization. The county should be asking for both before distributing funds."
Here is the full letter from the HES that was addressed to County Attorney Rheubin Taylor:
Dear Mr. Taylor:
Please be advised that I represent The Humane Educational Society of Chattanooga, Tennessee. I am also a Board Member of that entity.
HES has become aware the Hamilton County Commission recently passed a Resolution which purports to require any non-profit organization requesting or receiving funding from Hamilton County in excess of 25% of that organization's operating budget to comply with certain requirements pertaining to purchases, board seats, expense policies and providing of financial documents (Resolution No. 617-35). The Executive Committee of HES asked me to review the Resolution for purposes of determining if HES must follow the terms of that Resolution.
For the reasons set forth in this letter, I am informing you that HES does not believe it is affected by the Resolution and will not comply with the Resolution.
HES was first incorporated in Tennessee on April 4, 1910 (that is not a misprint). At some point thereafter, HES began providing Hamilton County with animal services. HES provides other governmental entities with animal services; operates a thrift store; and provides a variety of other animal related services to the public and to other charitable organizations. HES is not, nor has it ever been an agency of the Hamilton County government.
Providing animal services to Hamilton County is not an "established purpose" of HES as is set forth in the first WHEREAS clause of the Resolution. HES was not established for that purpose in 1910 and does not now exist solely for that purpose.
HES does not "request" funding from Hamilton County. HES charges Hamilton County a per capita rate of $6.00 for the services it provides. Nationally, the average rate charged for animal services is $8.00 per capita. The City of Chattanooga, Tennessee, has a separate vendor for its animal services. It is HES's belief the City of Chattanooga pays far in excess of the $6.00 it charges Hamilton County. The amount Hamilton County pays HES for the services it provides is approximately 33% of the overall funds received by HES. However, the cost of those services is approximately 50% of HES's annual expenses.
Hamilton County does not provide "funding" to HES. HES is a vendor to Hamilton County.
HES provides a service (animal services) in place of the County providing that service for its citizens. Because HES is not "funded" by the County, HES will not attempt to comply with the aforesaid Resolution.
However, please understand the following as it relates to the Resolution:
1. The Board meetings of HES are always open to the public. HES is amenable to having one of the County Commissioners serve on its Board. All of the Commissioners are invited (encouraged) to make arrangements to visit and tour the HES facilities. They can contact Bob Citrullo to arrange a visit or Tai Federico or me about serving on the Board. HES would welcome another Board member dedicated to furthering its goals and fulfilling its mission.
2.HES's financial operations are audited every year. HES already provides the County a copy of those audits.
3.HES provides the County with its proposed budget each year in advance of the County setting its own budget and intends to continue to provide that information in the future.
If it is the decision of Hamilton County to discontinue using the services of HES, that will be very unfortunate. However, HES is not in a position to comply with the other aspects of the Resolution since it is also a vendor to other entities. Ifevery entity to which HES provides a service were to try to pass its own requirements, HES would be overburdened with compliance matters.
On any given day, HES houses between 400 and 500 animals which belong to Hamilton County. If it is the County's decision to discontinue using HES's services, the County will need to immediately provide HES with instructions as to a safe and proper facility to which its animals should be delivered.
Unless I hear from you to the contrary, I will assume this closes this matter and that HES and Hamilton County will continue to do business long into the future. Warm regards.