Crossville City Council wants to be better understand the appropriateness of using city funds to contribute to non-profit entities.
The question was posed during the council’s Tuesday night work session. Councilman Scot Shanks brought up the topic after questioning the city’s decision not fund Hospice of Cumberland County in this year’s budget after requesting $10,000.
“The city is giving to a lot of non-profits, is that normal for a city to do? I don’t know,” Shanks said. “I mean we’re taking taxpayer money and literally making a donation to a non-profit. Is that normal course of action, or does that not normally happen with a city or county?”
Mayor RJ Crawford said when it comes to providing funds, he likes to think of it like a one-off. He said that could be for seed money for projects or other one-time needs.
“My thing is one of the issues, I know she’s not here, is trying to eliminate attrition in our employees,” Crawford said. “I think most people when they pay their taxes they expect basic necessities to be provided which are the employees. Well the only way we’ve been able to kind of change that is we continue to do increases. We did that last year, I think we’re agreeing on something this year. Roughly it’s about a quarter of a million, $300,000 a year every time we do that rate increase. I would rather we take that money back from those non-profits to the point where we no longer have attrition.”
Shanks said he would like to do $7,500 contribution and study the policy for non-profit contributions in the future. He said they could ask for information about recommendations from MTAS.
“I know there are lot of different hospices but this is the only one where people are not asked to pay,” Shanks said. “If their insurance doesn’t pay, they are not sent a bill. And that’s where this money goes for is to help the indigent with hospice care. Of course they do raise a lot of money.”