Rochester council weighs funding support for nonprofits

Randy Petersen, Post-Bulletin, Rochester, Minn.
·3 min read

Sep. 1—ROCHESTER — Proposed spending on 11 agencies linked to key strategic priorities established by Rochester city officials is expected to increase next year.

The question is by how much?

Rochester City Administrator Alison Zelms proposed a $60,000 increase to the $663,600 spent this year, primarily benefiting Rochester Civic Music, in her recommended budget released last month.

She also suggested increases ranging from $1,080 to $3,000, for some of the nonprofit agencies, which would be offset by a proposed $9,685 cut in funding for the

RNeighbors

program.

The reduced RNeighors spending was based on a proposed $25,000 one-time reduction submitted by the organization that serves as a resource to neighborhood associations.

"We had a little cushion, and knowing the city has to cut so many funds we were doing it in good faith," said RNeighbors Director René Halasy, who said reduced salary expenses this year left the group with funding flexibility heading into 2023.

While Zelms proposed decreasing the reduction, Rochester City Council members serving as an oversight committee for the larger agencies receiving city support opted to request matching this year's funding.

"I see Elton Hills and other associations in Ward 6 really welcoming people and giving a sense of belonging that has been missing," council member Molly Dennis said in suggesting the funding remains steady.

The oversight committee is tasked with reviewing financial statements of specific agencies receiving more than $100,000 from the city or operating within city facilities.

In addition to RNeighbors, which uses city office space, that includes Rochester Downtown Alliance, 125 Live, Rochester Art Center and Rochester Civic Theatre.

Recommendations for non-city groups receiving less that $100,000 — Southeast Minnesota Initiative Fund, Diversity Council, History Center of Olmsted County, Youth Commission, Human Rights Commission and Rochesterfest — are made with staff review of the organizations' finances and operations.

The City Council committee's RNeighbors proposal came a week after the same group split 2-1 on whether to propose an additional $50,000 increase to support Rochester Civic Theatre. Dennis objected to the increased funding without an outline of how it would be used.

However, on Wednesday, Dennis joined council members Mark Bransford and Shaun Palmer in unanimously approving the overall committee recommendation, which included

increasing Rochester Civic Theatre

funding from $15,000 this year to $125,000 next year to bring it closer to funds provided to similar groups.

The result leaves the City Council with two options related to budget discussions — adopting Zelms' proposed $723,600 in allocation across the 11 agencies or the committee's $783, 285 proposal.

Zelms said flexibility exists, since the council currently has $286,000 in unallocated funds for 2023 based on the current budget recommendation.

Council members have discussed using the funds to increase trash cans in city parks or cover costs to keep pools open, in addition to increasing funding for Rochester Civic Theatre and other groups.

"There is room to have this discussion with the City Council without significant gyrations in the city budget," she said.

The council is slated to continue discussing options for the 2023 budget during its study session at 3:30 p.m. Wednesday in council chambers of the city-county Government Center.