“The program is designed to provide funds directly to communities because they know what is best.” 

–Bill Rolfzen, Alaska Administrator for the Community Revenue Sharing Program in conversation with LMCC’s Jim Sykes

 

Q:  What is Community Revenue Sharing?

 

A:  Funding granted directly to municipalities, tribal governments and communities for a public purpose.  In the case of communities within organized boroughs, funding is provided to the borough.  The entire amount is passed through to the community through a contract with the borough.  The local community receives the funds to accomplish specified projects. The program was created in 2008.  [See DCRA 2009 Report page 28 and Chapter 12, Session Law of AK 2008, Enrolled as SB72]

 

Q:  Do community councils qualify for these grants?

A:  Yes, so long as they are incorporated as non-profits or tribal governments.

 

Q:  Do LMCC’s bylaws allow for accepting these grants?

A:  Yes.  Article 13 states:  “Council funds shall be disbursed only for legitimate purposes of the community council.”  Article 6 states, …”Other funds may be raised by donations, grants or fund-raising activities.”  While LMCC can already accept funds with its current bylaws, Alaska State statutes require that the community council be incorporated as a non-profit  or be a tribal government.

 

Q:  How much money is granted?

A:  The current level of grants is $20,200 per year. 

 

Q:  Does the Mat-Su Borough take a cut of the money?

A:  No, all funds are passed through directly to the community council.

 

Q:  How many community councils in Mat-Su are receiving funding?

A:  So far there are five.  A majority of Valley community councils are not yet incorporated as non-profits, which is a requirement to qualify for the grant funding. Several community councils are in process of incorporating.

 

Q:  Would this create another level of government?

A:  No, the local community council would continue it’s operations as a community voice.  Incorporation would allow it to attract grant funding for this and potentially other grant programs for a public community purpose.

 

Q:  Would other divisions of government do the kinds of projects that could be funded by these grants?

A:  Possibly, but not likely.  The amount of funding is relatively small, designed for projects within a local community that would be less likely to reach the level of legislative or borough budget items.

 

Q:  What kinds of projects are other Mat-Su community councils doing under this grant program.

A:  A huge variety.  Improving communications with community workers, getting office equipment, helping with recreation and safety issues.  Please view the projects now ongoing among five Mat-Su community councils receiving community revenue sharing grants LMCC’s website links.

 

Q:  Is the community council obligated to perform an audit?

A:  No, the Mat-Su Borough administers the funds and may conduct an audit and examine records of how the money was spent–in line with an approved contract with the borough outlining the scope of work.

 

Q:  How does the grant get funded?

A:  The community council proposes a scope of work that becomes a contract approved by the borough.  After borough approval, funds are transmitted to the community council.

 

Q:  What kinds of reporting and tracking requirements are there?

A:  Basic record keeping for expenditures, an annual report to the borough, a request for extension of time or for multiple year projects, and a report every two years to the Alaska Division of Commerce and Economic Development updating officers at the community council and verifying an annual meeting.

 

Q:  Do LMCC’s bylaws have to be changed.

A:  Very little.  The existing bylaws are mostly adequate.  Proposed changes are minor and up for full discussion before voting in October.  A draft proposal will be up on the website soon.  Hard copies will be available at the September meeting for discussion.

 

Q:  Is there a cost to incorporate?

A:  Yes, $50.  The application is sent directly to the State of Alaska.  LMCC may wish to rent its own PO Box as a permanent address.

 

Q:  Is there additional liability to board members?

A:  No more than currently exists.  The best protection for both board members and community members is making sure the community is involved in the decision-making for the approval of grant projects.

 

 

Sources of  information provided:

Bill Rolfzen, Alaska Administrator, Community Revenue Sharing Grants

Elizabeth Hartley, Comptroller Matanuska-Susitna Borough

George Rauscher, President, Sutton Community Council

Chapter 12, Session Law of AK 2008, Enrolled SB72

DCRA 2009 Report, page 28