Indianola this week again postponed the disbursement of $15,000 to the Sunflower County Transitional Shelter for the Homeless.
City Attorney Derek Hopson told the board that it would be best to wait for a response from the attorney general before cutting the check directly to the Sunflower County Ministerial Alliance Counseling Services (SCMACS), which operates the shelter on behalf of the county.
The funds, previously approved by the board, were initially transferred to Sunflower County but were subsequently returned to the city due to concerns about the legality of the county distributing the additional money to SCMACS.
Legislation passed at the founding of the shelter appears to limit the amount of money the county can give to SCMACS to $40,000 in a given year.
Mayor Ken Featherstone opened the discussion by requesting clarification from Pastor Phillip McGee, a representative of SCMACS, regarding the returned funds.
"It was my understanding that the county was not clear on why the city sent the funds to them," McGee said. "They didn't have a problem in the beginning to disperse the funds, but the interlocal agreement that our organization had with the county is that the county could not give the organization more than $40,000, and that $15,000 would have been an additional amount. So, they were trying to get a ruling on that. But because we are in dire need of the money, I suggested that the board send the money back to the city and let the city hash out the proper way to get the funds in our hands, since it’s city money and had been voted on to give it to us."
Ward 5 Alderman Sam Brock elaborated on the county's concerns.
"Mr. Mayor, one of the chief concerns with the county board is that the county thought the money was supposed to be used for security, and we did not give a donation for security,” Brock said. “Our donation was to help the function of that particular organization, and the only problem came when our former city attorney said we could not donate that money directly from the city to them. So, we went through the county board, and they had some stipulations. They said they couldn’t do it, so they decided to send the money back."
Hopson presented extensive research, including a letter submitted to the attorney general's office, seeking legal guidance on the donation.
He highlighted House Bill 1801, which outlines the county's authority to provide annual funds to organizations like SCMACS. Hopson also referenced a statute that limits city contributions to non-profit organizations to no more than 50% of the organization's annual budget or 50% of a specific project's cost.
Hopson emphasized the necessity of certified financial documentation from SCMACS, stating that the city's new city clerk should verify the organization's budget before the board makes a decision.
He also raised questions about whether the $15,000 was intended as an annual donation or a one-time donation. The consensus among the aldermen was that it was intended as a one-time donation, and Ward 2 Alderman Darrell Simpson suggested that it could be voted on annually.
Ward 1 Alderman Gary Fratesi said, "We need to be legal in the way we do it, because we’ve gone against the attorney's advice one time, and it didn't turn out well.”
Board members engaged in extensive discussions with McGee about the legal implications of the donation.
Brock made a motion to wait for the AG’s opinion, which was seconded by Ward 3 Alderman Ruben Woods. The motion passed unanimously.
The Legislature is currently in session, and there have been discussions about a proposed amendment to the original shelter legislation that would allow municipalities to send money to the county to give to the shelter.
