Plan tightens nonprofit rules

The scandal involving Lowry Park Zoo's former chief has prompted Mayor Pam Iorio to tighten the reins on hundreds of local nonprofit organizations that receive taxpayer money.

A proposed ordinance being drafted by the city would require nonprofit organizations that get city funds to abide by a series of ethical standards, including strict limits on financial dealings between executive staff and governing boards of the nonprofit group and for-profit entities.

"We believe this is a fair and reasonable proposal that provides safeguards for nonprofit organizations," said Santiago Corrada, Tampa's neighborhood services administrator who oversees city contracts with the nonprofit organizations.

The rules, if approved, would cover hundreds of nonprofit organizations, from those housed in city-owned buildings, such as The Florida Aquarium and Tampa Theatre, to those subsidized by the city, such as the Museum of Science & Industry and The Florida Orchestra.

In 2009, the city gave more than $2.8 million to local nonprofit organizations.

Nonprofit organizations would be required to adhere to the restrictions if they want to continue receiving city funds, Corrada said. If a nonprofit agency violates the new rules, it would have to pay back the money and would be barred from receiving funds for at least one year.

Among the proposed restrictions:

•Nonprofit groups would have to adopt conflict of interest policies prohibiting financial transactions between the organization, its executive staff, board members and for-profit organizations, unless they are part of an "open and competitive" bid process.

•Nonprofit organizations would be required to open their books to the city by filing annual financial reports with the city's finance department, including detailed records of how much board members are compensated and how the city's money has been spent.

•Nonprofit groups would also be required to adopt an anti-nepotism policy and whistle-blower rules to protect employees who report illegal or unethical practices.

John Bell, president and chief executive of the Tampa Theatre, said he has reviewed the proposed ordinance and doesn't have a problem with any of the funding requirements.

"I don't see anything Draconian in this proposal," he said. "It's common sense."

Although most of its proceeds come from ticket sales and private donations, Tampa Theatre gets about $300,000 a year in subsidies from the city and is on city property.

Iorio's proposal was prompted by the scandal involving former Lowry Park Zoo CEO Lex Salisbury.

A Tampa Tribune investigation and city audit found Salisbury took more than $200,000 in city supplies and animals to build his private animal park, Safari Wild, and convinced former zoo executive committee members to sign off on the improper transactions.

Salisbury, who resigned from his $339,000-a-year job in December at the request of the board of directors, maintains he never inappropriately profited from his ties to the zoo.

The proposed requirements, which ultimately would have to be approved by the Tampa City Council, come as city funding for nonprofit organizations has been getting tighter.

Facing a projected $52 million shortfall next fiscal year, Iorio has told nonprofit groups that the city plans to slash funding to some by as much as 20 percent in 2010.

The cuts are expected to save the city about $500,000 in the upcoming fiscal year.