It’s a new year and time for a new round of discussions about town funding for “professional services agreements” in the budget.

The item was discussed at a council retreat Jan. 8, and there seemed to be little headway in deciding how or whether to continue the practice.

The town has provided funding to outside groups for a number of years and most recently used a “contract for services” model. This past fiscal year the town paid out nearly $320,000 to seven groups.

Effective Dec. 31, the Chamber of Commerce terminated its agreement to provide tourism promotion through the Tourism Bureau.

That was a $103,000 contract this fiscal year, from which the town will be saving a portion.

The town made payments to the Fountain Hills Theater, Boys and Girls Club and Extended Hands Food Bank for contracts that have been in effect for several years.

This past year new agreements with the Sheriff’s Office Posse, Senior Citizens, Inc. and JumpStartBiz, a business incubator, were approved.

Town Manager Ken Buchanan has proposed a program of “Building Better Communities” grants over the service contract model.

His grant program would designate a budgeted amount that could be distributed to those filing grant applications. It would be a 50/50 match grant program.

Buchanan is proposing criteria for the grants including non-profit status, the match and no religious affiliation.

The grants would be judged based on ability to meet council priorities such as job creation, social services, culture or youth programs.

A citizen committee would review the applications.

This is very similar to a method used by the town years ago when it budgeted LTAF lottery funding to support the program. That resource has dwindled over the years, however.

The grant proposal also gives the town greater flexibility in what is awarded based on available funds.

Buchanan is proposing that the pool of revenue be based on 1 percent of available state-shared revenues. That was about $130,000 for the current fiscal year, but can vary based on state revenues received.

Mayor Linda Kavanagh said she likes the proposal because it opens the funding to more groups.

“The perception is that what we do now is just not fair,” Kavanagh said. “There are groups that would like to participate but are told they cannot.”

Kavanagh said this grant program is similar to the one the town is working with Republic Services for recycling rewards.

Some council members said they believe the service agreements should be reduced until eliminated, and not necessarily replaced with a new program.

“I thought our objective was to reduce this money until it went away,” Councilman Cecil Yates said. “I’m open to discussion on this.”

Councilman Tait Elkie said he sees the proposal as cumbersome, time consuming and politicizing.

Councilman Henry Leger said the idea that the council is just giving the money away is not correct.

“We are not giving money away,” Leger said. “This is a fee for service. We are looking at (these services) as an asset and operationalizing it.

“This new proposal is giving money away.”

There was no consensus on the issue out of the retreat session and there will likely be more discussion as budget planning goes forward.