Can a volunteer municipal fire
department maintain funds donated to the department or raised for the
department's benefit by the department's fundraising efforts, in a
separate account in the fire department's name and exercise exclusive
control over the funds?
For many years, the answer was no (see
Financial Procedure 202 and 230). Now the answer is yes, if the
municipality has enacted an ordinance authorizing such activity pursuant
to Wis. Stat. sec. 66.0608 which was enacted as part of 2001 Wis. Act
16. Section 66.0608 allows municipalities to enact an ordinance that
authorizes municipal fire, emergency medical technician, and first
responder volunteer funds to be maintained in a public depository in a
separate account in the department's name, and gives the department
exclusive control over the expenditure of the funds. Municipal fire,
emergency medical technician and first responder volunteer funds are
defined as "funds of a municipality that are raised by employees of the
(fire, emergency medical technician or first responder) department, by
volunteers, or by donation to the (fire, emergency, medical technician
or first responder) department, for the benefit" of the particular
department. Secs. 66.0608(1)(b), (c), (e) and (h).
The ordinance must designate which
employee(s) or officer(s) within the departments are authorized to
deposit funds and exercise the control. Such an ordinance may limit the
type and amount of funds that may be deposited into the account, limit
the amount of withdrawals that may be made from the account, as well as
the purposes for which withdrawals can be made, and can impose audit and
reporting requirements. The law makes it clear that even if such an
ordinance is enacted, volunteer funds remain the municipality's property
until disbursed. Sec. 66.0608(4), Stats.