DEPARTMENT: Department of Human Services
DEPARTMENT HEAD: Melody Woosley
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Financial Empowerment Centers Grant Acceptance
SUMMARY:
This ordinance authorizes acceptance of funds in the amount of $332,000.00 for the second and third years of a three year grant cycle from the Living Cities' Cities for Financial Empowerment Fund to fund two Financial Empowerment Centers for the period of January 1, 2014 through December 31, 2015. This ordinance also approves a total in-kind match of $202,980.00, the FY 2014 program budget and a personnel complement of one position to be funded by the grant.
BACKGROUND INFORMATION:
The Cities for Financial Empowerment (CFE) is a coalition of municipal governments working to advance innovative financial empowerment initiatives. The CFE has partnered with Living Cities, a philanthropic collaborative of 22 foundations and financial institutions, to establish the Cities for Financial Empowerment Fund (CFE Fund), which supports municipal efforts to improve financial stability of households by leveraging opportunities unique to local government.
In 2012, Living Cities' CFE Fund and Bloomberg Philanthropies partnered to provide support to five cities for the implementation of the Financial Empowerment Center (FEC) model for a three year period. On June 1 2012, the City submitted the application in partnership with Family Service Association and the United Way of San Antonio and Bexar County (United Way). In November 2012, San Antonio was notified that it was one of five cities awarded funding to implement the two Financial Empowerment Centers, and on January 10, 2013, City Council authorized execution of a Memorandum of Agreement (MOA) between the City, Family Service Association and United Way to formalize this partnership.
The Department of Human Services provides program oversight and coordinates operations between the City and its nonprofit, referral and integration partners to ensure achievement of program milestones and outcomes. The United Way and Family Service Association are responsible for delivering direct program services at the two Financial Empowerment Centers, Claude Black Community Center and the Neighborhood Place. The Financial Empowerment Centers provide free, one-on-one financial counseling to assist participants in reducing debt, building credit, increasing savings, and accessing safe and affordable banking products. Since the program began operations on March 12, 2013, financial counselors held 2,504 financial counseling sessions and served a total of 954 clients.
ISSUE:
This ordinance authorizes the acceptance of grant funding in the amount of $332,000.00 from Living Cities' CFE Fund, and approves a total in-kind match of $202,980.00, a FY 2014 DHS program budget, and a personnel complement of one grant funded position.
The City, Family Service Association, and United Way individually have been awarded the allocations listed below for each year of the three year grant cycle. Funding will be dispersed in equal installments on an annual basis.
Agency |
Award |
City of San Antonio |
$166,000 |
Family Service Association |
$459,000 |
United Way |
$497,000 |
TOTAL |
$1,122,000 |
DHS anticipates Financial Empowerment Center counselors will hold 5,280 sessions with approximately 3,500 clients in the 2014 grant year. The Financial Empowerment Center program supports the Economic Competitiveness and Family Well-Being SA2020 vision areas.
ALTERNATIVES:
If awarded funds are not accepted, the CFE Fund would need to identify a new partner to continue to provide program oversight and operational coordination of the two Financial Empowerment Centers.
FISCAL IMPACT:
This ordinance approves the acceptance of up to $332,000.00 in grant funds from Living Cities' CFE Fund, and approves a total in-kind match of $202,980.00, a FY 2014 program budget and a personnel complement of one grant funded position. A formal FY 2015 budget will be submitted by DHS upon approval by the funder at the end of FY 2014
The City, Family Service Association, and the United Way will each contract directly with Living Cities' CFE Fund for their respective portion of the award. The City will not serve as fiscal agent for the two nonprofit partner organizations.
There is no anticipated fiscal impact to the General Fund associated with this item.
RECOMMENDATION:
Staff recommends approval of this ordinance and acceptance of grant funds from the Living Cities' Cities for Financial Empowerment Fund for a total program budget of $332,000.00, and approves a total in-kind match of $202,980.00, a FY 2014 program budget and a personnel complement of one position for the operation of two Financial Empowerment Centers.