HomeMy WebLinkAbout19 - Council Policy A-12 - Discretionary GrantsITEM 19
TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Assistant City Manager
SUBJECT: New Council Policy on Discretionary Grants (A -12)
RECOMMENDED Adopt amended Council Policy A -12 ( "Discretionary Grants ")
ACTION:
BACKGROUND: The City Council traditionally has distributed grant revenue to organizations
that provide human or social services to the community using two different (yet
also similar) mechanisms:
I - Human Services Grants. Council Policy A -12 (Financial Support for Human
Services) directs the Council to provide for $25,000 per year from the General
Fund for small grants ($2,000 to $5,000 typically) to non - profit and other
organizations that serve the Newport Beach community. Policy A -12 directs that
these grants be prioritized in the following manner:
A. Local groups within the City and offering programs to City residents;
B. Regional groups in Orange County offering programs to City residents; and
C. Groups located in California and offering programs to City residents.
Policy A -12 directs that groups not offering programs or services to local
residents are ineligible for support from the City.
During FY 2000 -01, the City distributed the following Human Services Grants to
area organizations:
Recipient
Youth Employment Services /Harbor Area
Newport Harbor HS ASB
YMCA - child care, swim programs, more
SPIN - Housing assistance and sub abuse
Susan Komen Breast Cancer Foundation
OC Council on Aging - Ombudsperson Program
ATSC - Family Counseling for at -risk youth
Total
Amount
$ 3,500
$ 1,600
$ 5,000
$ 3,600
$ 3,800
$ 3,600
$ 3,500
$ 24,600
II -- Community Development Block Grants for Social Services. The US
Department of Housing and Urban Development (HUQ) awards block grants
called Community Development Block Grants (CDBG) to "provide decent, safe,
affordable housing, and viable living environments and to expand economic
opportunities, principally for persons with low or moderate incomes"
CDBG grants can be used to acquire and construct certain public works actions,
facilities and improvement, clearance, housing rehabilitation, relocation and
demolition, activities relating to conservation and renewable energy resources,
neighborhood revitalization, and economic development. Cities in Metropolitan
Statistical Areas with more than 50,000 persons can receive formula -based funds
(the formula includes population, the amount of housing overcrowding, the
extent of poverty, the age of housing, and more). Cities can spend as much as
15% of CDBG funds on social services such as family violence counseling and
child abuse prevention programs.
Newport Beach expects to receive about $520,000 in CDBG funds in FY 2001 -02, a
slight increase from anticipated receipts during FY 2000 -01 ($495,000). FY 2000 -
01's distribution to social service entities was $74,700. Recipients were:
Recipient
Amount
1 st Priority -- Homeless Services
FISH -- Homeless Assistance
$
16,500
SPIN -- Substance Abuse Rehab Program
$
10,000
OC Interfaith Shelter -- Temporary Shelter
$
8,000
Olive Crest -- Permanent Placements for Kids
$
5,000
OC YWCA -- Temporary Shelter
$
4,000
2nd Priority -- Low - Income Elderly
South County Seniors $ 15,600
FISH -- Mobile Meals $ 15,600
Total $ 74,700
As readers can see from the recipient listing, at least one group received both a
Human Services Grant and revenue from our CDBG social services program.
While this is not necessarily the wrong action, it may improve the Council's
policy on grant - giving if the Policy specifically directed City staff to identify
which groups were receiving funding from both sources.
III - District Discretionary Funds. Finally, during the FY 2000 -01 Budget year,
the City Manager established a new account within the City Council's budget
( #0110 -8250) that allows council members to allocate up to $7,000 for special
projects or efforts that affect their council district. The Manager established this
account to provide an accurate measure of and limited funds for unexpected and
unbudgeted requests by council members for small projects or improvements
that the council members deemed important. With this account, adopted
departmental budgets could be insulated somewhat from these special requests.
As of the date of this report, here are the balances for the Account:
District Discretionary Funds
Given limited overlap for Human Services Grants, CDBG social services grants,
and the District Discretionary funds, we believe that the City should follow a
more coordinated policy on discretionary grants. This proposed policy would:
• Rename Policy A -12 "Discretionary Grants" instead of "Financial Support for
Human Services."
• Maintain the current Human Services Grant policy (dollar amount and
prioritization);
• Include in a policy the current guidelines in federal law and within the City's
CDBG procedures relating to CDBG grants for social services;
• Formalize procedures for the District Discretionary Grant Account which:
Direct that the Council set the dollar amount for the Account each year as a part of
the budget process;
-- Authorize each council member to expend up to one - seventh of the Account;
-- Direct that all revenues from the Account have an identifiable public benefit and
that the benefit be identified at the time a council member directs the expenditure
of the funds;
- Require that any expenditure from the Account be provided to the rest of the City
Council via a "receive and file" item or similar Council report during the Council's
regular agenda; and
-- Direct that all unencumbered funds in the Account at the end of the fiscal year be
deposited in the City's General Fund Reserve Account.
• When grants are proposed from the Human Services Grant account or from
the CDBG Social Services grants, the policy requires the City Manager to
identify whether or not an applicant has received revenue from the other
funding source.
THIS AGENDA This Agenda Item asks the City Council to adopt a revised Policy A -12 to clarify
ITEM: procedures and to provide more information to the public and to the Council
about how the City provides discretionary grants.
ATTACHMENT: Attachment A - Proposed revisions to Council Policy A -12
District 1
District
District
District
District 5
District 6
District 7
Total
Starting Balance
$ 7,000
$ 7,000
$ 7,000
$ 7,000
$ 7,000
$
7,000
$
7,000
$ 49,000
NB Photo Calendar
$ 3,000
$ 3,000
Home of the Brave Fdn
$ 1,000
$ 1,000
$ 1,000
$ 1,000
$
1,000
$
1.000
$ 6,000
Gateway Parks Landscaping
$ 260
Pledged
$ 7,000
$ 3,000
$ 10,000
Available Balance
$ 2,740
$ 6,000
§
$ 3,000
$ 6,000
$
6,000
$
6,000
$ 30,000
Given limited overlap for Human Services Grants, CDBG social services grants,
and the District Discretionary funds, we believe that the City should follow a
more coordinated policy on discretionary grants. This proposed policy would:
• Rename Policy A -12 "Discretionary Grants" instead of "Financial Support for
Human Services."
• Maintain the current Human Services Grant policy (dollar amount and
prioritization);
• Include in a policy the current guidelines in federal law and within the City's
CDBG procedures relating to CDBG grants for social services;
• Formalize procedures for the District Discretionary Grant Account which:
Direct that the Council set the dollar amount for the Account each year as a part of
the budget process;
-- Authorize each council member to expend up to one - seventh of the Account;
-- Direct that all revenues from the Account have an identifiable public benefit and
that the benefit be identified at the time a council member directs the expenditure
of the funds;
- Require that any expenditure from the Account be provided to the rest of the City
Council via a "receive and file" item or similar Council report during the Council's
regular agenda; and
-- Direct that all unencumbered funds in the Account at the end of the fiscal year be
deposited in the City's General Fund Reserve Account.
• When grants are proposed from the Human Services Grant account or from
the CDBG Social Services grants, the policy requires the City Manager to
identify whether or not an applicant has received revenue from the other
funding source.
THIS AGENDA This Agenda Item asks the City Council to adopt a revised Policy A -12 to clarify
ITEM: procedures and to provide more information to the public and to the Council
about how the City provides discretionary grants.
ATTACHMENT: Attachment A - Proposed revisions to Council Policy A -12
Council Policy A -12
DISCRETIONARY GRANTS
It shall be the policy of the T4ie City Council that the City's budget
specifically allow the Citv Council to, at any time during the year, direct
revenue towards worthy projects or programs which the Council deems
beneficial to Newport Beach's quality of life. The Council notes herd
FeGegeizes-that it has at least three tools at its discretion to assist non - profit
agencies, community groups. community events, or enhancement projects
within the City. These tools are:
(1) Federal Community Development Block Grant (CDBG) Social
Service Funds:
(2) Human Services Grants from the General Fund: and
(3) the "District Discretionary Grant Account from the General Fund."
These funds shall be provided for in the following manner:
Community Development Block Grant Social Services funds shall be
allocated according to standards set by the federal government and
appropriated at least once each year. The level of funding offered for
Social Services in Newport Beach shall be based upon federal formulas
and the specific amount of CDBG revenue allocated to the City in any one
fiscal year. The Planning Department shall administer these funds after
City Council approval of the funds' expenditure.
Human Services Grants shall be expended from the General Fund in the
amount of 111 each fiscal year.
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lR Fega'd to the Gity'r Y 1p in f'nannially e��ln mn � pp
� J Fe le I11 I11 IQ116IQ I1 �el"11'f000
errvnni the City Manager's Office shall review all programs —arid
requests for suppe I Human Services Grants and shall forward
recommendations for funding to the City Council for final approval.
*QrgaRiIzatinnc Fee an Stlrg aSSlStanee Shall 8AN�31Ete the aftannh
ed
appAsat+ea— fer-m- At the time of the City Manager's presentation of any
Human Services Grant award proposals to the City Council. the City
Manager shall show which entities, if any, have received funds from either
the CDBG Social Services Fund or the District Discretionary Grant Account
during the same fiscal year.
.•- . . • .
recommending Human Servi es Grants:
A. Local groups located within the City and offering programs to City
residents;
B. Regional groups located in Orange County and offering programs to
City residents; and
C. Groups located in California and offering programs to City residents.
Groups not offering programs or services to local residents shall not be
eligible for support from the City.
District Discretionary Grant Account. At the start of the fiscal year, the
City Manager shall provide for an account with the City Council's Budget
division known as the District Discretionary Grant Account. The City
Council shall set the level of this Account during the budget process
preceding the June adoption of the City's budget. The total amount
appropriated to the Account shall be divided by seven and each Council
member shall have, at his or her discretion, the ability to allocate up to one -
seventh of the Account to a use, project, or community entity that benefits
the City as a whole or the Council Member's district specifically. Any
expenditure from this Account must have an identifiable public benefit.
Any proposal for an expenditure from this Fund shall be provided to the
City Council during regular Council meetings via a verbal report from a
Council member or via a brief "receive and file" agenda item. Any verbal or
written report shall identify the public benefit associated with the proposed
expenditure.
At the conclusion of the fiscal year in which the District Discretionary Grant
Account received appropriation, all unencumbered funds in the Account
shall be deposited in the City's General Fund Reserve Account.
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Adopted - July 8, 1985
Amended - October 28, 1991
Amended -January 24, 1994
PROPOSED FOR AMENDMENT MAY 22. 2001
Formerly F -22