SR-9-A (107)CARS:CNS:JR:iifr94b.cns.ced
Council Meeting: Aprii 27, 1993
TO: Mayor and City Counci~
FROM: City Staff
SUBJECT: Px~pased Fiscal Year 1993-94
Program Funding Rationale
INTRODUCTION
~~
r ~~ -, .
:~; ~ f ~._ .,
Santa Monica, Cali~ornia
Community Development
This report presents a Funding Rationale far the City's fiscal
year 1993-94 Community Develapment (CD) Program. The praposed
Funding Rationale will provide the basis for FY93-94 recommended
funding levels for grantees of the CD Program. Given the City~s
current fiscal canstraints, implementatian of this Funding
Rationale may result in the reduction of the CD Program's funding
level and scope for FY1993-94. On April 13, 1993 this matter was
brought before the Council. Staff was directed to notify CD
Program grantees of the proposed FY1993-94 Funding Rationale and
return to the Council on April 27, 1993 for actian.
a x r+rrnn~rrtrr.
Each year the City's Coinmunity Development (CD) Program al~ocates
local artd ~ederal funds for operating grants and special projects
to non-profit human service organizations (Cammunity Service
Projects) and funds capital projects including low-income housing
(Community and Neighborhood Improvement Projects). Over the past
dacada, the CD Program has grown significantly in funding level
and scope, becoming a major souzce of support for ongoing
cammunity prograins for the City of Santa Monica.
~i
- 1 - ~`~ `: `'°' ~'~
In the current fiscai year, the CD Program funds over 50 programs
operated by 30 agencies for a total of $6,248,282. The
$4,405,240 for Community Service Projects include lega~
assistance, emergency services, counseling, educational programs,
health care, drug and alcohol prevention, assisted infarmation
and referral, independent living skills develapment, child care
and community organizing support. Additionally, the City
currently funds six Community and Neighborhood Improv~ment (CNi)
Projects for a total of $1,842,042 (including $151,2~0 of priar
year funds) primari~y for hausing development and rehabilitation
efforts.
The City's CD Program currently operates on a two-year grant
cycle. In the funding process for the current fiscal year,
1992-93, projects funded in the prior year were eligible to
reappiy for funding through a simple renawal application. This
process was designed to off~r funding stability ta aqencies
exhibiting continued effectiveness in the delivery of needed
programs.
DiSCUSSION
Most of the currently funded Community DevelapmEnt (CDy Pragrams
have a long histnry of City suppart and each provide an important
component to the effective network of City-funded agencies. In
order t~ ensure the best use of City funds, it is recommended
that the City institute targeted cuts to those programs that
least effectively impact those Santa Monica residents most in
need. This approach will allow the City to continue to provide
the basic operating support fvr effective ongoing co~munity~based
programs in fiscaZ year 1993-94, sustaining a comprehens~ve,
- 2 -
res~ansive and accessible network of human services in Santa
Monica.
Particular emphasis will be placed on program perforntance, level
of service to Santa Manica residents, level af service ta low
income people, impact of city funds on the agency, abiiity to
generate fees or financing to supplant city funds, or delivery of
non-essential programs. City staff make these assessments based
on review af quarterly program and fiscal reports, periodic site
visits to agencies and ongaing work with agencies in community
coalitians and planning efforts. Reco~nmendations about which
programs should be r~newed and at what funding level may result
in the elimination or reduction of some pragrams and may spare
other agencies a deep across-the-board reduction.
In ordinary circumstances, fiscal year 1993-94 would represent
the beginning of a new two-year funding cycle with agencies
competing for funding in a new Request for Proposal (RFP)
process. In light af the cu~rent fiscal constraints affecting
both the City and non-profit organizations, City staff recommend
extending the renewal pracess described in the previous section
to allow currently funded non-profit arganizations a streamlined
pracess for requesting funds in the next fiscal year, 1993-94.
Given that the City may need to reduce the current level af
funding ta Community Development Programs, organizations would
not be able to apply for new program funding. Recommended
funding levels for current CD Program grantees will be included
in the proposed budget submitted to City Council for approval in
June, 1993.
- 3 -
Proposed FY1993-94 Fundinq Rationa~e
The broad goals established far the CD Program to be carried on
to FY93-94 wauld include:
(1) To pravide support to a wide range of community and
human services in order to sustain or enhance the
quality of ~ifa for residents of the 5anta Monica
cammunity;
(2) To support important capital pr~jects that benefit
3ow-income residents and neighborhoods, prioritizing
the maintenance of support to affordable housing
programs;
(3) To remove any remaining obstacles to service for
significant sec~nents of the commun~ty that are
traditianally underserved--including low-income and
minority residents and persons with disabilities;
(4) To provide funding stability to effective, proven
agenci~s that deliver these servic~s; and
(5) To leverage City resaurces with funds from other
saurces thus lendinq to a diversified funding base and
increased self sufficiency for City funded service
praviders.
Funding requests for fiscal year 1993-94 would be evaluated
according to these goals along with the minimum eligibility
requirements and selection criteria (see Attachments I and II)
approved for the last two-year Community Development Program
(FY1991-92 and FY1992-93) by City Council in January, 1991, Use
of these criteria to guide funding recommendatians is critical as
City resources are being raduc~d. The provision of effective and
responsive services ta people most in need will }ae a key
determinant of FY93-94 funding levels.
In addition, while there will be no new City funds in the coming
fiscal year, the City will continue to encourage and suppart
collaborative effarts for local non-profits ta meet emerging or
unmet critical needs and to continue to plan for future
- 4 -
improvements in thQSe areas where gaps in service still exist.
Th~ ability of any City-fun~ed program or project to be
responsive to changinq community needs will be important in these
ti~es of reduced resources.
Additianal reductions to the level of the City's General ~und
suppart may come from an increase in next year's Community
Development Block Grant (CDBG) entitlement award. The CDBG
entitlement award is projected to increase by approximately
$130,000 (10% increase} far a total of $1,420,857.
BUDGETARY~FISCAL IMPACT
The praposed Funding Rationale outlined in this staff report does
not have an immediate budgetary impact. The Funding Rationale
will provide a guide for funding recommendations within the CD
Program. Specific funding levels for the fiscal year 1993-94 CD
Program will be included in the proposed budget to be submitted
far Council action in June, 1993.
RECOMMENDATION
C~ty staff recor~End that the City Co~nci~ receive pub~ic comment
on the proposed FY93-94 Funding Rationale; approve the Funding
Rationale and direct staff to prepare recommended funding levels
for CD Program grants as part af the FY93~94 City budget.
Prepared By: Susan McCarthy, Director
Julie Rusk, Acting Manager
Community and Neighborhoad Services Division
Cultural and Recreation Services Department
Attachments:
Attachment I- CD Program, Community Service Prajects,
Minimum Eligibility and Se~ection Criteria
Attachment II - CD Program, Community and Neighbarhood
Improvement Projects, Minimum Eligibility and
Selectian criteria
- 5 -
ATTACHMENT S
COMMUNITY DEVELOPi"iENT PRDGRAM
COMMUNITY SERViCE PROJECTS
MINIMUM ELIGIBILITY AND SELECTION CRITERiA
In January 1991, the City Cauncil ap~aroved the fo~lowing minimum
eligibility requirements and selectian criteria to guzde funding
recommendations and decisions fQr Community 8ervice Programs of
the Community DEVelopment grants pzogram.
Minimum Eligibility Requirements
(a) The applicant has non-profit, tax-exempt status
under Section 501(c) (3} of the Internal Revenue
Service Cade of Sectzon 2370~(d} af the California
S~ate Fz-anchzse Tax Code at the time af
application.
(b) The applican~ is zn compliance with the Civil
Rights Act of 196~ and the Rehabilitation Act of
1973, as amended, which bars discrimination in the
hzr~.ng o~ staff or pro~~sion of se~vices on the
baszs of race, raligion, sex, age, nationaZ origin,
disabilities, A~DS, political affiliat~on or
beliefs, or sexual preference; and provides
assurances that it wiil comply with all Federal and
local prov~sions r~garding politicai and lobbying
act~vity.
(c) The appl~cant is a private, non-profzt organization
located in or serving Santa Monica ax provides a
~ationale for expanding services to Santa Monica.
A1~ City ~unds and match ~o City funds, must be
utilized for services to people l~ving in Santa
Monica.
(d) The applicant has formal appzoval of its Board of
Directars to submit a proposal far C~ty support.
~e) The applicant must be currently funded by the City
of Santa Mnnica t~roug~ the Com~unity Develapment
Program, unless the app3.i.cant is submitting a
p~oposal for Child Care or AIDS funding.
Se2sction criteria
Each e1a.q~b~e p~o3ect will be assessed accord~ng to the
extent the organizat~on:
(a? addresses a need that is clearly documented;
- 1 -
(b~ provides effective and responsive services to
clients mvst in n~ed;
(c) if a curr~nt City qrantee, meets the specific
proqram performanca standards for FY92-93;
(d) provides a high ~e~el of access to services
including apprapria~e geographic location and haurs
of operation, physicaZ accessib~~ity, bilingual
capacity, and cultural sensitivity;
(e} effectively serves minarity, no- and low-income,
and residents with disabilities;
(f} does nat duplicate services, rather coordinates and
cvllabarates with other agencies, resulting in
improved diract Se~Vices d~livery and elimination
of unnecessary service duplicatzons;
(q} has a procedure for cont~nually evaluatinq program
effectiveness and proposes program improvements as
necessary;
(h) prov~des a minimum af 25~ of the total budge~ for
the Santa Monica program from non-City sources,
thus land~ng ta the financial sta~ility and the
abi~ity to sustain itself as part of the cammunity
services network;
(i} provides a cost-effective budget that is consistent
with the amount af service pravided ~o Santa Monica
residents;
(j) demonstrates fiscal and adm~nistrative capacity
which supports and enhanees pragram effectiveness
and the ability to meet program goals;
(k) exhibits a high level of commun~ty suppart through
its ability to retain a broad-based Board af
Directors and to procuxe community resources (e.g.,
fundrazsing, use of volunteers, donated services).
JR:iifral
_ ~ _
ATTACHMENT ~I
COMMUNITY DEVELDPMENT PROGRAM
COMMUNITY AND NEIGHHORHDOD IMPROVEMENT PROJECTS
MINIMIIM ELIGIBILITY AND SEL£CTION CRITERIA
In January 1991, the C~.ty Council approv~d the fallowing minimum
e~igibility requirements and selection criteria to guide funding
recommendations and decisions ~or the Community and Neighborhood
Improvement Pro~ects of the Community ~evelopment grants pragram.
Minimum Eliqibility REquirements
o The applicant has nan-prafi~, ~ax-exempt status under
Section 501(c) {3) of th~ ~nternal Revenue Servkce Code
or Section 23701(d) of the California State Franchise
Tax Code at the time o€ application.
o The appl~cant ~s in campliance w~th Title VI of the
Czvil Rights Act of 1964 and Section 504 of the
Rehabil~tation Act af I973, as amended, wh~ch bazs
dzscrimination in the hiring of staff. ar ~hat persons
be denied the }aenefits of, or be excluded from the
participation in provision of services on ~he basis of
race, relag~.on, sex, age, national origin, disab~.lities,
AIDS, political affiliatian or beliefs, or saxual
preference; anc3 prov~des assurances tha~ it wi11 comply
wlth all Federal and ~ocal provzsions regarding
pol~tical and lobby~ng activity.
o The applicant is a prlvate, npn-prof~t organizatian
located in or serving Santa Monica.
o The ap~licant has formal approval of its Board of
Directors to submit a proposal for C~ty support.
o If the project is ta be implemented by an outside
agency, the agency meets th~ basic e~igibil.~ty
requirements for grantaes l~.sted above.
o The pro7ect primarily beneflts low and maderate income
persons by ensuring ~hat at least 5~~ of the populata.on
of the praject area benefzted by ~he project are low and
moderate income persons.
o The pra~ect meets federal eligibility definitions for
C~BG-fur-ded pro~ects.
Seleatian Criteria
- i -
Each eligible project wzll be assessed according to the extent to
which:
o the pro~ect will resu~t in long-te~m benefi~ to law and
moderate income residents;
o the pro~ect provides evidence that the proposed program
or project daes not duplicate othe~ programs or pro~eets
in the ca~munity;
o the proposad funding structure leverages City funds with
non-City funds;
o the project shows lo~g-term potential for a cash return
on the CDBG investment and does nat require ongoing CDBG
ar government support for mainte~ance;
o if the project is to be impie~ented by an outside
organizat~on, ~he proposal application ~nc~udes
d~cumentation of current administrative capacity to
~mplement community dev~lopment projec~s and to sustain
the pro~ec~ aperations throughout the life of the
pro~ect, as weil as experience with s~milar
government-assisted programs;
o the imple~en~ing agency presEnts a program that includes
bQth administratzve procedures and a viable
implementation plan for t~mely execution of the project;
o~f a currently-funded pra~ect, the agency requesting
funding fully justzfies additzonal support based on
tlmely expenditure of curren~ly appropriated funds;
o the projec~ clearly identifies its Santa Manica target
populatian and documents community need;
o the pro~ec~ wi~l effectively outreach and serve
minority, low-income and residents with disab~l~~ies and
oth~r groups most in need of services;
a the implementing agency is guided by an active,
broad-based Board of ~irectors with evidence of
providing appropriate leadership to the organization;
o the ~mplementing aqency propases a budget that ref lects
cast-effectzve administrative and pro~ect activities.
In additian, due to the specific nature of the projects e3igib~e
for funding, add~tzonal cr~teria will be applied as fol~~ws:
Housinq Rehabilztation Proqrams
a The propased progxam conforms to HUD program performance
standards with an administrative cost cap of 15~ Qf the
total funds requested.
~ 2 _
Ona-time Houszng Projects
o For one-time housing acquisition/rehabilitation or new
canstruction prajects, the total praject cost is
reasonable a~d the subsidy request does not exce~d
$40,a04 per unit.
o The project is located in the City of Santa Monica.
o The project benefits at ~east 7~~ low and moderate
income househoids.
o The project involves no permanent involuntary tenant
displacemen~.
JR:iifra2
- 3 -