CITY COUNCIL STAFF REPORT
February 4, 2025 {{section.number}}{{item.number}}
EXPEDITED COMMUNITY GRANT PROCESS AND RELEASE OF FISCAL YEAR 2025-26
COMMUNITY GRANT APPLICATIONS
RECOMMENDATION:
Consider the proposed Expedited Community Grant Process and authorize the release of Fiscal Year (FY) 2025-26 Community Grant applications.
BACKGROUND:
Since 2000, the City of Coronado has awarded grants to local non-profit organizations to support activities in Arts and Culture, Community Pride/Sense of Place, Economic Development, and Social Services. In FY 2024-25, the City Council received $1,831,934 in grant requests and awarded $1,075,000 to 33 unique programs across 23 organizations.
On May 7, 2019, the City Council adopted Policy No. 28 – Community Grants, which established formal guidelines for the program. Each year, the City Council reviews Policy No. 28 and draft program documents before releasing the notice of available funding to eligible community organizations.
The Community Grant Program is functioning effectively, and Policy No. 28 serves as a wellestablished framework for achieving the program’s objectives. However, administering the program requires significant time and effort from both City staff and applicants. Staff estimates that approximately 250 hours are spent on grant administration annually between January and July each year, with the workload peaking from March to May, when one staff member dedicates approximately 16 hours per week to the program. In addition to the substantial staff time investment and opportunity cost, the City has received comments from applicants regarding the high level of effort to apply, particularly for established annual events and programs.
This year, staff is not proposing any changes to Policy No. 28. Instead, staff is proposing to try an expedited Community Grant process for FY 2025-26. The expedited grant process was designed to streamline the application and review process, improve efficiency, and maintain responsible stewardship of City resources. Staff recommends consideration and approval of the expedited framework but is not requesting approval of the example funding strategy found in Attachment 2 at this time. Funding allocations will be determined at a later date.
ANALYSIS:
The following analysis outlines the proposed framework for the FY 2025-26 expedited Community Grant process.
Grant Categories
Staff classified the awarded grants into five distinct categories based on award trends observed in recent years. These categories reflect the programs that consistently receive funding and serve as the foundation for the proposed process.
Grant Category Definition FY 2024-25 Distribution
of Awarded Funds
Major Special
Event
A grant consistently awarded to support major
special events that promote the community's identity. 25.85% (5 programs) Recurring A grant awarded for the same program or initiative for at least three consecutive years. (since FY 22-23) 62.88% (22 programs) Emerging A grant awarded for the same program or initiative for two consecutive years. (since FY 23-24) 4.77% (2 programs) Standalone A grant awarded for a one-time event or program. 2.32% (2 programs) New A grant awarded for the first time in FY 24-25. 4.19% (2 programs) The “Major Special Event” and “Recurring” categories represent consistent, annual and established events and programs. When combined, the categories encompass approximately 89% of funding and 82% of awarded programs. These grants remain relatively static in scope yet the grant request but must undergo the same rigorous process as new programs each year.
The “Standalone”, “New” or “Emerging” categories encompass 6 programs and just over 11% of funding.
A detailed breakdown of the FY 2024-25 grant awards into these categories is provided in Attachment 1.
Proposed Renewal and Funding Strategy
The expedited process entails the automatic renewal of certain FY 2024-25 grants at varying funding levels alongside a modified grant application process for other grant categories. a) Proposed for Automatic Renewal:
Grants in the Major Special Event, Recurring, and Emerging categories are proposed for automatic renewal for FY 2025-26, provided grantees continue to deliver the approved events or services and confirm their intent to receive funding by submitting a letter of intent to the City Manager’s Office. Staff will verify that all nonprofits slated for automatic renewal meet the legal requirements to operate in California using the California Secretary of State Business Search and the California Attorney General Registry Verification Search.
The proposed automatic renewal levels are as follows:
Grant Category Proposed Funding
Level Rationale for Proposed Funding Level
Major Special
Event Grants
100% funding of prior
year's allocation
Aligns with City Council’s past actions to maintain
consistent or slightly increased funding for major
community events.
Recurring
Grants
90% funding of prior
year's allocation
Supports established programs while aligning with
Council’s priority to gradually reduce funding, creating opportunities for new applicants and encouraging financial diversification.
Emerging
Grants
80% funding of prior
year's allocation
Balances support for developing programs while
encouraging organizations to diversify funding sources
and prepare for Recurring Grant eligibility.
b) Mini-Grants:
Grants in the Standalone and New categories will not be eligible for automatic renewal.
Instead, remaining funds from these categories, along with the fiscal year's allocated grant budget, will be reopened for discrete mini-grants.
Mini-grants will follow the regular grant timelines and calendar, with applications opening on February 15 and closing on April 15. They will be available to organizations that previously received Standalone or New grants, as well as other eligible organizations. Applications will be capped at $15,000, with a limit of one application per organization. While the application format will be modified for simplicity, applicants will still be required to submit all documents outlined in Policy No. 28. Once the application period closes, staff will evaluate the submissions to confirm eligibility and alignment with the category goals and requirements.
Neither independent grant readers nor the Cultural Arts Commission will be engaged in the review process.
An example of the proposed funding strategy applied to the FY 2024-25 awards is outlined in Attachment 2.
Prior to the allocation of funds, staff will prepare a comprehensive recommendation that includes both renewal grants and mini-grants. Priority consideration for mini-grants will be given to past grant recipients and programs. Final funding determinations will be made by the City Council at the second regular meeting in June, during which the City Council will have discretion to reallocate funds as needed. Depending on the number of mini-grant applications received, it is anticipated that there may be a surplus of funds available for the Council to distribute.
Following the June City Council meeting, staff will finalize and update grant contracts as needed and oversee the distribution of funds beginning July 1, 2025.
Next Steps
If the City Council chooses to move forward with the expedited process, the City Manager’s Office will notify all FY 2024-25 grant recipients about the program changes. The modified minigrant application will be made available online starting February 15, 2025, with additional information and resources provided on the City’s website.
FISCAL IMPACT:
Per City Council Policy No. 28 – Community Grants, FY 2025-26 grant funding will be set at 1.40% of General Fund revenue. The proposed expedited process will not result in a direct fiscal impact to the City.
The expedited grant process will produce savings of staff time to the City. Efficiencies gained with this approach are estimated to save 140 hours of staff time that can be applied to other priorities and projects.
ALTERNATIVE:
The City Council could suggest alternative framework or could decide to not adopt the expedited process for FY 2025-26.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Not applicable.
PUBLIC NOTICE:
No notice required, but all FY 2024-25 grant applicants were notified via email of this item.
ATTACHMENTS:
1. Grant Category Analysis
2. Example Funding Strategy
3. Policy No. 28
Submitted By: City Manager’s Office / Kelli Maples