City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: MARCH 4, 2025 FROM: OFFICE OF THE CITY MANAGER WARDS: ALL SUBJECT: ANNUAL REPORT FOR CALENDAR YEAR 2024 CITYWIDE GRANT ACTIVITIES ISSUE:
Receive and file the Annual Report for Calendar Year 2024 Citywide Grant Activities.
RECOMMENDATIONS:
That the City Council receive and file the Annual Report for Calendar Year 2024 Citywide Grant Activities.
BACKGROUND:
For the last two years, the Office of the City Manager has provided the City Council and the public an overview of external funding activities, including grants, federal entitlements, and earmarks. The role of grants in the City’s fiscal health cannot be understated as external funding adds significant additional resources to Citywide operations. Grants and earmarks add funding that counterbalance existing demands for services that are placed on the General Fund and City enterprise funds. Moreover, grant funding allows the City to offer unique projects and programs that enrich the lives of City residents and maintain high-quality infrastructure. The goal of the City’s grant program is to provide administrative tools to maximize funding for services/projects that the City otherwise might not be able to afford.
In the past several years, virtually every municipal department has submitted specialized grants from small sums to multimillion dollar applications, utilizing various external sources. Riverside’s success in competitive grantsmanship, both at the state and federal levels has been robust. But that is only part of the story, as Riverside has also enjoyed success in funding earmarks reflecting a strong interaction with state and federal officials that has led to funding for compelling projects, such as federally funded renovations of the Armory at Fairmount Park and project development funding for the Northside Agricultural Center.
DISCUSSION:
In CY 2024 the City implemented major grants related process improvements and received approximately $54,980,752 in new grant funds from various funding types including competitive, entitlements, and earmarks.
Table 1. – Year Over Year Comparison of Grant Activity
Prior Year (2023) Grant Activity
Current Year (2024) Grant Activity
Year-Over-Year Difference
Competitive Funded Applications
$172,353,014
$42,686,353
-$129,666,661
State/Federal Earmarks
$4,500,000
$3,664,250
-$835,750
Entitlements
$10,263,053
$8,630,149
-$1,632,904*
TOTALS:
$212,116,067
$54,980,752
-$157,135,315
*Permanent Local Housing Allocation (PLHA) funding from the State of California was not awarded to the City in CY 2024.
The difference in awarded grant activity between 2023 and 2024 is due to the substantial amount of staff time that was expended to implement grant funded projects from past years. In 2023, the City received a record $200 million over 51 grants and earmarks, leading to a considerable investment of 2024 resources toward the implementation of those projects/programs. External funding in prior years has allowed the City to implement a wealth of major projects, including a new Eastside Library, renovations of the Cesar Chavez Community Center, and the 3rd Street Grade Separation Project. Staff is spending considerable time and resources to get previously funded projects implemented. CY 2024 was a transitional year, with substantial new grant activity (e.g., a high number of new application submittals) coinciding with a large push to get past projects implemented.
Process Improvements:
The City Manager’s Office has made ongoing efforts to improve key processes related to grant activities, strategic alignment, internal review, training, tracking, and reporting. New in CY 2024 is the implementation of a major new grants management system for the City. The City’s grant operation has an increasing complexity. Grant activities require constant oversight and monitoring to ensure that grant funds are spent appropriately, that reporting is submitted on a timely basis, and that the City is reimbursed on a timely basis. The new eCivis system, when fully functional, will allow the City to manage individual grants from application, through award, implementation, and closeout. The system will also allow for complete reporting on grant activities for the City. 2024 Grants Overview:
In 2024 the number of citywide grant applications increased to a new high of 65 applications submitted throughout the year. Funding for 50 awarded applications was more modest than in previous years, totaling over $42 million in external funding. The City’s grant completion rate (applications versus awards) was very high, at approximately 77%.
Please note that awards discussed in this report were a combination of grants with initial award notifications or those where funding came online in CY 2024. Grants that are in a closeout status in 2024 were also excluded from this analysis. Individual applications and awards are detailed in Attachment 1.
Table 2. – Competitive Grants Summary
FY 24 Grant Activity
Competitive Apps
Total
Value
Applications
66 $70,203,978
Awards
51 $42,686,353
Funding received through annual grants impacted youth, affordable housing, transportation, climate change, planning, agriculture, library services, and public safety. Some of the outcomes are highlighted below. One-time grant funded competitive project highlights include:
Wildfire Prevention (Boy Scout Camp) $3,084,000 (Sustainability) Citywide Cybersecurity Enhancements $250,000 (Municipal Resources) Zero Emission Vehicles (Dial a Ride) $5,392,073 (Human Services) Signal and Crosswalk Improvements $5,097,690 (Municipal Resources) Street Tree Inventory $1,000,000 (Sustainability) The funding received by the City is comprised of 67% from State sources, 32% from federal agencies, and 3% from the County and private organizations. Also, the City received an approximately 60/40 split of non-competitive, or formula-based, allocations and competitive grant awards.
In terms of comparisons to the municipal General Fund, if the estimated General Fund (FY 2021/22) budget is approximately $367 million, then competitive grant work alone would be 12% of the General Fund, and all grant work (competitive, earmark, & entitlement) would be 14% of the General Fund total. Grant writing makes a substantial additional impact on the funded operations of municipal programs and projects, allowing the City to expand existing services and programs as well as onboard new initiatives that may have otherwise been financially out of reach.
Grant funded programs have real impacts for the City’s residents. Highlights are included in the chart below.
Table 3. – Grant Highlights
Public Works and Transportation
Public Safety
Received $7.5 Million in funds for safety improvements. Development for the Riverside Neighborhood Safety Investment Project includes 16.2 miles of bike lanes, high visibility crosswalks and audible pedestrian push buttons at 85 intersections, ADA curb ramps and high visibility crosswalks at 8 intersections, 0.6 miles of new sidewalks, and 0.9 miles of traffic calming improvements.
Installation of 247 new traffic signal controllers with Leading Pedestrian Intervals.
Conducted field observations, surveys, and meetings with staff at 49 public elementary & middle schools to develop safe routes to school. 679.5 overtime hours worked by detectives and sergeants conducting enforcement activity aimed at reducing illegal sales and marketing of cigarettes and tobacco related products, including e-cigarettes to minors. 639.5 overtime hours worked by officers, conducting education, prevention, and enforcement of laws related to driving under the influence of alcohol & other drugs. 50 members of the community attended the “Ride to Live” motorcycle safety education and training classes conducted by RPD Motorcycle Officers. 17 members of the community attended educational presentations regarding child passenger safety.
Housing and Homelessness
Parks and Community Services
Developed 182 affordable housing units.
Assisted 59 households with homeless prevention.
Hosted 21 events that involved 1,003 volunteer hours in the Arlanza Neighborhood.
Assisted 17 homeless individuals with a security deposit and rental assistance.
Funded 468 businesses with Small and Micro Business grants.
Over 1,000 local seniors attended the Walk with Ease program.
Over 12,445 residents offered swimming lessons or swim passes.
Special Transportation services to medical appointments, workshops, places of employment, shopping trips, and restaurants, for 22,944 people with disabilities and 34,192 seniors over 60.
Also noteworthy are the many agencies, non-profits, and businesses that secure competitive grants throughout the City. The total competitive grant dollars awarded within the City, but not directly to the City, is not currently entirely known and is something the City is looking to track for future reporting.
Appropriations/Earmarks from the State and Federal Budget:
The City also received over $3.5 million in federal appropriations that benefit local infrastructure projects. With earmarks, the City vies with other localities that propose projects. Other supplemental funding that the City received through direct governmental appropriation includes:
Table 4. – State and Federal Appropriations
Projects Budget Appropriations
Grantor
Value
Northside Agriculture Innovation Center
Federal
$2,664,250
Riverside Real Time Information Center
Federal
$1,000,000
TOTAL:
$3,664,250
Although the federal appropriations listed above have cleared subcommittee votes for approval, they have yet to be signed into law as part of a federal budget package and are therefore still pending as funding sources.
Departmental Productivity:
Grants received this year were concentrated in eight departments. These departments, through the hard work of talented City staff, produced a record of funding applications with more modest award amounts. Total funded competitive applications, by department, are detailed below. A complete list of funded competitive applications is included as Exhibit A, which is categorized by municipal department.
Community and Economic Development - $540,000
Human Resources - $1,500,000
Fire - $11,323,097
Housing and Human Services - $1,440,000
Library - $151,907
Police - $1,607,308
Parks, Recreation, and Community Services - $16,590,342 Public Works - $11,578,128
Entitlement Grants:
Entitlement Grants provide annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for low and moderate-income persons. Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities that benefit certain defined populations, such as low-and-moderate-income persons.
The City of Riverside is an “Entitlement Grantee” for the U.S. Department of Housing and Urban Development (HUD) allocations. “Entitlement cities,” for HUD grants are central cities of Metropolitan Statistical Areas (MSAs), other metropolitan cities with populations of at least 50,000, and qualified urban counties with populations of at least 200,000 that are “entitled” to receive annual grants through a formula calculation. HUD determines the amount of each entitlement grant by a statutory dual formula that uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relation to other metropolitan areas.
Strategic investment of HOME Investment Partnerships Program (HOME), Emergency Shelter Grant (ESG), and Housing Opportunity for Persons with AIDS (HOPWA) funds have greatly improved the quality of life for many of the City of Riverside’s extremely low to low-income residents.
Table 5. – Federal and State Entitlement Grants
Grantor
Value
Community Development Block Grant (CDBG)
Federal
$2,777,642
HOME Investment Partnerships Act (HOME)
Federal
$974,100
Emergency Solutions Grant (ESG)
Federal
$251,666
Housing Opportunities for Persons with AIDS (HOPWA)
Federal
$4,626,741
Permanent Local Housing Allocation (PLHA)
State
N/A
TOTAL:
$8,630,149
Community Development Block Grant (CDBG) Program: A Low and Moderate Income (LMI) family of four persons would have a combined household income of approximately $82,000 (and below) in 2024. Over 27,000 LMI persons in Riverside were directly served through Public Facilities, Public Infrastructure, Fair Housing Services, Public Services, and Public Services (Housing) projects/activities completed. Approximately 12,000 LMI residents were assisted with capital project expenditures funded by the CDBG program. Local Non-profits assisted with CDBG funding (FY 23-24) include:
Table 6. - 2024 Awarded Community Development Block Grant (CDBG) Projects and Programs:
Partner:
Project:
Amount:
Arlington Temporary Assistance:
Continuum of Care Assistance
$28,000
Assistance League of Riverside:
Snacks/Lunches for Homeless RUSD Students
$17,000
Big Brothers/Big Sisters of the Inland Empire:
Support Services and Mentorship Program
$11,000
Care Connexxus
Nursing Carre for Frail Elderly and Disabled
$9,000
Catholic Charities San Bernardino and Riverside Counties Outreach Caseworker Services
$14,000
Fair Housing Council of Riverside
Fair Housing Services
$86,515
Girls on the Run Riverside County
Healthy Living and Experienced Based Runing Curriculum
$10,000
Healthy Leaders Thriving Cities
Produce and Dairy Delivery for Seniors
$17,000
Latino Lawyers Association
Legal Expungement Project
$6,000
Inspire Life Skills Training
Housing for Former Foster and Homeless Youth
$16,000
Janet Goeske Foundation
Senior Programming and Services
$15,130
Junior League of Riverside
Diaper Bank
$14,000
Mercy House Living Center
Camp Anza Services
$9,000
Operation Safehouse
Main Street Transitional Living Program
$15,500
Operation Safehouse
Emergency Shelter for Youth
$15,500
Path of Life Ministries
Community Shelter Program
$67,000
Rebirth Homes
Human Trafficking Programs
$12,000
Riverside Rape Crisis Center
Trauma Intervention and Hotline
$17,000
SAFE Family Justice Center
Service for Abuse Victims
$9,000
Transgender Health and Wellness Center
Support Services and Mental Health Care
$17,000
Voices for Children
Court Appointed Special Advocate Program
$11,000
HOME Investment Partnerships Act (HOME) Program: The City allocated HOME to various affordable housing projects, developing 182 units that assisted families, Transitional Aged Youth, homeless individuals, and seniors.
Emergency Shelter Grant (ESG): A total of 44 households received rental assistance and case management through the Rapid-Rehousing Program.
Housing Opportunities for Persons with AIDS (HOPWA) Program: A total of 53 households received Housing Information Services and short-term rent, mortgage, and utility assistance.
California Senate Bill 2, SB 2 established a Permanent Local Housing Allocation (PLHA) Program Fund and authorizes the California Department of Housing and Community Development (HCD) to provide a permanent, ongoing source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. In FY 23-24, the City did not receive PLHA funding but expects to continue receiving an allocation in 2025.
Looking Ahead – The Grants Landscape in 2025:
2025 may be an unprecedented year in grantsmanship, with headwinds ahead that may challenge the City as it continues to be active in new efforts to receive external funding. At the federal level, the unprecedented push to lower federal expenditures and to reconfigure the administrative landscape may impact programs that have previously offered funding in areas that are priorities for the City, such as sustainability. Major federal investments in the near past, such as the Bipartisan Infrastructure Legislation (BIL) do not appear on track for renewal. Given the scope of discussions, it is possible that bedrock federal grant programs may also eventually be impacted, with reduced funding levels, or programs that are suspended for unknown periods of time. The federal budget situation may also impact earmarks and other non-competitive sources of funding.
At the state level, although the California budget may be markedly better than last year, it is anticipated that there will be few new large initiatives, potentially leading to formula cuts across departments. In addition, there may be a large push to utilize traditional grant sources, like the California Cap-And-Trade Fund, to provide wildfire relief in Los Angeles potentially causing some annual programs to go dormant this year. In all cases, City staff will adapt and maximize efforts for external funding.
The City Manager’s Office in partnership with Citywide departments will continue to look for ways to streamline the funding application process and encourage departments to maximize external funding activity, subject to staffing and grant eligibility.
STRATEGIC PLAN ALIGNMENT:
This item aligns the Envision Riverside 2025 Strategic Plan as providing, “High Performing Government,” especially Goal 5.4 to maintain fiscal health by addressing gaps between revenues and expenditures.
This report also aligns with the five cross-cutting threads:
Community Trust – Building grant capacity will serve the public interest by potentially expanding programs and completing projects with external funding; benefiting the City’s diverse populations, and resulting in greater public good.
Equity – Outside funding can be used to allow more City departments to be creative and competitive for grants, resulting in a more equitable distribution of funding opportunity that can reach populations citywide. In addition to grants supporting Citywide operations, City staff also seek grant funding to directly benefit disadvantaged communities and residents in need of aid.
Fiscal Responsibility – The City ensures to maximize outcomes in usage of grant funds as a way to lessen pressure on the General fund and other limited resources.
Innovation – This funding provides the City with the ability to create an innovative program for building capacity with the result in receiving greater external funding.
Sustainability & Resiliency – Riverside builds capacity to allow more departments to apply for grants, and compete for funding that allows the City to adaptively address resident needs.
FISCAL IMPACT:
There is no fiscal impact associated with this report. This is a report that updates the Calendar year 2024 grants and revenue enhancement activities. Specific grant applications and/or projects that require funding appropriations will be brought to the City Council separately for consideration.
Prepared by: Jeff McLaughlin, Grants Administrator
Certified as to
availability of funds: Kristie Thomas, Assistant Chief Financial Officer/Finance Director
Approved by: Edward Enriquez, Assistant City Manager and CFO Approved as to form: Jack Liu, Interim City Attorney
Attachments: 1. 2024 Competitive Grant Awards
2. Presentation
2024 Annual Grant Performance Report ● Page 6