City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01534 12/5/2023 Consent Item 8.
Financial Empowerment Cities Grant Agreement with Cities for Financial Empowerment Fund, Inc.
File ID: 2023-01534
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to:
1) execute the 2023-2025 Financial Empowerment Cities Grant Agreement with Cities for Financial Empowerment Fund, Inc. (CFE Fund); 2) accept the $170,000 in grant funding; and 3) increase the revenue and expenditure budget of the Financial Empowerment Project (I02182000) by $170,000 in the Operating Grant Fund (Fund 2702).
Contact: Amy Williamson, Financial Empowerment Manager, 916-808-1046, [email protected]; Leslie Fritzsche, Community Investment Manager, (916) 808- 5450, [email protected]; Lynette Hall, Community Engagement Manager, (916) 808- 1955, [email protected], City Manager’s Office of Innovation & Economic Development Presenter: None
Attachments:
1-Description/Analysis
2-2023-2025 Financial Empowerment Cities Grant Agreement Description/Analysis
Issue Detail: On February 1, 2020, the City entered into a grant agreement (City contract #2020- 1174) with CFE Fund that has governed the implementation of the City’s Financial Empowerment Center (FEC) initiative, which provides free financial coaching to adult residents of Sacramento through a contract with the Sacramento office of International Rescue Committee. That agreement with CFE Fund ended earlier this year, and on June 27, 2023, the City entered into a new two-year CFE Fund MOU establishing that the City will continue to ensure that the FEC is implemented in alignment with the CFE Fund FEC model and participate in the national FEC network, in exchange for which CFE Fund will continue to provide free access to its FEC program database for the purpose of tracking client participation and outcomes. CFE Fund will also continue to provide technical assistance and other support through the period of the agreement.
File ID: 2023-01534 12/5/2023 Consent Item 8.
Simultaneous to the early and ongoing implementation of the FEC, City staff have sought and implemented other opportunities to promote the financial well-being of Sacramento residents in ways that complement the financial coaching offered through the FEC. CFE Fund also supports such expansion of scope, particularly through its Financial Empowerment Cities (FE Cities) effort. Earlier this year, the City applied and was chosen for the 2023-2025 FE Cities cohort, along with Los Angeles, CA; Shreveport, LA; Dallas, TX; and Albuquerque, NM. This selection includes a $170,000 grant that requires $120,000 in matching funds. CFE Fund has confirmed that funds allocated to FEC budgets qualify for this match requirement. FE Cities grant funds will be used for a community partner engagement process to develop new financial empowerment strategies and initiatives.
Policy Considerations: Acceptance of this grant and implementation of the work will allow the City to expand the scope, scale, and impact of its Financial Empowerment work, which is consistent with the City’s General Plan and the goals of the Office of Innovation and Economic Development. CFE Fund will provide extensive technical assistance around developing, funding, and sustaining new elements of this work.
Economic Impacts: As of October 31, 2023, the City of Sacramento’s FEC has helped 1,176 clients with improving their financial health through achieving goals such as building savings, reducing debt, establishing or improving credit, accessing safe and affordable checking and savings accounts, and receiving emergency financial assistance. New Financial Empowerment programming added through FE Cities is expected to build on this work by helping more households to improve their financial health.
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed actions are not a project under CEQA, consistent with CEQA Guidelines section 15060(c)(3) and 15378(b)(4), because they relate to government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, and CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: While the work of the FEC has led to significant financial health improvements for Sacramento residents, there are other strategies that can boost those outcomes for Sacramentans in supplementary ways. The FE Cities cohort initiative will allow staff to explore these options and will support implementation when possible.
File ID: 2023-01534 12/5/2023 Consent Item 8.
Financial Considerations: Staff recommends increasing the revenue and expenditure budget of the Financial Empowerment Project (I02182000) by $170,000 in the Operating Grant Fund (Fund 2702) to accept the grant award. Sufficient funding is available in I02182000 for the City’s $120,000 match requirement.
Local Business Enterprise (LBE): Not applicable.