DATE: SEPTEMBER 1, 2026
DEPARTMENT: ADMINISTRATION
FROM: LISA MURPHY, ASSISTANT CITY MANAGER
BY: NATHAN KIEU, ECONOMIC DEVELOPMENT DEPUTY DIRECTOR
CRYSTAL CASILLAS, BUSINESS NAVIGATOR
TITLE: MEMORANDUM OF UNDERSTANDING WITH UNITED WAY OF MONTEREY COUNTY FOR THE FINANCIAL EMPOWERMENT CENTER RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the following:
Delegating authority to the City Manager to execute a two-year service provider agreement with United Way of Monterey County (UWMC) to operate the Financial Empowerment Center (FEC) beginning September 1, 2026; Delegating authority to the City Manager, or designee, to pursue, accept, and execute all necessary documents, including a Memorandum of Understanding with the Cities for Financial Empowerment (CFE) Fund for up to $150,000; Authorizing an expenditure appropriation and corresponding revenue appropriation for the CFE Fund implementation grant, General Fund contribution, and the Community Development Block Grant (CDBG) allocation supporting the program.
EXECUTIVE SUMMARY:
The City of Salinas is seeking authorization to launch a Financial Empowerment Center (FEC) to provide free, professional financial counseling services to residents. This item approves a two-year service provider agreement with United Way of Monterey County (UWMC) to operate the program, pursue future funding and execute a Memorandum of Understanding with the Cities for Financial Empowerment (CFE) Fund for a $150,000 grant, and appropriate Community Development Block Grant (CDBG) funding.
The FEC is part of a national model focused on improving financial stability through services such as debt reduction, credit building, and savings support. Approval of this item will allow the City to move forward with final implementation steps and formally establish the program services. The service agreement with UWMC will be effective September 1, 2026, with client services anticipated to begin in January 2027.
BACKGROUND:
The City of Salinas has been participating in the Cities for Financial Empowerment Fund (CFE Fund), Financial Empowerment Center (FEC) initiative since 2024. The FEC model provides free, professional, one-on-one financial counseling services to residents and is designed to help individuals improve financial stability through credit building, debt reduction, banking access, savings growth, and financial goal achievement.
In September 2024, the City began participating in informational sessions hosted by the CFE Fund and was subsequently invited to join the FEC Academy. The Academy is a 15-month planning and technical assistance program that supports local governments in evaluating, designing, and preparing for the launch of an FEC.
In January 2025, the City advanced to Phase 2 of the Academy and received a $20,000 planning grant to support the development of an implementation strategy for an FEC in Salinas. Throughout the planning process, City staff worked closely with the CFE Fund, community stakeholders, and local service providers to assess community needs, identify referral partners, develop operational plans, and establish a sustainable service delivery model.
The City issued a Request for Proposals on March 11, 2026, with a submission deadline of April 22, 2026, to identify a qualified community-based organization to operate the program. As a result of this process, in May 2026 the City identified United Way of Monterey County (UWMC) as the lead community-based organization to operate the FEC. UWMC currently serves as a regional convener and provider of financial stability services and will host and manage the delivery of financial counseling services through the FEC model. Services will be integrated with existing community resources to improve access for Salinas residents and support broader economic mobility goals.
Upon successful completion of the Academy, the City became eligible to enter into an implementation agreement with the CFE Fund. Through this agreement, the City can receive up to $150,000 in grant funds over a two-year period, with a commitment by the City to match the funds to support the launch and operation of the FEC. To satisfy the $150,000 in matching fund requirements, the City proposes to use a combination of existing Community Development Block Grant (CDBG) funding, potential federal and state grant funding, philanthropic support, and possible contributions from financial institutions. Future sustainability of the program will depend upon availability of funding.
As part of the implementation phase, the City will also reconvene and formalize an Advisory and Funders Group, which is intended to support ongoing program governance, strengthen cross-sector coordination, and assist in maintaining and expanding diversified funding partnerships over time. This structure aligns with best practices within the FEC network to ensure long-term program sustainability and alignment with community and partner priorities. Approval of the recommended actions will allow the City to formally launch the FEC, execute the required implementation agreements, and begin client services in January 2027.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
Yes.
STRATEGIC PLAN INITIATIVE:
This partnership supports the following 2025-2028 Strategic Goals:
Goal 1.4: Strategically explore and expand economic development opportunities throughout the City.
Goal 5.5: Increase collaboration with partner agencies to address public safety public health issues.
DEPARTMENTAL COORDINATION:
Administration and Economic Development Division staff worked with the Community Development Department to develop Phase 2 planning efforts and will continue to work together in the implementation phase of this project.
FISCAL AND SUSTAINABILITY IMPACT:
The estimated annual program cost is $452,625 for Year 1 and $440,625 for Year 2, for a total two-year cost of $893,250. Year 1 funding is fully identified through a combination of CFE Fund implementation grant funds ($100,000), unexpended CFE Fund planning grant funds ($20,000), CDBG funds ($30,000), City administrative support in-kind ($19,562), General Funds ($21,000) and United Way of Monterey County in-kind contributions ($262,063), totaling $452,625.
Year 2 funding has not been fully identified. United Way of Monterey County has confirmed its in-kind contributions of $262,063 will continue into Year 2, along with the remainder CFE Fund grant ($50,000), and City administrative support in-kind ($19,562), totaling $331,625 in Year 2. This leaves an estimated Year 2 funding gap of approximately $109,000. The City and United Way of Monterey County will work collaboratively during Year 1 to secure additional public, philanthropic, and private funding to sustain the program.
Fund
General Ledger Number
(Operating/CIP)
General Ledger Account Name
Remaining Budget Appropriation
Amount Requested
2910
2910.30.3240-63.5010
Outside Services Professional Services
$218,620
$30,000
1000
1000.12.1355-63.6010
Outside Services Other Outside Services (prior year CFE contribution) $0
$20,000
1000
1000.12.1355-63.6010
Outside Services Other Outside Services
$55,000
$21,000
CFE Grant
1000.12.1355-63.6010
Outside Services Other Outside Services (current year CFE contribution) $0
$100,000
City In-kind
TBD
TBD
$0
19,562
United Way In-kind
TBD
TBD
$0
262,063
ATTACHMENTS:
Resolution
Service Agreement with UWMC
Stakeholder Map
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