22/09-24
CITY OF SIMI VALLEY
MEMORANDUM
September 23, 2024
TO: City Council
FROM: Office of the City Manager
SUBJECT: APPROVAL OF FUNDING TO SUBSIDIZE THE SENIOR NUTRITION PROGRAM FOR FISCAL YEAR 2024 -25 AND APPROVAL OF A
SUPPLEMENTAL BUDGET REQUEST IN FUND 122 WITH AN
INTERFUND TRANSTER TO FUND 100
STAFF RECOMMENDATION
It is recommended that the City Council approve $267,000 to subsidize the Senior Nutrition Program and approve a supplemental budget request in the Contingency Fund (Fund 122) with an interfund transfer to the General Fund (Fund 100) to maintain current meal service levels for Fiscal Year 2024-25.
BACKGROUND AND OVERVIEW
In January 2005, the Simi Valley City Council adopted Resolution No. 2005 -5 to enter into a contract with the Ventura County Area Agency on Aging (VCAAA) to assume operations of the Congregate (onsite lunch) and Home Delivered Meals , also known as Meals On Wheels (MOW), nutrition programs. Since then, the City has managed the program with grant funds covering operating expenses, including staff and non-food supplies, and VCAAA has paid for all food costs. Recently, the County of Ventura was reorganized so that the Ventura County Human Services Agency would oversee VCAAA. In April 2024, the Ventura County Human Services Agency, Area Agency on Aging (VCHSA -AAA) informed the City that funding for the senior nutrition program would be reduced for FY 2024-25.
The Senior Nutrition Program is funded by the federal Older Americans Act (OAA) allocated to counties by the State of California . Despite slight increases in Older Americans Act funding over the last several years, increased demand due to the aging population, and the drastic increase in the cost of food since the pandemic, funding has not kept up with demand . The pandemic led to increased demand, and while federal COVID-19 funding and programs were introduced to address this increased demand, those financial resources are no longer available . Despite the absence of additional financial support, the demand persists.
FINDINGS AND ALTERNATIVES
Historically, the Senior Nutrition Program grant allocated to the City of Simi Valley has fully subsidized the costs related to operating expenses, not including the amount paid directly by the VCHSA-AAA for food-associated costs. In FY 2023-24, the City received $269,994 in grant funds for the nutrition program, allowing the City to serve 71,824 meals
AGENDA ITEM NO.
Consent (4)
2 22/09-24
at an average cost of $3.75 per meal. However, in April 2024, the City was notified that for FY 2024 -25, the grant would be reduced by $8,244 to $261,750 for operating expenses and a food budget of an equal amount of $261,750 that is managed by the county, while the cost per meal has nearly tripled and risen to approximately $9 , per VCHSA-AAA. At an average cost of $9 per meal, with the grant funding available, the City can only serve 29,083 meals annually, representing a 50% reduction in service.
As contractually obligated, the City may only order supplies and meals from any of the County procured vendors, at the agreed-upon price of the County’s contract with each vendor. Furthermore, all menus, meals, and recipes must be reviewed and approved by the VCAAA Registered Dietician. As a result, the City’s ability to find more cost-effective meals to serve more clients is restricted and limited.
Since being notified of the reduction in grant funding earlier this year, the City has not removed any participants from the MOW program; however, as people have left the program, no new clients have been added. Additional actions taken in response include discontinuing the “Grab and Go” option for congregate meals and extra weekend and holiday meals for MOW clients. As a result of these changes , the MOW program has been reduced to 135 meals per day, down from 173 meals per day in May 2024 when staff began to take measures to reduce service levels. There are currently 85 clients on the M OW waitlist, awaiting further funding to address their needs. The congregate program currently provides approximately 100 meals per day. To sustain the current service levels of 235 meals (135 MOW and 100 Congregate) per day for 250 service days annually, the City would require $528,750 (235 x 250 = 58,750 x $9) in total funding.
Program Meals per
day
Number of
service days
Annual meals
per program
Cost
per
meal
Annual cost
per program
MOW 135 250 33,750 $9 $303,750
Congregate 100 250 25,000 $9 $225,000
Total 235 250 58,750 $9 $528,750
This represents a $267,000 shortfall compared to the available budget ($261,750).
Should service levels be restored to those in May 2024 (273 meals per day), the funding deficit would increase to $352,500 if food costs remain stable. Staff continues to explore innovative ways to maximize grant funds by finding cost-effective ways to reduce the price per meal while still complying with grant-mandated dietary guidelines. Without additional funding, the City will need to reduce service levels by nearly 50% to ensure the nutrition program does not end FY 2024-25 with a deficit.
Simi Valley has the largest nutrition site in Ventura County, serving 71,824 meals in FY 2023-24. The second largest is the City of Oxnard, which served 46,000 meals during the same period, and experienced a $350,000 shortfall. The Oxnard City Council approved $350,000 from Measure O funds (a one-half cent sales tax approved by Oxnard voters in 2008) to supplement their grant to maintain their service levels for FY 2024-25.
The other Ventura County meal sites are employing various measures to address the budget shortfalls. The Cities of Fillmore and Moorpark will be monitoring programming costs closely and will consider absorbing personnel costs , which have previously been funded by grant funds, if service demands and costs persist. Senior Concerns and HELP of Ojai have been able to avoid service reductions by supplementing with grant funds, or 3 22/09-24
with funds from private donations and fundraising events. The City of Port Huen eme, which only offers a MOW program, reduced the number of recipients in their program by approximately 70%. The Camarillo Health Care District has opted to transition to frozen meals for their MOW program, a more cost-effective meal option, and has reduced their service from five days to two days per week. Lastly, the City of Ventura has reduced its Meals On Wheels program by 32% in response to the funding reduction.
Recognizing the need for long-term sustainability, staff will explore and present solutions to the City Council via the upcoming budget process . While this subsidy addresses immediate concerns, a comprehensive program strategy that can adapt to the evolving community needs while ensuring fiscal responsibility is necessary.
The following alternatives are available to the City Council:
1. Approve $267,000 to subsidize the Senior Nutrition Prog ram and approve a supplemental budget request in the Contingency Fund (Fund 122) with a n interfund transfer into the General Fund (Fund 100) to maintain current meal service levels in Senior Nutrition Program for the remainder of Fiscal Year 2024 - 25;
2. Do not approve the funding or supplemental budget request.
3. Provide staff with further direction.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move to approve $267,000 to subsidize the Senior Nutrition Program and approve a supplemental budget request in the Contingency Fund (Fund 122) with an interfund transfer to the General Fund (Fund 100) to maintain current meal service levels for Fiscal Year 2024-25.
SUMMARY
As a result of reduced grant funding, increased demand in service, and increasing food costs, the City is forced to reassess its service capabilities for the Senior Nutrition Program. In April 2024, the City was alerted to a reduction of funding that would limit the number of meals that could be served in FY 202 4-25. As such, staff recommends approving $267,000 to subsidize the Senior Nutrition Program and approve a supplemental budget request in the Contingency Fund (Fund 122) with an interfund transfer to the General Fund (Fund 100) to maintain current meal service levels for Fiscal Year 2024-25.
____________________________________
Samantha C. Argabrite
City Manager
Prepared by: Raquel Wirth, Assistant Community Services Manager