TO:Andrew P. Powers, City Manager
FROM:Jonathan Serret, Cultural and Community Services Director DATE:October 22, 2024
SUBJECT: Community Grant Programs Update
RECOMMENDATION:
1. Adopt resolution revising Community Grants program criteria and guidelines and rescinding Resolution No. 2023-064.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Staff time and costs for coordination and preparation of the resolution and report are included in the Adopted FY 2024-25 General Fund Budget.
BACKGROUND:
In 1985, City Council set aside funds to “provide a benefit for the community through competitive grants to individuals and organizations for services, construction or improvement of facilities, or promotion of the City…” These competitive grants have supported community organizations seeking funding for art and cultural events, environmental projects, facility enhancements and equipment for sports teams, and social services programs.
Although the Community Grant Program was originally established in 1985, the endowment fund reserve to support the Events, Sports, and Social Services grants was not formally established until FY 1999-00. The initial endowment allocation of $6.0 million was increased to $8.0 million in FY 2010-11 to offset declining interest earnings. In FY 1998-99, $2.0 million was set aside in a separate Community Cleanup Endowment Fund to help fund community environmental projects.
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October 22, 2024
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While this method of funding has largely been successful over the years, it has not functioned equivalent to a traditional endowment. Endowments are typically restricted with some percentage of the funds held in reserve and grant funds adjusted annually to allow for fluctuations in interest earnings. However, each grant program has continued to award the same annual allocation. Since the programs were established, none of the four grants has been funded solely through interest earnings. The annual interest shortfalls for the Environmental grants have been supplemented with support from the Solid Waste Fund. The annual interest shortfalls for the Events, Sports, and Social Services grants have been supplemented with support from the General Fund.
In 2018, City Council established the Community Funding Review Committee (CFRC) as a single committee to oversee the Community Grant Programs. In 2021, City Council amended the resolution to streamline grant procedures and changed the names of the grant programs, removing “endowment” and renaming the four grant programs as the Community Environmental Enhancement Grant (CEEG), Community Events Grant (CEG), Community Sports Grant (CSG), and Community Social Services Grant (CSSG). In 2023, City Council further amended the resolution to increase consistency across the four Community Grant Programs.
DISCUSSION/ANALYSIS:
Over the most recently funded five-year period (excludes years when grants were not provided due to the COVID-19 pandemic), the City has granted over $1.6 million to over 100 nonprofit organizations for Environmental Enhancement, Events, Sports, and Social Services. During this period, the City also provided three COVID-response grants: the Rental Assistance Program with $1,000,000 of funding, the Social Services Emergency Relief Program totaling $100,000, and the One-Time Social Services Grant with $965,000 of funding. The COVID-response grants are not included in this Community Grant Program evaluation.
TABLE 1
* For CEG no awards were provided in FY 2020-21, FY 2021-22, and FY 2022-23 Community
Grant
5-Year Period
Budget Allocation
5-Year Period
Total Eligible
Requests
Amount
Awarded During
5-Year Period
% of eligible
requests awarded
during 5-Year Period
CEEG $225,000.00 $251,062.71 $205,100.00 81.69%
CEG* $500,000.00 $683,165.00 $433,883.18 63.51%
CSG** $450,000.00 $392,369.58 $369,572.08 94.19%
CSSG*** $600,000.00 $1,182,721.18 $599,500.00 50.69%
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due to the COVID-19 pandemic. In the most recent funding cycles, FY 2023-24 and FY2024-25, the CEG funded 69.59 percent of eligible requests. ** For CSG, the annual allocation of $100,000 was reduced to $75,000 for FY2024-
25. *** For CSSG, the annual allocation of $100,000 was increased to $200,000 for FY 2024-25.
Table 1 provides a five-year summary of the Community Grant Programs (excludes years when grants were not provided due to the COVID-19 pandemic).
During this period the City granted over 84 percent of all eligible requests submitted for the three grant programs: CEEG and CSG, as well as for post- COVID cycles of CEG.
On December 5, 2023, City Council approved a one-time increase to the CSSG program. The additional one-time funding provided a total budget allocation of $200,000 for FY 2024-25 CSSG grantees to continue providing essential public and social services in the community. The one-time funding increase enabled the City to fund 84 percent of eligible requests in FY 2024-25, compared to 42 percent of eligible requests in the prior four-year period. Staff will continue to explore the possibility of a more permanent funding adjustment and present the concept during the next budget cycle.
The Community Grant Programs are now being administered in the Cultural and Community Services Department. This move allows for more connectivity with the communities served by the grant programs and provides better opportunities for staff to engage with residents. The Community Grant Programs are intended to be responsive to the needs in the community. Staff anticipates returning to City Council as shifts in community needs occur.
Proposed Resolution Changes
The current Community Grant Programs resolution criteria, procedures, and guidelines have been used for one year. Staff and the current CFRC determined minor guideline revisions should be made for clarification, to increase consistency, and to continue to make the process more user-friendly for grantees.
Staff presented the proposed changes to the CFRC on October 9, 2024, to receive their feedback. The response to the changes from CFRC was overwhelmingly positive.
Below is a summary of the changes in the proposed resolution (Attachment #1):
1. The Community Grant Programs will be administered by the Cultural and Community Services Department.
2. Clarifies eligible uses for Environmental Enhancement grant funds.
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October 22, 2024
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3. Clarifies ranking criteria for Social Services grant funds.
4. Specifies that up to 20 percent of the grant award may be used for grant administration for the Social Services Grant, Environmental Enhancement Grant, the Events Grant and that the Sports Grant is not eligible for grant administration.
5. Continues to provide the opportunity to establish specific criteria for future or one-time grants as needed.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
B. Provide municipal government leadership which is open and responsive to residents, and is characterized by ethical behavior, stability, promoting public trust, transparency, confidence in the future, and cooperative interaction among civic leaders, residents, business representatives, and staff, while recognizing and respecting legitimate differences of opinion on critical issues facing the City.
G. Continue City's commitment to community and cultural programs and services (such as Performing Arts/Theatres, Libraries, TOTV, Visual Arts, Youth and Senior Programs).
PREPARED BY: Sarah Mailes, Community Services Analyst
Attachments:
Attachment #1 – CFRC Resolution
CCS: 115-02\H:\COMMON\Community Services\City Council\Council Items\2024 Staff Reports\10222024\ Community Grant Programs Update.docx