TO:
FROM:
FOR:
SUBJECT:
Agenda Item No. _
CITY OF YUCAIPA
AGENDA REPORT
Honorable Mayor and City Council
Jennifer Crawford, Assistant City ManagerJC'
City Council Meeting of April 8,2024
Community Activity Grant Program (CAG) Guidelines and Funding Levels for CAG and Non-Department Not-for-Profit Organizations for Fiscal Year (FY) 24125 RECOMMENDATION:
That the City Council:
Approve the CAG Application Review Ad-Hoc Committee recommendation to maintain the current guidelines for FY 24/25 and amend FY 25126 guidelines requiring a l00Yo financial match for all applicants receiving CAG financial awards; and
2. Approve the CAG Application Review Ad-Hoc Committee recommendation to maintain the appropriation of $40,000 for in-kind/fee waivers and increase the appropriation to S20,000 for financial requests for the FY 202412025 CAG cycle; and
3. Approve the CAG Application Review Ad-Hoc Committee recommendation to appropriate funding for FY 24125 to Non-Department Not-for-Profit organizations as outlined in the staff report.
DISCUSSION:
The Community Activity Grant (CAG) program was established in 2010. Council implemented the CAG program to support the efforts of local non-profit 501(c) agencies/organizations that provide valuable services, programs and/or events to Yucaipa residents; ensure that projects/programs that benefit the community were funded; and to enhance the overall accountability and justification of how City funds were spent. The overall intent of the CAG program was not to sustain local ongoing programs or services but to supply the "seed money" to support the creation and launch of new programs, services and/or events in the community.
Since the creation of the CAG program, the guidelines have been reviewed and refined annually, as necessary, by the City Council. The purpose is to afford the City Council with an opportunity to review the CAG program and direct staff as appropriate. The current CAG guidelines adopted by Council for the FY 23124 grant cycle, are as follows:
13 Groups/Programs that are Ineligible
o Organization is not an established 501(c).
o Organization is located in another community.
o New proposed program, service, or event that is already being provided for in the community.
o Program/event will take place in another community.
o Programming for and rental of the Equestrian Center, and the Uptown Park facilities. o Programming for and rental of the Yucaipa Performing Arts Center (YPAC), apart from the Yucaipa High School (YHS) Music and Art Department (production equipment and personnel ineligible).
Requirements and Funding Limitations
o The application must be complete and contain applicant information, amount of request, proof of eligibility, clear statement of need, target population, progftlm description/scope, outcome measurement, applicant background, experience in program area, and financial capabilities/budget is required to ensure grant funds are used to subsidize and not supplant the program.
o The grant program will be reviewed on a yearly basis during the budget process to analyze funding availability for the upcoming fiscal year. If Council determines that the budget priorities have changed and funds need to be reallocated, the grant amount may be increased, decreased, or deemed unavailable for that fiscal year. o Grant applications requesting financial support will have a firm deadline. . Applications will not be considered when grant funds are depleted. o Grant applications requesting in-kind support will be reviewed and considered as received until funds are depleted.
o Grant awarded funds must be spent during the grant awarded fiscal year. o The awarded grant recipients must submit a detailed follow-up financial accountability report within one month following the event/project in order to remain eligible for future funding.
The CAG program guideline options (or combination of options) for Council to consider for FY 24125, include, but are not limited to:
Options:
A. Keep the current guidelines process in place and maintain the funding levels in the amounts of $ 17,500 for financial awards and $40,000 for in-kind/fee waiver awards.
Amend the current guidelines and/or funding levels.
For the FY 25126 grant cycle, require a l00Yo financial match for all applicants receiving CAG financial awards.
Establish term limits for eligibility - Example: If non-profit is awarded grants for three consecutive years the non-profit becomes ineligible for two years.
B.
C.
D.
Eliminate the CAG program and allocate no funding for local, non-profit organizations.
F. Other possibilities, &S may be suggested by Council
City Council direction pertaining to the CAG program guidelines will be implemented during the FY 24125 CAG cycle and funding levels will be included in the FY 24125 Draft Budget. If approved by City Council, the FY 24125 CAG Program will be announced, and applications will be brought before Council in June for review and consideration.
In addition to the CAG, in 2015, the City Council approved allocating funds for certain community organizations through the budget process versus the CAG program since the program(s)/event(s) were held on an annual basis and benefit City services. The community organizations and program(s)/event(s) that are currently funded in the Fiscal Year 202312024 Adopted Budget include:
Non-Department Not-for-Profi t Funding Al locations
E.
Organization Program/Event
Chamber of Commerce Operations
Interfaith Community Support Food for the Needy
City was notified that funding was not needed in FY 25
Cali-Caipa Nooners Lions Club Veterans Day Ceremony
City was notified that Cali-Cipa Nooners Lions Club will no longer be involved in event. A new non-profit is being formed.
YAPS Spay & Neuter Voucher Prog.
FSA Riverside/Moreno Valley Senior Nutrition Prog
FSA Redlands Yucaipa Outreach Prog.
Rotary Club Christmas Parade
Funding
FY
23124
$ 10,000
Proposed
funding-
FY 24125
$ 17,942
$ 3,000
$ s00
0 0
10,000
500$
$ 5,000 5,000
$ 8,500
$ 1,000
8,500
1,000
Contingency 20,000
Total Funding $ 45,942 $45,000
For over twenty-five years, the City has provided financial support to the Chamber of Commerce (Chamber). In addition to the annual financial support, the Chamber collaborated with the City and received a revenue share for securing vendors for City events. For the past seven years, on- going discussions have taken place between the City and the Chamber to ensure organization sustainability and less dependence on City funding. In July 2023, the City and Chamber entered
into a one-year agreement committing the City to $17 ,942 in financial support while the Chamber committed to the development of a comprehensive business plan that outlined strategies for achieving self-sufficiency. In September 2023, the Chamber elected to move out of the YPAC and the Board has been working on a comprehensive business plan and alternative funding sources.
As identified above, funding is not currently being proposed for the Chamber for FY 24125; however, staff recommends allocating a contingency amount of $20,000 for FY 24125 to provide funding flexibility to possibly support initiatives that are being discussed but not finalized at this time.
Community programs funded through the budget process versus the CAG will be included in the FY 24125 Draft Budget for Council consideration.
At its meeting on April 1,2024, the CAG Application Review Ad Hoc Committee recommended the following for City Council consideration and approval:
Fiscal Year 202412025 Budget funding levels:
o $20,000 for financial grant requests
o $40,000 for in-kind/fee waiver requests
o
a Maintain the current guidelines for FY 24125 and amend FY 25126 guidelines requiring a 100% financial match for all applicants receiving CAG financial awards. This option would address the main intent of the program, which is to provide "seed money" to support the creation and launch of new progftrms, services and/or events in the community and provide adequate notice to local organization that traditionally seek financial support. In addition, requiring organizations to match funding for the requested use would free up CAG funding for other proposed programs and/or events.
a Approve the Non-Department Not-for-Profit proposed funding allocations for FY 24125 as outlined in the staff report.
FISCAL IMPACT:
The fiscal impact is dependent on the direction provided in relation to Recommendation 2. and 3. of this item
Attachment:
l. Awarded CAG's 2010 to Current (financial only)
Approved by:
ATTACHMENT I