Fiscal Note
The proposed resolution authorizes the acceptance of a $20,000 grant from Cities for Financial Empowerment Fund, Inc. by the Community Development Division. The 2019 Adopted Operating Budget for the Community Development Division - Overall Program Administration will be amended to accept the funds and to increase purchased services expense authority to cover costs associated with development of a community-wide financial empowerment strategy.
Title
Authorizing the City to accept a $20,000 grant from the Cities for Financial Empowerment Fund, Inc (known as the CFE Fund) to create a community-wide financial empowerment strategy; authorizing the Mayor and City Clerk to enter into a contract with the CFE Fund to receive funds and implement the project; and amending the Operating Budget of the Community Development Division as appropriate to receive and expend $20,000 in funds to manage and implement the project.
Body
BACKGROUND
The City of Madison’s Community Development Division (CDD) applied and was recently awarded a grant by Cities for Financial Empowerment Fund (CFE Fund), a national nonprofit organization that helps city governments embed financial empowerment work <http://cfefund.org/approach/> into local government infrastructure. This engagement will help the City of Madison identify key financial empowerment issues and goals in our city, and will ultimately result in a Financial Empowerment Blueprint action plan.
CDD applied for this planning grant because low-income families in Madison face many of the same financial pressures as those in the rest of the nation, such as housing instability and lack of access to financial services. Financial instability is often overlooked in Madison because the median income continues to increase each year, however Madison faces significant disparities in housing, employment and other economic mobility indicators. Research shows that access to quality banking services increases economic mobility among families with low incomes, and that families with low incomes but with some savings are more financially stable.
Over the next 6-9 months, CDD will use the technical assistance provided through this planning grant to engage key stakeholders to assist in identifying financial empowerment goals and crafting an action plan to prioritize those financial empowerment goals and identify potential implementation opportunities and resources.
ACTION
WHEREAS, the City of Madison’s Community Development Division (CDD) has applied for and been awarded a $20,000 planning grant from Cities for Financial Empowerment Fund, Inc (CFE Fund), through a grant program referred to as the CityStart Grant, and;
WHEREAS, through the CityStart Grant the CFE Fund will support technical assistance to the City of Madison, led by CDD, to aid in the development of a Financial Empowerment Blueprint action plan; and
WHEREAS, CDD’s 2019 operating budget currently supports economic mobility opportunities such as employment training, financial literacy and other community based programming to support household stabilization; and
WHEREAS, CDD continues to research ways to improve these services and expand economic opportunity through collaboration with other government bodies, nongovernmental funders, educational institutions and financial institutions; and
WHEREAS, CDD will work alongside other City agencies in the development of the action plan to address some of the goals identified in the City’s Comprehensive Plan, approved August 7, 2018 (Res 18-00085), to improve economic mobility for Madison residents.
NOW THEREFORE BE IT RESOLVED that the Mayor and City Clerk are authorized to enter into a contract with the Cities for Financial Empowerment Fund, Inc (CFE Fund) to accept a $20,000 planning grant from the CFE Fund to be used to support an engagement and planning project that will result in a Financial Empowerment Blueprint, and
BE IT FINALLY RESOLVED that the Community Development Division’s 2019 Operating Budget is amended as appropriate to reflect the receipt of the $20,000 grant award and the corresponding expenditure authority.