PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Approval of an agreement with -------------------the McKenna Foundation for the purpose of providing up to $500,000 from the City’s American Rescue Plan Act funds for additional utility bill assistance programming.
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DEPARTMENT: N/A
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
During the height of the pandemic, the City was fortunate to receive Community Development Block Grant - Coronavirus Relief (CDBG-CV) funds. These funds were utilized by local non-profits to provide a variety of services to low- to- moderate-income individuals and households significantly impacted by the pandemic. A large portion of the funds were provided to support Comal County Cares, an emergency response program administered by Comal County Habitat for Humanity. Comal County Cares provided housing and utility assistance to City residents based on established eligibility guidelines. Comal County Cares is a consortium of local nonprofits that are able to not only administer the housing and utility assistance program but also direct those in need to other programs and agencies that could provide additional public services such as emergency food distribution and mental health support.
For the purpose of augmenting existing utility assistance programs, it is now recommended to partner with the McKenna Foundation for distributing these funds to existing nonprofits. The City was initially going to engage the New Braunfels Community Foundation as the recipient and distributor of the funds; however, after further understanding of the City’s reporting and tracking requirements, the Community Foundation requested that we work directly with the McKenna Foundation. The McKenna Foundation has agreed to fully administer the disbursement and coordination with nonprofit agencies.
By simply injecting these funds into existing programs, eligibility, access and overall impact will be positively impacted. A summary of the existing program offered by the New Braunfels Food Bank as well as examples of how other programs may be expanded is provided below:
Utility Assistance
While New Braunfels Utilities already has a program in place for utility bill assistance through the New Braunfels Food Bank, the current environment suggests that an augmentation/expansion to those efforts could be beneficial to other individuals and families within our community.
To qualify for the existing program administered by the Food Bank, applicants must generally meet the following requirements:
• Actively receive utility service from New Braunfels Utilities
• Generate income less than 125% of the poverty level for their family size
• Display financial hardship or inability to cover utility expenses
As the caption suggests, the City Council could consider utilizing a portion of the American Rescue Plan Act (ARPA) funds to augment the current financial assistance program, providing increased funding that could expand the eligibility for utility assistance. As an example, these funds could be earmarked for citizens who reside within the city limits of New Braunfels but also meet the following criteria:
• Household includes a priority population group including seniors and/or children
• Income exceeds eligibility requirement for the existing programs but have demonstrated financial need
• ---------Need assistance for portions of their New Braunfels Utilities bill that are not eligible for assistance under existing programs
• Can provide verification of financial hardship caused by COVID-19
The McKenna Foundation will not be assessing any administrative costs to support the program; therefore, all funds will directly go to households and individuals most in need of utility assistance.
ISSUE:
To provide additional funds and expand eligibility for utility assistance programming for New Braunfels residents through local nonprofit organizations with utility assistance programs currently in existence.
FISCAL IMPACT:
Funding will be provided through the American Rescue Plan Act to support this additional utility assistance programming. Funds will be provided up to $500,000 as program needs are identified.
Recommendation
RECOMMENDATION:
Staff recommends approval