Presenter/Contact
Presenter
Jared Werner, Chief Financial Officer
Contact Info
(830) 221-4385 - JWerner@nbtexas.org
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SUBJECT:
Title
Discuss and consider approval of funding recommendations for the COVID-19 Nonprofit Business Interruption Grant Program, administered by the McKenna Foundation on behalf of the City of New Braunfels, and supported by U.S. Department of Treasury, Coronavirus Relief Fund grant funds.
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BACKGROUND / RATIONALE:
The City of New Braunfels has been fortunate to receive a special allocation of funds from funding available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act established the Coronavirus Relief Fund (“CRF”) which is managed by the U.S. Department of Treasury, and administered for the City by the Texas Division of Emergency Management (“TDEM”), to cover expenses by State, Local, and Tribal governments, including economic support to “those suffering from employment or business interruptions due to COVID-19-related business closures.”
As such, on October 12, 2020, City Council approved a contract with the McKenna Foundation (“McKenna”) to administer a COVID-19 Nonprofit Organization Business Interruption Grant (“grant program”) on behalf of the City to support nonprofit organizations who have experienced business interruption as a direct result of COVID-19. Eligibility requirements included 501(c)(3) nonprofit organizations who are physically located in and/or specifically providing programs and services to residents of the City of New Braunfels and have demonstrated financial hardship caused by COVID-19. The program as approved by City Council on October 12 is designed to give priority to agencies that experienced a business interruption and have seen a surge in the demand for their services.
Competitive applications were released on October 19 and were accepted until November 1. Responses were received from 29 local nonprofit agencies and after an initial review by McKenna, all eligible applications were evaluated by a Council-approved committee consisting of three City staff members and a member of the City Council, with the assistance of the McKenna Foundation acting in an advisory capacity.
After extensive review and discussion, the committee developed funding recommendations based upon factors such as the following:
• Type of service provided to the community e.g. does the organization operate services and programs for vulnerable residents, meet other community needs such as community enrichment, or provide episodic fundraising support for a specific purpose?
• Service response to the COVID-19 public health emergency e.g. did the organization have to adapt to meet greater demand, adapt to maintain services, experience a forced reduction and/or mandatory closure, or pause activities?
• Percentage of programs and services provided specifically to New Braunfels residents.
• Net cash surplus or deficit e.g. how do the organization’s revenues and expenditures compare during the timeframe of March 1, 2020 to September 20, 2020 to the same timeframe during 2019?
• Estimates of future financial impact e.g. fundraising losses such as the cancellation of planned events and annual appeals, and/or the continuation of unprecedented expenses caused by COVID-19.
• Other factors such as the availability of funding and past/current experience with the City.
With all the previous factors taken into consideration, the committee recommends the following grant awards to nonprofit organizations in an effort to best support the residents of New Braunfels:
All of the non-profit agencies listed had a different financial position and/or outlook going into the pandemic. For many of them, the greatest fiscal and service demand challenges have yet to come.
Upon receipt of City Council approval, the City will provide the awarded funding to the McKenna Foundation to then distribute to the awarded organizations by approximately December 4, after subrecipient contracts have been fully executed.
In accordance with CRF grant requirements, the City will must submit a reimbursement request for the full cost of the grant program to TDEM no later than December 13, 2020.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
Strategic Priorities: |
20. Protect the integrity of our neighborhoods. |
FISCAL IMPACT:
There is no direct fiscal impact to the City. The program is fully supported by federal dollars.
Recommendation
COMMITTEE RECOMMENDATION:
The grant program advisory committee has approved the above-referenced recommendations for City Council consideration.
STAFF RECOMMENDATION:
Staff recommends approval of funding recommendations for the COVID-19 Nonprofit Business Interruption Grant Program, administered by the McKenna Foundation on behalf of the City of New Braunfels, and supported by U.S. Department of Treasury, Coronavirus Relief Fund grant funds.