Explanation
In the Fall of 2019, President Pro Tempore Elizabeth Brown, the Mayor’s Office, and the Columbus Women’s Commission were awarded a CityStart grant from Cities for Financial Empowerment Fund (CFE Fund) supporting the creation of a Financial Empowerment Roadmap to help women and families achieve financial security. Prior to the pandemic, one in four women were financially insecure, with women of color facing disproportionate financial challenges. Women have since experienced higher rates of job loss and slower job recovery than men during the economic downturn of the pandemic, according to the Institute for Women’s Policy Research. Thus, the financial hardships facing women and families in Columbus have only been deepened since early 2020.
With the knowledge that an extreme economic shock such as a global health crisis could have an outsized impact on families already experiencing financial insecurity, CFE Fund developed a new funding opportunity for existing grantees shortly after the pandemic struck. The City of Columbus applied successfully for $80,000 to launch the Financial Navigator program to support families’ increased need for resource navigation during the health crisis.
The City successfully launched the Financial Navigator program in the Fall of 2020 with the partnership of the Legal Aid Society of Columbus and Lutheran Social Services, enabling residents to seek the help of trained financial navigator staff to understand and connect to new and existing federal, state, and local resources intended to support them through financial struggles.
In 2021, Columbus has received support to develop a plan for investing in free, professional, one-on-one financial counseling as a public service to residents through the Financial Empowerment Center model, particularly of need as they deal with the financial impacts of COVID-19. Columbus is one of 35 local governments across the country that are working with the CFE Fund to offer this proven model, developed initially by Mayor Michael R. Bloomberg in New York City in 2008, and has received a grant for $150,000 in 2022 to plan for the launch of this Financial Empowerment Center.
The city issued a Request for Proposals (RFQ019295) for the launch of a Financial Empowerment Center, and received two responsive proposals. An evaluation committee reviewed and scored both proposals and recommended that the Department of Development enter into contract with Jewish Family Services of Columbus.
This legislation authorizes the Department of Development to accept a grant award of $150,000 from the Cities for Financial Empowerment Fund (CFE Fund) and to authorize the appropriation of funds for each grant upon receipt of the funds.
This ordinance authorizes the Director of Development to enter into contract with Jewish Family Services of Columbus to plan for and launch a Financial Empowerment Center in spring 2022. The total amount of this contract is $300,000.
Jewish Family Services will act as the Financial Counseling Provider to provide free, professional, one-on-one financial counseling services to Columbus residents as a municipal service. The funding provided will be used to hire three (3) financial counselors and one (1) program manager to be trained and employed by Jewish Family Services for the provision of financial counseling services. These services cannot be provided by current City employees at this time.
Emergency action is request in order to avoid delay in the planning and launch of the Center and provision of its financial counseling services.
FISCAL IMPACT: Funding is available through the private grants fund and the Neighborhood Initiatives subfund.
Title
To authorize the Director of Development to apply for and accept a grant from Cities for Financial Empowerment Fund, Inc.; to authorize the Director of the Department of Development to enter into a grant agreement with Cities for Financial Empowerment, Inc.; to authorize the Director of the Department of Development to enter into non-profit service contract with Jewish Family Services of Columbus for planning the launch of a Financial Empowerment Center; to authorize an appropriation and transfer within the Neighborhood Initiatives subfund; to authorize an expenditure within the private grants fund; and to declare an emergency. ($300,000.00)
Body
WHEREAS, it is a priority of the City to support efforts that enhance the financial security of residents; and
WHEREAS, the Director of the Department of Development desires to enter into a contract with Jewish Family Services of Columbus for planning the launch of the Financial Empowerment Center and provision of financial counseling services to Columbus residents; and
WHEREAS, the success and vitality of Columbus as a whole is inexorably linked to the financial security of families; and
WHEREAS, according to the Urban Institute, 57% of Columbus families are financially insecure with less than $2,000 in savings and 38% of residents have subprime credit scores; and
WHEREAS, according to that same study, the existence of financial insecurity creates significant costs to the government and is estimated to be between $17 and $39 million each year; and
WHEREAS, the Department of Development was awarded a competitive grant from Cities for Financial Empowerment Fund, Inc., in the amount of $150,000.00, to launch a Financial Empowerment Center and to provide free, professional, one-on-one financial counseling as a public service to residents; and
WHEREAS, it is necessary to seek City Council approval to accept the grant and to appropriate the funds upon receipt of the grant; and
WHEREAS, Cities for Financial Empowerment Fund has conducted extensive programmatic work with government leaders in more than 80 cities and is supporting the effort in Columbus with staffing and technical guidance for the design and launch of the Financial Empowerment Center; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to accept these grant funds from the Cities for Financial Empowerment Fund, Inc. so as to allow the financial transaction to be posted in the City's accounting system as soon as possible; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development is hereby authorized to apply for and accept a grant from Cities for Financial Empowerment, Inc. to support the planning for and launch of a Financial Empowerment Center.
SECTION 2. That the Director of Development is hereby authorized to enter into a grant agreement with Cities for Financial Empowerment, Inc. regarding the use of funds associated with the grant application authorized in Section 1 of this ordinance.
SECTION 3. That the Auditor is hereby authorized and directed to appropriate $150,000.00 within the Neighborhood Initiatives subfund, fund 1000, subfund 100018, per the accounting codes in the attachment to this ordinance.
SECTION 4. That the Auditor is hereby authorized and directed to transfer $150,000.00 from the Neighborhood Initiatives subfund, fund 1000, subfund 100018, to the private grants fund, fund 2291, per the accounting codes in the attachment to this ordinance.
SECTION 5. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2022, the sum of $300,000.00 is appropriated upon receipt of an executed grant agreement in the private grants fund, fund 2291, to the Department of Development Dept-Div 44-01 (Administration), in object class 03 (Services) per the account codes in the attachment to this ordinance.
SECTION 6. That the Director of the Department of Development is hereby authorized to enter into a non-profit service contract with Jewish Family Services of Columbus for planning of the launch of the Financial Empowerment Center and provision of financial counseling services to Columbus residents.
SECTION 7. That per the action authorized in Section 6 of this ordinance, the expenditure of $300,000.00 or so much thereof as may be needed is hereby authorized in the private grants fund, fund 2291, per the accounting codes in the attachment to this ordinance.
SECTION 8. That this contract was awarded pursuant to the non-profit contracting provisions of Chapter 329 of Columbus City Codes.
SECTION 9. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 10. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 11. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.