Explanation
BACKGROUND
This legislation authorizes the Director of the Department Development to enter into a non-profit service contract with Jewish Family Services, a non-profit corporation, in an amount up to $500,000.00 for the Columbus Financial Empowerment Center and to authorize the payment of expenses starting January 1, 2024.
In 2021, in partnership with the City of Columbus, Jewish Family Services launched the Columbus Financial Empowerment Center. This program started with a grant award in 2021 from Cities for Financial Empowerment Fund (CFE Fund). It was a 2 year start up matching grant that helped establish the program in the community. After the matching grant funds and 2 year period ended, the City will fund the program to continue to offer this critical service free of charge to the residents.
Financial stability is a social determinant of health, and according to the Urban Institute, 57% of Columbus families are financially insecure with less than $2,000.00 in savings, higher than the national average. According to that same study, 43% of Columbus residents hold delinquent debt, much higher than the national average of 34%.
The Financial Empowerment Center offers free one-on-one financial counseling as a public service for all Central Ohio residents. The financial counselors are trained and certified by the Cities for Financial Empowerment Fund to help navigate complex financial challenges and reach financial goals.
Jewish Family Services serves 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 retain three (3) financial counselors and one (1) program manager employed by Jewish Family Services for the provision of financial counseling services. The funding will also support marketing services and supplies to raise public awareness of the availability of these free financial counseling services. These services cannot be provided by current City employees at this time.
Fiscal Impact: Funds are available within the Department of Development’s 2024 General Fund budget.
Contract Compliance: the vendor number is 044722 and expires 03/14/2025.
Title
To authorize the Director of the Department of Development to enter into a not-for-profit service contract with Jewish Family Services for the Columbus Financial Empowerment Center in an amount up to $500,000.00; to authorize the expenditure of up to $500,000.00; and to authorize payment of expenses starting January 1, 2024. ($500,000.00)
Body
WHEREAS, it is a priority of the City to support efforts that enhance the financial security of residents; and
WHEREAS, financial stability is a social determinant of health and in the interests of both individual Columbus residents and the success of the city as a whole; and
WHEREAS, according to the Urban Institute, 57% of Columbus families are financially insecure with less than $2,000.00 in savings, higher than the national average; and
WHEREAS, according to that same study, 43% of Columbus residents hold delinquent debt, much higher than the national average of 34%; and
WHEREAS, in partnership with the City of Columbus, Jewish Family Services launched the Columbus Financial Empowerment Center in 2021; and
WHEREAS, the Director of the Department of Development seeks authority to enter into a not-for-profit service contract with Jewish Family Service of Columbus to continue the operation of the Financial Empowerment Center, including financial counseling services to Columbus residents; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is hereby authorized to enter into a not-for-profit service contract with Jewish Family Services for the Columbus Financial Empowerment Center in an amount up to $500,000.00 and is authorized to make payment for the expenses outlined in this legislation starting January 1, 2024, for the Columbus Financial Empowerment Center. The payment of expenses outlined in this legislation starting January 1, 2024 before the effective date of this legislation is hereby deemed to be a valid public purpose.
SECTION 2. That for the purpose as stated in Section 1, the expenditure of $500,000.00 or so much thereof as may be needed, is hereby authorized in Fund 1000 (General Fund), Dept-Div 44-01 (Administration), in object class 03 (Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. That this contract is awarded pursuant to the relevant provisions of Chapter 329 of City Code relating to not-for-profit service contracts.
SECTION 4. That 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 5. 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 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.