Title
Consider a memorandum/resolution to declare the public purpose and approve the grant funding allocations for seven nonprofit youth organizations with funding from the Public Facility Corporation.
Summary
DATE: March 28, 2023
TO: Kent Cagle, City Manager
FROM: Danielle Singh, Assistant City Manager
SUBJECT: Nonprofit Youth Organization Grant Allocations
BACKGROUND AND FINDINGS:
The City Council acting as the Public Facility Corporation (PFC) directed the $350,000 restructuring fee received from the North Killeen Apartments Project to the City of Killeen be used for nonprofit youth organizations.
At the April 12, 2022, Regular City Council Meeting, City Council approved a nonprofit application process for grant funding for nonprofit and nonprofit youth organizations. The application process opened to the public for submission on April 13, 2022, and closed May 12, 2022. In accordance with state law, City council must declare a public purpose for the expenditure of funds. Funds may not benefit private parties and the City must maintain control of funds to ensure that a public purpose was met. City Council established the following criteria:
1. Must be an established nonprofit through the IRS
2. Must have been in existence for an established time period
3. Must fulfill a public purpose
4. Must have a complete application
City Council awarded nine grants of $10,000 each at the June 28, 2022, Regular City Council meeting, eleven grants of $10,000 each at the July 26, 2022, Regular City Council meeting and one grant of $10,000 at the December 13, 2022, Regular City Council meeting, leaving a remaining balance of $140,000 for nonprofit youth organization grants.
The application process was reopened December 1, 2022, for ninety days, closing February 28, 2023. Twelve applications were received for consideration. The seven organizations, Better Opportunities Shoemaker Students (BOSS) Mentor Program, She is Priceless, Alberta L. Barrett/ARK2Freedom, Killeen Christian Broadcasting Corporation, Clements Boys and Girls Clubs affiliate of Boys and Girls Clubs of Central Texas, The Central Texas Herencia Foundation, and Pearls of Services Foundation of Central Texas serve a public purpose by providing educational, and social services to our youth that would not otherwise be available.
THE ALTERNATIVES CONSIDERED:
1. Do not approve the funding for seven nonprofit youth organizations.
2. Amend the selected organizations.
3. Approve the funding, declare the public purpose and authorize staff to execute the agreements for the seven nonprofit youth organizations.
Which alternative is recommended? Why?
Alternative 3 is recommended. The seven organizations submitted the required documentation and met the criteria set forth by City Council.
CONFORMITY TO CITY POLICY:
This item conforms to all applicable Federal and State Laws and City Policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The expenditure in FY 2023 is $70,000 from designated PFC funding.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Yes, funds are available in the General Fund Non-Departmental account 010-9501-491.50-86, project code PFCNRP.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Staff recommends that City Council declare the public purpose as stated above and approve the grant funding requests for seven nonprofit organizations in an amount not to exceed $10,000 for each organization and authorize staff to execute the agreements.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
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