ACTION REQUESTED:
Title
Communication from the City Manager and Assistant City Manager with a Request to APPROVE the Use of Budgeted funds from SOUTH VILLAGE TIF JOB TRAINING GRANT to Cover On-going Program Funding for Organizations that have used up their 2018-2019 Grant.
Body
BACKGROUND: In 2018, the Council approved the use of South Village TIF funds to support a series of five job training grants to support job readiness and acquisition for members of this community. Each grant was $25,000. In addition, the Council set aside a $25,000 grant for any additional opportunities related to that need. The original RFP is now closed, and the year of funding support that was intended with these grants has closed for most of these organization (in March and April).
As an administrative decision, the City has elected to extend the time-period for use of these funds to continue programming while we prepared a new RFP. One program (Tri-County Urban League) unexpectedly used all their funding in the most recent quarter. As a result, that program is preparing to close-down. Other programs are nearing the end of their available funding.
We are requesting approval from council to DIRECT the USE of the set aside $25,000 grant for these job training programs to be used to support any organization that was given a 2018-2019 grant and runs out of funds in their original grant prior to the award of a new RFP.
Through data collected with this program, we estimate that every time an unemployed person moves into a working wage job we reduce public support by around $18K and we increase local economic activity by $27K or more. As an example, TUL spent $25,000 and moved 11 individuals into consistent employment - driving an estimated $297,000 or more in local economic activity. [Local economic activity is calculated using wages minus anticipated pension / insurance costs as well as on-line purchasing].
In the next month we will issue a new RFP for training programs that will be building on the experience of that last year and request the direction for use of these funds to ensure the continuity of our most promising applicants. With approval of the new RFP we will advise on how to close out any remaining granted funds for the 2018-2019 grant.
FINANCIAL IMPACT: The requested action will not change the current budget, but rather will direct the use of funds already set aside for job training programs of this type.
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: Job training programs supported by the City will continue to operate without interruption.
IMPACT IF DENIED: Job training programs supported by the City will struggle to continue and be challenged to re-start if they are awarded a grant from our next RFP.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: n/a
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
DEPARTMENT: City Manager's Office