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Recommendation to Reallocate National Endowment of the Arts American Rescue Plan Act Funds from Underutilized Budgeted Line Items to Supplement the Creative Empowerment Subgrant ProgramCity of Dubuque City Council Meeting Consent Items # 04. Copyrighted April 17, 2023 ITEM TITLE: Recommendation to Reallocate National Endowment of the Arts American Rescue Plan Act Funds from Underutilized Budgeted Line Items to Supplement the Creative Empowerment Subgrant Program SUMMARY: City Manager recommending City Council approval to reallocate $12,000 from underutilized budget line item costs to raise the available funding amount from $15,000 to $27,000 to assist in addressing the gap in eligible requests received through Round 1 and projected asks in Round 2 of the National Endowment for the Arts Local Arts Agency Creative Empowerment subgrant program administered through the Office of Arts and Cultural Affairs. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description MVM Memo Staff Memo Type City Manager Memo Staff Memo THE CITY OF Dubuque DUB TEE1. All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Recommendation to Reallocate National Endowment of the Arts American Rescue Plan Act Funds from Underutilized Budgeted Line Items to Supplement the Creative Empowerment Subgrant Program DATE: April 10, 2023 Economic Development Director Jill Connors is recommending City Council approval to reallocate $12,000 from underutilized budget line item costs to raise the available funding amount from $15,000 to $27,000 to assist in addressing the gap in eligible requests received through Round 1 and projected asks in Round 2 of the National Endowment for the Arts Local Arts Agency Creative Empowerment subgrant program administered through the Office of Arts and Cultural Affairs.. The Creative Empowerment subgrant program consists of two (2) application and funding rounds. The rounds are offered at different times to align with two (2) independent yet overlapping periods of performance. The total funds to be awarded over both rounds through the program is $15,000. No match is required. The minimum request is $500. The maximum request is $2,000. Applicants may apply each round but only receive funding for one (1) project-, if an applicant submits to Round 1 and is not funded, they may submit a revised or new proposal for Round 2. Awards will be distributed to ensure funds are available for each round. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director Dubuque THE CF UjB E All•Aieeriea Gib wnxrim mx:usuay 1®► Masterpiece on the Mississippi 2007+2012+2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill Connors, Economic Development Director Economic Development Department 1300 Main St Dubuque, IA 52001 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Recommendation to Reallocate National Endowment of the Arts American Rescue Plan Act Funds from Underutilized Budgeted Line Items to Supplement the Creative Empowerment Subgrant Program DATE: April 6, 2023 INTRODUCTION The purpose of this memorandum is to recommend the reallocation of underutilized budgeted expenses in the amount of $12,000 to supplement the $15,000 Creative Empowerment subgrant program administered through the Office of Arts and Cultural Affairs as a result of the $500,000 American Rescue Plan Act (ARPA)-funded National Endowment for the Arts (NEA) Local Arts Agency (LAA) award received in FY22. BACKGROUND On November 18, 2021, the City of Dubuque's Office of Arts & Cultural Affairs announced the receipt of a $500,000 award through the NEA's LAA Subgranting Program funded by the ARPA to help the arts and culture sector recover from the COVID-19 pandemic. The award allocated $15,000 to the Creative Empowerment subgrant program to support individual creatives in producing tangible, public -facing, arts -based projects that further their careers and deepen their community engagement. Additionally, $435,000 of the awarded funds were directed to the Arts Operating Recovery subgrant program supporting the arts operations of eligible local nonprofit organizations. Finally, $50,000 of the award was allocated to facilitate the management and administration of the NEA LAA ARPA funding by the Office of Arts & Cultural Affairs in the Economic Development Department with oversight from the Arts & Cultural Affairs Advisory Commission (the Commission). DISCUSSION The Creative Empowerment subgrant program is a one-time, restricted funding opportunity supporting individual creatives in producing public -facing tangible arts -based projects that strategically advance their career while deepening their community connections through meaningful public programs and activities with measurable impact. The Creative Empowerment subgrant program consists of two (2) application and funding rounds. The rounds are offered at different times to align with two (2) independent yet overlapping periods of performance. The total funds to be awarded over both rounds through the program is $15,000. No match is required. The minimum request is $500. The maximum request is $2,000. Applicants may apply each round but only receive funding for one (1) project; if an applicant submits to Round 1 and is not funded, they may submit a revised or new proposal for Round 2. Awards will be distributed to ensure funds are available for each round. ROUND 1 — Open for applications Wednesday, February 15 — Friday, March 24, 2023, for consideration of projects occurring between June 1, 2023 — March 31, 2024. ROUND 2 — Open for applications Thursday, June 1 — Friday, July 14, 2023, for consideration of projects occurring between October 1, 2023 — March 31, 2024. After the closing of Round 1 on March 24, 2023, it was noted that the response from the creative community to the program was greater than forecasted. The Office of Arts and Culture received 14 eligible applications requesting $27,016.00 in support. Another ten (10) applications were started but not submitted. Other creatives, who did not apply in Round 1, have shared their intent to apply in Round 2. With a shortfall of $12,016 in Round 1 and more applications yet to be received in Round 2, Office of Arts and Cultural Affairs staff assessed options to more fully address the demonstrated need to support community creatives in their work and generate constructive community outcomes. A resulting action was a thorough review of the approved NEA LAA ARPA grant budget. The budget review and calculation of projected costs to fulfill the management and administration of the grant revealed underutilized funds in the following categories: • Direct costs salaries and wages ($7,179.00) • Fringe benefits ($2,632.00) • LAA Grants Manager ($1,284.00) • Marketing ($905.00) The reallocation of the identified funds ($12,000), if approved, will expand the total amount available to the Creative Empowerment subgrant from $15,000 to $27,000 to be disbursed across both rounds (e.g., awarding $18,000 to Round 1 and $9,000 to Round 2) translating to a more significant investment in Dubuque's creatives and the integration of more accessible arts experiences into the community. Before presenting this recommendation, staff consulted with the NEA grants administration team. Staff was advised that shifting costs between approved line items in the budget is a reasonable request. Additionally, the staff received instruction and is prepared to execute the necessary steps to reallocate the funds within the budget if the recommendation is approved. BUDGETIMPACT There are no new budget impacts. The reallocation of funds is within the scope of the received National Endowment for the Arts American Rescue Plan Act Grant to Local Arts Agencies for Subgranting award. RECOMMENDATION/ACTION STEP I respectfully request the reallocation of $12,000 from underutilized budget line item costs to raise the available funding amount from $15,000 to $27,000 to assist in addressing the gap in eligible requests received through Round 1 and projected asks in Round 2 of the NEA LAA Creative Empowerment subgrant program. CC: Teri Goodman, Director of Strategic Partnerships Justin Thiltgen, Technical Grant Analyst/Assistant Jenny Larson, Finance Director Laura Merrick, Communications and Grants Administration Assistant