Operation New Vew Community Action Agency Funding Copyrighted
January 7, 2019
City of Dubuque Action Items # 4.
IT EM T IT LE: Operation New View Community Action Agency Funding
SUMMARY: City Manager recommending approval to provide funding
assistance to Operation New View CommunityAction Agency.
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Approve
ATTACHMENTS:
Description Type
Recommendation to Fund Operation New View-MVM Memo City Manager Memo
Staff Memo Staff Memo
ONV CashflowAnalysis Options Supporting Documentation
THE CTTY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Recommendation to Fund Operation New View
DATE: January 3, 2019
The City of Dubuque is one of four local governments that signed a 28E agreement to
form Operation New View Community Action Agency in 1985. Operation New View
serves a geographic area of Dubuque, Delaware and Jackson Counties; the three
counties are the other signatories of the 28E agreement. Operation New View provides
the Low-Income Heat Assistance Program, a financial assistance program to prevent
people who have fallen on hard economic times from losing their heat in the winter;
weatherization assistance to improve homes of low-income people so less energy is
wasted; Head Start educational services for pre-school children, and other important
community services.
After an external audit and review from a peer team of executive directors and financial
managers from other lowa community action agencies, it has been determined that
Operation New View currently needs $120,000 to meet existing obligations to vendors
and to meet payroll. In addition, the agency needs $100,000 to fill the remaining
administrative gap in this fiscal year for a total of $220,000 in FY19. If these needs are
not met, dissolution of the agency could be a threat.
After the last Operation New View Board of Director's meeting, Board Chair Steve
Drahozal convened a meeting of representatives from the three counties and the City of
Dubuque to discuss how they could collectively meet the $220,000 shortfall, as the
agency's service to the area's most at-risk residents is extremely important.
After discussion, the elected officials agreed that the best division of the burden would
be:
City of Dubuque Dubuque Co Delaware Co Jackson Co
35% 35% 15% 15%
FY2019 $77,000.00 $77,000.00 $33,000.00 $33,000.00
Under this scenario, the City of Dubuque would provide $77,000 to meet the short-term
cash flow needs and FY19 administrative gap of Operation New View. There will be an
additional request for funding from Operation New View in FY20 that will be addressed
through the upcoming budget process. In addition to the funding from municipalities,
Operation New View is working with the lowa Community Action Agency Association
and other partners to identify additional sources of future funding to continue to be able
to provide services to those in need.
Assistant City Manager Cori Burbach recommends City Council approval to fund
Operation New View in the amount of$77,000. The funding will come from unbudgeted
parking lease revenue from the Diamond Jo Casino.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
2
THE CTTY OF Dubuque
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ui���eNe�ary
DUB E 'il��i;'
Masterpiece on the Mississippi Z°°' Z°'Z
2013 2017
TO: Michael Van Milligen, City Manager
FROM: Cori Burbach, Assistant City Manager
DATE: January 3, 2019
RE: Recommendation to Fund Operation New View
INTRODUCTION
The purpose of this memorandum is to recommend funding for Operation New View in
the amount of $77,000.
BACKGROUND
The City of Dubuque is one of four local governments that signed a 28E agreement to
form Operation New View Community Action Agency in 1985. Operation New View
(ON� serves a geographic area of Dubuque, Delaware and Jackson Counties; the
three counties are the other signatories of the 28E agreement. ONV provides the Low-
Income Heat Assistance Program (LIHEAP), a financial assistance program to prevent
people who have fallen on hard economic times from losing their heat in the winter;
weatherization assistance to improve homes of low-income people so less energy is
wasted; Head Start educational services for pre-school children, and other important
community services. The organization has helped tens of thousands of low-income
people navigate difficult times and, until recently, been able to succeed financially. ONV
distributed more than $5.8 million in federal and local funds in their three-county service
area last year and served 13,275 individuals with limited incomes.
Recently, the organization has experienced funding shortfalls and cash flow difficulties.
These financial difficulties are in part due to several changes in staff leadership
positions in recent years. All spent funds have been dedicated to providing service to at-
risk individuals and families.
The ONV Board of Directors recently hired John Wilson to serve as the Interim
Executive Director. Wilson has 47 years' experience working in the National
Community Action Network, and has assisted agencies across the nation as they
transition leadership and address capacity issues, including three Community Action
Agencies in lowa. The organization is also receiving training and technical assistance
from the lowa Community Action Association and other organizations in the agency's
service area to improve its immediate and long term financial capacity and position.
DISCUSSION
After an external audit and review from a peer team of executive directors and financial
managers from other lowa community action agencies, it has been determined that
ONV currently needs $120,000 to meet existing obligations to vendors and to meet
payroll. In addition, the agency needs $100,000 in this fiscal year to fill the remaining
administrative gap, for a total of$220,000 in FY19. If these needs are not met,
dissolution of the agency could be a threat.
After the last ONV Board of Director's meeting, Board Chair Steve Drahozal convened a
meeting of representatives from the three counties and the City of Dubuque to discuss
how they could collectively meet the $220,000 shortfall, as the agency's service to the
area's most at-risk residents is extremely important.
Several scenarios were considered to divide the financial burden. They included:
1) an even split between the four municipalities, with each paying 25°k of the
total $220,000;
2) distribution of the burden based on the representation of the four municipalities
on the ONV Board, as identified in the 28E agreement forming the organization.
This representation is City of Dubuque — 11 .2°k, Dubuque County — 44.4°k,
Delaware County — 22.2°k, and Jackson County — 22.2°k;
3) a split based on population of the four municipalities; or
4) a split based on estimated service ONV provides in each of the four
municipalities.
After discussion, the elected officials agreed that the best division of the burden would
be a combination of options 3 and 4. This hybrid model would be as follows:
Hybrid Proposal (Split between Option 3 Population & Option 4 Service
Estimates
City of Dbq Dbq Co Del Co (15°k) Jackson Co (15°k)
35°k 35°k
FY2019 $77,000.00 $77,000.00 $33,000.00 $33,000.00
In addition to the funding from municipalities, ONV is working with the lowa Community
Action Agency Association and other partners to identify additional sources of future
funding to continue to be able to provide services to those in need.
BUDGETIMPACT
Under this scenario, the City of Dubuque would provide $77,000 to meet the short-term
cash flow needs and FY19 administrative gap of ONV. This number is in addition to the
already-budgeted Purchase of Service amount ($19,756) and Engine House payment
($25,000). There will be an additional request for funding from ONV in FY20 that will be
addressed through the upcoming budget process.
2
Budget Director Jennifer Larson has identified a source of funding for the $77,000. The
FY19 funding will come from unbudgeted parking lease revenue from Diamond Jo
Casino.
REQUESTED ACTION
I respectfully request City Council approval to fund Operation New View in the amount
of$77,000, in addition to the approved Purchase of Service and Engine House
payments.
Cc: Jennifer Larson, Budget Director
Steve Drahozal, ONV Board Chair
John Wilson, ONV Interim Executive Director
3
Operetion New View Financial Assistance Analysis
Immediate Need: $120,000.00 before 2/1/18
Remaining Admin Gap in ONV FY19: $150,000.00 by 9/30/18
Impact to government organizations:
Need in FY2019 $220,000.00
Need in FY2020 $200,000.00
Option 1.Even split,4 ways
Ciry(25%J Dbq Co(25%J Del Co (25%J lackson Co(25%J
FY2019 5 ss,000.o0 5 ss,000.o0 5 ss,000.o0 5 ss,000.00 Szzo,000.00
Fvzozo 5 so,000.o0 5 so,000.o0 5 so,000.o0 5 so,000.00 Szoo,000.00
Total Payment 5 ios,000.o0 5 ios,000.o0 5 ios,000.o0 5 ios,000.00
Option 2.Split according to 28E Agreement
City(11.2%) Dbq Co(44.4%) Del Co(22.2%) Jackson Co(22.2%)
FY2019 $ 24,640.00 $ 97,680.00 $ 48,840.00 $ 48,840.00 $220,000.00
Fvzozo 5 zz,aoo.00 5 ss,soo.00 5 aa,aoo.00 5 aa,aoo.00 Szoo,000.00
Total Payment $ 30,480.00 $ 186,480.00 $ 93,240.00 $ 93,240.00
Option 3.Split by population
City (30%) Dbq Co(51%) Del Co(9%) Jackson Co(10%)
FY2019 $66,000.0 $112,200.0 $19,800.0 $22,000.0 $220,000.00
Fvzozo 60 000.o Sioz,000.00 is 000.00 zo 000.o Szoo,000.00
Total Payment $126,000.0 $214,200.0 $37,800.0 $42,000.0
Population based on 2017 US Census estimate
City of Dubuque 58276 30%
Dubuque County 97041 51%
DelawareCounty 17153 9%
lackson County 19366 10%
191836 100%
Option 4.Split by service estimate(based on conversation with John Wilson)
City(40%) Dbq Co(30%) Del Co(15%) Jackson Co(15%)
Povertyrate: Povertyrate: Povertyrate:
16.3% 9.8% 9.3% Poverty rate:11.7%
FY2019 $88,000.0 $66,000.0 $33,000.0 $33,000.0 $220,000.00
FY2020 80 000.0 60 000.00 30 000.00 30 000.00 $200,000.00
Total Payment $168,000.0 $126,000.0 $63,000.0 $63,000.0
Option 5.Hybrid Proposal(Split between Option 3 Population&Option 4 Service Estimates)
City(35%) Dbq Co(35%) Del Co(15%) Jackson Co(15%)
Povertyrate: Povertyrate: Povertyrate:
16.3% 9.8% 9.3% Poverty rate:11.7%
FY2019 $77,000.00 $77,000.00 $33,000.00 $33,000.00 $220,000.00
FY2020 70 000.00 70 000.00 30 000.00 30 000.00 $200,000.00
Total Payment $147,000.00 $147,000.00 $63,000.00 $63,000.00
*Fiscal years referenced are for municipalities and run luly 1-lune 30. ONV operates on a separate fiscal year,
Oct 1-Sept 30.