To: Board of County Commissioners
Through: Michelle Halstead, Director, Commissioners’ Office
Prepared By:
prepared
Daniela Villarreal, Management Analyst I, Commissioners’ Office
end
presenter
Presenter: Daniela Villarreal, Management Analyst I, Commissioners’ Office
end
Subject:
title
12:30 PM *Continuation of the 2025 Aid to Agencies Discussion
end
Purpose and Request:
recommended action
The purpose of this study session is to continue conversations from the June 3, 2024, study session regarding the 2025 Aid to Agencies grant program.
end
Background and Discussion:
During the June 3, 2024, study session, staff provided an overview of the Aid to Agencies program and presented options for Board consideration and direction for the 2025 grant program given budget constraints. The Board asked for additional information to help inform their decision-making process. This study session will provide those details for Board consideration.
The Arapahoe County Commissioners developed the Aid to Agencies program to financially support non-profit organizations in 2008, filling service gaps in the county through annual grants using general fund dollars. The discretionary Aid to Agencies program relies on the general fund and has evolved to fund organizations through two mechanisms: a safety net program in which agencies receive annual funding without needing to apply and a competitive grant program in which agencies apply to receive a portion of available funds.
During the 2024 grant cycle, all applicants and grantees were notified about the county’s budget challenges and our inability to guarantee funds would be available in 2025 to continue the program. County Commissioners and staff have met with nearly all grantees over the past six months to discuss the County’s next steps to modernize finances and address existing funding gaps. In these meetings, organizations have shared the impacts that Aid to Agencies funding has made in their day-to-day operations and what it could mean if they lost that annual funding.
The program has had a budget of $2,079,500 of which $1,550,603 is allocated for safety net organizations and the remaining $528,897 towards a competitive grant program. An interdisciplinary committee comprised of human services, community resources, and commissioners’ office staff develops program criteria that include funding categories, scoring criteria, and a timeline. The competitive grant process typically begins in June/July of each year, with recommendations presented to the Board in October as part of the budget process. To appropriately set expectations, direction is needed whether the Board is seeking to fund some, all or none of the program for 2025.
Within the slide deck, staff has identified the percentage of Aid to Agencies funding relative to the nonprofit’s program/organizational budget and number of residents served within both the safety net and grant programs. Many nonprofits are the only provider of services - from detox, domestic violence shelter, and eastern plains senior food services, to congregate and homeless family shelters, senior dental services, and behavioral health programs. Based on 2024 application submittals and records, elimination or reduction of county-funding will have a deleterious impact on programs and services for county residents.
The County estimates $7 million in additional property tax revenue will be available to address 2025 budget needs, of which $6.1 will be available for general fund purposes. For reference, the County projects a $25 million unfunded shortfall in the county’s capital plan, $1.9 million is needed for every one percent of merit increase, and the judicial district transition will require additional general fund investment.
With this additional information, three options remain for Board consideration:
1. Completely cut program funding for 2025 and re-evaluate the future of the program for 2026.
2. Partially fund Aid to Agencies program, funding safety net providers at 50% or 35% of 2023 allocation and eliminating the competitive grant program for 2025.
3. Maintain the status quo, either funding the program as is for 2025 or consider a new competitive grant program. Staff would need additional direction from the Board on goals, criteria, and funding constraints should a new program be desired.
If new revenue is obtained, staff recommends amending the 2025 budget to provide 100% funding for safety net programs and develop a more robust competitive grant program for 2026.
Staff Recommendation: The staff committee recommends partially funding the Aid to Agencies program by allocating funds solely to safety nets, covering a 35% or 50% portion of their total annual award.
Fiscal Impact: Funding safety nets at 50% would require $775,301.5 of general fund monies, or $542,711 of general fund monies.
Alternatives: The Board could choose not to approve one the proposed option for consideration.
Alignment with Strategic Plan:
☒Be fiscally sustainable
☒Provide essential and mandated service
☒Be community focused
Concurrence: Human Services; Community Resources.