cover
TO: Mayor John Laesch
FROM: Toshia Moss, Program Manager, Financial Empowerment Center
DATE: May 28, 2025
SUBJECT:
A Resolution authorizing the execution of a Third Amendment to the Memorandum of Understanding between the Cities for Financial Empowerment Fund, Inc., and the City of Aurora, expanding the FEC Expert Partner Scope of Work by implementing the small business boost and accept the $90,000 grant upon full execution of this Third Amendment.
PURPOSE:
The Aurora FEC became an FEC Expert Partner in 2022 and will continue to operate an FEC as a high-quality public service, actively contribute to the national FEC learning community (“FEC Public Learning Community”), receive technical assistance resources, and continue to use the Cities for Financial Empowerment Fund (“the CFE Fund”) central FEC database at no-cost. The Third Amendment reflects that the CFE Fund is expanding the Scope of Work of the Financial Empowerment Center Expert Memorandum of Understanding (the "MOU") to integrate FEC financial coaching within small business support organizations, convene small business stakeholders to identify strategies to strengthen coordination and synergy between partners.
BACKGROUND:
In 2019, the City of Aurora applied for and received the Financial Empowerment Center Implementation Grant funds from the CFE Fund as a match grant to support municipal engagement to improve the financial stability of low- and moderate-income households by embedding financial empowerment strategies into local government infrastructure. The Neighbor Project (TNP) was hired as the servicing contractors for the grant agreement with CFE. The Aurora FEC became a part of a growing network of FECs embedded in local governments across the country, committed to providing free, one-to-one financial counseling, delivered by professionally trained counselors, to low- and moderate-income residents.
The Aurora FEC was successful in its two-year pilot phase. Thereafter, the City of Aurora extended the contract with The Neighbor Project for up to two annual extensions from 2025-2027 to continue to provide financial counseling and financial literacy to the community.
The CFE Fund has supported and continues to support the Aurora FEC through technical assistance resources, access to the National FEC learning community, and licenses to use the CFE Fund’s central FEC database. Important data from this database is regularly used to update the City of Aurora leadership team, as well as community and fiscal partners, of the progress the Aurora FEC is making in delivering its services to the community.
DISCUSSION:
Since implementation, the Aurora FEC served 2,224 clients, had 2,851 outcomes, helped clients increase savings by more than $1,322,751 and reduced debt by over $4,164,875. As the Aurora FEC expands, it is important to be supportive of the national organization and to remain involved in a national learning community. The Aurora FEC continues to receive recommendations for continued success from partnering cities and contributes to the success of other pilot FECs nationwide. The CFE Fund designated the Aurora FEC as FEC Expert Mentor in addition to the designation of Expert Partner
IMPACT STATEMENT:
The proposed resolution will expand the service plan of the Financial Empowerment Center to provide one-on-one professional coaching to include business owners and aspiring entrepreneurs and receive a $90,000 grant to be paid according to the following schedule: 60% of Grant funds ($54,000) will be paid upon execution of this Agreement. 30% of Grant funds ($27,000) will be paid upon receipt and approval of interim report.10% of Grant funds ($9,000) will be paid upon receipt of final report and documentation of at least initial 90% of Grant already disbursed, along with plan for spending remainder of Grant funds within two months, if not already spent. Grant funds will be deposited into 101-1304-365-01-01 and expended through account number 101-1304-419.32-99. Grantee will be required to provide a final accounting when all funds have been spent. Any unused Grant funds will be returned to CFE Fund.
A budget amendment with offsetting revenues and expenses will be necessary to account for the increased activity.
RECOMMENDATIONS:
Approval is requested to authorize execution of a Third Amendment to the Memorandum of Understanding between the Cities for Financial Empowerment Fund, Inc. and the City of Aurora
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the execution of a Third Amendment to the Memorandum of Understanding between the Cities for Financial Empowerment Fund, Inc., and the City of Aurora, expanding the FEC Expert Partner Scope of Work to include the Small Business Boost and to receive the $90,000 grant upon full execution of this Third Amendment).
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora is a former recipient of a CFE Fund grant to implement a Financial Empowerment Center ("FEC"), and the City continues to operate their FEC; and
WHEREAS, the City of Aurora first received FEC Expert Partner designation on May 1, 2022 through October 31, 2023; and
WHEREAS, The First Amendment to the agreement extended the FEC Expert Partner designation period through October 31, 2025; and
WHEREAS, The Second Amendment to the agreement expands the scope of work to mentor Pitkin, Colorado through October 2025 and receive the $10,000 stipend; and
WHEREAS, The Third Amendment to the agreement expands the scope of work to implement the small business boost and receive the $90,000 to be deposited into 101-1304-365.01-01 and expended through account number 101-1304-419-32.99; and
WHEREAS, The Neighbor Project (TNP) was hired as the servicing contractor to provide City residents with free financial coaching and financial literacy services through December 2025, with up to two annual extensions thereafter; and)
WHEREAS, the CFE Fund has determined that the support of the City of Aurora in the work contemplated by this MOU furthers the exempt purposes of the CFE Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: The Mayor, or respective designee, is hereby authorized to execute the Third Amendment to the Memorandum of Understanding between the Cities for Financial Empowerment Fund, Inc.and the City of Aurora to remain an FEC Expert Partner, and other relevant documents.