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TO: Mayor Richard C. Irvin
FROM: Toshia Moss, Program Manager, Innovation & Strategy Division
DATE: August 14, 2024
SUBJECT:
A Resolution authorizing execution of a Second 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 and to receive the $10,000 stipend upon full execution of this Second 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 Second Amendment reflects that the CFE Fund is expanding the Scope of Work of the Financial Empowerment Center Expert Memorandum of Understanding (the "MOU").
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 2022-2024 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 2,034 clients, had 2,365 outcomes, helped clients increase savings by more than $1,054,806 and reduce debt by over $3,239,618.
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 presents an opportunity to be paired by the CFE Fund with Pitkin, CO, an FEC Academy grant partner, to provide technical assistance and engage in mentorship activities and receive a stipend of $10,000.
RECOMMENDATIONS:
Approval is requested to authorize execution of a Second 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 ________________
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A Resolution authorizing execution of a Second 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 and to receive the $10,000 stipend upon full execution of this Second Amendment.
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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 CFE Fund works 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 “Purposes”) ; and
WHEREAS, the CFE Fund has supported and continues to support the Aurora FEC with technical assistance resources, access to the national FEC learning community (“FEC Public Learning Community”), no-cost licenses to use the CFE Fund’s central FEC database, and designates the Partner as an FEC Expert Partner (“FEC Expert Partner”) and ("FEC Expert Mentor") to continue to provide FEC services as part of the CFE Fund’s national FEC Public platform and the City of Aurora desires to accept such engagement on the terms and conditions set forth hereinafter; 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 and receive the $10,000 stipend; and
WHEREAS, The Neighbor Project (TNP) was hired as the servicing contractor to provide City residents free financial counseling and financial literacy services through December 2022, with up to two annual extensions thereafter; and
WHEREAS, a First Amended Agreement for Provision of Services at the City of Aurora's Financial Empowerment Center was enacted on July 26, 2023, revising The Neighbor Project (TNP) contract with an auto renew through December 2024; and
WHEREAS, the City of Aurora has agreed to make use of the CFE Fund offerings provided by this MOU to provide technical support and mentorship activities set forth in the “Scope of Work” and the “Financial Empowerment Center Model”; 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 Second 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.