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TO: Mayor Richard C. Irvin
FROM: Toshia Moss, Program Manager Innovation & Strategy
DATE: 11/29/2023
SUBJECT:
A Resolution authorizing execution of the First Amendment To Agreement Between the Cities for Financial Empowerment Fund, the City of Aurora and the Quad County Urban League.
PURPOSE:
The First Amendment To Agreement authorizes an extension of the Original Agreement for an additional six months, plus an additional $5,000 in grant funds, that will be used to continue to support operational costs for the Aurora Financial Empowerment Center's (FEC) Supervitamin Effect workforce research study. The research study is to determine whether workforce development programs that integrate financial counseling at the Aurora Financial Empowerment Center into their service offerings improve a client's financial goals.
BACKGROUND:
The Cities for Financial Empowerment Fund, Inc. (the "CFE Fund") previously provided a grant to the Aurora Financial Empowerment Center (the "FEC") to operate their Financial Empowerment Center. In January, 2023 an initial Supervitamin Effect workforce research study grant was provided (R23-045). Manpower Demonstration Research Corporation (MDRC), a nonprofit, nonpartisan education and social policy research organization, has been hired by the CFE Fund to undertake a study of whether, all else being equal, workforce development programs that integrate FEC financial counseling into their offerings achieve more or better outcomes than programs that do not. In 2022 the CFE Fund approved a new program partnership between the FEC and Quad County Urban League (the "QCUL"), a workforce development program serving customers in job readiness, training and placement services, to participate in the Cities for Financial Empowerment Fund workforce research study. The Cities for Financial Empowerment Fund contracted with the FEC and QCUL to participate in the workforce research study by providing financial counseling following the FEC model to current and recent clients in existing job readiness, training and placement services and a grant of $10,000 for increased operational costs. In addition to their regular services, the FEC and QCUL will recruit clients to join the study. This grant extension provides additional funding to continue this research study.
DISCUSSION:
The success and sustainability of the FEC led to a new project with the Cities for Financial Empowerment described as the "Supervitamin Effect". With support from Bloomberg Philanthropies, the CFE Fund contracted MDRC, a nonprofit, nonpartisan education and social policy research organization, to research workforce development programs that integrate financial counseling into service offerings to improve a client's financial goals. As the FEC workforce development research partner, QCUL will make a referral of financial counseling services to approximately 300 clients through June 2025.
The CFE grant funds will be applied to FEC operational costs and costs associated with anticipated increased contractual services.
IMPACT STATEMENT:
The proposed grant funds present an opportunity to continue funding the successful operation of the Financial Empowerment Center. The operational costs will offset anticipated increased direct costs to the City of Aurora due to an increase in clients.
RECOMMENDATIONS:
Request the City approve and execute the First Amendment To Agreement Between the Cities for Financial Empowerment Fund, the City of Aurora and the Quad County Urban League, and accept an additional $5,000 grant award.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing execution of the First Amendment To Agreement Between the Cities for Financial Empowerment Fund, the City of Aurora and the Quad County Urban League.
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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 Cities for Financial Empowerment Fund, Inc. (the "CFE Fund") previously provided a grant to the Aurora Financial Empowerment Center (the "FEC") to operate their Financial Empowerment Center; and
WHEREAS, the Manpower Demonstration Research Corporation(MDRC), a nonprofit, nonpartisan education and social policy research organization, has been hired by the CFE Fund to undertake a study of whether, all else being equal, workforce development programs that integrate FEC financial counseling into their offerings achieve more or better outcomes than programs that do not (also described as the "Supervitamin Effect"); and
WHEREAS, in 2022 the CFE Fund approved a new program partnership between the FEC and Quad County Urban League (the "QCUL"), a workforce development program serving customers in job readiness, training and placement services, to participate in the Cities for Financial Empowerment Fund workforce research study (R23-045); and
WHEREAS, the Cities for Financial Empowerment Fund has contracted with the FEC and QCUL to participate in the workforce research study by providing financial counseling following the FEC model to current and recent clients in existing job readiness, training and placement services; and
WHEREAS, in addition to their regular services, the FEC and QCUL will continue to recruit clients to join the study; and
WHEREAS, the Cities for Financial Empowerment has authorized an extension of the Original Agreement for an additional six months, plus an additional $5,000 in grant funds to the Aurora Financial Empowerment Center, to help cover its operating costs; and
WHEREAS, the following account will be used for this grant: Revenue Account number is 101-1301-337-30-04
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: The Mayor and Chief Financial Officer, or their respective designees, are hereby authorized to execute the First Amendment To Agreement Between the Cities for Financial Empowerment Fund, the City of Aurora and the Quad County Urban League, and other relevant documents, and accept an additional $5,000 grant from Cities for Financial Empowerment Fund to support operational costs for the Aurora Financial Empowerment Center's (FEC) Supervitamin Effect workforce research study.