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TO: Mayor Richard C. Irvin
FROM: John Russell, grant writer
DATE: 6/18/2021
SUBJECT:
Request approval to accept a 2021 Kane County Grand Victoria Riverboat Grant, in the amount of $15,000, for the Aurora Financial Empowerment Center.
PURPOSE:
The Kane County Grand Victoria Riverboat Grant will be used to cover part of the salary of a new Financial Counselor position. In just its first year of operation, the Aurora Financial Empowerment Center has served so many low- and moderate-income Aurora families that more counselors are needed.
BACKGROUND:
The FEC is a cooperative service provided by the City of Aurora and The Neighbor Project.
The FEC opened in Spring 2020 at the onset of the COVID-19 pandemic, works to improve the financial stability and awareness of low- and moderate-income Aurora households. The FEC provides families with free, professional, one-on-one financial guidance in areas such as debt reduction, budgeting, savings plans and credit repair, all necessary to lead to economic success for Aurora families.
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DISCUSSION:
The Aurora Financial Empowerment Center is the first and only financial counseling program of its kind in Illinois. First piloted by New York City in 2008, the FEC is now a national model that has been replicated in 23 cities across the country. Providing free, one-on-one professional financial coaching to greater Aurora residents age 18, the Aurora FEC has served almost 400 clients in its first year of operation. Clients have increased their savings by more than $110,000, and reduced their debt by more than $300,000; and these numbers keep rising by the day. Services provided by the Aurora FEC include:
*BANKING: We help clients with opening or transitioning to safe and affordable checking and savings accounts.
*CREDIT: We educate clients on how credit works, and the importance of establishing and raising credit scores.
*SAVINGS: We help individuals and families develop budgets and set aside savings for various goals, such as creating an emergency fund, planning for a vacation, or working toward buying their dream home.
*DEBT REDUCTION: We help clients with reducing debt and delinquent accounts.
*ACCESS TO PUBLIC SUPPORT SERVICES: We refer clients to emergency support services, such as food pantries, rental assistance, utility assistance, and a host of other resources to help stabilize their lives.
Of the hundreds of clients the FEC has served to date, 62% are female and 67% are Latinx. The racial demographics are 40% White, 34% are Multiracial, 15% Black, 5% Asian, and 5% Other. Many clients are bilingual in English and Spanish, but we have a growing list of clients whose primary language is neither in English nor Spanish. While all four of our Certified Financial Counselors are bilingual in English and Spanish, we can also serve clients who speak any of the 250 world languages, through United Language Group’s on-demand phone interpretation service, effectively removing the barrier of language accessibility.
IMPACT STATEMENT:
About 20% of Aurora's residents, nearly 40,000 people, have incomes of less than 200% of the federal poverty level.
With these financially struggling families in mind, the City established the Financial Empowerment Center. The FEC works to improve the financial stability and awareness of low- and moderate-income Aurora households. The FEC provides families with free, professional, one-on-one financial guidance in areas such as debt reduction, budgeting, savings plans and credit repair, all necessary to lead to economic success for Aurora families.
The demand for services in its first year of operation has shown the more Financial Counselors are needed at the FEC. This grant from the Kane County Riverboat Fund will help to provide an additional badly needed counselor.
RECOMMENDATIONS:
"I request the City approve the grant agreement with the Kane County Grant Victoria Riverboat fund, and accept the $15,000 grant award from Kane County.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution to accept a Kane County Grand Victoria Riverboat Grant for the Aurora Financial Empowerment Center.
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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, Kane County has approved a $15,000 grant to the Aurora Financial Empowerment Center to help cover the cost of providing an additional Financial Counselor at the FEC, and
WHEREAS, an additional Financial Counselor is needed as the FEC has experienced a high demand for its services in just its first year of operation, and expects to serve even more clients in the future.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the City accepts a $15,000 grant from the Kane County Riverboat Grant program to the Aurora Financial Empowerment Center to help cover the cost of providing an additional Financial Counselor at the FEC.