HomeMy WebLinkAboutFY26 LA2A Dream Center ResponsesNovember 22, 2024
FY26 Legacy Aid to Agencies
HCDC Question and Answer (Q&A) Session
Instructions
The Q&A session provides an opportunity for commissioners and staff to ask clarifying
questions about the applications submitted through United Way. Please provide written
responses to the questions below. Written responses must be received by City staff no
later than December 6, 2024. This process is intended to gather the information
required to accurately score submissions. Written responses can be directed to Brianna
Thul at bthul(c iowa-citv.orq or dropped off at City Hall (410 E Washington Street).
All information related to this grant will be posted at www.icaov.ora/a rants. The Housing
and Community Development Commission will hold a meeting on January 27th, 2025,
at 6:30pm in City Hall to develop funding recommendations for City Council. This
meeting is open to the public and applicants are welcome to attend to hear the
conversation. The meeting will also be recorded and posted online for those unable to
attend.
Agency:
Dream Center
Questions:
1. Income information for beneficiaries does not appear to be listed in the
application. Is there income data available for beneficiaries reported?
We collect income data through our program intake process to ensure we
are effectively serving individuals and families most in need of our support.
Beneficiaries are asked to self -report their income levels during the
enrollment or participation process. This information is essential in
confirming that we are meeting the needs of our target demographic,
primarily individuals and families at or below the lowest level of the federal
poverty level.
In addition to self -reported data, we also utilize local data sources available
in our community, such as the school district and the Iowa Data Report
Center. These supplemental resources provide valuable insight into the
economic conditions impacting the populations we serve and allow us to
tailor our services to address the most pressing needs.
By leveraging both self -reported and community -level data, we ensure our
program remains focused, responsive, and aligned with our mission to
support economically disadvantaged individuals and families.
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2. Does the applicant have a year-end profit and loss statement available?
We have attached our Statement of Activity, which is the equivalent of a
Profit and Loss Statement in nonprofit accounting. In our accounting
software, this report is specifically labeled as a Statement of Activity to
align with nonprofit financial practices. It provides a comprehensive
overview of our revenues, including grants, donations, and other income
sources, as well as our expenses, such as program costs and
administrative overhead, for the specified reporting period.
This report serves the same purpose as a Profit and Loss Statement in a
for -profit organization, allowing us to demonstrate our financial
performance and accountability in achieving our mission.
3. Are there plans to establish an operational reserve fund in future? Will
services/staff be increased with the ARPA allocation?
Operational Reserve Fund Plans:
The acquisition and renovation of 611 mark a transformative step for our
organization, significantly enhancing our capacity for financial
sustainability and long-term planning. Our current project not only
provides a stable foundation for our operations but also creates
opportunities to optimize resources and reduce overhead in the long run.
As part of our 2025-2028 strategic plan, we are committed to prioritizing
financial sustainability through intentional initiatives, including the
establishment of an operational reserve fund.
This reserve will serve as a critical financial safeguard, enabling us to
respond to unforeseen challenges, stabilize operations during funding
gaps, and invest in opportunities to further our mission. These strategic
efforts demonstrate our forward -thinking approach to ensuring the
longevity of our organization and the programs that directly benefit our
community.
Services & Staff Expansion:
The ARPA funds have been a cornerstone of our ability to expand and
enhance our services. Of the total allocation, over $2.6 million has been
directed toward the acquisition and renovation of 611, which will serve as a
hub for our growing programs. This state-of-the-art facility will significantly
increase our capacity to deliver impactful services to the community.
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The remaining funds are being strategically used to fund critical staff
positions, including a program coordinator, a community navigator, and a
facility manager. These roles are essential to scaling our programs,
strengthening community engagement, and ensuring the efficient
operation of our new facility. Each position is directly aligned with our
mission to address the immediate and long-term needs of the populations
we serve.
Looking ahead, we are collaborating with local and state organizations to
develop a sustainability plan for when ARPA funds are fully expended by
December 2026. This includes securing multi -year commitments from
funding partners, building new partnerships, and exploring diversified
revenue streams to support our programs. To date, we have begun having
conversations to secure funding partners who are committed to sustaining
our newest initiatives, and we will continue to prioritize proactive
fundraising and resource development to ensure the continuation and
growth of these essential services.
4. Funding requested is 15% of the agency's budget. Applicant receives about
$150,000 of ARPA funding annually for 3 years for operational funding.
While it is true that we will receive about $150,000 annually in ARPA
funding for three years, those funds are to support our Impact Builders
Network(Economic Development Programming), we still have significant
funding needs in other critical areas. These include additional staffing,
particularly for executive staff and other program -specific roles, as well as
funding for our other program areas: the NextGen Leadership Collective,
which focuses on youth programming, and the Legacy Builders Network,
which supports family programming.
These programs are vital to our mission, and additional funding will ensure
we can continue to expand their impact while addressing the growing
needs of our community. We are actively pursuing opportunities to secure
resources for these essential areas.
5. Applicant is requesting a 138% funding increase from the prior allocation. What is
the rationale for this funding increase given the other operational funding
provided by the City of Iowa City?
The requested 138%funding increase reflects our organization's growth, evolving
community needs, and the expanded scope of our programs and services. While the
City of Iowa City provides operational funding that is greatly appreciated, these
resources are allocated toward specific aspects of our work, such as Economic
Development programming, and do not fully cover the costs of our other critical
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initiatives or the additional staffing required to manage and expand our operations
effectively.
This funding increase is essential to address:
• Expanded Programming: The continued growth of our NextGen Leadership
Collective (youth programming) and Legacy Builders Network (family
programming), both of which have seen increased demand as we engage more
participants and deepen the scope of our impact.
• Staffing Needs: The addition of executive and program staff is critical to
managing expanded programs, ensuring operational efficiency, and meeting
the community's needs at a higher level.
• Program Sustainability: While the ARPA funds provide critical support for our
Economic Development programming, they do not cover our other key
programs. This funding increase is essential to sustain and expand programs
like the NextGen Leadership Collective and Legacy Builders Network, ensuring
they continue to thrive and meet the growing needs of the community.
• Increased Demand for Services: As community needs grow, particularly among
underserved populations, we are scaling our efforts to provide more
comprehensive support, resources, and opportunities that align with our
mission.
This additional funding will enable us to strengthen and sustain our
non -Economic Development programs, continue meeting the diverse needs of
Iowa City residents, and ensure our programming remains impactful and
accessible for years to come.
6. What is Dream City's long-term plan for sustainable operations once ARPA
funding has been expended?
We are committed to ensuring sustainable operations beyond the conclusion of ARPA
funding in December 2026. To achieve this, we have developed a multi -faceted
long-term plan focused on financial diversification, strategic partnerships, and
operational efficiency:
1. Diversified Revenue Streams: We are actively expanding our funding base by
pursuing a mix of grants, individual donations, corporate sponsorships, and earned
income opportunities. This includes deepening relationships with existing funders
and identifying new philanthropic partners who align with our mission.
2. Strategic Partnerships: We are collaborating with local, state, and national
organizations to build lasting partnerships that support our mission. By leveraging
these partnerships, we aim to share resources, expand program reach, and secure
joint funding opportunities.
3. Expanded Programming: Our expanded programming, such as the NextGen
Leadership Collective (youth programming) and the Legacy Builders Network (family
programming), is designed to attract dedicated funding from sources that value youth
and family development. These targeted programs position us to access
sector -specific funding streams and strengthen our community impact.
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4. Operational Reserve Fund: As part of our 2025-2028 strategic plan, we are working to
establish an operational reserve fund. This reserve will serve as a financial safety net,
enabling us to stabilize operations and address unforeseen challenges while
maintaining our commitment to service delivery.
5. Facility Optimization: The acquisition and renovation of 611 provide opportunities to
generate income through space rentals, events, and collaborative use with community
partners. This facility is a cornerstone of our long-term sustainability strategy,
allowing us to offset operational costs and invest in programming.
6. Capacity Building: We are prioritizing investments in staff development and
leadership capacity to ensure that our team has the skills and resources needed to
secure funding, manage growth, and deliver high -quality programs.
By proactively addressing these areas, Dream City is building a stronger foundation
for financial sustainability, ensuring our ability to continue serving the community
effectively and creating lasting impact beyond the ARPA funding period.