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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. November22, 2024 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. November22, 2024 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 November22, 2024 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. November 22, 2024 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.