MEMORANDUM

TO:	Mayor and Town Council
FROM:	Human Services Advisory Board Larry Daquioag, Chair
SUBJECT:	Town Contributions to Outside Agencies
DATE:	April 28, 2008

The purpose of this memorandum is to respond to the Town Council’s request for the Human Services Advisory Board to provide input on the process for reviewing funding requests from outside agencies.

BACKGROUND AND DISCUSSION

At the Budget Work Session held March 5, 2008, the Human Services Advisory Board presented information to the Town Council on priority human service needs for Chapel Hill residents. The Board also provided information on the requests for Town support from local nonprofit agencies through the human service application process. For fiscal year 2007-2008, the Council approved allocations totaling $250,000 for 41 nonprofit agencies to address human service needs. This year, the Board has received 41 proposals totaling $338,940.

The Board asked for the Council’s direction on agencies that approach the Council directly for funds or that may not quite fit the criteria of human services. Discussion between the Council and the Chair of the Human Services Advisory Board included several issues related to the Town’s support of outside agencies. The discussion included the following points:

• Human service agencies sometimes approach the Town Council directly rather than participating in the application review process for Town support.
• A number of agencies receive Town support directly either as line items in the budget or through in-kind services. Agreements over the years between the Town and other governments or entities have led to many of these contracts. (A summary of direct and indirect contributions prepared in March of 2007 is included as Attachment 1.)
• Outside agencies that may not fit the criteria for human services do not have a standard process for approaching the Town for support. These agencies may provide valuable services that could benefit the Chapel Hill community and deserve consideration.
• Outside agencies have sometimes received Town support directly and through the human services allocation process during the same fiscal year.
• In some cases, other governments utilize their human services boards or commissions to review requests from all outside agencies by requiring agencies to follow the same application process. All agencies or groups must complete the same application and submit supplemental financial materials. Proposals are reviewed and evaluated for every outside group by the same standards.

At the conclusion of the discussion, the Town Council asked the Board to consider these points and offer input on a solution. The Board agrees that the process could be improved. However, several issues remain that would need to be resolved. First, if the Human Services Advisory Board is asked to review programs currently funded through other budget categories for this year, the deadline for application submissions will need to be re-opened. Applications were due on February 11. Second, the Board would ask the Council to review the current budget of $250,000 for human service allocations and consider an increase that would provide sufficient funds for the other groups currently supported through the Town. For example, agencies providing services to seniors supported directly by the Town currently receive over $100,000. Third, if the Board is asked to consider all outside agencies asking for Town support, we would ask for discussion and guidance from the Council regarding the Council’s goals and criteria for those other outside agencies.

RECOMMENDATION

The Human Services Advisory Board recommends that all 2008-09 funding for human services go through the Board’s application process.  The Board would direct human service agencies, previously funded by the Town without Board review; to complete applications and the Board would then hold hearings separately from current applicants. If the Council approves the preceding recommendation, the Board respectfully requests that the Council increase the current budget to include human service funds previously allocated directly from the Town’s annual budget. 

The Board recognizes that the Council continues to receive requests from agencies that may not fulfill the human services criteria but want to apply for Town funds. In the Board’s view those non-human service agencies may provide valuable services to the residents of Chapel Hill and deserve consideration. The Board has developed a proven, standardized process for accepting requests, reviewing applications and providing recommendations to the Council for human services. However, the Board is not currently empowered to provide review of other (non-human service) outside groups. After review of Town ordinance number Article VII section 2-124, the Board believes that its duties and powers would need to be revised if the Council wishes the Board to review all requests from non-human service agencies. With this in mind, the Board requests the Council provide guidelines and criteria to use if the Board is to accept, review and/or refer non-human service agencies for Town funds. Perhaps the most practical procedure would be for such agencies to apply to the Board and the Board then refers those applications to the appropriate Town advisory board for review.  The Board is prepared to respond to the Council’s direction on the issue of non-human service agencies.   

The Human Services Advisory Board recognizes that the Board’s scope and budget may be dramatically changed and makes these recommendations with the caveat that the annual application process and budget will require further defining and change until the Board, applying agencies, and the Council have reached a result which fulfills Chapel Hill’s goals. The Board looks forward to the Council’s decisions and continuing direction.

ATTACHMENTS

1. Budget Working Paper, March 28 2007, (p. 3).