The May 2, 2016 Concurrent Meeting of the Sparks and Reno City Councils with the Board of Washoe County Commissioners included an “update and discussion on the Community Assistance Center (CAC), selected vendor for FY 17, and direction to staff on the Interlocal Agreement”.  The update included notifying the City Councils and the County Commission that following a competitive process, the Transitional Governing Board (TGB) recommended that the City of Reno award a contract to Volunteers of America (VOA) to continue operating the CAC for the next three fiscal years (FY 17, 18 and 19).  The TGB is currently comprised of Mayor Martini, Washoe County Commission Chair Jung and Reno Councilman Bobzien.

VOA’s proposal for FY 17 includes operating a year-around overflow shelter as well as enhanced services and programming, including the addition of housing and employment specialists. Adding the cost of operating the overflow shelter (funded separately in current and previous years), as well as additional services, increases VOA’s proposed budget for operating the CAC from approximately $1.9 million during the current year to $2.66 million in FY 17.  This latter amount is substantially more than the funding provided for CAC operations per the current “Interlocal Cooperative Agreement”, which would provide for approximately $2.04 million in FY 17 based on Reno and Sparks each contributing the property tax equivalent of a half cent and Washoe County providing the property tax equivalent of one cent.

The TGB reviewed VOA’s FY 17 proposal on April 29, 2016 and endorsed their proposed budget.  The TGB has also recommended that Reno, Sparks and Washoe County increase their contributions for CAC operations so that VOA can more effectively address the needs of our homeless population as well as to ensure the year-around operation of the overflow shelter, once a replacement shelter is found and without which it is legally difficult for Reno and Sparks to enforce their respective prohibitions on camping along the Truckee River.  Specifically, the TGB endorsed a funding formula (Option B, as shown in the table below) that would increase the cities’ contributions to the property tax equivalent of one cent and Washoe County’s to the property tax equivalent of one and a half cent.  The other options presented to and considered by the TGB are in the table below; the table is from the presentation at the Concurrent Meeting May 2nd.  Option B would generate approximately $3.02 million, an amount sufficient to cover CAC operations and begin addressing other related needs.

Table 1:  Funding Alternatives Considered by the Transitional Governing Board

As you know, the Concurrent Meeting agenda item was not written in a manner that would have allowed the City Councils or County Commission to take action that day to either amend the Interlocal Cooperative Agreement or to approve funding for the CAC.  Also, you have already approved the City Manager’s final budget recommendations which included approximately $123,000 in appropriations for the CAC.

City staff has worked to develop a series of options for City Council consideration today.  They range from sticking with the current funding method that provides the equivalent of ½ cent of the City’s property tax rate to doubling that amount.  The following table presents six options developed by City staff.  They solicit three questions, as follows:

1. Does the City Council want to increase funding for serving the homeless population our community?  If the answer is no, staff recommends Option 1 for no change and questions two and three are not pertinent.  If the answer is yes, proceed to question 2.
2. Is the City willing to accept the TGB’s recommendation that both cities double their contribution rate while the county increases their contribution rate by 50%?  If the answer is yes, select Option 2 and proceed to question 3.  If the answer is no, staff recommends the City Council consider Option 3-6 which provide funding various levels of additional funding, all below Option 2, then proceed to question 3.
3. How does the City Council want to fund any increase?  Staff sees two funding alternatives, delaying the hiring of approved New Need positions in the FY17 budget or utilization of the FY17 Contingency Budget.  Staff recommends delaying the hiring of certain New Need positions, leaving the timing and selection of positions to withhold to the City Manager.

Table 2:  Community Assistance Center Funding Options

** Uses FY17 valuation figures, whereas in reality the annual calculation uses updated valuation figures)

1. The City Council may choose any of the six options presented above.
2. The City Council may develop an additional option and direct staff to implement it.
3. The City Council may choose to take no action (which is the same as Option 1)
4. The City Council may choose to provide other direction to City staff.

I move to approve Option Number _______ regarding Additional Funding for the Community Assistance Center in FY17.