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HomeMy WebLinkAboutOrdinance 22236-05-2016 ORDINANCE NO. 22236-05-2016 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND IN AN AMOUNT UP TO $275,000.00, SUBJECT TO EXECUTION OF A GRANT AGREEMENT WITH THE UNITED WAY OF TARRANT COUNTY AND RECEIPT OF FUNDS, FOR THE PURPOSE OF FUNDING THE VOLUNTEER INCOME TAX ASSISTANCE PROGRAM, RESPONSIBLE FOR PROVIDING TAX RETURN PREPARATION, OUTREACH, AND FINANCIAL EDUCATION TO LOW-INCOME FAMILIES; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH;AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL,OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Grants Fund in an amount up to $275,000.00, for the purpose of funding the Volunteer Income Tax Assistance Program responsible for providing tax return preparation, outreach, and financial education to low-income families. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: n 9 / Assistant City Attorney M iy J.Kayser, City S cr tary t mew ADOPTED AND EFFECTIVE: May_ 24,2016 Ordinance No.22236-05-2016 Page 1 of 1 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/24/2016 -Ordinance No. 22236-05-2016 DATE: Tuesday, May 24, 2016 REFERENCE NO.: **C-27732 LOG NAME: 19UWTC-VITA-2016 SUBJECT: Authorize Application for and Acceptance of, if Awarded, a Grant from the United Way of Tarrant County in an Amount Up to $250,000.00 for the Volunteer Income Tax Assistance Program, Authorize Execution of Agreement with the United Way of Tarrant County, Authorize Allocation of a Portion of Assigned Staff Time Valued in an Amount Up to $25,000.00 as an In-Kind Match and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the application for and authorize acceptance of, if awarded, a grant from the United Way of Tarrant County in an amount up to $250,000.00 for the operation of the Volunteer Income Tax Assistance program; 2. Authorize the execution of the related Grant Agreement with the United Way of Tarrant County; 3. Authorize the allocation of a portion (10 percent) of assigned staff time valued in an amount up to $25,000.00 as an in-kind match for this grant; and 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Fund in an amount up to $275,000.00, subject to receipt of funds. DISCUSSION: The United Way of Tarrant County has funds available for agencies to implement the Asset Development and Income Support Initiative for Fiscal Year 2016-2017. The outcome of this initiative is to positively impact the financial stability of Tarrant County working families. One method to accomplish this is by assisting unduplicated low-income families through the Volunteer Income Tax Assistance (VITA) program. In 2001, a decision was made to move the VITA program from the Internal Revenue Service to a community based program. It was determined that the communities had a better relationship with their residents and would be more successful in delivering the three pronged message to the populations. The three pronged message the Internal Revenue Service is interested in delivering is: (1) tax return preparation, (2) financial education and asset building and (3) outreach. The Earned Income Tax Credit is the basis of the VITA program. This message is delivered through tax return preparation, outreach products and financial education. The goal is to deliver a program and teach people how to invest their refunds in an advantageous manner to assist them with becoming self-sufficient. During the 2015-2016 Fiscal Year, the Neighborhood Services Department administered the program through the Community Action Partners at eight sites throughout Tarrant County. If the funds are Logname: 19UWTC-VITA-2016 Page 1 of 2 awarded, the Neighborhood Services Department will administer the program in 2016-2017. As of April 10, 2016, tax returns completed were 2,568 for an overall refund amount of$4,831,536.00 of which $1,884,660.00 was Earned Income Credit dollars from 878 clients. The number of clients choosing to purchase savings bonds was 31 and 65 clients decided to split their refund by placing a portion in a savings account. The impact to Tarrant County's economy is $5,539,536.00 in refunds and money saved. The goal for Fiscal Year 2016-2017 is to assist up to 3,000 unduplicated low-income workers file their tax returns through a VITA site and to file for approximately $1.8 million in Earned Income Tax Credits (EITC). EITC can supplement the income for families while they work to advance their earnings. This will enable these families to meet daily living expenses, begin saving, build assets and achieve a level of financial stability. A 10 percent match is required for this grant and will be provided by allocating a portion of assigned Staff time valued in the amount up to $25,000.00 that is billed to and paid out of previously appropriated general fund money. The total amount of this grant, when factoring in the in-kind match, is up to $275,000.00. This program serves ALL COUNCIL DISTRICTS. FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Grants Fund. FUND IDENTIFIERS (FIDs): TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year Chartfield 2 21003 0190444 4XXXXXX XXXXXX XXXXXX $25,000.00 21003 0190444 4XXXXXX XXXXXX XXXXXX $250,000.00 21003 0190444 5XXXXXX XXXXXX XXXXXX $25,000.00 21003 0190444 5XXXXXX XXXXXX XXXXXX $250,000.00 FROM Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Aubrey Thagard (8187) Additional Information Contact: Sonia Singleton (5774) Logname: 19UWTC-VITA-2016 Page 2 of 2