CITY OF CHARLOTTESVILLE, VIRGINIA
                  CITY COUNCIL AGENDA




 Agenda Date:        November 2, 2020

 Action:             Approval of allocation

 Presenter:          Chris Cullinan, Director of Finance

 Staff Contacts:     Kaki Dimock, Director of Human Services
                     Chris Cullinan, Director of Finance

 Title:              Bridge Ministry Request for Allocation of $54,750 of CARES
                     Contingency Reserve



Background:

During its regularly scheduled meeting on October 5, 2020, City Council established a CARES
Contingency Reserve of $625,000. On October 19, 2020, City Council allocated a significant
amount of this reserve to specific COVID-related expenses, in accordance with staff
recommendations relating to requests received from various entities. A request for support from
The Bridge Ministry was discussed that evening without resolution.

The Bridge Ministry submitted a programmatic update in which the Ministry identified a need for
approximately $328,500 for support of 9 individuals released from the Albemarle Charlottesville
Regional Jail. At City Council’s meeting on October 5, 2020, questions were raised as to whether
Bridge Ministry’s request meets the CARES Funding requirements, and about how many of the
individuals who received the services were from the City of Charlottesville.

Staff also noted to Council that the Bridge Ministry has received public funding from the City in
the past, but the Bridge Ministry does not regularly audit its financial statements. In 2017 the
City requested an audit of the Ministry’s financial statements (and agreed to pay for the audit),
and the requested audit was received in May 2020. The purpose of the request is to assure that
the City’s public funding is actually supporting services that benefit Charlottesville residents,
with minimal amounts of funding are going to administrative costs. (It should be noted: it is not
unusual for smaller charitable nonprofits to be without audited financial statements. Federal law
only requires certain charitable nonprofits who receive more than $750,000 federal funding in a
given year to comply with special audit requirements; however, unless state law mandates an
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audit, or unless a locality requires the audit as a condition of grant funding, many charitable
nonprofits and religious organizations would not necessarily obtain an audit in the normal course
of their operations). The City of Charlottesville does require that agencies with operating budgets
in excess of $500,000 obtain an independent auditor annually to qualify for funding through the
Vibrant Community Fund.

Discussion:

At the city manager’s request, staff sought and received additional information from The Bridge
Ministry and analyzed their request for funding as to eligibility for CARES Act Funding. Staff
have reviewed the request and finds that the activities are sufficiently COVID-related to be
eligible for funding. The Bridge Ministry reports that 8 of the 9 individuals served by the
program are from Charlottesville.

Alignment with Council Vision Areas and Strategic Plan:

This action aligns with the Council’s Vision as a Great Place to Live for All of Our Citizens. It also
aligns with the City Council’s Strategic Plan Goals.

Budgetary Impact:

There is no direct impact on the City’s budget. A second round of CARES funds in the amount of
$4,123,776 has been received from the Commonwealth, of which City Council appropriated
$625,000 for a Contingency Reserve (approximately 15%). Sufficient funds remain in the
Contingency Reserve.

All funds are subject to conditions established by the U.S. Treasury and the Commonwealth and must
be expended for eligible expenditures incurred between March 1, 2020 and December 30, 2020. Any
unused funds must be returned.

Recommendation:

Staff recommends approval to use remaining CARES Contingency Reserve Funds in the amount of
$54,750. This amount translates to 1/6th of the annualized amounts identified by The Bridge
Ministry, given that these funds must be expended in full over the remaining two months of 2020
(i.e., on or before 12/30/2020).




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