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4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
SEPTEMBER 7,2010
10C
JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIR
JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIR
STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS
DANETTE PARR, CDNR DIRECTOR
CONSIDER APPROVAL OF A REPORT PROVIDING STAFF WITH
DIRECTION ON GRANT APPLICATIONS
Introduction
The purpose of this agenda report is to provide the Council the opportunity
to give staff direction on the types of grant opportunities we should pursue.
Historv
The City staff has always made an attempt, as time permitted, to find grant
opportunities for special projects. We have also been fortunate enough to
receive donations and assistance from the SMSC and several different
community organizations. In 2008, we began to more aggressively search
for grant opportunities. Since then, we have been awarded more than $2
million in grants.
Current Circumstances
We have been fortunate to receive grants that have enabled us to purchase
equipment, hire staff, and explore innovative ideas. All of these grants
allowed us to leverage city funds at nearly a 4: 1 ratio. However, there is a
cost to writing and receiving grants:
· Writing grant applications takes a great deal of time, and usually
involves staff from several different departments.
· Most grant programs require a local match, either in dollars or in kind.
· Administering grants takes staff time, especially if the grant requires
follow-up reporting.
· Some grants may lead to future costs for the City, either in the need to
continue a new service, maintain a new facility or retain staff for a
certain length of time beyond the grant period.
Conclusion
Grant opportunities come in all shapes and sizes. The staff looks to the
2030 Vision and Strategic Plan to help us decide which grant opportunities
to pursue. Occasionally, there will be more than one project that meets a
single grant opportunity, and staff must try to choose between the
competing projects. For example, the current Conservation Partners
Legacy Program is offering grant funds for habitat restoration and
enhancement projects, or for protection projects. We have three different
worthwhile projects that would qualify for this grant: two (2) water quality
projects and one (1) parkland natural area preservation project. All three
require substantial city investment. We have been advised by several
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different granting agencies to choose what we feel will be most likely to win
a grant. In this case, we believe the preservation project is the most likely
winner. However, this is where we need some Council guidance on
priorities.
At other times, the project is clear, but the match or future city investment is
substantial. Some grants require a 1: 1 match, which can be several
hundred thousand dollars depending on the project. Staff is always careful
to make sure we have a source for matching funds before we make an
application, but again we would like some Council guidance on what
funding levels you are comfortable with.
The current grant opportunities also typically involve the acquisition of
easements or property from private property owners. This requires
meetings and potentially negotiations with property owners. Staff believes
that it is not appropriate to pursue acquisition with private parties without
further guidance from the City Council on grant priorities.
Federal and state grants are often available based on the federal fiscal
year (beginning in October) or the state fiscal year (beginning in July).
Unfortunately, the many different agencies don't coordinate with one
another, so we often find many grant applications due at the same time.
Time and staffing constraints sometimes require we choose among the
different opportunities. Again, to help staff in this task, we are requesting
the Council provide direction on priorities.
ISSUES:
The Council recently updated the 2030 Vision and Strategic Plan to focus
on three areas: Economic Development, Strong Financial Management,
and Natural Resources. We will continue to pursue grant opportunities in
all areas. The window for grant applications can be relatively small, and we
cannot always bring our questions to the Council before the application is
due. For that reason we are asking the Council to provide us with direction
on prioritizing grant opportunities.
Some questions to consider:
1. What level of funding is the Council comfortable with and at what point
should staff bring potential applications to the Council before submittal?
2. When we have competing projects in one category, for example water
quality or land preservation, what should our priority be? Should we
pursue that direction even if staff believes we have a better chance of
funding another direction?
3. Given our limited staff resources, how should we prioritize all grant
opportunities that may be due in a small time frame?
4. Is the Council willing to commit a portion of the reserves (both general
fund and each of the enterprise funds) for possible grant matching
opportunities? If so, what amount is appropriate?
ALTERNATIVES: Provide staff with direction based on Council discussion.
RECOMMENDED As may be determined by the Council.
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