Title
Approval of Recommended Human Services Funding for FY 2025-2026
PURPOSE: To approve human services funding recommendations for FY 2025-2026.
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Department
DEPARTMENT: Housing and Community Services
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Council Direction
COUNCIL DIRECTION:
__X_ Race/Equity ____ Climate ____ Comprehensive Plan ____Other
Council Direction Statement
The Town of Carrboro envisions being a community where race does not determine outcomes, and all have equitable opportunities and resources.
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Information
INFORMATION: The Town Manager’s Recommended Budget for FY 2025-2026 includes an appropriation of $474,869 to be distributed to local human services agencies providing services to the residents of Carrboro.
The FY 2025-2026 Outside Agency/Human Services application cycle received 43 applications from nonprofit agencies, requesting a total of $694,670. Staff and the Town’s Housing and Human Services Advisory Commission reviewed the applications, and a total of 4 public hearings in March and April were held. During the hearings, staff heard presentations from applicants and asked questions related to performance, financial and organizational information, current services, and impact of potential federal funding reduction.
Agencies funded in the prior year were also required to submit semiannual reports in January which staff reviewed and apprised the Commission of any performance-related issues or significant changes which could help inform their recommendations.
On May 21, 2024, the Housing and Human Services Advisory Commission recommended to fund 39 agencies for a total $457,536 for FY 2025-2026. The recommendation leaves a funding balance of $17,333. The Commission’s recommendation can be found as Attachment C, and recommended allocations are provided in Attachment D.
On April 7, 2025, the Town received a request from Orange Water and Sewer Authority (OWASA) to provide funds for a new initiative, the Water Bill Relief Program, designed to subsidize significant rate increases for very low-income Carrboro households. The program is not expected to launch until January and is still in development, including considering effective measures to ensure that this resource is offered equitably. For these reasons, staff recommends declining to fund this proposal, noting the availability of Human Services funding balance and that OWASA could submit a revised proposal toward the end of 2025 for consideration.
Additionally, the Town received requests from: (1) Inter Faith Council (IFC) $125,000 and $75,000 for emergency shelter services and for a dedicated member engagement position respectively; (2) Orange County Partnership to End Homelessness (OCPEH) expansion programs budget. These requests were submitted outside the Human Services application process and will continue to be funded through the Town’s Affordable Housing Special Revenue Fund (AHSRF).
OCPEH advised that they did not want to implement their expansion request unless all partner jurisdictions included it in their respective budgets; therefore, they approved a contingency request. Staff recommends full funding of the contingency request, $123,486. Support by all jurisdictions to include the full expansion request is not anticipated.
|
Requests |
FY 2026 Requested |
FY 2026 Recommended |
|
IFC - Operating - Shelter |
$125,000 |
$112,500 |
|
IFC - Member Engagement |
$75,000 |
$0 |
|
OCPEH Expansion request |
$148,234 |
$123,486 |
|
TOTAL |
$348,234 |
$235,986 |
Conflict of Interest Statute for Public Officials in G.S. § 14-234.3
On April 29, 2022, Town Attorneys presented a memorandum to Mayor Seils and the Town Council regarding the conflict-of-interest statute in G.S. § 14-234.3 for public officials holding leadership positions with nonprofit entities. This statute, which took effect on January 1, 2022, prohibits public officials who also serve as directors, officers, or governing board members for nonprofits from participating “in making or administering a contract, including the award of money in the form of a grant, loan, or other appropriation” with those nonprofits that the public official is associated with.
As required per this statute, Council Members who hold leadership positions with any of the Human Services nonprofit applicants will recuse themselves from deliberation and voting on Human Services funding FY 2025-2026.
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Fiscal and Staff Impact
FISCAL IMPACT: The FY 2025-2026 Town Manager’s Recommended Budget includes an appropriation of $474,869 for Human Services funding and $770,000 for the AHSRF. The recommended requests total $457,536 in Human Services funds and $235,986 from the AHSRF for IFC and OCPEH. There is no additional budgetary impact associated with this item.
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Recommendation
RECOMMENDATION: Staff recommends the Council approve funding recommendations with the resolution provided as Attachment A.
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