Napier City Council Funding Framework Workshop Insights

Napier City Council Funding Framework Workshop 10 September 2024 Jenni Giblin, Funding HQ

Current Funding Situation Recap NCC provides over $1M per annum in funding for NFP and voluntary community organisations. Many different areas of Council support organisations with funding and in-kind contributions. NCC commissioned a review of its community funding in 2023. The review made 24 recommendations, the first of which is to develop a funding framework. Other recommendations focused on the funding model, level of grants, multi-year funding options, transparency, accountability and equity of the funding process, capacity and capability investment in community organisations, resourcing and reporting 2

Funding HQ contracted to develop a Funding Framework to cover Community Services, Economic Development, M ori Cultural and Development funding and Waste Minimisation funding. Funding Framework Funding from other areas of Council not included, e.g. Events funding Funding administered on behalf of other agencies not included e.g. Creative Communities Council workshop held in July to understand what Council requires from funding framework Key points from workshop : o Streamline and simplify funds and processes o Align distribution of funds to Council Strategic priorities o More transparency throughout the funding process o More contestability in the system o Hybrid approach preferred formal process but also the ability to be able to respond with urgency when needed Keep Council Projects Fund for flexibility and seed funding Include face-to-face reporting as appropriate o o 3

Councils Vision Enabling places and spaces where everybody wants to be 4

Financially sustainable Council A great visitor destination Council s Strategic Priorities Nurturing authentic relationships with our community and partners Spaces and Places for all A resilient city the ability to thrive and withstand impacts, knocks and shocks 5

Strategic Context Proposed Funding Framework Align to vision, priorities and principles of Council s primary strategic documents Align to Council vision, mission and strategic priorities Align timelines of funds to the Long-Term Plan and Annual Plan processes Focus on: Partnerships, which support Council to deliver key strategic outcomes Building capability and capacity to support community aspirations Two types of grants: One-offs and three-year partnership agreements Consistency of distribution in line with eligibility and criteria 6

Proposed Funding Framework Purpose To provide a clear direction and guidelines for the disbursement of Council s grants budget To ensure applicants have a good understanding of requirements when applying for funding To ensure that funding delivered through the grants programme is targeted at meeting Council s strategic priorities 7

Expected Outcomes Proposed Funding Framework Funding decisions support and align to strategic priorities The funding process is transparent, equitable and fair Accountability and reporting requirements are effective, promote better community collaboration and are appropriate for the level of funding received There is more contestability in the system There is a shared understanding, collaboration and partnership between the Council and grants recipients to deliver the desired outcomes for Napier Allows opportunity for in-kind contribution to be acknowledged 8

Proposed Funding Framework Principles Transparency Contestability Impact Collaboration and connection Build capacity and capability Is responsive and adaptive 9

Proposed Community Funds Community-Led Initiatives Fund (combining current Community Services and Community Development funding) Three-Yearly Community Partnership Agreements Council Projects Fund Proposed Funding Framework Other Funds covered by the framework: Youth Development and Events Grants Public Arts Grants Economic Development Grants M ori Cultural and Development Grants Waste Minimisation Grants 10

Community-Led Initiatives Fund Help to create positive change and assist the community s ability to meet its own needs and develop local community unity 2 funding rounds per year (March and September) Grants up to $20k, application through Smarty Grants portal Budget allocation $250k Contestable one-off grants For community-based projects, programmes, activities or events contributing to positive social outcomes for Napier residents Community Funding Three-Yearly Community Partnership Agreements For a continuous or annual community service undertaken by an organisation that is well-led, sustainable and responsive to community needs and aspirations Service delivery focused agreements Contestable multi-year funding Agreements are eligible for renewal after three years, but this is not automatic. It is subject to review of performance and in a contestable environment against any new applications made for this funding An EOI will be the first step of the application process Consideration will be given to an applicant s ability to raise funds from other sources and assessment weighted accordingly Budget currently $600k 11

Council Projects Fund Seed funding for community projects that are not eligible for Community-Led Initiative or Community Partnership funding Discretionary grant. Applicants invited to apply and present to Council Grant minimum $20k Budget allocation $200k Community Funding Although discretionary, this fund is promoted on Council website, so organisations know of its existence Youth Development Funding and Youth Events Funding* Youth Development Funding comprises small contestable grants for young people aged 12-24 years Youth Events Funding is also contestable Supports the vision of the Napier Youth Strategy: Youth achieve their full potential and participate fully. Full potential, full participation. Grants up to $1k for Youth Development Funding Budget allocation $7k for Youth Development grants; $5k for Youth Events Public Arts Grants Supports the implementation of the Arts Policy Artists will be invited to submit a public art project Budget allocation $50k 12 This grant will be promoted on Council website, so artists know of its existence

Economic Development Fund Grants made from Economic Development budget For sponsorship of business events and activities related to business promotion to improve Napier City s reputation and national presence and to promote business excellence in Napier One-off grant, application through Smarty Grants portal In-kind funding (use of facilities; marketing/comms) also available Grant maximum $10k Budget allocation $50k Other Funding M ori Cultural and Development Fund Grants from the Te Waka Rangep budget Support M ori-led events and activities encouraging cultural participation and learning For mana whenua and tangata whenua led projects, activities, initiatives and events to raise the profile of and invite participation in and engagement with M ori culture and heritage, reo and tikanga in Napier Budget allocation $150k Grant quantum depends on project Three-yearly partnership agreements may be considered 13

Waste Minimisation Funding Grants made from Waste Minimisation budget Contestable fund aims to support waste minimisation projects that encourage new waste minimisation initiatives or expand on existing activities One-off grant, application through Smarty Grants portal 2 pools of funding depending on size of grants: o Grants under $2k o Grants over $2k up to $20k Budget allocation $100k with $80k allocated to larger grants, $20k to smaller grants Other Funding 14

Bequests Bequests involve minimal funding, are very limited in what the funds can be used for and given to the same recipients year on year, i.e. William Colenso bequest to schools for book vouchers and John Close bequest to Napier Community Christmas lunch It is proposed that the bequest funding lies outside the grants and funding process and is not included or promoted as such. It may still be managed by the Community Services team Rates Subsidies Bequests and Rates Subsidies Have been made available through the Community Services grants and deducted from the funding before any other grants are made Rates subsidy requests have reduced over the years while requests for rent costs have risen It is proposed that applications for rates subsidies are included in the Community-Led Initiatives Fund and assessed alongside other operational costs requested for grants. 15

Every successful application will be formalised in a funding agreement. For smaller grants, this may simply be a letter asking the recipient to sign and return Larger grants and community partnership agreements will include information on what the grant is for, the amount, the timeframe in which it must be used, reporting and accountability requirements and payment timeline (if not paid as one total amount) Grant recipients will be required to provide a report on the outcomes and benefits achieved with the funding received Reporting and Accountability Reporting requirements will be proportionate to the level of support provided For larger grants and partnership agreements, Council staff will work with recipients to establish a reporting framework and timetable Reporting may include a face-to-face presentation to Council or Roundtable reporting involving groups of related organisations to encourage more collaboration and opportunity for networking with community groups 16

Current service contracts will be invited to apply for the three-yearly Community Partnership Funding alongside any new applications that may be made Some Points to Consider If current service contracts offer a service that Council considers essential, then are they being funded from the right place? e.g. if related to a civic event like ANZAC Day, should it be from Civic Events budget? Organisations that come to Annual Plan and Long-Term Plan for funding will be directed to appropriate fund to apply for funding as part of new Funding Framework process Review of framework 5 years is recommended New funding process: o Framework will be brought to Council for approval before the end of this year o New process will be implemented in next financial year (from July 2025) How much does Council want to be involved in the funding process? i.e. on assessment committees; reporting back meetings? 17