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Gahanna reshapes community grant program: $100,000 budget, $10,000 cap, reimbursement model proposed
Summary
Gahanna will shift its community grants program from ARPA funding to local dollars in 2025, moving to a reimbursement-only model, a $10,000 per-application cap and tighter reporting and committee review to reduce fiscal risk.
City staff presented a redesigned community grants program for 2025 that shifts awards from one‑time federal ARPA funding to local revenue and emphasizes oversight and reimbursement controls.
Program background and change: staff said the city awarded $150,000 to local nonprofits in 2023–24 using ARPA funds: $50,000 in 2023 (nine awards) and $100,000 in 2024 (15 awards). For 2025 the program will continue with $100,000 of local funding but with a tighter compliance model: awards will be reimbursement-based (no advance payments), maximum award per application will be $10,000, and administrative costs will be limited to 10% of awards.
Priorities and committee changes: priorities will remain focused on basic human necessities and mental-health services, with general safety/health as tier 2 and community-improvement projects as tier 3. The grant-review committee will expand from three to five members (two mayoral appointees, two council appointees and one city staff member); the Department of Administrative Services will facilitate but not recommend awards.
Reporting and timeline: awards will require standardized progress reporting, at least one mandatory session with a DAS staff member, and a reimbursement closeout packet. Staff proposed an April 1 application opening and an April 25 close (approximately 24 days). Notifications are anticipated around June 2 and monitoring will continue through December, with programs expected to complete by Dec. 31, 2025; limited extensions may be granted on a case-by-case basis.
Funding and budget considerations: staff highlighted potential funding sources if council wants to continue the program beyond one year: interest revenue (investment earnings), liquor permit fees (roughly $40,000 annually), local government funding (approximately $1 million annually) and the lodging tax (estimated $67,000 at 1% in 2025, though staff noted the current lodging-tax ordinance focuses on tourism-related uses and might need amendment for grant uses). Staff emphasized this is not new revenue; rather, it is a reallocation of existing general‑fund/non‑tax resources and recommended using interest income in years when revenue performance permits.
Council reaction and next steps: council members praised the tighter controls and the $10,000 cap while asking whether small nonprofits lacking cash on hand would be disadvantaged by reimbursement-only awards. Staff said they will provide award letters and purchase orders to help nonprofits use awards for matching funds when needed and will continue offering technical assistance. Council asked staff to return with final materials and agreed to move forward with the timeline and communications plan.
