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HomeMy WebLinkAbout26-73 Ali , ELGIN THE CITY IN THE SUBURBS MEMORANDUM To: Mayor and City Council Members From: Karina Nava, Assistant City Manager Date: 22 April 2026 Re: Resolution Authorizing Grant to PADS of Elgin Public Action to Deliver Shelter, Inc. (PADS) of Elgin has informed the city that it is facing an immediate funding shortfall and requires short-term financial assistance to maintain operations through the end of its fiscal year. The organization currently serves approxi- mately 30 shelter guests and provides ongoing support to additional individuals through its drop-in services. Without bridge funding, PADS has indicated it may be required to reduce or suspend services in the coming weeks. The attached resolution authorizes a one-time grant in the amount of$200,000 to support continued shelter operations and essential services through June 30, 2026. This action is intended to maintain continuity of services within the community's homelessness re- sponse system during a defined funding gap while PADS continues implementing its longer-term sustainability strategy, including expanded fundraising and anticipated future funding sources. The city has prioritized a coordinated approach to homelessness response, including in- vestments in hotel-based housing and emergency shelter. Maintaining PADS shelter and support services helps avoid immediate disruptions that could increase unsheltered ac- tivity and place additional demand on public safety resources and other community sys- tems. Funding for this request will be supported using existing city funds allocated for home- lessness response. The city has also secured $400,000 in state funding through the Illi- nois Department of Human Services to support targeted unsheltered response efforts for the current fiscal year, providing additional capacity to address overall system needs. Staff is currently working with the state to finalize the agreement, which will be brought forward to the city council for consideration at a future meeting. Attachment c. Richard G. Kozal, City Manager Debra K. Nawrocki, Chief Financial Officer Christopher J. Beck, Corporation Counsel Resolution No. 26-73 RESOLUTION AUTHORIZING A GRANT TO PUBLIC ACTION TO DELIVER SHELTER, INC. (PADS OF ELGIN) WHEREAS,the City of Elgin is a home rule unit of government under Article VII, Section 6 of the Constitution of the State of Illinois and may exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, the City of Elgin is committed to addressing homelessness through comprehensive action and compassionate support, with the goal of ensuring every individual has access to safe, stable housing and the resources needed to thrive; and WHEREAS, Public Action to Deliver Shelter, Inc. (PADS of Elgin) was incorporated in 1989 as a nonprofit 501(c)(3) organization and has long served the community through programs addressing homelessness; and WHEREAS, the City of Elgin recognizes the important public benefit provided by PADS of Elgin through services to individuals and families experiencing homelessness and housing insecurity; and WHEREAS, PADS of Elgin provides shelter, supportive services, case management, and related assistance that promote the health, safety,and welfare of residents of the City of Elgin; and WHEREAS, PADS of Elgin operates a year-round shelter that provides a safe and secure environment for guests, including sleeping accommodations, separate sleeping quarters for men and for women with children, shower and laundry facilities, and daily meals; and WHEREAS, in addition to shelter services, PADS of Elgin provides comprehensive case management and individualized action plans designed to help guests achieve stability and independence; and WHEREAS, supportive services offered through PADS of Elgin include financial literacy, life skills training, counseling, referrals, mental health assessments, substance abuse support, advocacy, employment assistance, and educational opportunities; and WHEREAS, PADS of Elgin is experiencing an immediate financial hardship that threatens its ability to continue providing shelter, case management, and supportive services to individuals experiencing homelessness in the community; and WHEREAS,despite substantial community support that helped offset prior federal funding losses, PADS of Elgin continues to face urgent short-term funding needs; and WHEREAS, PADS of Elgin has undertaken expense reductions where possible while maintaining the safety of shelter guests, staff, and operations; and WHEREAS, absent immediate financial assistance, PADS of Elgin may be required to implement significant staffing and program reductions that would negatively impact services to residents of the City of Elgin experiencing homelessness or housing insecurity; and WHEREAS, the City Council has determined that providing financial assistance to PADS of Elgin serves a valid public purpose and is in the best interests of the City and its residents; and WHEREAS, the City Council further finds that the funds authorized herein are intended as a direct contribution to support the organization's mission and operations and shall not be subject to reimbursement to the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, as follows: Section 1. That the City Manager, or designee, is hereby authorized and directed to provide a contribution in the amount of$200,000 to PADS of Elgin. Section 2. That such contribution is made for a public purpose in support of services benefiting residents of the City of Elgin. Section 3. That the funds provided pursuant to this Resolution are a grant and PADS of Elgin shall have no obligation to repay or reimburse the City for such funds. Section 4. That the City Manager, is hereby authorized to execute any documents and take any actions necessary to carry out the intent of this Resolution. s' David J. Kaptain David J. Kaptain, Mayor Presented: April 22, 2026 Adopted: April 22, 2026 Vote: Yeas: 7 Nays: 0 Abstain: 2 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk 2