Title:
Title
City of Sacramento Financial Empowerment Center Pilot
End
FileID
File ID: 2019-00273
Location
Location: Citywide
Recommendation:
Recommendation
Adopt a Resolution approving the pilot Financial Empowerment Center Framework.
Contact: Veronica Smith, Economic Development Senior Project Manager, (916) 808-1046, Office of Innovation and Economic Development
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A (City of Sacramento Financial Empowerment Center Framework)
Description/Analysis
Issue Detail: In 2017 the City of Sacramento received a planning grant from the Cities for Financial Empowerment (CFE) Fund through the Bloomberg Foundation to explore the establishment of a Financial Empowerment Center (FEC). The Cities for Financial Empowerment Fund's mission is to leverage municipal engagement to improve the financial stability of low- and moderate-income households by embedding financial empowerment strategies into local government infrastructure. Through the one-year process of the FEC planning process, it was discovered that this tool could be complimentary to the City's inclusive economic development efforts and can be key to supporting financially vulnerable residents and businesses. If the City of Sacramento FEC framework is approved, Sacramento will join 16 local governments that have been selected to work on replicating the FEC model.
Background
The FEC model has operated for nine years in six cities, working with more than 80,000 clients, helping them reduce debt by more than $94 million, and increasing savings by $12 million. Professionally trained FEC counselors help consumers with low incomes manage their finances, pay down debt, increase savings, establish and build credit, and access safe and affordable mainstream banking products. At the core of the FEC model is the integration of counseling into other social services, including housing and foreclosure prevention, homeless servic...
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