1-6-97 agendaCITY OF RICHFIELD, MINNESOTA
Council Letter No. 8
Agenda January 6, 1997
Issue Statement:
The Richfield Community Council (R.C.C.), as a partner in the South Hennepin Family
Services Collaborative, is charged with the responsibility of determining how locally
generated Revenue Enhancement Funds will be used in Richfield. The R.C.C. is
presenting to the Richfield City Council and Richfield School Board their revenue
enhancement spending plan for information purposes.
Background:
Revenue enhancement is a program in which new funds are raised for collaboratives
through reimbursements from federal entitlement programs for specific health and
social services to children provided through schools and other organizations. The
project was authorized as part of the legislation establishing Family Service
Collaboratives and Children Mental Health Collaboratives in 1993 and is a component
of the South Hennepin Family Services Collaborative Financing Framework.
The program draws its funding from three existing federal entitlement programs
Medicaid, AFDC/Foster Care (4E) and AFDC Emergency Assistance (4A). Federal
government approval for accessing these funds by local collaboratives and their
partners was based on the condition that the funds would flow back to the
• collaboratives and be expended under their authority, not the authority of any single
agency. The federal entitlement programs from which the revenue enhancement
program is based may be capped and block-granted at some point in the future and,
therefore, the program should not be viewed as a permanent source of funding.
The school districts of Bloomington, Richfield, Eden Prairie, Edina and Bloomington
Public Health are participating organizations in the revenue enhancement pilot project
as partners of the South Hennepin Family Services Collaborative and in affiliation with
the Redesign Collaborative of Hennepin County. Participating organizations refer to
those that actually generate the Revenue Enhancement Funds through the services
they provide. These organizations participate in a local time study, upon which
reimbursements are based. Once the pilot project is further along, private organizations
will potentially be able to participate in the revenue enhancement program.
The Revenue Enhancement Funds must be used for new or expanded collaborative
activities and help achieve the goals of the South Hennepin Family Services
Collaborative. They cannot be used to replace existing resources of any of the
collaborative partner organizations. Aside from these basic conditions, the funds can
be used flexibly. All revenue enhancement spending plans must be approved by the
State of Minnesota prior to reimbursement.
•
The Richfield Public Schools completed time studies in 1996. It is estimated that
approximately $100,000 will be available to the Richfield Community Council for use in
Richfield for family service collaborative initiatives. The. Bloomington Public Health
Department has recently initiated the time study process in. relationship to its contract
with Richfield.
On November 20, 1996, the R.C.C. approved its spending plan (see attached). After
presenting the plan to the joint study session of the School Board and City Council, the
R.C.C. will forward the plan to Hennepin County for transmission to the State which
reviews, approves and/or recommends modifications. Upon State approval of the plan,
the County will receive the funds and issue checks upon request of the R.C.C.
The R.C.C. has voted to request that the City of Richfield serve as the fiscal agent for
all Revenue Enhancement Funds generated on behalf of the community of Richfield.
The City Council will take action on this matter at their regular meeting on January 13,
1996.
Recommended Motion:
This information is being presented for discussion only. No formal motion is required.
Basis of Recommendation:
Not applicable
. Alternative Recommendation:
Not applicable
Discussion/Decision Mode:
This information is being presented by the R.C.C. as part of their timetable to submit
their revenue enhancement spending plan to Hennepin County.
Respectfully submitted,
James D. Prosser
City Manager
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