CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Consider three options for providing financial assistance to the Naperville Tornado Relief Fund and direct staff accordingly
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DEPARTMENT: City Manager’s Office
SUBMITTED BY: Doug Krieger, City Manager
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On June 20, 2021 an EF-3 tornado touched down in Naperville and Woodridge. As a result of the damage, many homes sustained significant damage or were deemed uninhabitable.
Area residents partnered with the Muthusami Paravel (MP) Foundation, a 501©3, to create the Naperville Tornado Relief Fund (NTRF). The goal of NTRF was to raise $1.5 million to fill financial gaps in homeowners’ insurance and provide funding for environmental yard clean up, landscape remediation, and landscape replacement.
NTRF was awarded a $1 million grant from the State of Illinois in January 2023. Under Public Forum at the February 21, 2023 City Council meeting, an NTRF representative discussed the State of Illinois grant, how funding will be distributed and requested $500,000 from the City to meet the fundraising goal.
Council directed staff to draft options for consideration and research the appropriateness of using ARPA funding.
DISCUSSION:
NTRF representatives provided the attached informational document on the status of the program and the following three levels of funding:
• Level 1 Funding - Yard replacement
• Level 2 Funding - Landscape remediation: clearing plating beds, tree removal, stump grinding
• Level 3 Funding - Tree, bush and plant replacement
76 homes are considered Tier 1 (higher priority) and include those declared uninhabitable by the tax assessor’s office and the homes immediately adjacent to them. The 172 Tier 2 homes (secondary priority) were in the path of the tornado at EF3 status and in proximity to the hardest hit areas.
Funding Options
At this time, resident interest level is unknown and NTRF has stated that grants may be prorated depending on the funds available and the number of applications received.
The cost estimate for lawn remediation is estimated at $25,000-$29,000 per yard. NTRF has stated that not all affected homeowners will be interested in pursuing the grant. In February, NTRF was aware of 45 residents interested in the grant.
Assumptions:
1. City contribution based on Tier 1 properties only (those deemed uninhabitable or directly adjacent).
2. Assumed cost of yard replacement is $27,000.
3. Total program cost at 100% participation totals $2.05 million.
4. Number of participating properties is unknown. Increased number of properties participating will drive an increased resident cost share.
5. Total cost at 50% Tier 1 participation is $1.026 million, 67% percent Tier 1 participation is $1.377 million, and 75% percent Tier 1 participation is $1.539 million.
The City has no precedent for an appropriate allocation of City dollars for an event such as this. With previous natural disasters, the City has increased funding for infrastructure improvements in affected areas but was not involved in funding private improvements. With that being said, staff is unaware of when Naperville has been impacted by an EF3 tornado in the past.
Staff has considered three potential funding options for City Council consideration with the understanding that the scope of work can only be estimated until participation level is known.
The City funding scenarios below includes the $1 million grant from the State of Illinois and $25,000 in private contributions.
|
|
$100,000 City contribution |
$200,000 City contribution |
$350,000 City contribution |
|
50% Tier 1 homes (38) |
100% yard funding + $100,000 for Tier 2/Level 2 |
100% yard funding +$200,000 for Tier 2/Level 2 |
100% yard funding + $350,000 for Tier 2/Level 2 |
|
67% Tier 1 homes (51) |
82% funding for yard replacement |
89% funding for yard replacement |
100% funding for yard replacement |
|
75% Tier 1 homes (57) |
73% funding for yard replacement |
80% funding for yard replacement |
89% funding for yard replacement |
Upon Council direction, staff will bring an agenda item with a resolution and funding agreement (similar to a Social Services Grant funding agreement) for approval. The agreement will include the provision that City funds will not expended until the state grant funding is received by NTRF.
FISCAL IMPACT:
The fiscal impact will depend upon the City’s contribution level.