HomeMy WebLinkAboutA001 - Council Action Form dated August 25, 2026ITEM #:14
DATE:08-25-26
DEPT:ADMIN
SUBJECT:SPECIAL ASSET FUNDING REQUEST FOR FY 2026/27 FROM THE ARC OF
STORY COUNTY
COUNCIL ACTION FORM
BACKGROUND:
The Arc of Story County (The Arc) is a local nonprofit organization that provides advocacy,
support, and services to individuals with intellectual and developmental disabilities and their
families. The Arc receives funding through the ASSET (Analysis of Social Services Evaluation
Team) process from both the City and United Way of Story County. For FY 2026/27, the City
has allocated a total of $32,418 to support five Arc programs and services.
One of these programs, Active Lifestyles, has been allocated $6,000 through the City. Active
Lifestyles serves approximately 124 individuals by offering social and recreational
opportunities that foster community engagement, build peer relationships, and promote the
development of skills that support healthy and independent lifestyles. However, the program is
facing a significant funding shortfall as a result of the redesign of Iowa's behavioral health and
disability services system.
During the first half of FY 2025/26, Active Lifestyles received $25,000 in funding through Polk
County Behavioral Health and Disability Services. Funding for the second half of FY 2025/26
was provided by Iowa's designated Administrative Services Organization (ASO), in the amount
of $25,000. In June, however, The Arc was notified that funding for Active Lifestyles would not
continue beyond June 30, 2026. As a result, the program is facing a projected $50,000
funding loss in FY 2026/27.
To address the funding shortfall, The Arc has been pursuing several strategies. The
organization explored becoming a Medicaid provider through the Iowa Department of Health
and Human Services and discussed potential partnerships with peer organizations that
currently operate under Medicaid provider status. However, neither option proved feasible. In
addition, The Arc of Story County's Board of Directors is actively working to expand
fundraising efforts to generate new revenue sources for the program but recognizes that
fundraising will require time to produce results. Therefore, The Arc is seeking special
funding requests of $10,000 each to the City of Ames and United Way of Story County
as well as possibly using reserve funds on an interim basis while longer-term funding
solutions are pursued.
If this funding request is approved, The Arc's FY 2026/27 contract will be amended to
reflect the revised funding amount, and funds will be disbursed in accordance with the
terms of the contract. The rate per one hour of recreation services is $10.87, and this
will remain unchanged. If the additional $10,000 is approved, the new total amount
would be $16,000, equaling 1,471 units of service.
The FY 2026/27 ASSET funding approved by City Council includes $56,002 of
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unallocated funding, reserved for basic needs. This amount is available to be used for
considering special requests such this.
ALTERNATIVES:
1. Approve the Arc's special request for additional funding in the amount of $10,000 for the
Active Lifestyles program to be paid from the unallocated balance in the ASSET budget.
2. Do not approve The Arc's special request for additional funding.
CITY MANAGER'S RECOMMENDED ACTION:
Funding for The Arc's Active Lifestyles program has been adversely affected by the
redesign changes to Iowa's behavioral health and disability services system. While the
organization continues to explore sustainable, long-term funding solutions, additional
time is needed to implement these strategies and realize their potential outcomes. This
one-time additional funding would help ensure continuity of services during this
transition period. Therefore, it is the recommendation of the City Manager that the City
Council adopt Alternative 1 as noted above.
ATTACHMENT(S):
Arc Special Funding Request FY27.docx
FY 2026/27 ASSET Contract - The Arc.pdf
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130 S. Sheldon #302
Ames, IA 50014
(515) 232-9330 Phone
(413) 798-2735 eFax
info@thearcstory.org
www.thearcstory.org
Board of Directors:
Steve Freeman, Brent Shanks,
Judi Eyles, John Paschen,
Kayce Schmidt, Mike Bates,
Connie Hargrave, Dakotah Weaver,
Kathy Welik, Chris Nelson,
Catrina Judge, Liliana Perry,
Nicole Patton
July 29th, 2026
To: City of Ames, ASSET
From: Tricia Crain, The Arc of Story County
RE: Funding request
The Arc is requesting an additional $10,000 in funding through the City due to a
$50,000 loss of funding previously provided through the District/Region. The
Arc has also requested $10,000 from UWSC. The additional loss in funding will
be made up with a structured fundraising plan and grant writing.
Below are the steps The Arc has taken and the rationale behind our
increased funding request from the City.
When the Mental Health Regions ended on July 1, 2025 we were on
conditional funding through the new District out of Polk County. We
continued funding through January 31st, 2025. At that time, the new
mental health ASO funding covered Active LifeStyles until July 1, 2026.
The ASO notified us last week that we would not receive funding after
June 30, 2026. This represents a $50,000 loss in funding for the program,
in addition to the funding we already lost for Project SEARCH from IVRS
on July 1, 2025.
I will list out all the options I have looked into below...
I met with the Provost of ISU and Dean Jolly from the College of
Health and Human Sciences to inquire about funding for Project
SEARCH. Both stated that no funding available, though they see
the program as very valuable.
I spoke with an HHS coordinator to begin the process of potentially
becoming a Medicaid provider. Project SEARCH and the Active
LifeStyles program would both be considered Day Habilitation
programs under this funding source. Becoming a Medicaid
provider (just completing the application) is a very long process
and does not guarantee approval. We have several other Day
Habilitation programs in Story County and HHS may feel further
funding isn't necessary. It would also significantly increase our
overhead, as we would need to complete daily documentation for
our 110 athletes for each activity they participate in, hire a QA
person, manage billing, etc.
I met with The Arc's in Iowa City and Cedar Rapids, both of which
are funded under Medicaid as a possibility to bill through their
programs. Neither executive director is willing to take on the
risk of being responsible for a program so far away.
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I have very real concerns that once we use up our cash reserve, The Arc of
Story County may not survive. The Board and I are actively
fundraising. Our July Board Retreat will focus on addressing our
fundraising needs and determining the next steps.
1. Strategy to Close the $50,000 Funding Gap
- ASSET Process: The Arc will increase our current funding request
through the ASSET process for the upcoming 2027-2028 fiscal year.
- Grants: We are actively seeking and writing grant applications for the
2026-2027 fiscal year.
- We have requested an additional $10,000 from UWSC.
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