Elkader Council reaches agreement on child care assistance
A resolution recently approved by the Elkader City Council will cover water and sewer costs incurred by the Elkader Childcare and Learning Center. That amounts to about $3,500 annually.
By Willis Patenaude, Times-Register
A few weeks ago, Elkader Childcare and Learning Center (ECCLC) board President Amanda Schneider appeared before the Elkader City Council to continue discussion around the daycare’s Community Partnership Program (CPP) and the financial duress the center is under. It ultimately led to a discussion around what the council could do to provide financial assistance to lessen that burden.
Initially, however, Schneider was in attendance to piggyback on a previous roundtable event, which was attended by council members Tony Hauber and Deb Schmidt as well as city administrator Jennifer Cowsert.
Once again, Schneider went over the financials and the center’s need for $100,000 every year for the next five years to ensure sustainability. Otherwise, the center will not be able to return to full capacity in terms of workforce or the number of children.
On the workforce front, the child care crisis is limiting the center’s ability to hire quality candidates. It is also losing families due to scheduling inconsistencies and current inefficiencies caused by the budget dilemma, including staff rotation, which hit the center in the past month with two staff members leaving.
While two part-time high school students replaced them, Schneider acknowledged that is just a short-term solution.
Essentially, what the center is asking for is what Hauber referred to as a “half-million recruitment plan” that should attract more talent in the workforce and avoid potential “wage wars” between centers in the area, as Schmidt called it. It would bring back families impacted by the reduction or who have simply left the day care as a result.
Schneider admitted any raise in wages to get better candidates in the door would also result in higher childcare rates, but increases would happen in conjunction with each other—something that is currently not occurring.
As options are continuously explored, with Schneider mentioning to council the conversations with legislators and other representatives to work on ideas, there is a need for a grassroots effort within the community, hence the CPP. During the meeting, one thing that was clear is the council members in attendance all agreed on the importance of keeping the center open.
Council member Peggy Lane stated, “I think it’s very important that we continue to have a childcare center in our community.” At issue for Lane was how to make this work in the best way possible if the council was going to provide assistance, while expressing discomfort with a basic cash donation. She preferred instead to go through legal channels to pay for utilities, such as water and sewer, and potentially garbage, or other supplies, while keeping in mind how the city uses taxpayer money.
The second issue that came up was the idea of favoritism being shown to the center, as it’s no secret the Covid-19 pandemic heavily impacted the community at large. Both Lane and council member Randy Henning stated the city had to be “very careful” how it went about implementing anything, with Lane wanting reassurances that the state auditor wouldn’t find issue with any decision.
Hauber understood the concern, but also noted that, as the only licensed provider in the city, as well as the only nonprofit, there was little reason to believe favoritism was being shown. In a separate exchange, Hauber added, “Not-for-profits in the service of providing care for children is how I would qualify the support. I think, at a period where loss of child care services are endemic, considering the social value they provide…we should support them and we are empowered to do so.”
Similarly, Schmidt said, “It is of utmost importance that we have this daycare up and running to full capacity, paying for itself and making a profit. It’s not playing favorites when it helps so many people in our community.”
Schmidt recounted first-hand experiences about the daycare crisis gripping the city, with employers needing additional time off, businesses cutting hours, people quitting jobs because they had nowhere for their children to go and others opting to remain out of the workforce over the lack of childcare services.
Mayor Josh Pope also commented. “I avoid this scenario by reminding the community that this is a needed service. When we talk about economic development, having a daycare is an item people look for before moving to a community. So it isn’t the same as other businesses or non-profits,” he said.
When it comes to why the daycare is vital to the community, Hauber was the most outspoken, suggesting it’s not so much that the center itself is valuable, but what it provides.
“It’s the healthy development of the future generation of Elkader that is valuable,” he said. “All the child development research shows that the years 0 to 5 are very important to the longitudinal development of the child and success of that child as an adult. We are talking about promoting services that will help the future generation of Elkader people develop healthily. The kids that will grow up to work in the stores, play football on the high school teams and start or buy and run businesses here.”
Without them, the future prosperity of Elkader diminishes, Hauber said.
Schneider, when asked about the appearance of favoritism, responded, “I do not have any concern about favoritism. I would expect any entity, organization or municipality to consider our ask. Then, if the decision to support our organization is made, I believe the reason for support is a clear message to the community. If a future concern is brought to the ECCLC Board, we would certainly take it into consideration.”
In the weeks since that meeting, the council met again to discuss a resolution which approves a 28E Agreement between the city and the ECCLC under Article III, Section 31 of the Iowa Constitution, which concerns non-profits. The basics of the agreement are to “serve families needing childcare,” because it provides financial stability to working families, thereby ushering economic growth for the community.
As for what the resolution would pay, the council decided on water and sewer, which amounts to about $3,500 annually. Cowsert is almost certain that money will come from the economic development budget, which comes from local option sales tax (LOST), and the agreement would be reviewed yearly.
During the vote on the resolution, the three council members in attendance—Schmidt, Henning and Lane—all voted “aye,” which means for the foreseeable future, the city will pay for the water and sewer costs incurred by the center.
In response to this vote, Schneider said, “The ECCLC board of directors is appreciative and grateful for the city of Elkader’s recent decision. The city’s willingness to partner with our center in this way is meaningful, as, in the short term, it is freeing up operating funds to be allocated toward staff wages, which ultimately adds to our long-term goal of self sustainability to be a fully functioning resource to the community. We believe the city’s commit is a very positive message.”
As for the ongoing CPP efforts, ECCLC has received additional donors, including Keith and Kathy Garms, Dave and Ann Gibney and Palas Custom Fencing and Supplies LLC. To date, it has received $19,500 collectively from the entire list of donors.
