The Salinas City Council unanimously approved 6-0, the launch of a new Financial Empowerment Center (FEC), on Tuesday, Sept. 1.
The program will be operated in partnership with United Way of Monterey County (UWMC), providing free, professional financial counseling services aimed at helping community members tackle debt, build credit, and increase savings.
The Council’s approval authorizes a two-year service agreement with UWMC and formalizes a memorandum of understanding with the Cities for Financial Empowerment (CFE) Fund, securing up to $150,000 in implementation grants. Funding will also come from the City’s Community Development Block Grant (CDBG) and the City’s general funds.
The City and UWMC expect to launch client services by January 2027.
“We've been developing this for over 10 years around family financial stability, starting with programs such as our free tax prep program through Volunteer Income Tax Assistance and our financial literacy education,” said President and CEO of UWMC Katy Castagna during the council meeting. “Over the years, we have seen a huge and sustained demand for people wanting more information about how to manage their money and how to better navigate their financial future, and since moving to the city of Salinas and acquiring our community impact center, we have seen more and more synergy with local organizations and partnership opportunities with the City of Salinas.”
Salinas has been engaged with the CFE Fund since 2024, participating in planning and technical assistance programs designed to tailor the FEC model to local needs. The FEC offers personalized, one-on-one counseling covering credit building, debt reduction strategies, access to banking services, and savings growth tactics.
Services will be integrated with existing community programs to increase impact and accessibility. The City estimates the first-year program cost at about $452,625, with the majority covered through the CFE grant about $120,000 total, CDBG allocations, general fund contributions, and in-kind support from UWMC and City staff.
“Through this grant, we will be able to demonstrate measurable progress, improved credit, reduced debt and increased savings,” said Lynn Foden, director of financial stability at UWMC. “On average, savings increases for participants are $1,632.”
Full funding for the second year is estimated at $440,625, but has yet to be secured, the City and UWMC plan to collaboratively pursue additional public, philanthropic, and private funding sources to ensure sustainability.
Foden added services are bilingual.
"We're walking side by side with residents to provide them with the access to financial coaching services that aren't otherwise available, and connecting them to the other kinds of financial stability supports and resources to be able to help them to be able to thrive,” said Foden.
For more information about FEC services or partnership opportunities, contact the City Office of Economic Development at (831) 758-7201 or United Way of Monterey County at (831) 372-8026.