HomeMy WebLinkAbout3/24/2004 - STAFF REPORTS (9) DATE: March—T, ZCYO-4
TO: CITY COUNCIL
FROM: COMMUNITY DEVELOPMENT ADMINISTRATOR
VIA DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
2003 — 2004 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) BUDGET
AMENDMENT AND AMENDMENT TO THE ANNUAL PLAN
RECOMMENDATION:
It is recommended that the City Council approve reallocate $51,177.33 in Program
Income from CDBG Fund Balance to Program Administration as recommended,
authorize the transfer of funds increasing the City's allowable 20% General
Program Administration for the current Fiscal Year and authorize the City Manager
to submit to the Department of Housing & Urban Development (HUD) an amended
2003 -2004 Consolidated Plan's Annual Plan Update with the additional funds.
BACKGROUND:
The City identified in the 2003-04 Annual Plan Update to HUD the allowable 20%
of the City's Annual Entitlement, which HUD approved as the General
Administration amount for the current Program Year. Subsequent to the
adoption of the budget and Annual Plan, the City received unanticipated
Program Income and is allowed to allocate the standard percentage (20%) to
General Program Administration.
Program Income receipts reported in HUD's Integrated Disbursement
Information System (IDIS) are as follows:
$165,807.00 Proceeds from sale of prior CDBG-funded land (Sunset Hacienda)
158,587.36 Repayments from Commercial & Residential Loans made under
County CDBG Program
19,971.42 Reimbursements from Crossley Tract Utility Undergrounding
7,887.05 Revenue from land rental of CDBG-funded land (Sunrise Norte)
$352,252.83
- 51,177.33 Current Fiscal Year Allowable 20% Administration
$301 075.50 Amount Re-Programmed on February 4, 2004
On February 4, 2004, the City Council approved allocating a portion of the
additional funds to capital programs and the remainder to fund balance. At that
meeting, a concern was raised about whether HUD would require all of the funds
to be reprogrammed to capital projects or whether a portion was able to be spent
on admin costs. Council then decided to hold off on appropriating the
recommended admin monies until HUD confirmed that the practice was allowed
under its guidelines. On February 7, the HUD local representative confirmed that
the City could use 20% of its program income for admin costs, just as it takes 20%
of the annual allocation. The chart below indicates the specific recommendations
for reprogramming of the General Program Administration funds. The first is to
increase the appropriation for the previously approved "Analysis of Impediments
To Fair Housing Choice" report with the remainder going to other General
Program Administration. 3 I E A J �.
ORIGINAL ADDITIONAL
ACTIVITIES FY APPROVED CDBG REVISED
FUNDED CDBG FUNDS CDBG
FUNDING IECOMMENDEI FUNDING
Analysis Of Impediments To Fair Housing Choice 2003-04 15,000 9,775 24,775.
. ............ --
2005-09 Consolidated Plan Preresubmission Process— 2003-04 -0- 24,989. 24,999.
Community.Needs Assessment&Strategic Plan
e i - --...... . . ..-0...... ... -------- ------
GeneralProgramAdministration— 2003-04 -0- 16,403. 16,403.
HUD Techinical Assistance Training
TOTAL FUNDING $51,177.
The reprogramming of these additional funds will provide evidence to HUD that,
as an Entitlement City, the City is taking steps to comply with HUD's Timely
Expenditures Requirement. This requires that the City's CDBG unspent line-of-
credit, including unobligated funds, does not exceed 1.5 times its annual grant
($618K x 1.5 = $927K) as of March 15 in a given year. Reprogramming these
funds assists the City in complying with HUD regulations.
The windfall of these funds provides the City additional resources to get an early
start on the preparation of its Community Consultation/Coordination and Citizen
Participation Plan, a requirement of HUD's Five Year Consolidated Plan.
J HN S. AYM N DALE E. COOK, JR.
Di cto of Community Development
Community & Economic Development Administrator
.,_._Q
APPROVED;..; --�� .°°°'�' r,
City Manager
ATTACHMENT:
1. Resolution
2 �� 1
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) BUDGET FOR
FISCAL YEAR 2003 — 2004; AUTHORIZE THE OF THE
CONSOLIDATED PLAN'S ANNUAL PLAN UPDATE.
WHEREAS, the City is eligible to receive an entitlement of Community Development
Block Grant funds as entitlement city under the Department of Housing & Urban
Development (HUD) Regulations; and
WHEREAS Resolutions 20302 and 20330 adopting and amending the CDBG budget
allocations for the fiscal year 2002 - 2003 were adopted on April 3, 2002 and May 15,
2002 respectively; and
WHEREAS Resolutions 20580 and 20581 adopting and amending the CDBG budget
allocations for the fiscal year 2003 - 2004 were adopted on April 2, 2003; and
WHEREAS Resolution 20827 approving the CDBG reprogramming of Program Income
and Consolidated Plan Amendment for the fiscal year 2003 - 2004 was adopted on
February 4, 2004; and
WHEREAS, the City has $51,177 available in existing Community Development Block
Grant Fund Balance which need to be reprogrammed into approved and eligible
activities; and
WHEREAS, the funds must be used for eligible activities which principally benefit low
and moderate income people, and
WHEREAS, the activities have been assessed by staff and the Citizen's Advisory
Committee (CAC) based on needs of low and moderate income neighborhoods to
benefit the maximum number of people; and
WHEREAS, the City Council held public hearings on April 3, 2002 and April 2, 2003 to
receive public input on the allocation of these funds; and
NOW, THEREFORE, be it resolved that the City Council of the City of Palm Springs,
California, does hereby approve the following:
SECTION 1. General Administration Allocation of Community Development Block
Grant funding:
2003-04 NEW
Entitlement Reprogrammed 2003-04
Allocation Allocation Allocation
Analysis Of Impediments To Fair Housing Choice $15,000. $9,775. $24,775.
2005-09 Consolidated Plan Presubmission Process—
Community Needs Assessment&Strategic Plan -0- 24,999. 24,999.
General Program Administration—
HUD Technical Assistance Training -0- 16.403. 16.403.
TOTAL �411Z tz --
SECTION 2. Staff is authorized to submit a revised 2003 - 2004 Consolidated Plan
Annual Plan Update to the Department of Housing & Urban Development
which accurately reflects the CDBG projects and budget approved by the
City Council.
SECTION 3. The City Manager is authorized to execute the appropriate Professional
Service Agreements and/or Amendments, in a form approved by the City
Attorney, with the additional funds and Term extension as required in
accordance with this Resolution, and the aforementioned Resolutions,
adopting the budgets for the 2003—04 fiscal years.
ADOPTED this day of March 2004.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED
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