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HomeMy WebLinkAbout03-Community Development CIT'" OF SAN BERNARDI~O - REQUr~T .-OR COUNCIL A\;-'-'UN ~17 From: KENNETH J. HENDERSON, A~91'OlJ,)OMttt OFf. Subject: FY 1987/1988 CDBG PROGRAM MIX Dept: COMMUNITY DEVELOPMENT \981 JAM 22 PM 4: 06 Date: JANUARY 21, 1987 Synopsis of Previous Council action: None. Recommended moti.on: That the Mayor and Common Council approve and adopt the Fiscal Year 1987/1988 Community Development Block Grant Program Mix and authorize staff to solicit proposals for same. Contact penon: Ken Henderson/Lisa Dickey Phone: 383-5-65 Supporting data attached: Yes/Staff Report Ward: 1-7 FUNDING REQUIREMENTS: Amount: N/A Source: (ACCT. NO.) (ACCT. DESCRIPTION) Finance: Council Notes: n.02U Agenda I tem No. ~ CI"'~ OF SAN BERNARD'."O - REQUr,T FOR COUNCIL AC" ~ON STAFF REPORT On January 15, 1987, staff received word from HUD that the Fiscal Year 1987/1988 CDBG appropriation inclusive of the rescission amount would be $1,714,560.00, which is $3,440 less than the FY 1986/1987 allocation of $1,718,000. Based upon this information, staff developed a Program Activity Mix taking into account prior Council actions and the loss of other revenue sources to the City. Following is the Program Mix approved for FY 1985/1986 and FY 1986/198 and the Program Mix recommended by staff for FY 1987/1988: Approved Approved Recommended FY 85/86 FY 86/87 FY 87/88 a) Public Services: $ 237,000 $ 207,000 $ 207,000 b) Capital Improvement: $ 433,000 $ 863,481 $ 600,000 Infrastructure c) Rehabilitation Loans: $ 200,000 $ -0- $ 100,000 d) Employment Linkage: $ 100,000 $ 50,000 $ -0- e) Demolition: $ 50,000 $ 100,000 $ -O- f) Infi11 Housing: $ 50,000 $ 50,000 $ 50,000 g) Fair Housing: $ 52,393 $ 50,000 $ 50,000 h) Contingency: $ 349,007 $ 250,000 $ 364,468 i) Administration: 1 325,949 1 343,600 1 342,912 $1,847,349 $1,425,000* $1,714,560 $ 293,000** $1,718,000 $ 196,081*** $1,914,081 *A110cation **Supp1ementa1 ***Transfer Funds 1/22/87 75-0214 CDBG Program Mix Staff Report January 22, 1987 Page -2- With the loss of revenue sharing and a local economy lacking strong manufacturing and industrial base, the recommended program mix shows a marked orientation toward local infrastructure improvements and other capital needs. Additionally, by the end of the current fiscal year, the department will have loaned roughly $600-700,000 for the period beginning July 1, 1985 and ending June 30, 1987. As such, the rehab- ilitation loan program requires a small capital infusion in order for the department to meet its interest income projections. The Council will note no funding is recommended for the employment linkage or demolition activities as previous year's funding and current activity levels do not justify an appropriation at this time. The amount recommended for the contingency account is some $114,000 higher than the current year's allocation, primarily because the account is all but depleted and a number of significant capital improvement projects are just getting underway. Staff recommends that the Mayor and Common Council adopt the recom- mended program mix and authorize staff to solicit proposals for same. K~~ ip~~~ Director of Community Development KJH/LRD/lab 1/22/87 0017