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CIT'" OF SAN BERNARDI~O - REQUr~T .-OR COUNCIL A\;-'-'UN
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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.
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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
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