PRESENTER: Presenter
Jennifer Gates, Grants Coordinator
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SUBJECT: Title
Approval of a budget amendment to the FY 2023 Budget - CDBG Fund.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
Community Development Block Grant (CDBG) funding is allocated to the City every year by the U.S. Department of Housing & Urban Development (HUD) with the requirement that the funds be spent in a timely manner, as measured by the rate of expenditure. In accordance with the City’s standard process, grant funding was allotted to a variety of programs and projects to occur during CDBG Program Year 2021 (PY 2021), which aligned to the City’s Fiscal Year 2022 (FY 2022). However, due to unforeseen challenges, several projects were unable to commence prior to the PY 2021 funding expiration on September 30, 2022, resulting in a heightened amount of allocated funding being held in reserve by the U.S. Treasury for the City at the end of FY 2022.
Before the PY 2021 funding expired, the City had adopted its FY 2023 Budget on September 12, 2022, which included several projects and programs listed in the CDBG Fund for PY 2022/FY 2023. Therefore, the City subsequently identified additional HUD-eligible projects that could be completed by September 30, 2023, allowing the City to meet its timeliness requirement during FY 2023.
After completing the HUD-required Substantial Amendment process, HUD approved the City’s request to incorporate the additional projects into the adopted CDBG PY 2022 Action Plan. As such, the following budget amendment to the City’s FY 2023 Budget is recommended for City Council consideration.
Budget Amendment - CDBG Fund
Increase Expenditures: $253,300
• WCC - Parking Lot Project ($80,000)
• WCC - Room Conversion Project ($30,000)
• WCC - Door Installation Project ($10,000)
• Jesse Garcia Park - Parking Lot Project ($26,000)
• Jesse Garcia Park - Playground Shade Project ($41,000)
• CoNB - Minor Home Repairs ($66,300)
ISSUE:
The proposed budget amendment supports the City’s Strategic Priorities as follows:
9. Maintain fiscal stability of City operations
FISCAL IMPACT:
There is no direct fiscal impact to the City for the budget amendment described above as this is an allocation of federal funding.
Recommendation
RECOMMENDATION:
Staff recommends approval of a budget amendment to the FY 2023 Budget - CDBG Fund.