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FY2019 Community Development Block Grant Annual Aciton Plan Amendment 1 Copyrighted January 22, 2019 City of Dubuque Consent Items # 14. ITEM TITLE: Fiscal Year 2019 Community Development Block Grant Annual Action Plan Amendment 1 SUMMARY: City Manager recommending approval of the Fiscal Year 2019 Amendment 1 to the Community Development Block Grant (CDBG)Annual Action Plan. RESOLUTION Adopting Amendment 1 to the Fiscal year 2019 (Program Year 2018) Community Development Block Grant (CDBG)Annual Action Plan. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type NNM Memo City Manager Memo Staff Memo Staff Memo FY19 Annual Action Plan Amendment 1 Supporting Documentation Resolution Resolutions THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2019 Community Development Block Grant Amendment 1 DATE: January 17, 2019 Budget Director Jennifer Larson recommends City Council approval of the Fiscal Year 2019 Amendment 1 to the Community Development Block Grant (CDBG) Annual Action Plan. This substantial amendment increases the Fiscal Year 2019 CDBG Annual Action Plan budget by $1 ,238,721 to a total of$2,802,918. Amendment 1 allocates $74,707 in prior year funds committed to activities (encumbered), carries over $815,095 in uncommitted funds, and reallocates $348,919 in prior year resources. The Community Development Advisory Commission reviewed and recommended adoption of Amendment 1 at the November 28, 2018 public meeting. I concur with the recommendation and respectfully request Mayor and City Council approval. �� Mic ael C. Van Milligen� � � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Jennifer Larson, Budget Director Erica Haugen, Community Development Specialist Dubuque THE CITY OF � DT T� � All-AmerieaCity � Masterpiece on the Mississippi 1 I I I I�' 200i•2012•2013•20]% TO: Community Development Advisory Commission FROM: Jennifer Larson, Budget Director SUBJECT: FY 19 Community Development Block Grant Amendment 1 DATE: January 17, 2019 Introduction: This memorandum transmits a resolution for the Council's consideration to adopt Amendment 1 to the Community Development Block Grant Annual Action Plan. Discussion Federal regulations require each year a city must prepare and file an Annual Plan prior to receipt of its CDBG entitlement. The Annual Plan is adopted following a public participation process that includes a published notice, a public comment period, and a public hearing. A city must follow its adopted plan to expend entitlement funds. If its revenues or activities change, the city must amend. This requirement applies to plans for previous years as well as the current year. Amendment 1 is a substantial amendment, increasing the Fiscal Year 2019 CDBG Annual Action Plan budget by $1,238,721. The City of Dubuque has been allocated CDBG funds that have been programmed for specific uses as per the adopted Annual Plan for Fiscal Year 2019. Amendment 1 allocates $74,707 in prior year funds committed to activities (encumbered), carries over $815,095 in uncommitted funds, and re-allocates $348,919 in prior year resources. Amendment 1 increases the CDBG budget for Fiscal Year 2019 from $1,564,197 to $2,802,918. Departments with unspent funding in 2018 have the option to carryover funds into existing activities or reallocate funds to new activities. The following summarizes carryover and re-allocated prior year funds by category: 1. Administrative funding was re-allocated between activities to account for the Community Development Specialist position being transitioned from Housing & Community Development to the Budget Department. There was a $422 increase in administrative budget from $266,850 to $267,272. 2. Economic Development activities carried over $80,285 to continue providing the Microenterprise Assistance Program that offers loans to small businesses with income-eligible owners or that are creating jobs. 3. Housing Development Activities carried over $795,493 and reallocated $29,172 in prior year funds. This increased the budget from $936,282 to $1,760,947. 4. Neighborhood & Community Development Activities carried over $14,024 in committed funds. Prior year funding was re-allocated to provide an additional $319,325 in resources for Neighborhood Infrastructure Improvements and Public Facility Improvement Projects. Previous year program income was not enough to support all budgeted Public Service activities. Purchase of Services Grant competition was not allocated to an existing organization so this activity was reduced to zero to meet the obligations of the public service cap. The Purchase of Services Grant competition was funded with General Fund resources carried allocated in FY19 and carried over from FY18, so the overall budget for the program was not reduced this fiscal year. Amendment 1 is a substantial amendment that reallocates prior year funds to new and existing activities to be delivered in Fiscal Year 2019. Substantial Amendments require a 30-day comment period, recommendation from the Community Development Advisory Commission, and adoption by the City Council. Commission Action The Community Development Advisory Commission received Amendment 1 at the October 17, 2018 Commission meeting and began the 30-day public comment period. The Community Development Advisory Commission held a public hearing on November 28, 2018 to review and receive comments on Amendment 1 . Seven members of the commission were present for the hearing. There were three members of the public present for other agenda items. No public comments were received. The Commission committed a portion of funds for the Rental Rehabilitation Program set aside so both applications considered by the commission could be considered. The motion to approve the Fiscal Year 2019 Annual Action Plan Amendment 1 passed; all present in favor. Requested Action Receive and file, and adopt the attached resolution adopting the Fiscal Year 19 Annual Action Plan Amendment 1 and authorizing the City Manager to direct staff to prepare and submit Amendment 1 to the U.S. Department of Housing and Urban Development. Prepared by: Erica Haugen, Community Development Specialist CITY OF DUBUQUE . . . • . . THE CITY OF D�ll,,,b�llC,��lle DUB E I pm�I Maste iece on the Mississi ryi � �� ° � �/' iam..o�z.w�s.zm� For comments regarding this plan,contact: City of Dubuque Budget Department 5o W i3�n St Dubuque, IA 5zooi www.cityofd ubuque.org/cdbg �563) 589-4116 City of Dubuque FV 2019 CDB6 Annual Action Plan Amendment 1 Annual Plan BudgetAmendment 1 PROJECTED SOURCES FY 2019 FY 2019 Entitlement 1,073,776 1,073,776 Recreation Various Program Fees 4,770 4,770 homeownerloanrepayments 293,193 293,193 rentalloan repayments 21,113 21,113 infll-loan repayments iQ036 iQW6 isttimehomeownerloan 3Q379 3Q379 reimbursements-general 5,104 5,104 saleofassetsother 117,776 12Q089 City Manager's Office reimbursements-general 50 50 Total Progarm Income 490,421 498,734 Committed Funds 65,907 Unexpended FY 18 Funds 968,235 Unexpended FY 17 Funds 138,322 Unexpended FY i6 Funds 57,944 Prior Year Unspent Funds 1,230,408 Total 1,564,197 2,802,918 Adopted FV19 AAP Encumbered Carryover Re-Allocated Funds BudgetAmendment 1 Administration 266,850 0 - 422 267,272 CDBGAdmin.5ervicesand5taff 119,061 0 - 39,564 158,625 CommunityDevelopmentSpecialis[ - 120,073 120,013 CDB65pecialis[ 179,061 0 - (80,449) 38,612 HousingAdministration 76,655 - (36,595) 40,060 Housing&CDDirector 76,655 - (36,595) 40,060 Neighborhood Development Services and Staff 71,134 - (2,547) 68,587 Economic Development 315 79,970 80,285 MicroenterpriseAssistanceProgram 315 79,970 80,285 HousingDevelopment 936,282 60,368 735,125 29,172 1,760,947 FirstTimeHomebuyerProgram 50,000 30,000 80,000 Historic Preservation Rehab Grant 10,000 5,000 15,000 Homeowner Rehab(Small&Large) 148,938 13,410 143,994 (153,881) 152p60 HousingRehabActivity 148,938 13,410 143,994 (153,881) 152,460 HousingCodeEnforcement 102,971 - 102,971 Lead Hazard Reduction 35,600 11,599 100,000 (28,828) 118,371 Lead&Healthy Homes Match 35,600 11,599 - 47,199 Low Int/Forgivable Loans 100,000 (28,828) 71,172 Lead Waterline&Sewer Repair/Replacement 150,000 - - 150,000 BeeBanchPmjects - 75,000 75,000 Low Int/Forgivable Loans 150,000 - (75,000) 75,000 Purchase/Rehab/Resale 40,000 27,000 210,522 277,522 RentalUnitRehabilitation 50,000 8,250 245,609 211,881 515,740 HousingRehabActivity 50,000 245,609 153,881 449,490 Salvia House Eleuator $250 58,000 66,250 HousingRehabilitaiton5ervices&Staff 348,773 109 - 348,882 Neighborhood and Community Development 361,065 14,024 - 319,325 694p14 Neighborhood Infrastructure Improvements 28,000 - 107,000 135,000 Accessible Curb Ramps - - Broadband - - Neighborhood Lighting 28,000 - (8,000) 20,000 Sidewall6 - 15,000 15,000 StreetOvedays - 100,000 100,000 Neighborhood Recreation Program 133,130 6 - 133,136 Neighborhood Slum&Blight Reduction 89,715 - (89,715) - Neighborhood Support Grants 14,560 7,137 - 21,697 PublicFacilityProjec[s - 320,000 320,000 Crescent Community Health Center - 300,000 300,000 St.MarkTuckpointing Project - 20,000 20,000 Visiting NursesAssociation - - PurchaseMServices 52,960 - (17,960) 35,000 VisitingNursesAssociation 25,000 - 25,000 HEART Pmgram 10,000 - 10,000 Competative6antAllocation D,960 - (17,960) - Senior Center 18,200 5,100 - 23,300 WashingtonToolLibrary 15,790 1,781 - 17,571 Zoninglnspection/Enforcement 8,710 - 8,710 GrandTotal 1,564,197 74,707 815,095 348,919 2,802,918 RowLebels Encumbered Cerryover Re-AllocetedFunds BudgetAmendmentl EstimatedFY19CDBGAIIocation 1,073,776.00 Administretion 0 - 422 267,272 Current VearProgrzm Income 498734.00 CDB6Admin.ServicesandStaff 0 - 39,564 158,625 TotalAvailable 1,572,510.00 HousingAdminis[ation - (36,595) 40,060 AdminCap% 20% NeighborhoodDevelopmentServicesandStaff - (2,547) 68,587 Maximumallowetl 374,502.00 PublicService 14,W4 - (17,960) 230,704 TotalPlannedAdminCosts 267,272.41 NeighborhoodRecreationPmgam 6 - 133,136 SubtractPreviousYearObligated - Neighborhood Support 6ants 7,137 - 21,697 Total Admin subjectto CAP 267,27241 PurchaseofServices - (ll,960) 35,000 OverNnderMaximumCAP (47,22959) SeniorCenter 5,100 - 23,300 Washingmn Tool Libary 1,781 - ll,571 Uncepped ED 315 79,970 80,285 MicroenterpriseAssistancePmgam 315 79,970 8Q285 FYI9CDBGFUIocation 1,073,776.00 PriorVearPubliderviceCom FV2018 UnceppedHousing 60,368 735,125 29,172 1,760,947 PreviousVearProgramincomeActual 382285.91 SeniorCenter 4,550 FirstTimeHomebuyerPmgam 30,000 80,000 TotalAvailable 1,45Q061.91 NeighborhootlGrznts 7,137 His[oricPreservationRehab6ant 5,000 15,000 PublicServiceCap% 15% ToolLibrary 1781 HomeownerRehab�Small&large) 13,410 143,994 (153,881) 152,460 MaXlmUmallOWetl 278,40929 13,468 Housing Code Enforcement - ID2,971 Total Planned Public Service Costs 230,704.05 LeadHazardReduc[ion 11,599 100,000 (2$828) 118,371 SubtractPreviousYearObligated 13.468.00 LeadWatedine&SewerRepair/Replacement - - 150,000 TotalPublidervicesubjec[mCAP 2ll,236.05 Porchase/Rehab/Resale 27,000 210,522 277,522 Over/UnderMaximumCAP (1,ll324) Ren2lUnrtRehabili2tion 8,250 245,609 211,881 515,740 HousingRehabilRaimnServices&Staff 109 - 348,882 Uncepped Neighborhood - 337,285 463,710 Neighborhoodlnfastruaurelmpmvements - 107,000 135,000 FYI9CDBGFUIocation 1,073,776.00 Neighborhood Slum&Blight Reduction - (89,715) - Previous VearProgrzm Income Budget 531728.00 PublicFacilrtyPmjeas - 320,000 320,000 TotalAvailable 1,605,504.00 Zoninglnspec[ion/Enforcement - 8,710 PublicServiceCap% 15% GrendTotel 74,707 815,095 348,919 2,802,918 MaXlmUmallOWetl 240,825.60 Prepared by Erica Haugen, City Manager's Office, 350 W. 6th St. Suite 312 Telephone: 563-690-6072 Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: 589-4121 RESOLUTION NO. 28-19 A RESOLUTION ADOPTING AMENDMENT 1 TO THE FISCAL YEAR 2019 (PROGRAM YEAR 2018) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN. Whereas, the City of Dubuque prepared and filed an Annual Action Plan for Fiscal Year 2019; and Whereas, the City now desires to amend said Annual Plan by reallocating funds between existing activities and providing funds for new activities; and Whereas, said amendment shall allocate unspent resources in the Annual Action Plan for Fiscal Year 2018 with resources for the Annual Action Plan for Fiscal Year 2019; and Whereas, said amendment is a substantial amendment as provided in the City's Citizen Participation Plan and therefore must be approved by resolution of the City after a public hearing by the Community Development Advisory Commission; and Whereas, the City made available for public comment said Annual Action Plan on October 17, 2018 at a public meeting of the Community Development Advisory Commission; and Whereas, the Community Development Advisory Commission reviewed said amendment during a public hearing on November 28, 2018 and voted to approve said amendment and recommend approval by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Community Development Block Grant Fiscal Year 2018 (Program Year 2017) is hereby rescinded and the balance of funds from this plan are incorporated into Fiscal Year 2019 Annual Action Plan Amendment 1. Section 2. That the Community Development Block Grant Fiscal Year 2019 (Program Year 2018) Annual Action Plan Amendment 1, attached hereto as Exhibit A is hereby approved. Section 3. That the Community Development Block Grant Fiscal Year 2019 (Program Year 2018) Annual Action Plan, as Amended, shall be included in the Five -Year Consolidated Plan for the use of Community Development Block Grant Funds for Fiscal Year 2016-2020. Pg. 2. Resolution No. 28-19 Passed, approved, and adopted this 22nd day of January 2019. Attest: Kevipf S. irnstl, Ci y Clerk Roy D. Buol, Mayor