CDBG Annual Act Pl FY 07 Amend 1
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MEMORANDUM
March 15, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2007 Community Development Block Grant Annual Action Plan -
Amendment #1
The City Council recently approved a FY 2007 Annual Action Plan as part the City budget.
However, HUD has notified the City that the anticipated CDBG allocation has been reduced
from $1,398,731 to $1,256,479. Therefore, the previously adopted plan must be amended to
reflect the change in funding.
The reduced funding requires a reduction in public service, administrative and other activities
to meet HUD guidelines. Public service spending is $21,338 over the 15 % maximum, and
the uncapped activities are $92,464 over budget. The administrative activities, which are the
only area that affect general fund, have already been reduced by $28,450 during the FY 2007
budget process to meet the 20% cap.
The Community Development Advisory Commission held a public hearing on March 14,
2006. The Commission reviewed and discussed the funding based on the required HUD
limitations. They determined that funding should be reduced for multiple public service
activities to limit the impact on a singular program. The amendment as approved by the
Commission proposes the following reductions:
Housinq and Economic Development Proqrams
Reduce Housing Trust from $50,000 to $42,575 (-$7,425)
Reduce Economic Development Financial Assistance from $85,039 to 0 (-$85,039)
Public Service Proqrams
Reduce Community Partnership (cp2) Program from $72,000 to $66,000(-$6,000)
Reduce Dubuque Dispute Resolution Center from $2,000 to $1,500 (-$500)
Reduce Neighborhood Recreation Program from $121,609 to $115,609 (-$6000)
Reduce Neighborhood Support Grants from $27,748 to $21,748 (-$6,000)
Reduce Senior Center from $25,000 to $23,000 (-$2,000)
Reduce Washington Tool Library from $15,500 to $14,662 (-$838)
I respectfully disagree with the Commissions Public Service Program recommendations
reducing multiple activities, and recommend the full overage of $21 ,338 come from the
Community Partnership (cp2) Program ($72,000 to $50,662).
I respectfully request Mayor and City Council approval of Amendment 1 to the FY 2007
(Program Year 2006) Annual Action Plan for the use of CDBG funds which recommends
reducing the Housing and Economic Development Programs as stated above, and the
Community Partnership (cp2) Program for the full $21,338 overage in the Public Service
Programs. This would preserve the current level of funding for the Dispute Resolution
Center, the Neighborhood Recreation Program, the Neighborhood Support Grants, the
Senior Center and the Washington Tool Library. The action step is for the City Council to
adopt the attached resolution.
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Mithael C. Van Milligen
MCVM/dll
Attachment
cc: Barry Lindahl, Corporation Council
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department
Aggie Tauke, Community Development Specialist
Dawn Lang, Budget Director
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MEMORANDUM
March 15, 2006
From:
MiChae\~r Milligen, City Manager
David ~IS, Housing and Community Development Department
To:
Subject: FY 2007 Annual Action Plan- Amendment 1
INTRODUCTION
The purpose of this memorandum is to request the City Council's approval of the attached
resolution approving an amendment to Fiscal Year 2007 Annual Action Plan for the City's
Community Development Block Grant (CDBG) program. This amendment is needed to
facilitate the reduction in CDBG entitlement allocation for FY 2007.
DISCUSSION
The U.S. Department of Housing and Urban Development (HUD) regulations require that
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 as it expends entitlement funds. If its revenues or activities change, the city
must amend.
The City Council recently approved a FY 2007 Annual Action Plan as part the City budget.
However, HUD has notified the City that the anticipated CDBG allocation has been reduced
from $1,398,731 to $1,256,479. Therefore, the previously adopted plan must be amended to
reflect the change in funding.
The reduced funding requires a reduction in public service, administrative and other
activities to meet HUD guidelines. Public service spending is $21,338 over the 15 %
maximum, and the uncapped activities are $92,464 over budget. The administrative activities
have already been reduced by $28,450 during the budget process to meet the 20% cap.
The Citizen Participation Plan defines these program changes as a substantial amendment.
Therefore, the required 3O-day comment period was held, commencing with the publication
of a notice in the Telegraph Herald on February 10th.
The Community Development Advisory Commission held a public hearing on March 14,
2006. Members of the Dubuque Area lifeTime Center were present in support of full funding
for the senior center. A representative from Hillcrest Family Services was present in support
of funding for Community Partnership (cp2) program.
The Commission reviewed and discussed the funding based on the required HUD limitations.
They determined that funding should be reduced for multiple public service activities to limit
the impact on a singular program. They therefore voted to approve the attached amendment
and recommended City Council approval.
The amendment as approved by the Commission proposes the following reductions:
Reduce Housing Trust from $50,000 to $42,575 (-$7,425)
Reduce Economic Development Financial Assistance from $85,039 to 0 (-$85,039)
Reduce Community Partnership (cp2) Program from $72,000 to $66,000(-$6,000)
Reduce Dubuque Dispute Resolution Center from $2,000 to $1,500 (-$500)
Reduce Neighborhood Recreation Program from $121,609 to $115,609 (-$6000)
Reduce Neighborhood Support Grants from $27,748 to $21,748 (-$6,000)
Reduce Senior Center from $25,000 to $23,000 (-$2,000)
Reduce Washington Tool library from $15,500 to $14,662 (-$838)
RECOMMENDATION
I recommend that the City Council approve the above-described Amendment 1 to the FY
2007 (Program Year 2006) Annual Action Plan for the use of CDBG funds.
ACTION STEP
The Action Step is for the City Council to adopt the attached resolution.
Prepared by Aggie Tauke, Community Development Specialist
F:IUsersIATAUKEICDBGlAnnuaIPlanlFY 07'i'y07 Amend memo.mvm.doc
RESOLUTION NO. 114-06
RESOLUTION APPROVING AMENDMENT 1 TO THE FISCAL
YEAR 2007 (PROGRAM YEAR 2006) ANNUAL ACTION PLAN
FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.
Whereas, the City of Dubuque has prepared and approved an Annual Plan for
Fiscal Year 2007 (Program Year 2006), and
Whereas, the City now desires to amend said FY 2007 Annual Plan to reflect the
reduced FY 2007 CDBG allocation as per the attached Exhibit A; and
Whereas, said amendment is a substantial amendment as provided in the City's
Citizen Participation Plan and must therefore be approved by resolution of the City
Council after a public hearing by the Community Development Advisory Commission;
and
Whereas, the City held a public comment period beginning February 10, 2006;
and
Whereas, the Community Development Advisory Commission reviewed the
proposed amendment on March 14, 2006 and voted to approve said amendment and to
. recommend approval by the City Council. .
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That Amendment 1 to the Fiscal Year 2007 (Program Year 2006)
Annual Plan for the Community Development Block. Grant (CDBG) program hereto
attached as Exhibit A is hereby approved.
Section 2. That the City Manager is hereby authorized and directed to submit a
copy of this resolution to the U. S. Department of Housing and Urban Development.
Passed, approved and adopted this 20th day of March 2006.
Roy D Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\UsersIA T AUKElCDBG\AnnuaIPlan\FY 07\FY07 Amend 1."",.doc
COMMUNITY DEVELOPMENT BLOCK GRANT
ANNUAL ACTION PLAN . FY 2007 Amendment 1
Change
Commission
Proposal
64,448
8,833
(6,000)
(600)
-
(6,000)
(6,000)
(2,000)
(838)
66,000
1,600
25,069
5,000
83,326
50,000
116,609
21,748
23,000
14,662
13,000
492,196
Neighborhood and communltyl FY 07
Development Programs Ann!!!!.!!!!'
64448
8833
72000
2000
25069
5000
83326
50000
121809
27748
26000
16600
~
613633
REVISED
FY07
FY07
Annual Plan
ExhIbit A
Approved by CDAC 3114108
Funding Sources
Estimated Entitlement
Accessible Curb Ramps
Child Care Resource/Referral-Project Concem
Community Partnership Program (CP2)*
Dubuque Dispute Resolution Center
nforrnalion & Referral- Project Concern
Leadership Training
Neighborhood Development Services and Staff
NeighbOrhood Infrastructure Improvements
Neighborhood Recreation Program
Nelghborhood Support Grants
Senior Center
1,256,479
492,775
42.465
1,791,719
1,398,731
492,775
42,485
1,933,971
Program Income
Revolving Loan Funds
Total Sources
Washington Tool Library
Zoning Inspection/Enforcement
Neighborhood & Comm. Develop. Totals
Change
Commission
Proposal
FY07
Planning and AdmlnlstratlonlAnnual Plan
Services and Staff
95,140
4,070
95,140
4,070
15,397
77,594
192,201
15,397
77,594
192,201
CDBG Admin.
Finance
City Planning Services and Staff
Planning Administration
Planning City Pianning
Planning and Administration Totals
Conllnguency (Uncommllted tunds)
Change
(7,426)
75,000
20,000
302,000
58,592
114,824
281,781
42,676
30,000
15,000
60,000
899,772
Commission I Change
Proposal
Commission
Proposal
FY07
Annual Plan
75,000
20,000
302,000
58,592
114,824
281,781
60,000
30,000
15,000
60,000
007,197
FY07
Annual Plan
Housing Development Programs:
Homeowner Rehab Program
Housing Administration
Housing Code Enforcement
Housing Rehabilitation Services and Staff
Housing Trust
Lead Paint Hazard Abatement Project
Purchase/Rehab/Resale DREAMS
Rental Unit Rehabilitation
First Time Homebuyer Program
Historic Preservation Rehab Grant
-
Housing Totals
Economic Development Programs:
CommerciaVlndustrial Building Rehab Loans
E.D. Financial Assistance Program
Economic Development Services and Staff
Economic Development Totals
(86,039)
.
107,551
107,661
86,038
107,551
192,,590
1,791,7191 (113,802
1,906,621
TOTAL CDBG
F:\UserslATAUKE\CDBG\AnnuaIPlan\FY 07l(CDAC 07 Plan.x1!]Amd
CDAC 07 Plan