05-03-2011 - FY2011-2012 Community Development Block Grant (CDB - Item 10 (2).doc
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Michele L. McNeill
Community Services and Human Resources Director
SUBJECT: FY 2011-2012 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLAN
RECOMMENDATION:
It is recommended that the City Council approve the proposed FY 2011-2012 CDBG Action Plan (Attachment #1).
DISCUSSION:
The City of West Covina receives an annual allocation of Community Development Block Grant (CDBG) Funds from the U.S. Department of Housing and Urban Development (HUD). To receive these
funds, the City is required to prepare an annual Action Plan, which details how the funds will be spent in the respective fiscal year.
As directed by the City Council on March 15, 2011, the FY 2011-2012 CDBG Action Plan incorporates a continuation of the City’s approved FY 2010-2015 Consolidated Plan Priorities (Attachment
#2), which includes the current City programs: Code Enforcement and the Neighborhood Improvement Program (Capital Improvement Program), as well as the allocation of the maximum allowable
funding for Public Service Projects.
On April 22, HUD announced preliminary planning numbers for FY 2011-2012 CDBG grant amounts. The preliminary allocation for West Covina is $1,077,620. This represents a decrease of
$213,983 or a -16.6% change from the current year allocation. Actual allocations will be finalized in the next 30-60 days and may differ from the preliminary numbers.
Below is the proposed budget for the FY 2011-2012 Action Plan. Staff recommends that the budget amounts be adjusted on a percentage basis once the City’s allocation is finalized.
Project/Activity
Proposed Funding ($)
Code Enforcement
$ 100,000
Public Services *
192,296
Neighborhood Improvement Program
624,453
Program Administration **
221,524
Total
$ 1,138,273
* Public Services: By statute, capped at 15% of the sum of allocation and prior year (FY 2010-2011) program income. FY 2010-2011 program income, received through repayment to the Home
Improvement Loan Program, is $204,355.
** Program Administration: By statute, capped at 20% of the sum of allocation and current year (FY 2011-2012) program income. FY 2011-2012 program income, received through repayment
to the Home Improvement Loan Program, is estimated at $30,000.
As required, the draft FY 20011-2012 CDBG Action Plan was available for a 30-day public review period, which began on March 23, 2011. No written public comments were received.
ALTERNATIVES:
The City Council may:
Approve the proposed FY 2010-2011 CDBG Action Plan; or
Provide alternate direction.
Andrew G. Pasmant, City Manager
and City Council
May 3, 2011
Page Two
FISCAL IMPACT:
The proposed FY 2011-2012 Action Plan budget is based on the preliminary planning numbers received from HUD. West Covina’s preliminary allocation is $1,077,620 – a reduction of $213,983
relative to the current year. Staff recommends that Action Plan budget amounts be adjusted, as necessary, on a percentage basis once the City’s allocation is finalized. As the City’s
budget process moves forward, staff will work towards mitigating fiscal impact to the General Fund.
Prepared by: Kelly McDonald Reviewed/Approved by: Michele L. McNeill
Management Analyst II Community Services & Human Resources Director
Reviewed /Approved by:
Finance
Attachments:
Attachment #1: City of West Covina – Proposed FY 2011-2012 CDBG Action Plan
Attachment #2: City of West Covina FY 2010-2015 Consolidated Plan Priorities