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CC - Item 2A - Public Hearing regarding CDC proposed CDBG and Home Allocation for Fiscal Year 2003-2004~D TO: HONORABLE MAYOR AND MEMBE S ROSEMEA COUNCIL FROM: BILL CROW , CITY MANAGER DATE: APRIL 1, 2003 RE: PUBLIC HEARING REGARDING COMMUNITY DEVELOPMENT PROPOSED CDBG AND HOME ALLOCATION FOR FISCAL YEAR 2003-2004 As part of the requirements of the federal Consolidated Plan process, the City is required to hold a public hearing regarding the projected use of funds, as well as a public hearing to adopt the final Annual Funding Plan. In order to receive the FY 2003-2004 allocation, the City must comply with the following requirements of the Consolidated Plan final rule regarding presubmission requirements: 1. Fulfill citizen participation requirements by conducting a public hearing to receive citizen input regarding the Annual Funding Plan; 2. Publish a draft Annual Funding Plan for a 30-day comment period in order to receive citizen input regarding the final document; 3. Hold a second public hearing to receive citizen input regarding the final Plan and to adopt the Annual Funding Plan. Public Hearing Regarding Proposed CDBG and HOME Allocation for FY 2003, 2 The Annual Funding Plan is a part of the Consolidated Plan, which takes all HUD requirements regarding planning, needs analysis, reporting, budgeting, citizen participation and certifications and incorporates them into one process. The full Consolidated Plan must be completed once every five (5) years and the Annual Action Plan must be completed annually. The City adopted its most recent Consolidated Plan in FY 2000-2001. The City anticipates that it will receive $1,422,520 in CDBG funds and will reprogram the carryover allocation from prior years. A proposed reallocation of funds is included in the estimated amount of carryover funds. This reallocation will be brought to the City Council in May after a 30-day public comment period. Based on this amount, the City estimates that it will have $2,801,879 available for projects in FY 2003. The City anticipates that it will receive $572,554 in HOME funds and will reprogram carryover from prior years. Based on this, the City estimates it will have $1,313,621 in regular funds and $169,433 in CHDO reserve funds. Staff is proposing four (4) new programs for FY 2003-2004 and a consolidation of the code enforcement programs into one program. The new projects are: Virginia Street Construction, San Gabriel Boulevard ADA improvements, Street Sign Graffiti Prevention project and YWCA Wings. For your review and approval are the attached budget and projects for FY 2003. Please note that in the area of public service grants, there is less funding available than in FY 2002-2003, due to a decrease in the amount of grant, which is now based on the 2000 Census data. The amount available in FY 2003-2004 for public services is $213,378, which is less than FY 2002's amount of $231,287 The following attachments are included: Table 1: Proposed Budget; Table 2: Public Service Applications; Table 3: Resources (CDBG); Table 4: Resources - HOME; public service applications and department applications. RECOMMENDATION 1. Staff recommends, after public testimony, review and after any amendments, that the City Council approve the City's proposed CDBG and HOME programs and projected use of funds for FY 2003-2004 and authorize staff to include this in the Annual Funding Plan. 2. That the Council consider the public service applications and award funding, within the 15% cap amount available, to public service agencies that have submitted applications.