CC - Item 2A - Proposed Reallocation of FY 1998-1999 Exependitures and Proposed Community Development Block Grant and Home Allocation for Fiscal Year 1999-2000 f9�
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGE 7 L7
DATE: MARCH 16, 1999
RE: PUBLIC HEARING REGARDING THE PROPOSED REALLOCATION
OF FY 1998-1999 EXPENDITURES AND PROPOSED COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND HOME ALLOCATION
FOR FISCAL YEAR 1999-2000.
PROPOSED REALLOCATION
Since Fiscal Year (FY) 1994-1995, the City of Rosemead has participated in the federal
CDBG program as a direct entitlement entity. In FY 1996-1997, the City became an
entitlement entity for the HOME program as well. In FY 1998-1999, the City budgeted
$2,643,638 in CDBG funds for various programs throughout the City. The City now
proposes to reallocate those funds in order to complete those programs approved by
the City for FY 1998-1999. The total amount to be expended in CDBG funds for FY
1998-1999 after reallocation is $2,674,455. The difference of$30,817 is funded from
the actual (instead of anticipated) carryover for FY 1997-1998. The budget excludes
amounts currently unavailable to the City through its IDIS grants disbursement system.
For your review and approval, the proposed reallocation is attached as "Program
Reallocation" and "Proposed PSA Reallocation." The items to be reallocated are as
follows:
• Increase in Street Resurfacing from $300,000 to $460,000
• Decrease in Valley Blvd. ADA Compliance from $600,000 to $440,000
• Increase in Lorica Street Resurfacing from $260,000 to $275,000
• Move Fair Housing from 15% Public Service cap to Administrative
• Restore funding for Juvenile Diversion from $42,183 to $48,000
• Restore funding to Senior Nutrition from $78,000 to $88,000
COUNCIL ',GENOA
MAR 2 3 1929
ITEM No.1L
K J
Proposed CDBG and HOME budget, 2
All changes in construction projects reflect final bid amounts and/or any change orders
previously approved by the City Council. The changes in Fair Housing, Juvenile
Diversion and Senior Nutrition are due to confirmation from the Department of Housing
and Urban Development that Fair Housing is an eligible administrative expense, not a
public service expense as they stated last year.
PROPOSED CDBG AND HOME ALLOCATION FOR FY 1999-2000
In FY 1999-2000, the City's proposed CDBG allocation is $1,527,511 (including
reallocated amounts) and $504,000 in HOME funds. As part of the overall budget
process, the City must reprogram the anticipated FY 1998-1999 CDBG allocation
carryover that will not be spent by June 30, 1999, and any anticipated income received
by its programs during the fiscal year. The total amount which is anticipated to be
available for the CDBG FY 1999-2000 budget, including reprogrammed amounts, is
$3,432,823. The total proposed budget is $3,244,626, which leaves $188,197 as
contingency for future reallocation.
Fifteen percent (15%) of the City's current grant amount may be used for Public Service
Agencies (PSA's). For FY 1999-2000, the maximum amount of funding available for
PSA's is $229,126. The City received one new application for funding. Staffs
recommended funding levels for public services is for the same amount as last year,
with the exception of People for People, which is the new applicant.
Included in this year's recommended budget is funding for the Olney/Ralph/Hart Storm
Drain, the Grand Avenue Storm Drain and the Garvey Avenue Community Center. All
projects, except the Grand Avenue Storm Drain will serve low-to-moderate income
households. The Grand Avenue Storm Drain is proposed to meet an urgent community
need to reduce flooding in the area.
Regarding the HOME allocation, it is proposed to use HOME funds to fund the low
interest loan program. The City recently approved a new banking partner for this
program and funds will be used to make loans through HOME. CDBG funds are still
budgeted to be used for deferred loans, handyman grants, rebates and emergency
grants. Of the HOME allocation, 5% may be used for Administration and 15% must be
set aside for local non-profit housing development organizations.
It was reported to you that the City received $1.2 million dollars in CDBG funds which
were transferred from the County's Letter of Credit to the City. However, because of
the transfer to a computer-based automated disbursement system known as IDIS, the
funding was not currently available. That problem was apparently resolved, but the City
is still having problems accessing its full grant. Currently, staff is working with HUD's
programmers to resolve the issue.
Since the City of Rosemead is an entitlement city, the City Council is required to
Proposed CDBG and HOME budget,3
conduct a public hearing regarding projected use of funds. After publication of the
Annual Funding Plan, there will be a 30 day comment period prior to adoption by the
City Council. All programs outlined in the proposed Annual Funding Plan are in
conformance with the City's stated needs as addressed in the City's approved
Consolidated Plan.
In order to receive the new allocation and spend the balance of the prior year's, the City
must comply with certain requirements regarding presubmission. The requirements
are:
1. Fulfill citizen participation requirements by conducting a public hearing to receive
citizen input regarding projected use of funds.
2. Develop an Annual Funding Plan.
3. Publish the draft Annual Funding Plan for a 30 day comment period in order to
receive citizen input regarding the final document.
4. Hold a public meeting to receive citizen input regarding the Final Plan.
5. Adopt the Annual Funding Plan.
For your review and approval is the attached proposed budget for FY 1999-2000.
Funding available for public service grants is based on 15% of the current year's grant.
In order to meet the requirements of the Annual Funding Plan, the second public
hearing and adoption by the City Council should be conducted by the Council on April
27, 1999, in order to meet the HUD deadline of May 14, 1999.
The following attachments are included: Table I, Anticipated CDBG and HOME funds;
Table II, Proposed Budget; Table III, Proposed HOME Budget; Table IV, Public
Service Grant Requests; Applications from Public Service Grant Agencies.
RECOMMENDATIONS:
1. Staff recommends, after public testimony, review and after any amendments,
that the City Council approve the proposed reallocation for FY 1998-1999.
Proposed CDBG and HOME budget, 4
2. Staff recommends, after public testimony, review and after any amendments,
that the City Council approve the City's proposed CDBG and HOME program
and the projected use of funds for Fiscal Year 1999-2000, and authorize staff to
include this in the Annual Funding Plan.
CDBG
Administration $178,000
Code Enforcement 97,500
Residential Rehabilitation 250,000
Rehabilitation Inspections 100,000
Street Resurfacing 55,000
Valley Blvd. ADA Compliance 60,000
Lorica Street Reconstruction 32,000
Handicapped Accessibility Project 10,000
Commercial Rehabilitation 250,000
Water Quality Project 150,000
Rosemead High School 25,000
Olney/Ralph/Hart Storm Drain 800,000
Grand Avenue Storm Drain 235,000
Public Service Agencies 229,126
Total 3,244,626
HOME
Administration 25,200
Low Interest Loan Program 403,200
Housing set-aside 75,600
Total 504,000
3. That the City Council, after public testimony, review and any amendment,
approve and designate funding for public service agencies for Fiscal Year 1999-
2000 and authorize staff to include this in the Annual Funding Plan.
4. That the City Council authorize the City Manager, or designee, to act as the
official representative of the City to submit the Annual Funding Plan, and all
understanding and assurances contained therein, and directing and authorizing
the City Manager, or designee, to act in connection with the submission of the
Annual Plan, and to provide such additional information as may be required.
PROPOSED REALLOCATION
fl.N4i1'rcttcjietln po .oetrrt. + crrcKIeie .. . ,..to�
Administration 170,000 no change, 170,000
Fair Housing 20,000 no change 20,000
Code Enforcement 95,000 no change, 95,000
COPS 127,588 no change, 127,588
Residential Rehabilitation 250,000 no change, 250,000
Rehabilitation Inspections 100,000 no change, 100,000
Street Resurfacing 300,000 460,000*
Valley Blvd. ADA Compliance 600,000 440,000**
Lorica Street Reconstruction 260,000 275,000*
Handicapped Accessibility 80,000 no change, 80,000
Commercial Rehabilitation 250,000 no change, 250,000
Water Quality Project 150,000 no change, 150,000
Economic Development 10,000 no change, 10,000
Rosemead High School 25,000 no change, 25,000
Public Service Grants 206,050 221,867, see PS tables
TOTAL 2,643,638 2,674,455
*Per contracts approved by City Council
**Based on amount of ADA improvements that need to be made, based on field inspection
PROPOSED PSA REALLOCATION
Senior Nutrition 78,000 88,000
Rosemead B & G 24,600 no change, 24,600
Juvenile Diversion 42,183 48,000
Family Counseling 40,000 no change,40,000
Rosemead School District 12,134 no change, 12,134
A & R Childcare 9,133 no change, 9,133
Fair Housing 20,000 0*
TOTAL 226,050 221,867
*The administration at HIJD has confirmed that Fair Housing is no longer considered a public
service agency, but is part of the administrative cap for cities. Due to this, staff is recommending
that funding cuts made before the beginning of FY 1998-1999 be restored.
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TABLE II
PROPOSED CDBG BUDGET,FY 1999-2000
:Yo aj'c'ii tO,o` lnl.ti_;(11O1.;G. :13071.0}-y06aM ¢Iro.,
Administration $170,000 $178,000
Fair Housing 20,000 23,000
Code Enforcement 95,000 97,500
COPS 127,588 0
Residential Rehabilitation 250,000 250,000
Rehabilitation Inspections 100,000 100,000
Street Resurfacing 460,000 55,000'
Valley Blvd. ADA 440,000 60,000'
Compliance
Lorica Street 275,000 32,000'
Reconstruction
Handicapped Accessibility 80,000 10,000'
Commercial Rehab. 250,000 250,000
Water Quality Project 150,000 150,000
Economic Development 10,000 0
Rosemead High School 25,000 25,000
Olney/Ralph/Hart Storm 0 800,000"
Drain
Grand Avenue Storm Drain 0 235,000"'
Garvey Avenue Community 0 750,000
Center
Public Service Grants 221,867 229,126
TOTAL 2,674,455 3,244,626
*Project carry-over to complete labor compliance
**Project to be completed over two fiscal years
***Project outside of low-moderate area,but meeting urgent community need to prevent
flooding
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