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Home My WebLink AboutAGENDA REPORT 1994 0406 CC REG ITEM 08N., l I ri I r ·ooRPARK. C'.Alf�-rll'\ " 0 A I TO: FROM: DATE: CITY OF MOORPARK AGENDA REPORT The Honorable City Council City c9_y6c:11 Mf31r:CIVI /L, JV. of r.L 199;( ACTION:�( By � Donald P. Reynolds Jr., Administrative Services Manager& March 31, 1994 (CC. Mtg. 4/6/94) SUBJECT: Consider Budget Amendments Related to Community Development ("CDBG") Administration Expenses The following report will recommend budget adjustments to reflect the actual costs of CDBG administration expenses incurred over the past six years. Background Between 1988/89 and 1993/94, the City Council set aside $127,840 for CDBG administration and the administration of the Fair Housing program. The Fair Housing program funds have been appropriated since fiscal year 1992/93 to the County for the administration of the program, and total $3,870, leaving a balance of $123,970 for direct staff expenses. The amount set aside for administration equals 20 percent of each year's grant amount. During the adoption of the 1993/94 budget, the Council appropriated $20,700 for twelve months of CDBG administration from the total appropriation of $123,970. Because the grant operates on a reimbursement for actual cost basis, it was anticipated that the cost would equal the revenue received, (total revenue for CDBG Fund 18 is currently $393,700). There were no CDBG funds appropriated for Community Development, because it was anticipated that by applying a cost which included indirect and general overhead expenses, the City would have used all of the available appropriation in Administrative Services. Direct costs range from between $26 per hour to $34 per hour, and being able to add the indirect and overhead costs would have more than doubled these amounts. Community Development did spend 12 8. 7 5 hours on the housing portion of the CDBG program since fiscal year 1992/93, (specifically referred to as the Comprehensive Housing Affordability Strategy, "CHAS"). Prior to fiscal year 1992/93, the Community Development Department administered the CDBG program, or, had little input in the preparation of related documents. Prior to the CHAS, the program required a three year Housing Assistance Plan, which was prepared during fiscal year 1988/89 and the City was reimbursed for Community Development's cost. Most of time spent of environmental clearance studies related to projects since that date and prior to fiscal year 1992/93, were completed by the Department of Administrative Services and the City has been reimbursed for these costs. Discussion Attachment "A" summarizes the cost of CDBG administration for the past six fiscal years. These cost are significantly higher than the current twelve month appropriation, and includes expenses related to Community Development effort. The total reimbursement for City staff is estimated to be $85,805 by June 30, 1994, compared to the budget of $20,700. Attachment "A" shows that by subtracting the current appropriation of $20,700 from $85,805, will leave an anticipated balance of $65,105. Of this amount, $5,048 is applicable to Cornmuni ty Development (Fund 41), leaving an amount to be credited to the general fund of $60,057. Attachment "B" shows the total City appropriation for CDBG administration since fiscal year 1988/89, and the costs subtracted from this amount leading to the current balance. After June 30, 1994, there will be a balance of $38,165. Staff has projected expenditures of $22,165 for fiscal year 1994/95 based on the cost of the program during 1993/94 of $19,815, and subtracted this amount from the balance, leaving $16,000. As authorized by the Council on March 16, the balance of $16,000 is scheduled for reappropriation, and staff is recommending that no funds from CDBG be set aside from the 1994/95 grant appropriations. It is estimated that approximately $22,000 will be required each fiscal year, which is slightly less than the funds available from CDBG in the past fiscal year. Recommendation That the City Council authorize staff to implement the following budget amendments to account for the recent CDBG administrative cost reimbursements: 1)Add $65,105 to the revenue of Fund 18; 2)Credit the General Fund Reserve $60,057, applicable toline item 01.4.117.502; 3)Credit Community Development with $5,048, applicable toline item 41.4.131.502; and, 4)Increase the appropriation in 18.4.180.502 from $20,700to $85,805. Attachments: A) B) Overview of Administrative Expenses and City Budget Amendments CDBG Program Appropriation Overview •• ATTACHMENT "A" OVERVIEW OF CDBG ADMINISTRATIVE EXPENSES 1993/94 BUDGETED REVENUES AND DESCRIPTION OF BUDGET AMENDMENTS CDBG REVENUE PROJECTED YEAR END REVENUES ADJUSTMENT NEEDED 1993/94 EXPENDITURES FISCAL YEAR FY 88/89 FY 89/90 FY 90/91 FY 91/92 FY 92/93 First 3/4 of FY 93/94 current Totals Fourth Quarter Projection YEAR END TOTALS FY 1993/94 BUDGETED EXPENDITURES BUDGET EXPENDITURE ADJUSTMENT LINE ITEM ADJUSTMENTS 01.4.117.502* 41.4.131.502 18.4.180.502 TOTAL ADMIN. PORTION 393700 20700 85805 65105 REIMB. FUND 01 ADMINISTRATIVE SERVICES REIMB. FUND 41 FUND 18 COMMUNITY DEVELOPMENT COST 6299 7842 17288 22234 12209 10373 76246 4511 80757 20700 60057 BUDGET 153,359 394,785 20,700 COST TOTAL ADJUSTMENT (60,057)** (5,048) 65,105 2097 2255 4352 697 5048 0 5048 6299 7842 17288 22234 14306 12628 80598 5207 85805 20700 65105 PROJECTED YEAR END 93,302 389,737 85,805 *Budget Amount of 174,059 less $20,700 = 153,359** $60,057 will be applied to the General Fund Reserve ; . ATTACHMENT "B" CDBG PROGRAM APPROPRIATION OVERVIEW YEAR END BALANCES MAXIMUM REVENUE AVAILABLE CDBG ADMINISTRATION APPROPRIATION 1993/94 YEAR END EXPENDITURES FAIR HOUSING PROJECTED EXPENDITURES THROUGH 6/30/94 TOTAL ADMINISTRATION FUNDS AVAILABLE FOR FY 1994/95 1994/95 PROJECTED EXPENDITURES FY 1994/95 FAIR HOUSING CONTRIBUTION *PROJECTED ADMINISTRATION EXPENSES FOR FY 1994/95 TOTAL FY 1994/95 APPROPRIATION SURPLUS ADMINISTRATION FUNDS TO BE REAPPROPRIATED 127840 3870 85805 89675 38165 1600 20565 22165 16000 *BASED ON COST INCURRED BY STAFF WORKING DURING FY 1993/94: ADMINISTRATIVE SERVICES COMMUNITY DEVELOPMENT FAIR HOUSING TOTAL FOR FY 1993/94 14884 2951 1980 19815