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HomeMy WebLinkAboutAGENDA REPORT 1996 0605 CC REG ITEM 10CCITY OF MOORPARK CITY COUNCIL AGENDA REPORT TO: The Honorable City Council FROM: Donald P. Reynolds Jr., Administrative Services Manager DATE: May 23, 1996 ITEM P "1C SUBJECT: Consider Minor Adjustments to the 1996/97 Community Development Block Grant Appropriations The County of Ventura was uncertain about the funding level for the 1996/97 CDBG program this year, and on May 16, 1996, staff learned that the County will be receiving more than the 37 percent allocated by the City under the worst case scenario, but less than the 100% funding anticipated. The City can increase its allocations from the 37 percent figure, but must consider a 17 percent cut to the full funding allocation provided in March 1996. In this report, staff will propose that public service contracts be modified where possible from 12 months ending in September and October, to 9 months, ending June 30, 1997, and make a $40,594 cut without reducing program services. Attachment "A" compares the anticipated grant award at 100 percent, and the actual grant award. Attachment "B„ is staff's proposal to make minor adjustments to account for the deficiency. At the March 27, 1996, Council meeting, staff presented funding estimates to the Council based on the premise that the federal government did not have an adopted budget. The Council took action to allocate the CDBG monies at two levels; 1) based on the estimated grant award if the HUD budget is approved in its entirety, ($244,649), and; 2) based on 37 percent of that estimated amount using the budget amounts that were available at that time ($100,584). At the full funding, the City proposed to use $21,600 for three administrative projects, $32,527 to continue the six existing public service programs, leaving $190,522 to be split between street improvements and expansion of the senior center. At the reduced funding level, Administrative costs to the City of $15,000 would be funded, and the fair housing mandate would be met with $1,600, eliminating the $5,000 award for study of the day laborer issue, Public Service programs would only allow for $9,000 to fund the senior nutrition program for nine months until July 1, 1997, and Catholic Charities would receive the balance of $4,373, eliminating the other four services, and Street improvements would be funded, but the senior center improvements would be reduced from $137,963 to $18,052. The Mayor emphasized that if reductions occurred, locally funded public service programs would receive first priority. Street improvements would receive first consideration before improvements to the senior center because the street improvements are closer to being initiated. The funding for the senior center could be applied towards design costs, with the objective to use project moneys for the construction next fiscal year. ICTMIMMOR Because the funding is less than the anticipated grant award of $244,649, the City is forced to make adjustments. The County categorizes adjustments into "major" changes requiring a public hearing, and "minor„ changes which do not. At this time, based on previous input received from the Council, staff is proposing only minor adjustments to several programs, preserving the level of service anticipated by adjusting the terms of existing contracts. If the Council chooses to eliminate any of the earlier programs proposed to be funded, then a public hearing is required. The County's reduced funding for CDBG is due to the complicated nature of the federal administration of the CDBG program. Although the CDBG program received the same amount as anticipated, new consideration was given this year to special set -aside programs that were not funded last year. This year, the 1995 population figures from the State Department of Finance were applied to each entitlement jurisdiction, where 1990 census figures were used before. The third reason for the reduction is that the actual number of entitlement jurisdictions increased between fiscal years. The City was told by the County in February that $244,649, would be received, but now the City has been notified that only $204,055 is available for Moorpark, which equals a 17 percent reduction, or $40,594. The County asked on May 16 to have the program adjustments completed by May 23, 1996, and staff explained that June 6 would be the earliest date this information could be provided. The City anticipated having $6,201 more for administrative uses than needed, if the CDBG was fully funded. Attachment "A" shows "no change" to administrative programs, although this category was cut 17 percent. Because of the prior shift of 2 $6,201 to project related costs, the cut to administrative services has been applied to this category. Actually, only $4,230 can now be moved if the existing programs are to remain intact. To preserve these programs, no cuts are proposed to the administrative allocation. The City's public service programs are the most vulnerable to CDBG cuts, and have to be reduced $5,726. As presented to the Council while considering a 37 percent funding level, most of the City's public service programs operate on 12 month contracts beginning and ending at about October 1 of each year. Attachment "B" shows what the funding levels would be if five of the programs were shifted from 12 month to 9 month contracts in fiscal year 1996/97, which equals a reduction of $6,927. In fiscal year 1997/98, if sufficient funding is available, 12 month contracts would be implemented ending in June 1998, and continue during subsequent years. The Long Term Care Ombudsman program, administered by the County, currently operates on a contract beginning July 1, 1996. Other programs were rounded to the nearest 100 dollars, which resulted in only a ten percent cut to the Legal Services program, and a 25 percent cut to the others. This cut is $1,200 more than needed from this category, which has been applied to the project monies to account for some of the reduced contribution from the surplus administrative monies. By making this adjustment, the public service programs are all treated similarly without impacting current service levels, and no previous policy decisions are impacted. Following this scenario, the impact of the cut to the City's public services would not be felt if sufficient funding is provided in a timely manner by the federal government next year, and in subsequent years. This year's delay pushes the availability of funds from July 1 to September, and the current contracts allow for this. The City's six service providers will be given notice that reductions may occur in 1997, which provides them with a twelve month time frame to make internal adjustments to account for any shortfalls. Removing funding completely from these programs this year will place the service providers in an immediate budget dilemma, and will also require a public hearing to make a "major" amendment to the City's consolidated plan. Consistent with past reports to Council, staff recommends reducing the funding for the senior center improvements, in order to preserve the set -aside for the street improvements. The four street improvement projects funded by CDBG will be initiated in the next eight to twelve months, and at this time, there are no other infrastructure projects being considered for funding in 1997/98. This would leave most of next year's project monies available for facilities, housing or other uses, which may include improvements to senior center. The $33,667 proposed reduction to improvements for the senior center this year, could be compensated for in subsequent years, without delaying progress on this project. Where there are project milestones established for the street improvement projects, the senior center improvements have not progressed at this time. When the milestones are established, there will still be over $100,000 to initiate the plan in 1996/97, or to be set - aside for construction next fiscal year. mm The City can choose any of a variety of methods to apply reduced funding amounts to the CDBG allocations decided in March of this year, but at this time, staff recommends a straight forward simple approach. This recommendation most closely mirrors the input received during public testimony in March, and supports those polices developed by the Council, without reducing service levels. If the Council selects staffs recommendation, the changes can be made before the October service contracts expire, and allow continuous service. If the Council elects to eliminate a program, then a public hearing will have to be scheduled for July, postponing the availability of funds until late October or November. Recommendation That the City Council make minor adjustments to the 1996/97 CDBG allocations made on March 27, 1996, as follows: Reduce public services by $6,927 as follows : Senior Nutrition from $12,000 to $9,000 Catholic Charities from $8,000 to $6,000 Adult Literacy from $4,800 to $3,600 Legal Service from $2,227 to $2,000, and Interface Child Health Care from $2,500 to $2,000; and Reduce City projects by $33,667 by amending the allocation for improvements to the senior center from $137,963 to $104,296. Attachments: A) Overall Funding Changes B) Proposed Allocation Adjustment El O O O 0 liz ATTACHMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM CHANGES 29-May-96 Anticipated Actual Administration* 21600 21600 Public Services 32527 26801 Projects 190522 155654 244649 204055 * The actual amount available is $27,801, moving unreserved amount of $6,201 to the project budget Proposed Adjustments Actual Amt. Anticipated Available Administration 21600 21600 Public Services 32527 26801 Projects 190522 155654 244649 204055 ATTACHMENT B PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING ADJUSTMENTS 29- May -96 Project Category Project Administration City Costs Fair Hsg. Day- Laborer Public Services Original Adjusted Percent Funding Funding Reduction Change (Decreased Funding ------------------------------------------------------------------------ ---------------------------------------- - - - - -- 15000 15000 0 0% 1600 1600 0 0% 5000 5000 0 0 % Senior. Nutrition 12000 9000 3000 25 %' Catholic Charities 8000 6000 2000 25% Adult Literacy 4800 3600 1200 25% Legal Services 2227 2000 227 10% Interface /Child Health Care 2500 2000 500 20% Long Term Care Omb. 3000 3000 0 0% Capital Improvements Street Imps. 52559 52559 0 0% Senior Center 137963 104296 33667 24% 244649 204055 40594 e No Change No Change No Change No Change /Revise to Nine Month Contract No Change /Revise to Nine Month Contract No Change /Revise to Nine Month Contract No Change /Revise to Nine Month Contract No Change /Revise to Nine Month Contract INo Change Change ,ign Only /Possible Delay Until July 1, 1997