HomeMy WebLinkAboutAgenda Report - December 19, 2007 K-05AGENDA ITEM KNw5o
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Establishing the Community Development Block Grant Allocation
Policy
MEETING DATE: December 19,2007
PREPARED BY: Community Development Department
RECOMMENDED ACTION: Adopt Resolution establishing the CDBG allocation policy.
BACKGROUND INFORMATION: San Joaquin County has been an entitlement community with the
U.S. Departmentof Housing and Urban Development (HUD) since
1985. The County is classified as an Urban County jurisdiction,
which includes all unincorporated County communities and the cities of Lodi, Escalon, Lathrop, Manteca,
Ripon and Tracy. The city of Stockton is an Entitlement community and therefore receives the annual
CDBG allocation directly from HUD.
Each year, the Urban County jurisdictions receive a formula -based allocation of CDBG, Emergency
Shelter Grants (ESG), and HOME Program funding. The participatingjurisdictions, in turn, go through an
annual process which begins with a public meeting to gather input regardingthe use of these federal
funds. That meeting, held in early December, usually marks the beginning of the application period that
runs through mid-January. During that period, both public and private agencies and organizations,
submit funding requests for the coming years' funding.
As a practice, the City of Lodi has always made one -hundred percent of our annual allocation available
for funding requests, and our City projects, from both Public Works, Parks & Recreation or any other City
department, have competed head to head with funding requests for both capital projects and public
services submitted by private agencies and organizations.
A breakdown of those funding allocations since 1999, illustrated in the attached Exhibit A, shows an
average of 63.8% of our annual allocation going toward City projects.
At the Shirtsleeve Meeting of November 27, 2007, the Community Development Department introduced a
proposal that the Council consider splitting the CDBG allocation into two funding set asides, one for
CDBG-eligible city projects and the other for eligible community-based organization (CBO) projects.
It is fairly common for CDBG entitlement communities and participatingjurisdictions within an Urban
County designation to set-aside a certain percentage of their annual CDBG allocation for City projects or
programs. Locally, San Joaquin County is the only participatingjurisdiction within our Urban County
designation that designates a set-aside for their County projects. The city of Stockton also designates a
set-aside for City projects.
APPROVED: ___?
Blair King, Manager
The set-aside provides a fairly reliable funding source for which to plan or schedule projects or services
into the future. The set-aside also segregates or groups the funding requests so that City departments
compete amongst themselves and CBOs compete only against other CBO funding requests.
In addition, a set-aside system would allow staff to develop a better rating and ranking system in orderto
make recommendations with regard to CBO projects and services. The concept of the rating and ranking
system was included in the presentation made at the Public Meeting that was held on December4, 2007,
which marks the beginning of the application process.
The Council has already established the following policies regarding CDBG allocations:
— Priority in funding is given to eligible capital improvement projects over public service -
related funding requests.
— Any proposed funding request should meet a readiness criterion to ensure that the funds
will be used in the program year that they are awarded, thereby allowing the City to remain
in compliance with HUD regulations.
The Council is being asked to establish an additional policy of pre -determining the appropriate share of
CDBG funds for City projects and how much of the total CDBG and/or HOME Program funding allocation
should be made available to CBOs.
I n order to provide an estimation of the magnitude of financial need, City Departments provided a list of
projects and services for the coming year that could be funded via CDBG funds. The amount is in the
neighborhoodof $1.5 Million. The estimated 2008/09 CDBG allocation is $717.592. The preliminary list
of City projects and services is attached as Exhibit B.
Based upon the average allocation over the last 9 years, referenced in Exhibit A, Staff recommends that
Council designate 60% of the annual CDBG allocation for eligible City projects for a three-year cycles, at
the conclusion of which we will re-evaluate the process and bring the matter back before the Council.
While Staff believesthat the CBOs will also benefit from this arrangement by having a cap placed on
funding for City projects, that in several years were far greaterthan the proposed 60%, it should be noted
that each of these Council policies pertaining to CDBG allocations are guidelines for Staff to base their
recommendations on and for Council to considerwhen making funding allocations. As such, Council
retains the ability to fund projects or services on a case by case basis, outside of the approved allocation
policies.
FISCAL IMPACT: No impacton overallfunding availabilityfor projects. This impactsthe
percentage available for City projects/services versus CBO
projects/services.
FUNDING AVAILABLE: Estimated 2008109 CDBG Program Funding ($717,592)
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Community Development Director
Attachments