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HomeMy WebLinkAboutA200 Staff Report for Resolution Approving the Submission of the Annual Action Plan for FY2011-2012CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: May 3, 2011 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the reallocation of $476,988 in unexpended Community Development Block Grant (CDBG) entitlement funds, $38,325 in CDBG Program income, and $75,167 in Home Investment Partnerships (HOME) Program income, and authorizing the submission of the 2011-2012 Annual Action Plan to the United States Department of Housing and Urban Development (HUD). (Community Development, Housing and Grants) PREPARED BY: Carlos J. Aguirre, (619) 336-43916k DEPARTME Ij om *ity D- lopment APPROVED BY: EXPLANATION: The Annual Action Plan for FY 2011-2012 outlines how the City plans to expend $986,238 in federal Community Development Block Grant funds (CDBG) and $560,971 in HOME Investment Partnerships (HOME) Program entitlement funds. In addition to the funding sources noted above, the City will also reallocate $476,988 of CDBG funds that remain from previous year activities, $38,325 in CDBG Program income and in $75,167 in HOME Program Income. The reallocation of $476,988 in CDBG funds from previous years is based on the remaining unallocated cash balance of funds currently in the Integrated Disbursement and Information System (IDIS). IDIS is used by the City to track HUD funds. The amount of funds available in IDIS equals the unallocated cash balance in the City's CDBG fund 301. When projects are completed or cancelled, IDIS makes any remaining funds available for funding other activities. All current CDBG activities listed in Exhibit "A" of the Resolution have been fully funded and are open, current, and active. Any activity not listed on Exhibit "A" previously allocated CDBG funds, by exclusion, is made void by the Resolution. The CDBG and HOME Program income to be reallocated respectively is from the total of all income, both in principal and interest, receipted by the City from January 1, 2010 through December 31, 2010. The list of proposed CDBG activities under Exhibit "B" of the Resolution is based on new estimates released by HUD on April 25, 2011. Activities in lower rank that were not covered by the estimated amount of funds were eliminated as established under the "Decide and Rank" selection method by City Council at the first public hearing on March 15, 2011. As directed by the City Council at the first public hearing, staff will adjust activity allocations if there is a variance from the final entitlement appropriations yet to be released. FINANCIAL STATEMENT: APPROVED: C A ` ,, Finance ACCOUNT NO. APPROVED: MIS An estimated $986,238 in CDBG and $560,971 in HOME funds appropriated. The City will also reallocate $476,988 of CDBG funds from previous activities closed, $38,325 in CDBG program income and $75,167 in HOME Program income. ENVIRONMENTAL REVIEW: The development of the Annual Action Plan is not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD 1 COMMISSION RECOMMENDATION: Not applicable to this report. ATTACHMENTS: