Title
Resolution amending Resolution No. 908, effective January 1, 2011 entitled “Adopting and approving the 2011 Capital Budget and the 2011 Community Development Block Grant Program; and approving the 2011 through 2016 Capital Improvement Program by reducing various 2011 Community Development Block Grant budgeted line items.
Body
Whereas, Community Development Block Grant (CDBG) dollars are given to the City by the U.S. Department of Housing and Urban Development (HUD) to improve the lives of low- to moderate-income families and the communities they call home; and,
Whereas, Ordinance No. 21 of 2010, passed unanimously by this Council states: “No CDBG funds shall be used to supplant local general fund revenues for any purpose. All CDBG disbursements other than administrative costs must demonstrate an increased benefit to CDBG eligible communities. CDBG funds can be used to augment City Services to address specific conditions, but not replace what the City would be obligated to provide for elsewhere in the in the Operating or Capital budgets.”; and,
Whereas, 24 CFR § 570.489(d), which governs HUD Program Administrative requirements, includes a provision that requires recipients to “[e]nsure that funds received under [it] are not used for general expenses required to carry out other responsibilities of state and local government”; and,
Whereas, City Council made no transfer to fund the $25,112,000 local portion of this year's Capital Budget, and stated as much to the Intergovernmental Governmental Cooperation Authority in its' request, signed by five (5) of its' members, to approve various other amendments and transfers to balance the 2011 Operating Budget and make dedications and contributions to the Combined Municipal Pension Trust Fund; and;
Whereas, unless the City can identify and allocate local tax dollars to fund the local portion of the Capital Budget, the City will violate the law in spending CDBG dollars in 2011; and,
Whereas,...
Click here for full text