TO: Mayor and Members of City Council
THRU: Telly C. Whitfield Ph.D., Assistant City Manager
FROM: Jay C. Toland, CMA, Assistant City Manager/Chief Financial Officer
Christopher Cauley, MPA, Director of Economic and
Community Development
Kelly Olivera, Director of Budget and Evaluation
DATE: June 27, 2022
RE:
Title
Adoption of Budget Ordinance Amendment 2023-1 and Special Revenue Fund Project Ordinances 2023-1, 2023-2, and 2023-3 for the funding of the CDBG, HOME, and HOPWA FY2022-2023 Programs per the Economic & Community Development Department’s Annual Action Plan, and adoption of Special Revenue Fund Project Ordinance 2023-4 for funding of the HOME-ARP Program per the amendment of the FY2021-2022 Annual Action Plan.
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 2: Responsive City Government Supporting a Diverse and Viable Economy.
Strategic Objective 2.1: Ensure a diverse City tax base.
Strategic Objective 2.2: Community Revitalization- Invest in community places to ensure revitalization and increase quality of life.
Strategic Objective 2.3: Leverage partnerships for job creation and retention, with focus on local and regional workforce to increase per capita income.
Strategic Objective 2.4: Economic Development: Sustain a favorable development climate to encourage business growth.
Goal 4: Desirable Place to Live, Work and Recreate
Strategic Objective 4.5: Neighborhood Vitality - Ensure a place for people to live in great neighborhoods.
Strategic Objective 4.6: Affordable Housing - Reduce poverty and homelessness.
Goal 6: Collaborative Citizen and Business Engagement.
Strategic Objective 6.2: Ensure trust and confidence in City government through transparency & high-quality customer service.
Strategic Objective 6.3: Inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration and empowerment.
Executive Summary:
The City of Fayetteville is expected to be awarded three grants from the U.S. Department of Housing and Urban Development (HUD) for Fiscal Year 2022-2023. The Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME), and Housing Opportunities for Persons with AIDS (HOPWA) will support activities identified in the Economic & Community Development department’s proposed 2022-2023 Annual Action Plan as approved by City Council on May 23, 2022. Special Revenue Fund Project Ordinances 2023-1, 2023-2, and 2023-3 will appropriate the operating budgets for the CDBG, HOME, and HOPWA programs, including the anticipated Federal grant proceeds and program income. The HOME grant requires a local match from the City. Budget Ordinance Amendment 2023-1 will appropriate a transfer of $270,309 of General Fund fund balance for the local match portion.
In addition, the City was awarded HOME-ARP funds for its FY2021-2022 Annual Action Plan that City Council also approved on May 23, 2022. Special Revenue Fund Project Ordinance 2023-4 will appropriate the operating budget for the HOME-ARP.
Background:
The proposed 2022-2023 Annual Action Plan, which outlined all activities and funding sources for CDBG, HOME, and HOPWA was approved by Council on May 23, 2022. HUD posted allocations on their website for CDBG, HOME, and HOPWA funding. The City received a letter from HUD regarding the HOME-ARP allocation and instructions to amend the FY2021-2022 Annual Action Plan to describe the proposed use of these funds.
The CDBG program will be funded by an anticipated grant from HUD in the amount of
$1,607,129, a decrease of $15,095 from last year, and anticipated program income of
$216,803.
The HOME program will be funded by an anticipated grant from HUD in the amount of
$1,081,233, an increase of $143,802 from last year, and anticipated program income of
$1,170,628. The required local match from the City in the amount of $270,309 will be provided by a transfer of General Fund fund balance.
The HOPWA program will be funded by an anticipated grant from HUD in the amount of $757,245. This is the City’s first entitled allocation of HOPWA funds.
The HOME-ARP program will be funded by an anticipated grant from HUD in the amount of $3,397,564.
Issues/Analysis:
Per 24 CFR Part 570.200(h), the effective date of the HUD grant agreement is the program year start date or the date the annual action plan is approved by HUD, whichever is later. The City can begin to incur costs for grant funds at the start of the program year on July 1, 2022.
Budget Impact:
The local match portion is provided by a transfer of General Fund fund balance.
Options:
1.) Adopt Budget Ordinance Amendment 2023-1 and Special Revenue Fund Project Ordinances 2023-1, 2023-2, 2023-3, and 2023-4.
2.) Do not adopt the ordinances and provide guidance to staff.
Recommended Action:
Staff recommends Council move to adopt Budget Ordinance Amendment 2023-1 and Special Revenue Fund Project Ordinances
2023-1, 2023-2, 2023-3, and 2023-4.
Attachments:
Budget Ordinance Amendment 2023-1
Special Revenue Fund Project Ordinance 2023-1 (CDBG)
Special Revenue Fund Project Ordinance 2023-2 (HOME)
Special Revenue Fund Project Ordinance 2023-3 (HOPWA)
Special Revenue Fund Ordinance 2023-4 (HOME-ARP)