HomeMy WebLinkAboutIR 7109 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7109
a April 15, 1986
To the Mayor and Members Of the C+ty Council
01ti TWELFTH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET
Subject:
Attached is the Twelfth Year Community Development Block Grant
(CDBG) Proposed Statement of Objectives and Projected Use of
Funds. Once approved, it must be submitted to the federal
Department of Housing and Urban Development (HUD) before May 1 ,
1986. The total amount of funds expected to be available for use
next year (June 1, 1986 - May 31, 1987) for CDBG activities is
$5,185,160. Funding components within this Projected Use of Funds
include the following:
--$4,166,000 Entitlement (basic grant from HUD)
--$236,074 in program income expected to be generated in the
upcoming year from existing housing loans and from the UDAG-funded
Hyatt parking garage;
--$239, 977 in current year program income and reallocation of
current program funds;
--$543 ,109 from the sale of the Meadowbrook assisted housing
site
I. BACKGROUND
Preparing a budget adequate to serve- the City's community
development needs has been rendered particularly difficult this
year. The entitlement amount, $4,166,000, is approximately .thirty
percent Less than the $5,885,000 received last year as a result of
several factors at the federal level:
-- a reduction in the basic entitlement amount caused by the
addition of more entitlement cities,
-- a further reduction proposed as a result of the
Gramm/Rudman/Hollings legislation, and
-- the proposed sequestration of $500,000,000 in CDBG funds for
expenditure next year.
While the last two reductions may not take place, prudent
management requires that the budget proposal reflect the full
j reduction. To this end, the budget reflects a thirty percent
reduction in City administrative and planning staff and City
housing programs (Home Improvement Loans and Emergency Grants) .
II. BUDGET ISSUES
During the budget preparation process, the Community Development
Council made several decisions to achieve an equitable yet
lanced budget proposal, which the Council may wish to examine in
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS --------
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Subject:
considering its approval. These include the following:
1. Balancing the Budget: After making all reductions considered
feasible, the draft budget was still $326,000 in excess of
available funds. In order to make up this large imbalance,
several options were considered, as follows:
--Money for Inner City Streets: A large line item which could
be used as a balancing account is the $2,000, 000 for the Inner
City Street Program, which in the reduced budget consumes over 38
percent of the total. However, the Community Development Council
was disinclined to use this item in view of firm direction on
maintaining it at this level in the past by City Council.
--Money for Innovative Housing: The decision was made to use a
portion of the funds from the sale of the Meadowbrook assisted
housing site, originally earmarked by the Council for development
of innovative housing projects, to balance the budget, thereby
reducing the budgeted funds set aside for innovatiove housing..
2. The Homeless Night Shelter: Opinions on the Community
Development Council were divided on whether funds should be set
aside for this item in view of the tight budget situation. . It was
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decided to leave this line item in at the $100,000 level.
3. Economic Development Programs: The Fort Worth Economic
Development Corporation and the Minority Procurement Program were
originally slated for proportional cuts in line with the overall
thirty percent reduction. However, the Community Development
Council decided, in view of the basic importance of job creation
in inner city revitalization, to reinstate these programs at their
full Year 11 levels. The City Council may wish to review this
decision.
III. ITEMS FROM YEAR 11 BUDGET NOT FUNDED THIS YEAR
A number of public service line items from the Year 11 budget are
zeroed out this year. Most of these are cases of successful
completion of projects or successful pursuit of alternative
funding by contractors rather than punitive cuts. A summary of
these items is as follows:
1. Near Southeast Youth Program: When the City initiated this
program, it was agreed that funding would be provided by the City
for only a few years. When United Community Centers began
operating the program, this understanding was still in effect. In
keeping with the agreement, United Community Centers did not
r--quest CDBG funds this year.
2. Home Health Care Program: This three-year demonstration
program from the Texas Department of Human Services expires in
ISSUED BY THE CITY MANAGER FORT WORTH. TCY/11'
I IFORMAL REPORT TO CITY COUNCIL MEMBERS
N No. 7109 p3
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To the Mayor and Members of the City Council
Subject:
May, 1986. Other agencies are committed to continue its
operation, although on a reduced level.
3. Buy-in Social Services: Funds for this experimental program
were not utilized until recently and there is still a sufficient
amount remaining for the coming year.
4. De Zavala Community Based Program: This is another
demonstration program that was to be funded by the City for only a
few years. The FWISD will fund the program beginning June, 1986.
5. Riverside and Northside Health Clinics: General funds have
supported these clinics since October, 1985.
6. Crime Prevention: Since October, 1985, the Amon G. Carter
Foundation and the City' s General Fund have supported this program
in the Butler Housing and Cavile Place complexes.
7. Errand and Assurance: The Area Agency on Aging has agreed to
fund this program.
8. YO SOY Program-FWISD: The City had originally agreed to fund
this program for only a short time. It is expected that FWISD
will fund its portion of the YO SOY program beginning June 1,
1986.
IV. SCHEDULE FOR YEAR 12 BUDGET APPROVAL
To meet the deadline for submission of the budget to HUD, final
City Council approval must occur no later than its April 29
meeting. Final Community Development Council review and approval
of the budget will have taken place on Monday, April 14.
.I�u�glas Hialm .
City Manager
ISSUED BY THE CITY MANAGER FORT WOPTU