SR-200-002-01
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Ur." 1 3 1983
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CjED:CNS:BJS:sd
CouncIl Mtg. 12-13-83
Santa MonIca, CalIfornIa
TO:
Mayor and CIty CouncIL
FROM:
CIty Staff
SUBJECT:
RecommendatIon to RevIse FY 1983-84 CommunIty
Development Block Grant Budget
IntroductIon
ThIS report requests revIsions to the 1983-84 Community
Development Block Grant (CDBG) budget.
Back9round
At present, the 1983-84 CDBG budget 15 comprised of $3,920,166 In
preVIously approprIated COBG funds.
Of thIS, $3,907,883 IS
currently allocated to CouncIl-approved COBG projects or
admInIstrative lIne Items and $12,283 IS allocated to a COBG
ProJect contIngency account. Council-approved proJects lnclude
both proJects approved In prlor years and not yet completed and
new proJects approved by the CIty CouncIL as a part of the 1983-
84 CDBG Program.
In preparIng the FY 1983-84 budget, It was necessary for CIty
staff to assess all 1982-83 proJects to determIne If they would
be carrIed over to the 1983-84 fi sea I year, and If they were to
be carrIed over, what the prOJected amounts would be I/-A
DEe 1 3 1983
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based on an estlmate of expendltures as of June 30, 1983. These
forecasts were conducted ln January and February of 1983 ln order
to complete the proposed 1983-84 budget according to the Clty'S
budget schedule. In addltlon, staff had to assess what the
status of the FY 1982-83 CDBG contlngency funds would be at the
end of the fiscal year to determine how much would be avallable
for new projects or would remaln as contlngency 1n FY 1983-84.
Therefore, at that tlme, staff prOJected whether the Council
would allocate addltlonal funds from the contingency account
dur1ng the perlod February through June 30, 1983, so that amount
could also be deducted from the amount avaIlable for carryover to
the next f1scal year.
Once the amount of prlor year carry-over funds was determined,
then prOJected income to be reallzed 1n 1983-84 was assessed and
new proJects were then lncluded ln the total CDBG program budget.
As prevlously mentloned, thlS budget, as approved by the City
Councll, currently totals $3,920,166 In both prior year and
current year funds. Now, as a result of a review of aud1ted
flscal statements completed on November 30th, and a reV1ew of the
current status of all projects, the actual adJusted budget should
be $4,161,222. ThlS Increase of 8241,056 consists of the
follow1ng:
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$225,456
Funds allocated in prior years to CouncIl-approved
proJects or the CDBG contIngency account prevIous-
ly not carrIed over to 1983-84, consistIng of:
$128,300 Funds proJected to be expended in
1982-83 on approved proJects but not
actually expended and therefore must be
carrIed over to the same proJects In
thIS fIscal year. CarrYIng over these
funds does not represent an Increase
In the total proJect budgets.
97,156 Funds projected to be expended from
the 1982-83 ContIngency Fund by
June 30, 1983 but not actually expended
and therefore must be transfered to the
current year contIngency account.
$ 15,600
AddItIonal CDBG program Income proJected durIng
thIS fIscal year based on an analysIs of income
from housing programs and therefore avaIlable to
be transferred to the contingency account.
$241,056
In addItIon, $31,013 In CDBG funds allocated and approprIated In
the current year's budget for proJects WhICh have been completed
and have unexpended proJect balances have been IdentIfIed, and
these balances should now also be transferred to the CDBG
contIngency account.
Budget/FInancIal Impact
The comb1ned Impact of these changes IS the avaIlabilIty of
an addItional $143,769 in CDBG contingencIes for use durIng the
current year.
Recommendations for the use of a portion of these
funds WIll be made In separate staff reports for CouncIl actIon
on December 13, 1983 (Items 6J and lIB).
The CouncIl ActIons necessary to effect all changes noted
above are as follows:
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Revenue AdJustments
The appropriate FY 1983-84 revenue accounts should be Increased
as follows:
CDBG Program Income - Increased proJectIon for revenues
from repayment of resIdential rehab1lltlon loan from
preVIOUS years! Rehab Loan Program $11,300
CDBG Program Income - Return of funds from Community
Corporation of Santa MonIca (under Ocean Park Com-
munIty OrganIzatIon In 1982-83) expended in 1982-83
as earnest money and subsequently returned 4,300'
Total AddItional Revenues $15,600'
ApproprIatIons
(a) The followIng appropnatlons should be made to the FY 1983-
84 CDBG Program Budget to effect the completion of proJects begun
during FY 1982-83.
WhIle technical expendIture authorIty for
these proJects was carr1ed over from FY 1982-83 to FY 1983-84, 1n
order to faCIlItate and clarIfy program reporting, these actIons
w1ll formally confIrm the contInuation of appropr1at1ons Into the
current year.
WheelchaIr Ramps (Project 910') approved In 1982-83,
prevIously projected for completion in 1982-83.
Actual completIon IS scheduled in 1983-84, there-
fore funds must be carr1ed over to current year.
$20,500'
FaC11itles for the DIsabled (ProJect 911) approved
in 1982-83 for a range of barrIer removal proJects,
all of which were Initially prOJected for completion
In 1982-83 except for $25,00'0 for CLARE Rehab.
Actual completion dates for several other proJects
now prOJected for 1983-84.
56,062
Westslde Legal SerVIces (ProJect 928) approved In
1982-83 and prOJected for completIon In 1982-83.
Actual completIon date now prOJected for 1983-84.
6,0'0'0
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Pico NeIghborhood HousIng Trust Fund (ProJect 930)
Increased due return of funds from CommunIty Corp.
of Santa Mon1ca from 1982-83 (see Program Income
SectIon above) - allocated to Trust Fund for use
as earnest money for future elIgible proJects.
4,300
16th Street Improvements (ProJect 941) approved
at the end of FY 1982-83, but completed in the
current year, therefore funds must be carried
over.
41,438
Subtotal of Additional ApproprIations
$129,300
(b) The followIng approprIatIon should be made to the FY 1983-84
budget to reflect unexpended FY 1982-83 Contingency funds:
CDBG ProJect ContIngency (LIne Item 19-200-262-
774) adJustment due to changes in contIngency funds
from the prior year. At the tIme the FY 1983-84
budget was prepared, It was antIcIpated that a
publIC hous1ng sIte would be forwarded to Council
for approval prIor to the end of 1982-83. ThIS would
have resulted In a request for allocatIon of addI-
tional contIngency funds as dIscussed in a report to
the CouncIl on March 23, 1983. ThIS would supplement
the $458,587 prevIously allocated for site acqUIsItIon.
Therefore, the proJected contingency fund for 1983-84
was reduced accordIngly. However a feaSIble sIte
meetIng budgetary constraInts was not located untIl late
June of 1983 and CounCIl actIon prior to the end of the
fIscal year was not feaSIble. Therefore, these funds
and the Increase In proJected program income must be
appropriated In the current year's budget. 112,756
Total AddItIonal AppropriatIons $241,056
AllocatIon AdJustments
The follOWIng funds prevIously appropriated and allocated to
specifIC proJects for FY 1983-84 should be reallocated for the
reasons Indicated:
ReSIdential Rehab Program - United Community and
HOUSIng Development Corporat1on (ProJect 713)
decreased to reflect actual carryover amount for
second year of a two year program. ThIS decrease
is was due to more expendItures In 1982-83 than
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Initially proJected, thus decreasing the amount
of actual carryover to 1983-84.
$(21,060)
Traffic SIgnals, 11th, 14th, MichIgan (ProJect 90'4)
decreased due to actual expendItures for completed
proJect WhICh were less than amount allocated in
current year.
( 9,953)
CDBG Project Contingency Increased due to transfer
of funds from the two projects specIfied above.
31,913
Net FY 1983-84 AllocatIon Changes
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RecommendatIons
C.lty staff recommends that CIty CouncIl authorIze reVISIons to
the 1983-84 CDBG budget to Include (1) an increase In CDBG
revenues of $15,600; (2) the approprIation of $241,056 In prior
year funds to the proJects specified in the ApproprIat.lOnS
portIon of the "Budget/FInanCIal Impact" section of this report;
and (3) the allocatIon of currently approprIated funds as
specIfIed In the AllocatIon Adjustments portion of the
"Budget/FInanCIal Impact" section of thIS report.
Prepared by: Barbara StInchfIeld, Manager
Community and NeIghborhood Services DIVIsion
Department of CommunIty and EconomIC Development
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