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HomeMy WebLinkAbout09-23-86 Human Resources & Economic Development Oinmmtiin Erpart d Wn t1 a emn nun comma of tip, a t% of*anti/ stud: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The September 23, 1986 meeting of the Human Resources and Economic Development Committee was called to order by its Chairman Councilman Eugenia Braboy at 4 : 00 p.m. in the Council informal meeting room. Persons in attendance included Councilmen Voorde, Braboy, Puzzello, Barcome, Serge, and Beck; Jeff Gibney, Sandy Combs, Steve Luecke, Don Inks, Ann Kolata, Ann Mannix, members of the news media, Jon Hunt, and Kathleen Cekanski-Farrand. Councilman Braboy noted that the purpose of the meeting was to continue the discussion of the proposed CDBG allocation programs. Jon Hunt then briefly reviewed proposed activities. He noted that the proposed dollar allocation was based on the assumption that there would be no further cutbacks for 1987. He noted that if cutbacks would take place that they would be dealt with at that time. He further noted that there should be a correction in the Bureau of Housing Program' s Line A-6 . He indicated that currently there is $392,000 and an additional $250, 000 of reprogramed money for a total of $642,000. He again indicated that this is the first budget that would have no funding for curbed sidewalks and park projects. He indicated that this is the second year that there is a 10% reduction in public service activities. He again stressed that the reality of the decline of Federal funds was severely impacting the budget procedure. Councilman Braboy voiced concern with regard to how such projects would be funded and a substantial period of time was spent on this topic. Councilman Voorde noted that with regard to public works projects that there could be possible funding sources from other areas however, housing and public service activities must be a priority with . regard to CDGB activities. He also voiced concern with regard to the change in laws with regard to IRB' s (Industria.l Revenue Bonds) . Mr. Hunt indicated that South Bend had been one of the leaders throughout the nation and that basically only manufacturing would qualify. He further indicated that the 2% limit on bonding would not affect TIF projects. If further reductions would take place such as 7-1/2 to 8% this would be an additional cut of $65,000 would have to be realized and if real estates sales would not materialize this would result in an additional cut of $86,000. Such cuts, if they would become a reality would take place in the middle of the second quarter. /R.[ .R[.. rU•t1•NIN0 CO. J Page 2. Human Resources and Economic Development Committee September 23, 1986 Councilman Puzzello voiced concern again with regard to the funding for NHS. She indicated that a total of $140, 000 had been requested and that only $30-35,000 was being recommended. Ann Mannix from NHS then reviewed the handout (copy attached) showing the allocation process for the past two years. Mr. Hunt indicated that he was willing to work with NHS on a staff basis. He also indicated that it had not been anticipated that the staff positions would be funded through this process and that there would be a true partnership of money allocation. He further indicated that through acquisition, rehabilitation, and resale, there could be the possibility of shifting money from the northwest to the northeast. He noted that approximately $165,000 in rehab acquisition was now probable and that program income could be between $120-140,000 which could be put back into the program. Councilman Puzzello recommended that Line 3-B Acquisition be increased by $20, 000 and that Line 3-C High Risk Loans be increased to a total of $75, 000. Mr. Hunt indicated that through the sale that the money could be reprogramed and that a cut in the Bureau of Housing in the amount of $25,000 was a possibility. Thus the first unit sold the money would be reprogramed into NHS. This was received favorably by the Committee. Councilman Barcome further requested that if the possibility of Federal Revenue Sharing moneys could be used that they also be utilized,to make up the shortfall with regard to the NHS proposal. Councilman Braboy briefly reviewed the problem of LaSalle homes. This project began_ as a not-for-profit corporation as a consortium of churches approximately twenty years ago. Currently there are at least 40 units which are in need of furnaces and other appliances. Because of poor management decisions there is no money for upkeep or maintenance. Mr. Hunt also indicated that the mortgage is still outstanding on the project. Mrs. Braboy indicated that officers of the LaSalle Homes Project would be in..contact later with Mr. Hunt' s department. She stressed the need for people and structures to be balanced with regard to setting priorities in this area. Councilman Beck voiced concern with regard to the LaSalle Homes Project and also voiced concern with regard to the departure of three individuals from the Human Rights Department. Mr. Hunt indicated that he would be supportive of a County-wide human rights program. Councilman Barcome indicated that if the district councilmen were basically acceptable to the proposed program that he would be in favor of the program as submitted by Mr. Hunt with the proposed changes regarding NHS. All councilmen indicated that the reduced budgetary figures definitely_impacted the overall goals and programs. Following further discussion by the Committee, Councilman Beck made a motion seconded by Councilman Puzzello that the proposed Page, 3. Human Resources and Economic Development Committee September 23, 1986 CDBG project proposal be recommended favorably to Council. The motion passed unanimously. Following further discussion by the Committee the meeting was adjourned at 5:15 p.m. Respectfully submitted, Councilman Eugenia Braboy Chairman