HomeMy WebLinkAboutTransferring $310,000 among Accounts within the Division of Community Development ORDINANCE No. 7436-85
Passed by the Common Council of the City of South Bend, Indiana
March 25 , 85
Attest: City Clerk
IRENE K. GAMMON
/ -
Attest: -date ■ President of Common Council
/
Presented by me to the Mayor of the City of South Bend, Indiana
March 26, zg 85
yg City Clerk
IRENE K. GAMMON
Approved and signed by me Miceat- /985
Mayor
BILL NO.
ORDINANCE NO.7 -3�4: -
AN ORDINANCE TRANSFERRING $310,000 AMONG ACCOUNTS
WITHIN THE DIVISION OF COMMUNITY DEVELOPMENT
STATEMENT OF PURPOSE AND INTENT:
In order to assure the efficient and timely utilization of Community Development
Block Grant Funds transfers among accounts are necessary.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend,
Indiana:
SECTION I. The sum of $310,000 is hereby transferred among accounts as set
forth below:
Reduce the following accounts:
PROJECT NO. DESCRIPTIONS AMOUNT
CD84-301 General Street Improvements $ 110,000
CD85-602 Project Future 30,000
1985 Unspecified Local Option 150,000
CD84-101 Bureau of Housing Mgt. &
Inspection 20,000
TOTAL REDUCTIONS $ 310,000
Increase the following accounts:
PROJECT NO. DESCRIPTIONS AMOUNT
CD85-301-.1 General Street Improvements $ 10,000
CD85-608 Economic Development Capital
Fund - Avanti Corporation 250,000
CD85-203 Neighborhood Clean-Up Crew 30,000
CD85-609 Studebaker Corridor 20,000
TOTAL INCREASES $ 310,000
SECTION II. This ordinance shall be in full force and effect from and after its
passage by the Common Council and approved by the Mayor.
„mom®m®sq®”
°� UTIi'4�: t� • DFV Vogl
® �,�; �..x; e CITY of SOUTH BEND Q p
Iss §' �:® ROGER O. PARENT, Mayor O
�r ia► ® Ply
A44 4• . *4 COUNTY-CITY BUILDING • SOUTH BEND,INDIANA 46601 •\
®-, �Y866l g.
® • ■
DIVISION OF COMMUNITY DEVELOPMENT
Colleen Rosenfeld 1200 County City Buildlng
Director South Bend, Indiana 46601
(219)284-9335
March 5, 1985
South Bend Common Council
4th Floor, County-City Bldg.
South Bend, IN 46601
Dear Council Member:
The bill submitted for your consideration proposes the transfer of funds for
three projects. The Economic Development Capital Fund project at $250,000
consists of $100,000 from 1984 General Street Improvements and $150,000 fran
1985 Unspecified Local Option. The project involves a loan from a Small
Business Investment Company (SBIC) to an existing business in the Studebaker
Corridor, an area located in South Bend's Urban Enterprise Zone. The $250,000
would be channeled through the Urban Enterprise Association to the SBIC and
combined with $250,000 from the State and $1.5 million in private investment
to assist in the continued operation of the company. The business currently
employs approximately 120 people which could increase significantly when a new
product recently unveiled by the company is fully marketed.
The general street improvement funds remain available from the 1984 program
year which ended 12/31/84. It has became a recent practice to transfer
previous program year funds to the current year. The 1985 Unspecified Local
Option amount has increased at this time from what was reflected in the 1985
application due to two factors: (1) the Section 108 repayment was projected
in the 1985 application at a higher amount than was actually required and (2)
the 1985 CDBG Entitlement amount will be higher than anticipated when the 1985
application was submitted.
The Neighborhood Clean-Up Crew increase of $30,000 is a direct result of the
proposed Project Future funding level of the same amount. The recent changes
to the CDBG Regulations strictly limit the percentage that can be spent on
administrative activities and the direct and immediate results of those
activities. The Project Future activity has always been calculated as an
administrative expense while some of their specific activities may not result
in projects in the years for which administrative costs are incurred. What we
face in funding Project Future with CMG funds is an additional limitation on
administrative funds and difficulty in documentation for reporting purposes.
The proposal is to offset costs in the Neighborhood Clean-Up Crew activity
while the Civil City provides funding for Project Future. The Controller's
office has agreed to this approach.
South Bend Common Council
March 5, 1985
Page Two
The third activity, Studebaker Corridor, would provide funds for a development
plan. The development of this area has come to the fore in part due to its
location in the Urban Enterprise Zone.
I look forward to discussing the project with the Council, but should you have
questions, please don't hesitate to contact me.
Sincerely,
`///i ,/v/
i
Colleen Rosenfeld
Director
CR/bsj
Attach.
cc: Jon R. Hunt