Loading...
HomeMy WebLinkAboutAppropriating $218,938.00 from Community Development Block Grant FundsORDINANCE No. 6955 -81 Passed by the Common Council of the City of South Bend, Indiana Auqust 24, 19 81 n. IIRREN�E K. GAMMON P.o.;.i. Presented by me to the Mayor of the City of South Bend, August 25 19 81 Clerk of Common Council IRENE K. GAMMON Approved and signed by m z �— Io L Clerk ORDINANCE NO. 6955 -81 AN ORDINANCE APPROPRIATING $218,938.00 FROM COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE PURPOSE OF ESTABLISHING AN ANNUALIZED BUDGET FOR THE DIVISION OF COMMUNITY DEVELOPMENT OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PROGRAM YEAR BEGINNING JULY 7, 1981, TO BE ADMINISTERED THROUGH THE DIVISION OF COMMUNITY DEVELOPMENT. STATEMENT OF PURPOSE AND INTENT: Certain program needs and changes have developed since the passage of the existing Community Development Block Grant Funds (FY -80 & FY -81), one of these is the need to establish an annualized budget of all CDBG funds available to the City of South Bend. In order to implement successfully the transition to an annualized budget, additional funds are required. NOW, THEREFORE, be it ordained by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The sum of $218,938.00 is hereby appropriated for the pro- gram year starting July 7, 1981, from the Community Development Block Grant Funds. This appropriation shall be administered by the Division of Community Development and its designated subgrantees, and will be distributed as set forth below: COMMUNITY DEVELOPMENT PROGRAM HOUSING AMOUNT Rental Rehab Demonstration Project CD -80 -119 $84,838.00 Southold Rehabilitation Admin /Counseling CD -81 -113 10,960.00 Rental Rehab Demonstration Project CD -81 -119 15,162.00 PUBLIC SERVICE Legal Service CD -81 -501 22,500.00 Day Care Stipends CD -81 -502 16,759.00 Rape Crisis Counseling CD -81 -505 12,500.00 ECONOMIC DEVELOPMENT Section 108 Loan Payment CD -81 -602 B/D 55,000.00 COMMUNITY DEVELOPMENT ADMIN/ PLANNING /EEO -LSO Community Development Admin /Planning CD -81 -1101 1,219.00 SECTION II. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval the Mayor. Member of the Common Council PASSED, AS AMENDED, AUGUST 24, 1981 Patrick M. McMahon Executive Director Ann Kolata Dep. Dir. Redev. Kevin Horton Dap. Dir. Ec. Dev. CITY of SOUTH BEND ROGER O. PARENT, Mayor DEPARTMENT OF ECONOMIC DEVELOPMENT AND REDEVELOPMENT 1200 COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 (219) 284 -9371 August 24, 1981 Members of the Common Council 441 County -City Building South Bend, IN 46601 Attention: Mr. John Voorde, Chairman Human Resources and Economic Development Committee Mrs. Beverly Crone, Chairman, Finance Committee RE: Revised Community Development Ordinances - Transfer of $218,938.00 - Appropriation of $291,782 Ladies and Gentlemen: Redevelopment Commission F. Jay Nimtz President Lloyd E. Robinson, Sr. Vice President A. Peter Donaldson Secretary Robert J. Cira Ass istant Secrete ry Paula N. Auburn Member Attached you will find two (2) revised ordinances which make some technical and minor modifications to those ordinances previously submitted to your office. The total amount of funds appropriated and transferred, respectively, do not change. These changes will serve to coordinate these account numbers with those previously established, and it will also serve to accurately effect certain program balances which were recently verified by an internal audit of certain key accounts. Your adoption of these amendments, as submitted, is appreciated. In light of our conversations at last week's caucus, I thought it important that I highlight the two primary reasons motivating this action. 1. Establishment of an annualized budget for federal programs will allow the City to initiate and pursue tighter, more uniform fiscal and compliance controls, said controls being consistent with those typically used for the balance of the City's fiscal system. Members of the Common Council Page Two August 24, 1981 2. The adoption of an annualized budget will allow us to do the necessary preparation and monitoring necessary to accelerate all spending within Block Grant categories, eliminate the large carry -over balances which currently exist in a number of accounts, and fully utilize the entire fiscal year entitle- ment within the statutory 18 -month period. As an additional benefit to the above, such a system should also enable the City to accurately predict its cash flow in these federal programs, thereby allowing the City to apply for certain programs whereby we might be able to better utilize that portion of the entitlement which has been released but not yet expended for program purposes. I believe that this system will allow the City to better administrate all of its federally funded programs. These changes do not reflect any change in policy with respect to program emphasis. We have recently reviewed these items with our Regional HUD Area Office contact, Ms. Dolores Koziol, and have received her concurrence that the adoption of such a system is fully under local control and not a HUD matter requiring their review and formal approval. Based upon our projections for future cash flows and their timing within the entitlement year, HUD has informed us that they have no objections to the establishment of such a system. This office will continue to review these matters and submit a complete transcript of our activities to HUD, for their review. Upon receiving their response, I will be pleased to forward a copy to Mr. Voorde and Mrs. Crone's Committees Should we find that HUD, now or at any time in the future, looks negatively upon the manner in which we will be budgeting our funds, I will take immediate action to rectify and comply with their requirements. It is obviously in the best interests of the City that we maximize the use of our entitlement and place the City in a position to be considered for any increase that might be- come available in the near future. Your support and approval of this concept is greatly appreciated. rul y , C C Patrick M. McMahon PMMcM:amc Attachments Patrick M. McMahon Executive Director Ann Kolata Dep. Dir. Redev. Kevin Horton Dep. Dir. Ec. Day. CITY of SOUTH BEND ROGER O. PARENT, Mayor DEPARTMENT OF ECONOMIC DEVELOPMENT AND REDEVELOPMENT 1200 COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 (219) 284 -9371 Redevelopment Commission F. Jay Nimtz President Lloyd E. Robinson, Sr. Vice President August 5, 1981 A. Secretary son Robert J. Cira Assistant Secretary Paula N. Auburn Member Members of the Common Council 440 County -City Building South Bend, IN 46601 Attention: Mr. John Voorde, Chairman, Human Resources and Economic Development Committee Mrs. Beverly Crone, Chairman, Finance Committee RE: Community Development Ordinances - Transfer of $218,938 - Appropriation of $2911,782 Ladies and Gentlemen: The attached ordinances serve to address two primary functions. 1. Funding for the_Rental /Rehab Demonstration Project. This project has recently been discussed with the Common Council in conjunction with the authorizing resolution passed at your last meeting. As you are aware from conversations with Marzy Bauer, this pro- gram involves the matching of $100,000 from our Community Development Funds with $100,000 of 312 money that will become available to us if we are successful in our grant application. Based upon conversations that Mrs. Bauer has had with the Indianapolis and Washington offices of HUD, we ex- pect to be funded on this program in the immediate future. In that we must obligate all funds by the end of September, it is necessary that we begin the appropriation process for our matching funds. The $100,000 is being appropriated from our Unspecified Local Option, $88,405 from our 1980 monies, and $11,595 from our 1981 monies. Members of the Common Council Page Two August 5, 1981 Should, for some reason, we be unsuccessful in our application process, we will delete these monies from this ordinance when it comes before the Council for second reading and public hearing. 2. Annualization of the Budgets for Federal Programs. As you are aware, the program years for our federally funded agencies begin in July of each calendar year and then extend for approximately 18 months prior to reprogramming of any unspent funds. The process and the mechanism by which these funds have been handled in the past create, by their very nature, a number of problems: a. The normal fiscal controls exercised by the Controller's Office are not in place, nor can they be easily adapted to an 18 -month over- lapping fiscal year arrangement. b. The monitoring of performance due to the multi- year funding and associated overlaps is difficult, if not impossible in many instances. c. Delays are often incurred in the approval of the C. D. program and level of funding for any given year on a state and national level, thereby creating a number of uncertainties in the months of June, July and August. d. In that the program is approved in its final form only on or about July 1, there is little if no lead time available to either City agencies or non- profit agencies utilizing program funds to do the necessary background preparation necessary to im- plement a program. The start -up of the various programs has, therefore, lagged in certain in- stances two, three, and four months behind the actual release date. In order to correct these fiscal, monitoring, and implementa- tion problems, it is proposed that the City shift the federal programs into an annualized budget and program year. The effect of the proposed changes will be that those monies approved by the Common Council in the formal program review in the Spring of a given year, and the subsequent release of funds on or about July 1 of said year by the Federal Members of the Common Council Page Three August 5, 1981 Government will not formally be released for expenditure until January 1. The implementation of each activity will, therefore, begin on January 1 and end on December 31, coinciding with all other City operations. I believe that this will greatly enhance our ability to monitor this activity and to effect performance consistent with the desires of the Department of Housing and Urban Development and the City of South Bend through the Common Council and City Administration. By taking advantage of certain fund balances which exist in various line items, and by utilizing a certain portion of the 1981 Unspecified Local Option, all accounts can be adequately readjusted to initiate the annualized budget program. The transfer ordinance before you in the amount of $291,782 and $218,938 of the appropriation ordinance, also before you, will serve to implement this process. I am available to discuss this and any related items with you at your convenience. Very t m y yours G /��� atrick M. McMahon PMMCM:amc Attachments cc: Joseph Kernan Mayor Roger 0. Parent Tommutrr Ervort on tke fanuuuau faounrit of top fang of 10OW4 BruD: Your Committee OF THE WHOLE to whom was referred BILL NO. 77 -81 A BILL APPROPRIATING $218,938.00 FROM COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE PURPOSE OF ESTABLISHING AN ANNUALIZED BUDGET FOR THE DIVISION OF COMMUNITY DEVELOPMENT OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PROGRAM YEAR BEGINNING JULY 7, 1981, TO BE ADMINISTERED THROUGH THE DIVISION OF COMMUNITY DEVELOPMENT. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE TO THE COUNCIL FAVORABLE, AS AMENDED: BY ACCEPTING A SUBSTITUTE BILL JOHN VOORDE Chairman .IBC. ..... ....... 6 CO.