Agenda - Council - 01/28/1997 - Laserfiche WebLink

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I I I I I I I I I I I I I I I ! 1 I I CASE 1997 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS By: Zoning Administrator Sylvia Frolik Background: Basically, CDBG funds are limited to being used for projects that benefit the handicapped, senior citizens and low to moderate income persons; planning projects; economic development; and historical preservation. The City of Ramsey's estimated allocation for 1997 is in the amount of $33,120.00. The public heating was scheduled this evening for the purpose of receiving comments and requests for use of the 1997 allocation. Observations: CDBG funds are processed in 3 year cycles; 1997 is the 2nd year of a 3 year cycle. The City may do a project each year in a 3 year cycle or consolidate annual allocations into one or two projects during a 3 year cycle. Because other communities in the County have larger projects they desired to accomplish in the first year or two of this 3 year cycle, the City of Ramsey was not able to do a project in 1996 and the County has asked that we limit ourselves to spending one year's allocation in 1997 or reserving our 1996 and 1997 allocations for a 3 year allocation project in 1998. The ability to consolidate 3 years allocations into one or two projects in a 3 year cycle is an advantage for larger, more costly projects; however when you do that you risk some loss of funds. When you consolidate your allocations into 1 or 2 project years, your allocation for each of the years is equal to the lesser allocation for those years. For example, if Ramsey's allocation the first year was $34,000, and $33,000 in the second year and $32,000 in the third year, and we reserved our allocations for one project in the three year cycle, our total allocation for that one project would be $96,000 (3 x $32,000). In addition, the County deducts a $I,000.00 administrative fee each year we do a project. Enclosed for your information is an exhibit that summarizes Ramsey's CDBG projects over the years. The advertised deadline for applying for Ramsey's CDBG funds is the public hearing on January 28. Any applications received by 5:00 p.m. on January 27 will be assembled into a packet and distributed to Council at the meeting on January 28. Council may then receive additional requests at the hearing. Staff has scheduled the Council allocation of these funds at the first Council meeting in February to give Council sufficient time to review the applications received and call for any additional information deemed necessary to make the decision. Recommendation: Review the information and applications provided and prepare to make a project allocation in 1997 or carry the 1996 and 1997 funds over to a project in 1998, the 3rd year of this 3 year cycle. Council Action: For information only; action by City Council will be scheduled for the first meeting in February. Review Checklist: CC: City Administrator 1/28/97