Agenda - Council - 02/12/1991 - Laserfiche WebLink

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CASE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM By: Zoning Administrator Sylvia Frolik Background: Anoka County is responsible for allocating to communities the CDBG funds from the U.S. Department of Housing and Urban Development. Basically, CDBG funds are limited to being used for projects that benefit the handicapped, senior citizens, low income persons and economic development activities. It has been the Federal Administration policy to alter the use of CDBG funds away from economic development activities by increasing the administration requirements to a point where the benefits are disproportionate. The City of Ramsey currently has an allocation of $50,440 for CDBG projects. This figure represents the 1990 allocation of $24,720 and the 1991 allocation of $25,720. In order to meet CDBG time frames, Ramsey must conduct a public hearing and adopt a resolution regarding the use of CDBG funds by the end of February. The public hearing is being scheduled for the City Council meeting on February 27. Once a project is approved, the funds must be spent or contractually encumbered within 18 months. For your information, I have recapped CDBG projects since 1981: a) b) c) d) e) f) g) h) i) J) 1981 - Senior Citizen Center ($32,040); Economic Development Brochure ($4,500) 1982 - Waltek Methane Gas Project ($47,822) 1983 - Methane Project ($510); Planning/Administration ($3,234); Balance in the amount of $38,496 transferred to later projects. 1984 - No project 1985 - Economic Development Revolving Loan Fund ($22,500); Hwy. #10 Corridor Study ($26,481) 1986 - No project 1987 - No project 1988 - Handicap Accessibility Improvements at River's Bend Park ($136,351) 1989 - Handicap Accessibility Improvements at City Hall ($25,011) 1990 - No project Observations: Some options for Council consideration for 1990/91 CDBG projects are: 3 Year Program: If a community does not commit to a project, it is required to participate in a 3 year roll over program in which funds are accumulated and required to be spent by the 3rd year of a 3-year cycle or forfeited. The County CDBG prog-ram is currently in the middle of a 3 year cycle covering the years 1990, 1991 and 1992. The risk to the 3 year program is that at the end of the 3 year period, the community will receive the lowest allocation of that 3 year year period for all 3 years (e.g., 1990 - $21,000; 1991 - $20,000; 1992 - $19,000 = $19,000 x 3 years). The benefit to the 3 year roll over program is the ability to accumulate allocations to fund larger projects. Although you risk some loss of allocation over the 3 year period, you will save $1,000 - $2,000 in County administrative fees the City would have incurred if annual projects had been done. (Each year a community does a CDBG project, there is a $1,000 County administrative fee).