Agenda - Council - 02/23/1993 - Laserfiche WebLink

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ALLOCATE 1993 CDBG FUNDS By: Ryan Schroeder, City Administrator Background: At its meeting of January 26, 1993, City Council held a public hearing to receive requests from public service agencies regarding Ramsey's 1993 CDBG funding allocation. We received funding requests in the amount of $29,080 from seven (7) service agencies. We have been informed that for 1993, we have $30,407 in block grant allocations. Council may also wish to note that we have until December 31, 1993 to spend the 1992 allocations toward Flintwood Hills park improvements in the amount of $23,918. Council should also note that upon settlement of the Waste Management of Minnesota, Inc. lawsuit, we expect to receive a reimbursement from the methane project in the amount of $12,185.57, which is also tied to the CDBG program. For purposes of this meeting, however, we're discussing only the allocation of $30,407. Included with this case are the following exhibits: 1) 2) 3) 4) 5) 6) 1993 CDBG Requests CDBG Projects Historical Data Memorandum to file dated February 4, 1993 regarding CDBG Agency Finding Table entitled Fall 1992 Community Schools Enrollment (Shows participants ages) Gorham Sandy Acres Plat Map Proposed Resolution You will note that since 1981, it has been the general practice for Ramsey to fund planning, economic development and housing projects. For 1991 and 1992, the practice was altered to include, for those years, public service agencies. Programs built upon reliance on "soft money" are subject to severe budget shifts. The result of CDBG reliance by "programs", human service or otherwise, could be future requests for a general fund allocation if the CDBG program is eliminated. Council may not wish to place itself in this position. Therefore it is Staff's position that projects funded out of block grant funds should be for community planning efforts or projects which have single year expenditures. As an item on the Finance Committee agenda, Council will note that the City of Ramsey has a need for additional comprehensive planning. We have received a bid in the amount of $11,485 for a land use plan update and $11,145 for a transportation plan update. We have also received a bid for additional plans such as shoreland management and surface water management. The result being a total identified need in the neighborhood of $50,000. It is Staff's position that City Council should allocate the $11,485 from Community Development Block Grant funds for the land use planning component identified at the Finance Committee. We have noted from the County programs that have been operated in the past three years that 52% of the households receiving services from ACCAP have received services in the area of weatherization, energy, energy repair and housing rehabilitation. Therefore, it is Staffs recommendation that the balance of the 1993 block grant dollars be allocated to ACCAP for the above named purposes. Included as a potential project operated by ACCAP meeting the above purposes could be new consa'uction of a single family home on a lot in Gorham Sandy Acres (plat map enclosed) to be sold to a household within the low and moderate income guidelines. City Council should note that low and moderate income