Agenda - Council - 01/12/1982 - Laserfiche WebLink

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I I I I ,I I I ,I I I I I I I I I I Transit capila] ftmdinff has varied from G6-2/3 to 85 pcri'ent, dClwndmg (m the federal program. Currently, tile Urban Mass Transit Administration provides 80 percent, Federal Aid Urban projects receive 70 per. cent or greater and Inter~ta~ Substitution projects get 85 percent. Percentages may be changed before Congress adopts the foderal budget. Minnesota provides no funding for transi~ capital purposes. Though current legislation is pending, the Federal Aviation Administration (FAA) has traditionally played an important role in airport funding. Airport Development Aid Program (ADAP) improvements have been funded at 75 percent at the Minneapolis- St. Paul International Airport. The Minnesota Department of Transportation, Division of Aeronautics (MDA), provided 12.5 percent. At the Region's intermediate and minor airports the FAA share has been 80 percent and MDA's 10 percent. For non-A DAP projects, there is no federal assistance; normally MDA pays 80 percent at the secondary airports. These programs are subject to funding revisions in fuh~re budgets. Since 1977, acquisition and development of the regional parks has heen paid from a direct state appropriation of bond funds. Tbe Council expects the Legislature to fund the current capital improve- ment program, too. There is no federal assistance for regional parks. In short, while federal and state funding for regional capital improvements has been substantial, the future is clouded. To assure peace of mind for residents and to make sure the needs of your community are considered by neighboring communities and regional agencies, you should take advantage of a CIP. Each government or agency--township, city, county and metropolitan--must do a good job of capital improve- ment planning if government is to become better at setting priorities and spending money economically in times of severe financial limitations. Department of Energy, Planning and Development to Administer Small Communities Block Grant Program The State Department of Energy, Planning and Development plans to take over administration of the Small Cities Community Development Block Grant Program in fiscal 1983, which begins Oct. 1, 1982. Until then, the Department of Housing and Urban Development (HUD) will continue to administer the program. The state has circulated a draft of its small cities program design and scheduled six meetings to solicit --comments from local officials and citizens around the state. The Metropolitan Area meeting was held Dec. 4. 4 The sm;dj cilics program was one of 37 federal cateeorical programs folded into nine major block grant pro,rams in thc Omnibus Budget Reconciliation Act passed by Congress in August. States have the option to assume administrative responsibilities of the block grant programs beginning in fiscal 1982. The Reagan administration said tim block grant approach would reduce duplication and over- regulation in many federal categorical aid programs. State administration is also expected to make the programs more responsive to local needs and priorities. The small cities program made grants totaling $19.7 miIlion to "nonentitlement" communities and counties in Minnesota during 1981. Local governments use the grants for community development activities that include housing, public facilities and economic development. The program aims to promote development of viable communities by providing decent housing and a suitable living environment, while expanding economic oppor- tunities principally for people with low and moderate incomes. Eligible projects must meet one of three objectives: 1) benefit principally people with low and moderate incomes; 2) aid in prevention of slums and bIight; and 3) meet other community develop- ment needs having a particular urgency. In fiscal 1981, Minnesota received about $19 million under the small cities program. For fiscal 1982, the funding level for Minnesota is authorized at $23 million. The exact funding level will not be set until Congress approves the revised budget for fiscal 1982; action is expected in December. Alth0ugh final regulations for the small cities program will not be published until at least March 1982, HUD will conduct workshops starting in January at the state conference of the National Association of Housing and Redevelopment Officials (NAHRO) at Quadna Mountain Resort in Hill City, Minn. Other workshops will be conducted through- out the state beginning in February. Dates for submitting applications and for final approval are tentative. The HUD area office antici- pates that the earliest it can receive applications will be mid-April, with final approval in July. For more information on state administration of the small cities program, contact Jay Fonkert of the State Department of Energy, Planning and Development at 296-8953. Questions about HUD administration for fiscal 1982 should be directed to Doug Guthrie at 349-3022.