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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 02/16/2021 - SECOND READING OF ORDINANCE NO. 024, 2021, APPROPR Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY February 16, 2021 City Council STAFF Beth Rosen, Grants Compliance & Policy Manager Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 024, 2021, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund for COVID-19 Response and Recovery. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on February 2, 2021, appropriates unanticipated Community Development Block Grant (CDBG) funding in the amount of $760 ,023 from the Department of Housing and Urban Development (HUD) for COVID-19 response and recovery. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, February 2, 2021 (w/o attachments) (PDF) 2. Ordinance No. 024, 2021 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY February 2, 2021 City Council STAFF Beth Rosen, Grants Compliance & Policy Manager Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 024, 2021, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund for COVID-19 Response and Recovery. EXECUTIVE SUMMARY The purpose of this item is to appropriate unanticipated Community Development Block Grant (CDBG) funding in the amount of $760,023 from the Department of Housing and Urban Development (HUD) for COVID-19 response and recovery. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Community Development Block Grant (CDBG) Entitlement Program provides annual grants on a formula basis to eligible cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities for low- and moderate- income persons. Recipient communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act made available $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds. The City received initial funding of $649,203 in April 2020 and quickly deployed the funds to meet urgent community needs benefiting low- and moderate-income persons. Those funds were appropriated by Council on May 19, 2020, with Ordinance No. 065, 2020, and allocated to eligible public service projects as adopted by Council with Resolution 2020-054 on June 2, 2020. On September 11, 2020, the City received notification from HUD that it was receiving an additional allocation of $760,023. These funds must be allocated to help prevent, prepare for, and respond to the COVID-19 pandemic. The City recovery team has prioritized the use of these funds for public service activities that prevent at-risk populations from exposure to the virus and mitigate the economic impacts of the pandemic to low-and moderate- income households. City staff is currently assessing the remaining funding needs and reviewing applications from eligible nonprofit organizations. Funding requests will be scored according to established priorities and presented to the Community Development Block Grant (CDBG) Commission for a final funding recommendation at its regular meeting on February 10, 2021. This recommendation will be presented to Council for approval at its regular meeting on March 2, 2021. This appropriation will allow for expedient deployment of the funds once a Council- approved funding recommendation has been adopted. ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 CITY FINANCIAL IMPACTS This will increase the City’s total CDBG-CV allocation for Coronavirus relief and recovery from $649,203 to $1,409,226. These additional funds will assist in critical response and recovery efforts not funded by other sources. ATTACHMENTS 1. Award Letter (PDF) -1- ORDINANCE NO. 024, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND FOR COVID-19 RESPONSE AND RECOVERY WHEREAS, the City receives annual grants of funds from the federal Department of Housing and Urban Development (“HUD”) Community Development Block Grant (“CDBG”) entitlement program to help support affordable housing and other programs to benefit low- and moderate-income persons; and WHEREAS, on March 27, 2020, the federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, making available $5 billion in Community Development Block Grant Coronavirus (“CDBG-CV”) funds; and WHEREAS, the City received $649,203 of CDBG-CV funds from HUD, which the City Council appropriated on May 19, 2020, pursuant to Ordinance No. 065, 2020, and allocated to eligible public service projects as specified in Resolution 2020-054, approved by the Council on June 2, 2020; and WHEREAS, HUD is now allocating to the City an additional $760,023 of CDBG-CV funds that must be spent to help prevent, prepare for, and respond to the impacts of the COVID-19 pandemic; and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins and serves the public purpose of supporting timely response to and recovery from the impacts of the COVID-19 pandemic; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 11, of the City Charter provides that federal grant appropriations shall not lapse if unexpended at the end of the budget year until the expiration of the federal grant; and WHEREAS, the City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Community Development Block Grant Fund and will not cause the total amount appropriated in the Community Development Block Grant Fund to exceed the current estimate of actual and anticipated revenues to be received in that Fund during this fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated for expenditure from unanticipated grant revenue in the Community Development Block Grant Fund, the sum of SEVEN HUNDRED SIXTY THOUSAND TWENTY-THREE DOLLARS ($760,023), to be used towards COVID-19 response and recovery. Introduced, considered favorably on first reading, and ordered published this 2nd day of February, A.D. 2021, and to be presented for final passage on the 16th day of February, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 16th day of February, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk