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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/19/2020 - SECOND READING OF ORDINANCE NO. 065, 2020, APPROPRAgenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY May 19, 2020 City Council STAFF Beth Rosen, Affordable Housing Program Administrator Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 065, 2020, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund for COVID-19 Response and Recovery. EXECUTIVE SUMMARY This item meets the following priorities for items to be considered by Council during the COVID-19 emergency: (1) urgent items specifically related to COVID-19 activities that are critical in nature and must receive Council consideration as soon as possible; (6) items that relate to funding, operation and business activities that the City must continue despite the current crisis; and (7) items that are required to comply with federal or state legal or other requirements. This Ordinance, unanimously adopted on First Reading on May 5, 2020, appropriates unanticipated Community Development Block Grant (CDBG) funding in the amount of $649,203 from the Department of Housing and Urban Development (HUD) to be used for COVID-19 response and recovery. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, May 5, 2020 (w/o attachments) (PDF) 2. Ordinance No. 065, 2020 (PDF) Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY May 5, 2020 City Council STAFF Beth Rosen, Affordable Housing Program Administrator Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 065, 2020, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund for COVID-19 Response and Recovery. EXECUTIVE SUMMARY This item meets the following priorities for items to be considered by Council during the COVID-19 emergency: (1) urgent items specifically related to COVID-19 activities that are critical in nature and must receive Council consideration as soon as possible; (6) items that relate to funding, operation and business activities that the City must continue despite the current crisis; and (7) items that are required to comply with federal or state legal or other requirements. The purpose of this item is to appropriate unanticipated Community Development Block Grant (CDBG) funding in the amount of $649,203 from the Department of Housing and Urban Development (HUD) to be used 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 entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons. The City is currently administering its Fiscal Year 2019 (FY19) grant award from the Department of Housing and Urban Development (HUD) in the amount of $1,078,629. These funds were appropriated by Council on July 2, 2019, in Ordinance No. 080, 2019, and have been allocated to housing and human services projects as adopted by Council on June 4, 2019, in Resolution No. 2019-074. These funds serve the program year that runs from October 1, 2019, through September 30, 2020. 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. Of this amount, HUD immediately allocated $2 billion based on the fiscal year 2020 CDBG formula. HUD notified the City on April 2, 2020, of its CARES Act allocation in the amount of $649,203. This appropriation will add the new CDBG funding to the FY19 program year and support timely response and deployment. (Attachment 1) Staff is currently working on a coordinated effort to identify priority needs and uses for this critical funding. This appropriation will allow for expedient deployment of the funds once a Council-approved plan has been adopted. ATTACHMENT 1 Agenda Item 5 Item # 5 Page 2 CITY FINANCIAL IMPACTS This will increase the City’s total CDBG allocation for FY19 from $1,078,629 to $1,727,832. These additional funds will assist in critical response and recovery efforts not funded by other sources and will free up City resources to address other identified priorities. ATTACHMENTS 1. HUD CDBG-CV Award Letter (PDF) -1- ORDINANCE NO. 065, 2020 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 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, HUD has allocated $649,203 of CDBG-CV funds to the City; 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: 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 SIX HUNDRED FORTY- -2- NINE THOUSAND TWO HUNDRED THREE DOLLARS ($649,203), to be used towards COVID-19 response and recovery. Introduced, considered favorably on first reading, and ordered published this 5th day of May, A.D. 2020, and to be presented for final passage on the 19th day of May, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 19th day of May, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk