Title
HOLD a public hearing and consider an ordinance on the Substantial Amendment to Annual Action Plans for Program Years 2018, 2020, 2021, and 2022 to provide CDBG funding for construction and related costs for the senior center and improvements at the Rosa Hereford Community Center.
Summary
DATE: May 2, 2023
TO: Kent Cagle, City Manager
FROM: Cinda Hayward, Community Development Grant Programs Manager
SUBJECT: A reprogramming of CDBG funds for construction and related costs at the senior center and improvements to the Rosa Hereford Community Center.
BACKGROUND AND FINDINGS:
On April 6, 2023, the Community Development Advisory Committee met to discuss and consider timely expenditures and reprogramming of excess Community Development Block grant (CDBG) funding. In City fiscal years 2019, 2021, 2022, and 2023, the Community Development Advisory Committee made recommendations to Council for various eligible projects to be undertaken with CDBG funding. Over the course of these years, projects were completed without utilizing the entire grant amount allocated. Additionally, program income was received, and other projects were re-prioritized. In accordance with the Citizen’s Participation Plan (rev. April 28, 2020), a substantial amendment is required whenever there is a substantial change in the purpose, scope, location, or beneficiaries of the activity (project) and reprogramming may be necessitated.
Further, to maintain compliance with Department of Housing and Urban Development (HUD) CDBG regulations, the city must achieve timely expenditures of CDBG funding to ensure the community and its citizens are receiving the benefits of the CDBG program. Reprogramming of the excess funds for use now instead of waiting until October 2023 will assist the city in timely performance with regulatory expenditure requirements of the CDBG funds and will enable the city to move forward with the senior center and improvements at the community center.
The following completed or cancelled (re-prioritized) CDBG projects are:
$817.82 Program Income PY2018
$159,323.03 AA Lane Park Improvements PY2020
$146,873.47 Conder Park Improvements PY2020
$50,000.00 Conder Park (CT 225.01) Housing Rehab PY2020
$28,942.06 CDBG Admin PY2021
$2,206.96 Greater Killeen Free Clinic PY2021
$1,930.39 Housing Rehabilitation Admin PY2021
$400,000.00 Stewart Park Splash Pad PY2022
$5,000.00 Unity Visitation Center PY2022
Total amount CDBG funds to reprogram $795,093.73
THE ALTERNATIVES CONSIDERED:
1. Do not hold a public hearing or consider the substantial amendment to Annual Action Plans 2018, 2020, 2021, and 2022 to provide funding to move forward with the senior center and community center improvements.
2. Hold a public hearing and consider a substantial amendment to the Annual Actions Plans for 2018, 2020, 2021, and 2022 to provide funding for the senior center and community center improvement.
Which alternative is recommended? Why?
Alternative #2 is recommended. Alternative number two will accomplish two objectives - timely expenditure of the CDBG funds and move forward with the long-awaited senior center and improvements to the community center.
CONFORMITY TO CITY POLICY:
This action conforms to the Citizen Participation Plan adopted by City Council.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
$795,093.73
Is this a one-time or recurring expenditure?
This is a one-time expenditure.
Is this expenditure budgeted?
Yes, funds are available in the Community Development Block Grant (CDBG) Fund account 228-3250-426.50-86.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Hold a public hearing and consider an ordinance, on a substantial amendment to Annual Action Plans 2018, 2020, 2021, and 2022 to provide funding for the senior center and improvements to the Rosa Hereford Community Center.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Minutes