ACTION REQUESTED:
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Communication from the City Manager and the Finance Director/Comptroller and Community Development Director with a Request to ADOPT an ORDINANCE AMENDING the City of Peoria Budget for Fiscal Year 2014 Relating to the 2014 CDBG, HOME and ESG BUDGETS to Reflect the Actual 2014 Allocation from the United States Department of Housing and Urban Development and the REALLOCATION of remaining funds from COMPLETED PROJECTS and the ALLOCATION OF PROGRAM INCOME.
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BACKGROUND:
The City of Peoria is considered an entitlement jurisdiction by the U.S. Department of Housing & Urban Development (HUD). As such, funds from the federal government, through HUD, are allocated to the City of Peoria on an annual basis by the use of a formula. Unlike many grants, there is no competitive application for these funds. Each entitlement jurisdiction receives a set amount based upon Congressional funding and adjustments to the allocation formula.
The amount of funding received by the City of Peoria has steadily declined over the past decade (Attachment 1 - Historic HUD Funding Levels) from a high of almost $3.8 million in 2001 to the current level of slightly more than $2 million. This reduction in funding has created significant pressure on programming and services that have historically been funded with the HUD allocation.
Although the Federal fiscal year begins on October 1, the award notice of funding levels and subsequent grant agreements from HUD are generally delayed. This year, grant agreements were not received by the City until late July. As such, the program budget approved by the City Council as part of the City's 2014/2015 Biennial Budget must be amended to reflect the actual funding level. Further, as is usually the case, there are balances available from prior year projects that were not fully expended that need to be re-allocated to active uses. Finally, CDBG and HOME formula grants generated program income by investing these fund...
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