ACTION REQUESTED:
Title
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 2015 Relating to the 2015 CDBG, HOME and ESG BUDGETS to Reflect the Actual 2015 Allocation from the United States Department of Housing and Urban Development (HUD) 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 United States Department of Housing and Urban Development (HUD). As such, funds from the Federal government, through HUD, are allocated to the City 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 City receives grant funds from the following grants - Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME) and the Emergency Solutions Grant (ESG).
The amount of funding received by the City 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 continued decline in funding has created significant pressure on programming and services that historically been funded with the annual HUD allocation.
Although the City's HUD program year begins on January 1, the award notice of funding levels and subsequent grant agreements from HUD are generally not received until spring. This year, grant agreements were received in July 2015 - 6 months after the start of the City's HUD program year. 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 fundin...
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