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ALLOCATE CITY COUNCIL FISCAL YEAR 2017-18 DISCRETIONARY FUNDING
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Adopt a motion to allocate the $750,000 of discretionary funding included in the Fiscal Year (FY) 2017-18 Budget adopted on June 20, 2017, and authorize any transfer and appropriation of funding necessary to implement the allocation; and
2. Provide direction for the use of the $300,000 in Community Development Block Grant (CDBG) funds included in the FY 2017-18 Budget and the additional allocation of $607,521 in Emergency Solutions Grant (ESG) funds.
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Summary
With the adoption of the FY 2017-18 Budget on June 20, 2017, the City Council appropriated $750,000 of discretionary funding to be allocated at a future date. These funds include $450,000 in unrestricted General Funds and $300,000 of Infrastructure Finance District Funds that are restricted to infrastructure related expenses.
The adoption of the budget also included a $300,000 allocation of CDBG funds that were allocated for a yet-to-be identified project to assist with the Council’s on-going efforts to address homelessness. The funds could be used to address a need for capital improvements at one or more of the homeless facilities. Staff indicated the specific use of the funds would be brought back to Council for consideration at a future date.
On July 5th, the City received notification from the U.S. Department of Housing and Urban Development (HUD) that we have been awarded an additional allocation of $607,521 of ESG funds. These funds must be used in accordance with the ESG program guidelines but can potentially be combined with the CDBG funds for a significant project addressing homelessness.
Council is asked to allocate the $750,000 of discretionary funds and provide direction for the use of the CDBG and ESG funds.
DISCUSSION
Background
During the Council’s Study Session on the proposed budget held on June 6, 2017, and again at the public hearing for the FY 2017-18 Budget on June 20, 2017, Council members discussed and considered the varying needs of Stockton residents. The Council indicated a strong interest in continuing efforts for blight reduction, increasing efforts to address issues related to homelessness, economic development, public safety radios, and establishing discretionary funds to be available to each Councilmember and the Mayor for projects that are significant to the residents of Stockton.
Funding for Council priority spending in the amount of $750,000 has been incorporated into the General Fund Non-Departmental budget. A portion of the increase for Council priority spending is from the transfer of residual balances from inactive assessment and special district funds of $300,000. These residual balances must be used for infrastructure maintenance or construction. The remaining $450,000 is unrestricted General Funds.
Staff provided Council with some options to consider. These options are not intended to be a comprehensive list of needs. Council has the discretion to decide how these funds are allocated. Below are some options Council may wish to consider:
|
Programs in need of funding |
Amount |
|
Council district based projects |
$150,000 |
|
Downtown Marina enhanced security |
40,000 |
|
Homeless Program |
100,000 |
|
Sheriff Clean-up Program |
75,000 |
|
Local Jobs Incentive Program |
150,000 |
|
OVP Program Assistant* |
125,000 |
|
Park Maintenance |
422,000 |
|
Arts Grants & Poet Laureate |
53,000 |
|
Residential Lien Forgiveness Program |
20,000 |
|
Street Trees maintenance |
327,000 |
|
Vandalism Control |
220,000 |
|
Youth Employment |
100,000 |
|
|
$1,782,000 |
*On-going impact to Long-Range Financial Plan
The adoption of the budget also included a $300,000 allocation of CDBG funds that were allocated for a yet-to-be identified project to assist with the Council’s on-going efforts to address homelessness. The funds could be used to address a need for capital improvements at one or more of the homeless facilities. Staff indicated the specific use of the funds would be brought back to Council for consideration at a future date.
On July 5th, the City received notification from HUD that we have been awarded an additional allocation of $607,521 of ESG funds. These funds must be used in accordance with the ESG program guidelines but can potentially be combined with the CDBG funds for a significant project addressing homelessness.
The combination of the CDBG funds set aside for a homelessness related project and the additional ESG funds has the potential to make a significant impact on homeless needs. Council may consider directing staff to issue a Request for Proposals (RFP) for facility improvements or equipment needs to improve area homeless resources.
Present Situation
Council is asked to allocate the $750,000 of discretionary funds approved in the FY 2017-18 Budget. Additionally, Council direction is requested for the use of the $300,000 of CDBG funds set aside in the FY 2017-18 Budget for a yet-to-be identified project addressing homelessness. Council direction is also requested for the use of additional $607,521 in ESG funds. Staff will return to Council at a later date for approval of the final use of the CDBG and ESG funds.
FINANCIAL SUMMARY
The $750,000 of discretionary funds are included in the FY 2017-18 Budget. Once Council approves a motion to allocate the funds, any necessary transfers and appropriations will be made to implement the allocation.
CDBG funds, in the amount of $300,000 were allocated in the FY 2017-18 Budget for a project that will address homelessness. Staff will return to Council at a future date for approval of the specific use of these funds.
A recent increase of ESG funds in the amount of $607,521 will require appropriation and an amendment to the City’s One-Year Action Plan. Staff will bring this forward at a future date when we seek approval for the specific use of these funds.