(1)030111 CDBG Funds for FY 2011/12

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Staff Report to the Mayor and City Council CDBG Projects March 1, 2011 Page 2 which will be in its 3rd year of a three-year commitment with the County to administer for the benefit of Colton senior citizens. The remaining $353,380 is available for other projects, such as Capital Improvement Projects, but only 15% (or $67,411) of the total is available to be allocated for Public Service Projects as per CDBG regulations, if directed by the City. Funding available to the City is an estimated amount, based on a possible 10% decrease in CDBG program funding levels now being considered by Congress. Should Congress pass and the President sign legislation with a decrease greater than the 10% estimated by the County, the City Council may be asked to consider how the decrease will affect any approved project funding levels. ISSUES/ANALYSIS In order to provide a broader analysis and review of CDBG eligible project proposal applications, a CDBG Committee was formed to recommend projects for funding to the City Council. The City Council named the Committee members at the January 18, 2011 meeting. The Committee met to review the CDBG proposals on February 16, 2011. Prior to the meeting, all Committee members received a list of CDBG Eligible Proposals for FY 2011-2012, as provided by the CDH Department (Exhibit A). Members reviewed the eligible proposals, which collectively totaled $785,398. As discussed above, with the funding of the Senior Home Repair Project for the next fiscal year, available funds are limited to $353,380, of which $67,411 are allowed to be used for Public Service Projects. The type of requests received are depicted below: Category No. Applications Total Amount Requested Construction Public Service 3 15 $578,744 $206,654 Total 18 $785,398 On January 18, 2011, Council approved an action to set a public hearing date for March 1, 2011, at which time the Council will hear public comment and finalize its recommendations for funding. Funding recommendations are due to the County by March 11, 2011.