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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 21, 2017 <br />TITLE: <br />COMMUNITY DEVELOPMENT <br />BLOCK GRANT PUBLIC SERVICE <br />FUNDING AVAILABILITY 2017-2018 <br />{STRATEGIC PLAN NO. 5, 41 <br />CITY ANAGER <br />RECOMMENDED ACTION <br />Receive and file. <br />DISCUSSION <br />CLERK OF COUNCIL USE ONLY: <br />115-1-0T07W <br />❑ As Recommended <br />❑ As Amended <br />M Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />The City of Santa Ana receives an annual allocation of Community Development Block Grant <br />(CDBG) funds from the United States Department of Housing and Urban Development (HUD) to <br />improve low to moderate -income neighborhoods, eliminate blight and create a more stable <br />economic base. These funds may be used for a diverse range of programs including housing, <br />street improvements, park and public facilities improvements, economic development, code <br />enforcement and public services. The City's estimated CDBG allocation for Fiscal Year (FY) <br />2017-18 is $5,127,675, and reflects an estimated three percent reduction from the current year <br />allocation. A maximum of 15 percent of CDBG funding, the equivalent of $769,151, may be used <br />for public services. In previous fiscal years, CDBG public service funding was provided to both <br />nonprofit and City administered public service programs. <br />At the February 7, 2017 City Council Meeting, Staff was directed to provide a greater portion of <br />CDBG public service funds to nonprofits. As such, Staff will be allocating the entire 15 percent <br />CDBG allocation for public services to nonprofits for FY 2017-18. <br />During the 2017-18 budget development process, City departments, including Police and Parks <br />Recreation and Community Services Agency, will seek General Fund assistance to fund City <br />administered public services that are currently funded with CDBG. These public services include <br />the Police Athletic and Activities League, Library Tutors, and Senior Meals programs. As CDBG <br />funds are removed from the City administered public service programs, CDBG may not be used <br />to supplant City funding in the following fiscal year. <br />19F-1 <br />