PURPOSE

This resolution requests the City Council to approve capital project uses funded with CDBG and include them in the FY 2007-08 Annual Plan and Final Statement of Community Development Objectives and Projected Use of Funds.

BACKGROUND

Burbank submits an Annual Plan and applications for federal funds, including CDBG, pursuant to regulations dated January 5, 1995, covering 24 Code of Federal Regulations Part 91, Consolidated Submissions for Community Planning and Development Programs.  Both the Annual Plan and the Final Statement describe activities/projects planned to accomplish goals and objectives stated in the Consolidated Plan (FY 2003-08).  Activities eligible under the CDBG program must principally benefit persons of low and moderate income, aid in the prevention or elimination of slums and blight, or address community development needs having a particular urgency. For Burbank, CDBG funds are used for capital improvement projects, public services and program administration.

The Annual Plan and Final Statement of Community Development Objectives and Projected Use of Funds are scheduled for formal submission in May 2007. Capital project requests are accepted earlier for City approval to allow sufficient lead time to complete pre-development tasks such as project design, preparation of specifications and bid scheduling. This advanced implementation process permits projects to go forward immediately when federal applications are approved and funds are budgeted by the U.S. Department of Housing & Urban Development (HUD); and further enables the City to spend CDBG funds in a timely manner to meet HUD expenditure requirements.

ANALYSIS

Burbank�s CDBG entitlement allocation for FY 2007-08 is estimated at $1.36 million based on the City�s entitlement, HUD reallocated funds, and program income for 2006. The latest update from the U.S. Congress indicates HUD�s fiscal 2007 budget will not be approved until mid-February at the earliest.

When the Annual Plan and Final Statement are approved in April 2007, capital project approvals will be adjusted to coincide with the actual 2007 entitlement and any HUD reallocated funds. For now, however, CDBG capital project funds are estimated at $881,875, which is minimally ($5,088) more than fiscal 2006. Likewise, program administration and public services funding will be adjusted in April and will be appropriated at the statutory limits of 20 percent and 15 percent, respectively.

FY 2007 CDBG FUND RESOURCES

FY 2007 CDBG FUNDS By CATEGORY

Capital project fund availability and a request for proposals were noticed to departments/agencies on September 27, 2006 and advertised October 4 and 7, with proposals accepted until October 27, 2006. Four City departments/organizations submitted five projects totaling $1.463 million in requests, creating a gap of $581,125 compared with available funding (Exhibit A).

The Community Development Goals Committee met November 16, 2006, and the Executive Staff met on December 6, 2006 to make their capital project recommendations. This year both Committees agree on the projects to be funded:

* Repair & Maintenance Items Are Not CDBG Eligible

FISCAL IMPACT

Based on current delays in Congress to finalize HUD�s 2007 budget, it is not possible to estimate what funding the City will ultimately receive. However, in April when federal applications are finalized for submission to HUD, actual amounts will be known.

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution.

Enclosures:

• Exhibit A � CDBG Capital Projects (FY 2007-08)

• Exhibit B � Community Development Goals Committee � Draft Minutes (11/16/06) CDBG Capital Project Proposals (2007-08)

go to the top