BACKGROUND:
On June 22, 2022, the City Council approved the City’s FY 2022-23 CDBG Annual Action Plan that describes the federal funding allocations from the City’s annual entitlement grant. This approval included the City’s entitlement apportionment of $615,619.
DISCUSSION:
Each fiscal year, the City allocates CDBG funding for administrative program expenses, public services, and public improvements that meet HUD requirements for the CDBG Program and activities that benefit low- and moderate-income residents of Cathedral City. Funding allocations described in the City’s Annual Action Plan and recommended for approval annually. Funding allocations are managed through execution of subrecipient and construction agreements between the City and the awarded agency for the amount described in the Annual Action Plan.
The City has unused/unallocated CDBG funds in the amount of $9,469 remaining from FY 2019-20 South Panorama Street Improvement Project, $10,000 remaining from FY 2020-21 CVAG Buss Pass Program that was stopped due to Covid and Stonewall Ministries not initiating their contract, $18,892 remaining from FY 2021-22 CDBG-CV Small Business Economic Assistance Loan Program, and $12,865 unallocated CDBG- CV funds.
Therefore, the Administrative Amendment proposes to allocate:
•$18,500 to the Cathedral City Senior Center in CDBG-CV funds to provide various services to the elderly, especially impacted by Covid •$13,257 in CDBG-CV funds to supplement FY 2022-23 Via De Anza Phase II Project
•$19,469 in CDBG funds to supplement FY 2022-23 Via De Anza Phase II Project Cathedral City Senior Center (CCSC): The City of Cathedral City provides annual funding to CCSC, to assist with their operations in providing for the needs of Cathedral City’s seniors, families, and caregivers. CCSC also offers:
•Isolation-reduction programming from space-based, center-centric to virtual gatherings and then planned a safe, phased reopening for vaccinated participants to attend programs by reservation
•Accurate information about COVID and COVID-related resources to callers. •Friendly connection wellness check calls daily and weekly, social services, and a robust Virtual Program that includes a variety of programs from fitness, cooking demonstrations, art, etc.
Via De Anza Street Improvement Projects Phase II: In the FY 2021-22 AAP, funding was allocated to the Via De Anza Street Improvement Project Phase I. In the FY 2022- 23 AAP, the City Council approved Phase II of the Project, which includes curb, gutter, and sidewalk on the east side of Via De Anza from Dinah Shore Drive to Ortega Road.
Per the City’s Community Participation Plan (CPP), any programmatic changes in an amount less than ten percent (10%) of the City’s total cumulative budget may be documented with an Administrative Amendment. The sum of the proposed Administrative Amendment is $51,226. The City’s total budget for FY 2022-23 is $615,619; ten percent (10%) of this cumulative amount is $61,561.
PUBLIC PARTICIPATION:
Per the City’s Community Participation Plan (CPP), no public participation or public hearing is required for the approval of an Administrative Amendment.
FISCAL IMPACT:
The City is proposing to utilize the remaining CDBG funding to supplement the Via De Anza Street Improvement, Phase II Project. Any unallocated and/or remaining CDBG funding from previous years can only be allocated to public improvements as the City cannot exceed its annual required cap allowances for administrative (no more than 20%) and public service (no more than 15%) expenses.
The City is proposing to utilize the remaining and unallocated CDBG-CV funding to supplement the Cathedral City Senior Center. Any unallocated and/or remaining CDBG- CV funding must be spent by the end of FY 2023. HUD does not have a cap allowance for CDBG-CV funding.
The approval of this Administrative Amendment will ensure that the City’s records remain accurate and account for these programmatic changes. The reallocation of funds will also allow the City to maximize its reimbursement for costs related to the public improvement project.
The following table summarizes the City’s proposed programming of unallocated CDBG funding:
Program
Year
Project (from) Project (to) Funding
FY 2021-22
CDBG-CV
Small Business Economic
Assistance Loan Program
Cathedral City Senior
Center
$18,500
FY 2021-22
CDBG-CV
Small Business Economic
Assistance Loan Program
Via De Anza,
Phase II (CXXXX)
$392
FY 2021-22
CDBG-CV
Unallocated Funds Via De Anza,
Phase II (CXXXX)
$12,865
FY 2019-20 South Panorama Street
Improvements Project
Via De Anza,
Phase II (CXXXX)
$9,469
FY 2020-21 CVAG’s Alan Sermon Bus
Pass Program and
Via De Anza,
Phase II (CXXXX)
$10,000
Stonewall Ministries
Total $51,226