TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: January 8, 2025
SUBJECT: APPROVAL OF RESOLUTION R-24-02 TO TRANSFER
UNALLOCATED FY 2025-26 CDBG PROJECT FUNDS TO
THE CDBG REVOLVING GRANT FUND
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Safe Community
Well-Maintained Infrastructure
Fiscally Responsible and Transparent City Government
BACKGROUND
On January 8, 2025, the City Council conducted a public hearing concerning the FY 2025-26 Community Development Block Grant (CDBG) Program. The motion adopted as a result of the meeting outlined the City’s plan for expending allocated funds for the FY 2025-26 cycle. The City is to receive an allocation of $65,044 in federal funds for CDBG programs in FY 2025-26. Of the $65,044, $9,757 will be used to fund a Senior Outreach Program by the Community Services Department in FY 2025-26. The allocation of remaining FY 2025-26 funds leaves a remaining unallocated balance of $55,287 of CDBG federal funds that the City has available to designate to a capital improvement.
DISCUSSION
Considering the amount of planned sidewalk reconstruction work, the amount of available CDBG funds, and the various Federal regulations that constrain the use of the CDBG funds, staff is recommending that the City Council authorize the transfer of $55,287 to the CDBG revolving grant fund to be used Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
at a future time for a CDBG eligible project such as an ADA-compliant sidewalk replacement. Funds can be held by the Los Angeles County Development Authority for a total of three years, in which time the City can continue to transfer funds into the CDBG revolving grant fund. Adoption of the attached resolution is required to authorize the transfer.
FISCAL IMPACT & PROCUREMENT REVIEW
Transferring $55,287 of the unallocated balance to the CDBG revolving grant funds will not impact other City funds.
Procurement review is not applicable.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Subject to the approval of the City Council adopting Resolution No. R-25-01 to adopt the CDBG project(s) for FY 2025-26 on January 8, 2025, staff recommends the City Council adopt the resolution allowing for the City to transfer $55,287 of the FY 2025-26 CDBG allocation to the CDBG revolving grant fund. If the Council concurs with staff’s recommendation, the appropriate motion would be:
“I move to adopt Resolution No. R-25-02 authorizing the transfer of the City’s unallocated CDBG funds for Fiscal Year 2025-26, totaling $55,287, to the CDBG revolving grant fund.”
ATTACHMENTS
1. Resolution No. R-25-02