Item Number: 19
City Council / Board of Directors
Written Communications
Meeting of: October 20, 2026
Submitted By:
Jorge Duran, Code Enforcement Official
Subject:
Fiscal Year 2026/2027 Community Development Block Grant Program Income Budget Amendment
Recommendation:
That the Honorable City Council adopt Resolution No. 26-104, approving a Fiscal Year 2026/2027 budget amendment for $82,839.01 in Community Development Block Grant (CDBG) Program Income revenues and Contracted Services expenditures to support future eligible CDBG activities.
Fiscal Impact:
Adopting Resolution No. 26-104 (Attachment A) will amend the Fiscal Year 2026/2027 budget to recognize $82,839.01 in recovered revenues and establish a corresponding expenditure appropriation for future CDBG-approved program activities.
The cost recovery payment was initially deposited into the Code Compliance Cost Recovery revenue account (1004030-44350) and subsequently recorded within the CDBG Program Income revenue account (2813025-47520-20806), as CDBG funds were utilized to support the associated eligible program activities and related expenses.
The proposed budget amendment will establish the necessary expenditure appropriation within the CDBG Contracted Services account (2813025-52300-20806), allowing the recovered revenues to support future eligible CDBG activities.
The proposed budget adjustments are listed below:
Account Number Description Proposed Increase
2813025-47520-20806 CDBG PROGRAM INCOME $82,839.01
2813025-52300-20806 CDBG CONTRACTED SERVICES $82,839.01 Strategic Plan Goal:
The requested budget amendment supports the City of Victorville Strategic Plan 2023– 2026, specifically Goal A (Financial Sustainability), through responsible fiscal management and proper accounting of federal grant revenues, and Goal B (Public Safety), through the application of City codes, elimination of hazardous structures, and abatement of public nuisances to promote safer neighborhoods and protect the health, safety, and welfare of residents.
Background:
On August 28, 2022, the Code Compliance Division initiated a case involving a property that had sustained significant damage from a structure fire. The deteriorated condition of the structure presented public safety concerns, further compounded by repeated incidents of unauthorized entry and occupancy by individuals trespassing onto the property.
Code Compliance promptly contacted the property owner and recorded a Notice of Pendency against the property to provide notice of the outstanding Code Compliance proceedings. Additional notices were issued directing the property owner to obtain the necessary demolition permit and address the unsafe structure.
Despite ongoing efforts, the property continued to attract unauthorized occupants, creating additional safety and security concerns for surrounding residents. The property was subsequently demolished during the week of February 10, 2023, eliminating the hazardous structure and addressing the associated public nuisance. These activities and related eligible expenses were funded through the federal CDBG program.
On July 29, 2026, the City received a cost recovery payment totaling $82,839.01 associated with the Code Compliance case. The payment was initially deposited into the Code Compliance Cost Recovery revenue account (1004030-44350) and subsequently recorded within the CDBG Program Income revenue account (2813025-47520-20806), consistent with the original federal funding source.
Discussion:
The recovery of costs associated with federally funded CDBG activities resulted in $82,839.01 in Program Income revenues available to support future eligible activities under the City's CDBG program. Pursuant to HUD’s CDBG program requirements, use of program income holds priority and therefore must generally be expended before additional CDBG funds are drawn for eligible activities.
Although the recovered funds have been received and recorded within the CDBG Program Income revenue account (2813025-47520-20806), a corresponding budget amendment is necessary to recognize the revenues and establish expenditure authority within the CDBG Contracted Services account (2813025-52300-20806).
The proposed budget amendment will recognize $82,839.01 in CDBG Program Income revenues and appropriate an equivalent amount within the Contracted Services expenditure account. Upon City Council approval, the funds will be made available to support a tentative demolition project (MS27-034) and such project cost is expected to exceed the available CDBG program income.
This action will ensure the recovered funds are properly budgeted and available for eligible program expenditures while supporting the City's commitment to responsible fiscal management and continued community improvements.
Therefore, staff recommends that the City Council adopt Resolution No. 26-104, approving a Fiscal Year 2026/2027 budget amendment to adjust CDBG Program Income revenues and CDBG Contracted Services expenditures by $82,839.01.
Staff remains available for any questions the City Council may have.
Prepared By:
Jorge Duran, Code Enforcement Official
Attachments: A. Resolution No. 26-104