HomeMy WebLinkAbout03/15/2005, C11 - ADOPT A RESOLUTION SUPPORTING PRESERVATION OF THE EXISTING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) counat
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CITY OF SAN LUIS OBISPO
FROM: Jonathan P. Lowell, City Attorney
SUBJECT: ADOPT A RESOLUTION SUPPORTING PRESERVATION OF THE
EXISTING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM
CAO RECOMMENDATION
Adopt a resolution supporting preservation of the existing Community Development Block Grant
(CDBG)Program.
DISCUSSION
The League of California Cities has asked cities throughout the state to adopt a resolution calling
for the preservation of the existing federal CDBG program. Supporting continued or expanded
funding for the CDBG program is part of the Council's 2005 Legislative Action Program.
President Bush has proposed a substantial reduction to the CDBG program. America's cities
have relied upon CDBG grants for thirty years to create jobs, provide affordable housing,
eliminate blight, and generate new economic investment.
The President's proposal, entitled the "Strengthening America's Communities Initiative," would
combine 18 direct grant programs, including CDBG, into one under the Economic Development
Administration. At $3.71 billion, the proposed new program would provide approximately $1
billion less than the current CDBG program alone.
CDBG has proven itself to be a valuable and effective tool, and maintaining CDBG as a separate
and distinct program from other economic development programs is essential to the continuation
of this direct and flexible source of funding to local governments such as San Luis Obispo.
CONCURRENCES
The Director of Community Development, the Human Resources Director, the Economic
Development Manager, and the Housing Programs Manager concur with this recommendation.
FISCAL IMPACT
The CDBG allocation for San Luis Obispo is $718,824 this fiscal year. A 60-70% reduction of
this funding would have a substantial financial impact upon the community.
I
Adopt Resolution Supporting Preservation of the Existing Page 2
Community Development Block Grant(CDBG) Program
ALTERNATIVES
Do not adopt the resolution. This is not recommended, as a crucial funding source is at stake.
ATTACHMENTS
1. Resolution
G:\Agenda-Ordinances-Resol\Comm Dev Block Grant Program-Agenda Rpt.DOC
Attachment 1
RESOLUTION NO. (2005 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
SUPPORTING PRESERVATION OF THE EXISTING
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
WHEREAS, for thirty years America's cities, including both large and small cities in
California, have used Community Development Block Grant (CDBG) grants to create jobs,
provide affordable housing, eliminate blight, and generate new economic investment; and
WHEREAS, CDBG funds have played a critical role in community and economic
development in the City of San Luis Obispo; and
WHEREAS, CDBG funds have been a powerful economic engine and a job creator,
recently allowing the City of San Luis Obispo to retain local businesses and 17 jobs for low- and
moderate income persons (Cole Motors), and to establish a Revolving Loan Fund of $250,000 to
assist start-ups of small businesses; and
WHEREAS, CDBG funds represent a catalyst for creating more affordable housing, as
CDBG funds made it possible for the City of San Luis Obispo to use over $1.6 million to help
build 200 new rental housing units and rehabilitate 75 mobile homes for seniors;and
WHEREAS, the CDBG program offers a mechanism for building public infrastructure,
for example the program allowed the City of San Luis Obispo to use approximately $200,000 to
improve its storm drain systems,; and
WHEREAS, the CDBG program has increased the quality of life in the City of San Luis
Obispo, by designating over $1 million for preservation and restoration of its Historic Museum
(Carnegie Library), Adobes, and Railroad Freight Warehouse; and
WHEREAS, the CDBG program has improved accessibility for disabled persons at City
street intersections (195 curb ramps) and two City parks (Anholm and Throop); and
WHEREAS, the CDBG program has enabled the City to improve and annually operate
its homeless shelter; and
WHEREAS, the President has proposed a new "Strengthening America's Communities
Initiative" which combines 18 direct grant programs, including CDBG, into one within the
Economic Development Administration; and
WHEREAS, at $3.71 billion, the new program (which combines 18 programs) is nearly
$1 billion less than the current CDBG program alone; and
WHEREAS, without proper funding for CDBG, the economic well being of San Luis
Obispo and other communities across the nation are threatened.
Resolution No. (2005 Series) Attachment 1
Page 2
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The Council hereby requests that Congress enact a FY 2006 budget and
appropriations package that funds CDBG formula grants at no less than $4.355 billion, which is
equal to FY 2005 allocations; and
SECTION 2. This Council requests that Congress maintain the CDBG as a separate and
distinct program from other economic development programs that provides a direct and flexible
source of funding to local governments; and
SECTION 3. This Council requests that Congress maintain the current "dual formula"
system where 70 percent of CDBG funds go to entitlement communities based on population;
and
SECTION 4. The City Clerk is directed to send a copy of this resolution to Senator
Barbara Boxer and Senator Dianne Feinstein, and to the League of California Cities.
Upon motion of seconded by
and on the following vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of March 2005.
Mayor David F. Romero
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
Jon . Lowell
City Attorney
G:Wgenda-Ordinances-Resol\Comm Dev Block Grant Program-Reso.DOC