01-0067R

RESOLUTION REPROGRAMMING $130,921.97 FROM PROGRAM INCOME INTO THE 2000 HUD COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM.

BY COUNCILOR GILBERT:

        WHEREAS, the city of Duluth established certain 2000 CDBG accounts; and

        WHEREAS, the community development committee (CD committee) for the CDBG program passed a resolution recommending the funding change as set forth below, effective December 31, 2000.

        NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are authorized to reprogram $130,921.97 from program income to FY2000 projects as follows:
 

Project # Project Previous Budget Revised Budget Differences
1200 Fund $330,921.97 $200,000.00 $130,921.97
6333 Program administration $315,413.00 $446,334.97 $130,921.97


STATEMENT OF PURPOSE:  CDBG funds were placed in the 1200 Fund to establish a revolving loan fund in 1988 for economic development purposes. There has not been much demand for these CDBG funds and, therefore, the funds count against the city's timely expenditure test. Therefore, the funds were transferred back to the CDBG program. The remaining $200,000 is obligated to Cirrus until June 1, 2001.

The CD committee unanimously supported the above-described funding recommendations at its January 17, 2001, meeting.

This reprogramming of funds is required to accommodate the transfer of the program start date from January 1 to April 1, and will cover the administration cost for that quarter.