01-0325R REPLACEMENT
RESOLUTION REPROGRAMMING $200,000 FROM THE DULUTH 1200 FUND CDBG ACCOUNT INTO THE 2000 CDBG ACCOUNT AND TRANSFERRING $50,000 FROM SAID 2000 CDBG ACCOUNT TO THE YWCA CHILDCARE PROJECT.
BY COUNCILOR GILBERT:

        WHEREAS, the city of Duluth established a certain Duluth 1200 Fund CDBG account; and

        WHEREAS, the community development committee (CDC) for the CDBG program passed a resolution recommending funding changes as set forth below.

        NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are authorized to reprogram and transfer $200,000 from the Duluth 1200 Fund CDBG account to the following 2000 CDBG account for the FY2000 projects as follows:
 

Account Project Name Previous Budget Revised Budget Difference
6336 YWCA Childcare -0-  $50,000 $50,000
6335 Contingency $33,000 $150,000 $183,000

        BE IT FURTHER RESOLVED, that the proper city officials will reprogram and transfer the additional funds in the contingency account to other CDBG accounts at a later date, subject to city council approval.



STATEMENT OF PURPOSE:  The purpose of this resolution is to reprogram $200,000 in the Duluth 1200 Fund CDBG account which had been loaned to Cirrus Design Corporation. The forgivable loan to Cirrus required job creation, the implementation of which has not proved viable, and Cirrus had agreed to terminate the contract so that the funds can be reprogrammed. See attached letter. The resolution transfers the funds to the YWCA Childcare account which will assist in establishing a temporary childcare center in the Eastridge Community Church until a permanent site is secured. The remainder of the funds will be transferred into the continency account for further reprogramming at a later date.