PILLAR: Fiscally Sound
AGENDA DATE: March 25, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
PRIORITY: N/A
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SUBJECT
Title
(1) A public hearing to receive comments on the adoption of Reprogramming Budget No. 2 (Substantial Amendment No. 2) to the FY 2025-26 Action Plan to: (a) use unspent prior year Community Development Block Grant (CDBG) Funds in the amount of $2,566,661 for public improvement projects and (b) use unspent prior year Coronavirus Aid, Relief, and Economic Security (CARES) Act Funds, Community Development Block Grant (CDBG-COVID) in the amount of $450,000 for the emergency rental and mortgage assistance program; and, (2) at the close of the public hearing, authorize final adoption of Reprogramming Budget No. 2 (Substantial Amendment No. 2) to the FY 2025-26 Action Plan - Financing: This action has no cost consideration to the City (see Fiscal Information)
*In alignment with HUD Consolidated Plan.
Body
BACKGROUND
On August 18, 1993, Resolution No. 93-3001 established specific timeframes for the obligation and expenditure of CDBG Funds. Funds are to be obligated within 12 months and expended within 24 months of budget adoption. On March 28, 2007, Resolution No. 07-0992 enhanced the City's existing expenditure policy with additional benchmarks. Additional time to obligate and expend funds may be granted by the City Council.
Timely expenditure of CDBG Funds by entitlement cities continues to be a primary concern of the U.S. Department of Housing and Urban Development (HUD). HUD requires that cities expend CDBG Funds so that, at least 60 days prior to the start of a new program year, the unexpended balance of CDBG Funds should be less than 1.5 times the cities' CDBG allocation amounts for the current year.
For fiscal year (FY) 2025-26, a review of the projects based on the timely expenditure policy (including the benchmarks), identified unspent CDBG...
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