TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Isaac Bravo, Management Analyst
SUBJECT:
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Approval of Joint Recipient Cooperation Agreement with the County of Riverside for Community Development Block Grant Funding for Fiscal Years 2027/28, 2028/29, and 2029/30
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ABSTRACT
The City Council will consider continued participation in Riverside County’s Urban County Community Development Block Grant Program for Fiscal Years 2027/28, 2028/29, and 2029/30.
RECOMMENDATION
recommendation
Adopt Resolution No. 26-4964, entitled: A Resolution of the City Council of the City of Murrieta, California Authorizing Participation in the County of Riverside’s Urban County Community Development Block Grant Program for Fiscal Years 2027/28, 2028/29, and 2029/30 Approving the Joint Cooperating Agreement with the County of Riverside for Participation in the Community Development Block Grant Urban County Program; and
Authorize the City Manager to execute the agreement in a form approved by the City Attorney.
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PRIOR ACTION/VOTE
Since 2005, the City Council has authorized participation in Riverside County’s Community Development Block Grant and Home Program Funds Cooperation Agreements.
On June 16, 2020, the City Council adopted Resolution No. 20-4270, which authorized continued participation in the County’s Urban County Program for Fiscal Years 2021/22, 2022/2023, and 2023/24. The resolution was modified and readopted on November 3, 2020.
On August 1, 2023, the City Council adopted Resolution No. 23-4695, which authorized continued participation in the County’s Urban County Program for Fiscal Years 2024/25, 2025/26, and 2026/27
STRATEGIC ALIGNMENT
This item aligns with the City Council goal to maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency. This item also aligns with the City Departments' Top Projects List, which identifies administration of the Community Development Block Grant program as a key initiative of the City Manager's Office.
DISCUSSION
The City of Murrieta (City) receives an annual allocation of federal Community Development Block Grant (CDBG) Program funding through the U.S. Department of Housing and Urban Development (HUD). The purpose of CDBG funds is to support community development activities that provide housing and suitable living environments and expand economic opportunities, principally for persons with low to moderate income.
Historically, the City has used CBDG funding to improve accessibility within the public right-of-way, address Americans with Disabilities Act (ADA) issues, and support public service programs proposed by local non-profit organizations. By using CDBG funding for these eligible activities, the City is able to offset General Fund expenditures and dedicate local resources to other priorities.
Every three years, HUD requires the County of Riverside to execute new Joint Recipient Cooperation Agreements with participating cities to establish the Urban County for the next three (3) fiscal years. Participating cities may elect to continue to participate or withdraw and administer their own standalone CDBG entitlement program. Continued participation in Riverside County’s Urban County Program provides the City with the benefits of direct entitlement while significantly reducing the administrative burden associated with CDBG administration and HUD reporting.
The proposed agreement authorizes the City’s continued participation in the Riverside Urban County CDBG program for the next three fiscal years, FY 2027/28, 2028/29 and 2029/30.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
FISCAL IMPACT
There is no direct fiscal impact associated with approval of the Cooperation Agreement. The agreement continues the existing allocation of administrative funding, with 13% retained by the County of Riverside for program administration and seven percent (7%) allocated to the City for local administrative activities.
Future CDBG funding levels are determined annually by HUD and remain subject to federal appropriations. Once the City's annual allocation is announced, future CDBG funding recommendations, appropriations, and project allocations will be presented to the City Council for consideration.
ATTACHMENTS
ATT 1 - Resolution No. 26-4964
ATT 2 - Joint Recipient Cooperation Agreement