TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kim Summers, City Manager
PREPARED BY: Isaac Bravo, Management Analyst
SUBJECT:
title
Fiscal Year 2025/26 Allocation of Community Development Block Grant Funding
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RECOMMENDATION
recommendation
Conduct a public hearing to receive community input on the allocation proposals;
Appropriate funding and create a budget for eligible projects and/or program activities;
Adopt Resolution No. 24-4793 entitled: A Resolution of the City Council of the City of Murrieta, California, Authorizing the Allocation of Community Development Block Grant Funds for Fiscal Year 2025/26; and
Authorize the City Manager to execute all related applications and agreements in a form approved by the City Attorney up to the final CDBG allocation by Riverside County.
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PRIOR ACTION/VOTE
On November 19. 2019, the City Council adopted Resolution No. 19-4183, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2020/21, and authorizing the City Manager to execute the required supplemental agreements with the County of Riverside (Vote: 5-0).
On December 1, 2020, the City Council adopted Resolution No. 20-4341, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2021/22, and authorizing the City Manager to execute the required supplemental agreements with the County of Riverside (Vote: 5-0).
On December 7, 2021, the City Council adopted Resolution No. 21-4502, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2022/23, and authorizing the City Manager to execute the required supplemental agreements with the County of Riverside (Vote: 5-0).
On November 15, 2022, the City Council adopted Resolution No. 22-4626, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2023/24, and authorizing the City Manager to execute the required supplemental agreements with the County of Riverside (Vote: 4-0-1).
On November 21, 2023, the City Council adopted Resolution No. 23-4715, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2024/25, and authorizing the City Manager to execute the required supplemental agreements with the County of Riverside (Vote: 5-0).
CITY COUNCIL GOAL
Foster and promote an engaged, connected and caring community.
BACKGROUND
The federal Community Development Block Grant (CDBG) program provides annual grants to cities for a broad range of activities that preserve and develop viable urban communities. The goals of the program are to provide decent, safe, and sanitary housing; ensure suitable living environments; and expand economic opportunities. To qualify for public service funding, eligible projects must predominantly benefit low and moderate-income persons, eliminate slums or blight, or meet a need having a particular urgency. The program’s principal beneficiaries are low-to-moderate-income persons, older adults, abused children, people experiencing homelessness, and people with severe disabilities. The City of Murrieta can use CDBG funds to offset General Fund expenditures that meet the program criteria; utilizing CDBG funds for these programs allows the City to use General Funds for other purposes.
As a participating City in the County of Riverside Urban County CDBG program, each year, the County advises the City of the anticipated Fiscal Year (FY) allocation amount. For the FY 2025/26 program year, per the County’s notification, the City anticipates receiving an allocation of approximately $577,000. Under the City’s current agreement with the County, the County receives 13% of the City’s total allocation for its share of administrative expenses, associated with managing the program, and the City may utilize up to seven percent (7%) of the City’s allocation for its administrative related expenses. Therefore, the County will retain $75,010, and the City will allocate seven percent (7%), or $40,390, to an administrative expenses category to recover costs incurred by the City Manager’s Office for administering the program.
The remaining balance of $461,600 will be allocated to projects and program awards. Per Program guidelines, the City can allocate a portion of the CDBG funds for “Public Services Projects”, up to 15% of the total allocation, which includes applications from non-profit organizations for funding to support their programs if eligible. For FY 2025/26, the maximum allocation available for Public Service Projects is estimated to be $86,550. This amount is 9% less than the prior year. Although no explanation was provided by the County for the significant reduction for FY 2025/26, the County has noted that allocations for all other agencies have decreased as well.
At the start of September 2024, staff opened the CDBG application period, advertised on the City’s website, and through the regional newspaper. The City received applications from twelve (12) organizations; the total requested amount for all organizations was $269,600. As set forth by the County, Public Service Project allocations must be for a minimum of $5,000, due to the administrative impact of participating in the program.
The table below lists the organizations and funding amounts allocated by the City Council in November 2023, for the current year (FY 2024/25). The timing of the process is such that eligible expenditures by non-profits can be reimbursed back to July 1, of that funding cycle. The City is in the process of entering sub-recipient agreements with the organizations selected for FY 2024/25 funding and awaiting authorization from the County to proceed. Therefore, no reimbursement requests have been submitted to date for the FY 2024/25 funding cycle.
|
FY 2024/25 CDBG Funding Awarded |
|
Organization |
Funding Amount |
|
Assistance League of Temecula Valley |
$19,250 |
|
Boys and Girls Club of Southwest County |
$10,000 |
|
St. Martha’s Food Pantry |
$19,250 |
|
Michelle’s Place Cancer Resources Center |
$10,000 |
|
Oak Grove Center |
$10,000 |
|
Cultivating Inclusion |
$10,000 |
|
Voices for Children |
$10,000 |
|
Mission of Hope/Rancho Damacitas |
$ 7,000 |
|
Total: |
$95,500 |
City Review Process
For the FY 2025/26 program year, staff reviewed the community request applications using the competitive evaluation criteria included in the CDBG Application Review Process, including alignment with funding priorities (food pantries, women’s programs, domestic violence programs, and youth development programs); organizational ability/capacity; and financial capacity/stability. Staff analyzed the application scores and organized CDBG applications from highest ranked to lowest. Following is a summary of the twelve public service applications received and funding recommendations:
|
FY 2025/26 Public Service Applications |
|
Organization |
Application Score |
City Council Priority |
Requested Amount |
Funding Recommendation |
|
Assistance League of Temecula Valley |
100 |
Youth Development |
$50,000 |
$15,275 |
|
Boys and Girls Club of Southwest County |
100 |
Youth Development |
$10,000 |
$8,000 |
|
Cultivating Inclusion |
100 |
Adult Program |
$10,000 |
$8,000 |
|
Mission Hope/Rancho Damacitas |
100 |
Adult Program / Food Pantry |
$10,000 |
$8,000 |
|
St. Martha’s Food Pantry |
100 |
Food Pantry |
$20,000 |
$15,275 |
|
Oak Grove Center |
100 |
Youth Development |
$25,000 |
$8,000 |
|
Voices of Children |
100 |
Youth Development |
$10,000 |
$8,000 |
|
Safe Family Justice Centers |
100 |
Domestic Violence Programs |
$10,000 |
$8,000 |
|
Habitat for Humanity Inland Valley |
95 |
Senior Citizen Assistance |
$10,000 |
$8,000 |
|
|
|
|
|
|
|
Veterans Supplemental Support Network (VSSN) |
85 |
Women’s Programs |
$66,600 |
$0 |
|
WeeCare, Inc (Upwards) |
N/A |
None (Ineligible for Public Service Project) |
$48,000 |
$0 |
|
Foundation for Greater Opportunities in Learning* |
N/A |
N/A |
$5,000 |
$0 |
|
Total: |
$274,600 |
$86,550 |
* No score provided due to an incomplete application submittal.
Staff is presenting the funding recommendation (right column in the table above) to the City Council for consideration. After accepting public comments on the proposals and reviewing staff’s recommendations, the City Council may accept the recommendation as submitted, reject, or amend it, at its discretion. This recommendation covers only the Public Service Project component of the CDBG program.
Of the eleven applicants, eight received a max score of 100. Habitat for Humanity received 95 points, with five points withheld due to not having received CDBG funding from the City in the past. It should be noted that Safe Family Justice Centers has received CDBG funding from the City previously. Veterans Supplemental Support Network received 85 points because there were concerns regarding the accuracy and completeness of the financial documentation and because they had not received prior CDBG funding from the City. Funding is not recommended for WeeCare, Inc., as the proposed project is not eligible as a CDBG Public Service Project.
While Senior Citizen Assistance Programs are not explicitly identified as a City Council Priority, the City has received calls from senior residents requesting assistance with minor exterior home repairs. Considering Habitat for Humanity’s proven record and support from other jurisdictions with CDBG funding, such as Temecula and Menifee, staff recommends them for consideration for award. Additionally, the inclusion of the project provided the City the opportunity to better well round its allocation of CDBG funding and have a more robust and diverse program.
Finally, staff recommends allocating the balance of the estimated remaining funds, $375,050, to the City’s Pedestrian Safety Enhancement Project. This capital improvement project will include the upgrading of 18-20 old pedestrian ramp facilities throughout the City to meet the current requirements of the Americans with Disabilities Act (ADA). Non-compliant curb ramps or crosswalks are considered barriers for pedestrians with disabilities. CDBG funding is eligible for use on projects to upgrade ADA facilities. Projects are prioritized based on pedestrian needs in the community and coordinated with upcoming pavement rehabilitation projects throughout the City.
FISCAL IMPACT
Approval of this item will result in the expenditure of approximately $577,000 in Community Development Block Grant Funds, including $ $461,600 in program awards, $75,010 in County administrative expenses, and $40,390 in City administrative expenses. Budget appropriations will be necessary to establish the revenue and expenditure budgets for FY 2025/26. Should the final award amount by the County be more or less than the anticipated $577,000, the City Manager is authorized to increase or reduce the individual allocations on a pro-rata basis, in accordance with the final allocation received by the City.
ATTACHMENTS
1. Resolution No. 24-4793