TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kristen M. Crane, Assistant City Manager
PREPARED BY: Julie Mercker, Management Analyst - City Manager’s Office
SUBJECT: Fiscal Year 2024/25 Allocation of Community Development Block
Grant Funding
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RECOMMENDATION
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Conduct a public hearing and receive community input on the allocation proposals;
Appropriate funding and create a budget for eligible projects and/or program activities;
Adopt Resolution No. 23-4715 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 2024/25; and
Authorize the City Manager to execute all related applications and agreements, in a form as approved by the City Attorney.
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PRIOR ACTION/VOTE
On November 20, 2018, the City Council adopted Resolution No. 18-4003, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2019/20, and authorizing the City Manager to execute the required supplemental agreements with the County of Riverside (Vote: 4-0-1).
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).
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 (City) 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 (County) Urban County CDBG program, each year, the County advises the City of the anticipated Fiscal Year (FY) allocation amount. For the FY 2024/25 program year, per the County’s notification, the City anticipates receiving an allocation of approximately $636,739. 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 $82,776.07, and the City may allocate seven percent (7%), or $44,571.73, to administrative expenses incurred by the City Manager’s Office for administering the program.
The remaining balance of $509,391.20 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,” which includes applications from non-profit organizations for funding to support their programs if eligible. The maximum allocation for public service projects meeting CDBG eligible criteria is 15% of the full allocation, which for 2024/2025 is estimated to be $95,510.85. At the start of September 2023, staff opened the CDBG application period, advertised on the City’s website, social media platforms, and through the regional newspaper in both English and Spanish. The City received applications from nine (9) non-profit organizations; the total requested amount for all non-profits was $195,000. 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 2022, for the current year (FY 2023/24). 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 2023/24 funding, therefore no reimbursement requests have been submitted to date for FY 2023/24 funding cycle.
City Review Process
For the FY 2024/25 program year, staff reviewed community request applications using the competitive evaluation criteria as included in the CDBG Application Review Process 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 nine public service applications received and funding recommendations:
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 component of the CDBG program.
Of the nine nonprofit applicants, five received a max score of 100. Cultivating Inclusion received a score of 98; a few points were withheld for capacity and leveraging. Voices for Children received 95 points, with five points being withheld due to not having received CDBG funding from the City in the past. Community Mission of Hope/Rancho Damacitas received 92 points because their proposed project does not meet one of the City Council’s established funding priorities, and the non-profit has not received CDBG funding from the City in the past. Western Eagle Foundation received a score of 80 and was withheld points from the Benefit/Beneficiaries section of the review metrics, as the program is not located in the City of Murrieta and this factor may contribute to lower accessibility for our residents; points were also withheld because they have not received prior CDBG funding from the City. Although the goal of Western Eagle Foundation is in line with City Council priorities, the City has a history of supporting, and staff has already recommended allocating funding to St. Martha Food Pantry located in the City; if funds were to be awarded to Westen Eagle, this could lower the amount awarded to St. Martha Food Pantry.
Finally, staff recommends allocating the balance of the estimated remaining funds of $413,891.20 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 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 $636,739 in Community Development Block Grant Funds, including $509,391.20 in program awards, $82,776.07 in County administrative expenses, and $44,571.73 in City administrative expenses. Budget appropriations will be necessary to establish the revenue and expenditure budgets for Fiscal Year 2024/25. Should the final award amount by the County be more or less than the anticipated $636,739, 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. 23-4715
2. FY 2024/25 CDBG Program Application Review Process