FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Human Services	Anne Price 386-1048	Sara Levin 684-8691

Legislation Title:

AN ORDINANCE relating to the 2003 Budget; authorizing acceptance of grant funds from the United States Department of Housing and Urban Development for programs included in the City’s Consolidated Plan for Housing and Community Development; increasing appropriations in the 2003 Budget for activities under the HOME, Housing Opportunities for Persons With AIDS, and Emergency Shelter Grant programs; revising expenditure allowances in the 2003 Budget for various funds and departments; amending the 2003 Action Plan component of the Consolidated Plan and authorizing other conforming amendments; allocating additional 2003 grant funds and unused funds from prior years; and ratifying and confirming prior acts.

· Summary of the Legislation: This legislation authorizes acceptance of 2003 grant funds from the United States Department of Housing and Urban Development (HUD) for four Consolidated Plan programs: Community Development Block Grant (CDBG), HOME program, Housing Opportunities for Persons with AIDS (HOWPA), and Emergency Services Grant (ESG). The legislation also revises expenditure allowances in the 2003 budget for various funds and departments and adopts an amended 2003 Action Plan Activities table component of the Consolidated Plan.

· Background: The City’s 2003 adopted budget contains estimates for the City’s 2003 allocation of Community Development Block Grant, HOME, HOPWA and ESG funds. The City’s 2003 “Action Plan” includes a detailed list of spending for CDBG, HOME, HOPWA, and ESG funds, and is contained in the 2003 Update to the City’s 2001-2004 Consolidated Plan (the official application to HUD for these funds). The City received its allocation amounts from HUD in April of 2003. This legislation accepts these grant funds (already appropriated to the extent of the prior estimates) and makes changes to certain appropriations to reflect our actual allocations. Our CDBG grant allocation is approximately $200,000 more than estimated; however, lower-than-expected program income from CDBG Float Loans and the Office of Housing Revolving Loan Fund means that the total appropriation for CDBG will not change. HOME and HOPWA allocations are $390,480 and $59,000 higher, respectively, and the ESG allocation is $16,000 higher than anticipated. HSD is requesting appropriation authority for unspent ESG money from prior years, resulting in a net increase of $31,364.

The City is required by HUD to amend the Action Plan if there are changes to the use of CDBG funds from one eligible use to another. In addition, the City of Seattle policy requires an amendment to the Action Plan if changes in an allocation exceed $50,000. This legislation amends the 2003 Action Plan to reflect these changes. There are four categories of changes detailed in Attachment A to this Fiscal Note:

1. Reprogramming $272,000 from the Squire Park project (cancelled) in accordance with the City’s policy to first mitigate funding reductions currently applied to CDBG grant administration, planning, and physical development;

2. Appropriations to reflect the higher-than-anticipated allocations from HUD;

3. Changing CDBG allocations to various activities to reflect lower-than-anticipated revenues from Sound Transit (budget neutral to CDBG; returns $587,500 to Finance General);

4. Other budget neutral changes to the 2003 Action Plan, including those within project planning/program delivery categories to accurately reflect staff activities (see 2003 Revised Action Plan, attached to the ordinance, for detail).

· Please check one of the following:

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

__X_ This legislation has financial implications. (Please complete all relevant

sections that follow.)

Please see Attachment 1 for detail.

Appropriations (in $1,000s): (Please only reflect the dollar amount actually appropriated by this legislation.)

Fund Name and Number	Department	Budget Control Level*	2003 Appropriation	2004 Anticipated Appropriation
TOTAL			See Att. A for Details	See Att. A for Details

Notes:

Anticipated Revenue/Reimbursement (in $1,000s) Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2003 Revenue	2004 Revenue
TOTAL			See Att. A for Details	See Att. A for Details

Notes:

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:

Position Title*	Part-Time/ Full Time	2003 Positions	2003 FTE	2004 Positions**	2004 FTE**
TOTAL	0	0	0	0	0

· Fund Name and Number: ______________________________________________

· Department: ________________________________________________________

* List each position separately

** 2004 positions and FTE are total 2004 position changes resulting from this

legislation, not incremental changes from 2003.

· Do positions sunset in the future? (If yes, identify sunset date):

Spending/Cash Flow (in $1,000s): (Please complete this section only in those cases where part or all of the funds will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects.)

Fund Name and Number	Department	Budget Control Level*	2003 Expenditures	2004 Anticipated Expenditures
TOTAL			See Att. A for Details	See Att. A for Details

* This is line of business for operating budgets, and program or project for capital

improvements

Notes:

· What is the financial cost of not implementing the legislation? The City is required by HUD to amend the Annual Action Plan if there are changes to the use of CDBG funds from one eligible use to another. In addition, the City of Seattle policy requires an amendment to the Annual Action plan if changes in an allocation exceed $50,000. If we do not follow these requirements, the City could be out of compliance.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives? N/A

· Is the legislation subject to public hearing requirements: Yes. The City is required to publish a “Notice of Substantial Amendment” in the Daily Journal of Commerce advising citizens that they have a period of 30 days to comment on any changes to the Consolidated Plan. A public hearing is required at the end of the public comment period.

· Other Issues (including long-term implications of the legislation):

Attachment A: 2003 Substantial Amendment Legislation Financial Detail