Form revised April 28, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
DON	Bernie Matsuno 4-0463	Sara Levin – 4-8691

Legislation Title:

AN ORDINANCE relating to the Department of Neighborhoods’ Neighborhood Matching Fund program funding in 2004, removing restrictions that limit spending of an appropriation.

· Summary of the Legislation:

This legislation lifts two budget provisos, adopted by the Council in November 2003, related to spending appropriated funds from the Neighborhood Matching Subfund (NMF). This legislation accompanies a response to a Statement of Legislative Intent related to race relations and social justice projects funded by the NMF.

· Background::

During the 2004 budget process, the City Council adopted several budget provisos and a Statement of Legislative Intent (SLI) related to the NMF. The SLI requests that the Executive:

1. Develop a methodology to integrate the 2003 Race Relations and Social Justice (RRSJ) pilot program into the existing program structure for the Large Projects and Small and Simple Funds;
2. Submit a plan to make all funding in the NMF more accessible to communities of color; and
3. Propose criteria for approval of awards that address significant issues affecting communities of color including racism, poverty, discrimination, and issues affecting new immigrant communities.

The Executive has responded to the SLI with a proposal to continue the 2003 RRSJ program in the NMF for two more rounds, while at the same time the Department of Neighborhoods (DON) will work on broadening the existing NMF guidelines and decision-making process to make it more accessible to communities of color and new immigrant communities.

In order to spend any dedicated funds on a continuation of the RRSJ program, two budget provisos, also adopted during the 2004 budget process must be lifted. The first proviso states that none of the money appropriated for 2004 for the Neighborhood Matching Subfund can be spent to pay for the Race Relations and Social Justice Fund. Lifting this proviso allows DON to spend already-appropriated funds in the NMF on another round of the RRSJ program in 2004. DON intends to allocate approximately $400,000 to RRSJ projects via a Request for Proposal process.

The second proviso states that, of the appropriation for 2004 for the NMF, $1,719,576 is appropriated solely for the Large Projects Fund and may be spent for no other purpose. Lifting this proviso allows DON to fund RRSJ projects with unawarded Large Project Fund money in 2004.

· Please check one of the following:

____ This legislation does not have any financial implications.

_X__ This legislation has financial implications.

Appropriations:

Fund Name and Number	Department	Budget Control Level*	2004 Appropriation	2005 Anticipated Appropriation
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes: Funding in the Neighborhood Matching Subfund was fully appropriated in the 2004 budget. This legislation does not appropriate additional funds, but lifts two budget provisos related to spending in the NMF.

Anticipated Revenue/Reimbursement: Resulting From This Legislation: N/A

Fund Name and Number	Department	Revenue Source	2004 Revenue	2005 Revenue
TOTAL

Notes:

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

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2004 Positions	2004 FTE	2005 Positions**	2005 FTE**
	TOTAL

* List each position separately

** 2005 positions and FTE are total 2005 position changes resulting from this legislation, not incremental changes. Therefore, under 2005, please be sure to include any continuing positions from 2004

Notes:

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

Spending/Cash Flow:

Fund Name and Number	Department	Budget Control Level*	2004 Expenditures	2005 Anticipated Expenditures
TOTAL

* See budget book to obtain the appropriate Budget Control Level for your department.

Notes: The Department of Neighborhoods anticipates spending $400,000 of already-appropriated NMF funds on race relations and social justice projects in 2004.

· What is the financial cost of not implementing the legislation? The funds that would have been allocated to continuation of the RRSJ program could either be spent on other types of NMF projects, or recaptured as fund balance if not spent by the end of 2004.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives? The two budget provisos combined do not allow DON to spend unawarded Large Projects Fund money on a race relations and social justice program in 2004; if these provisos are not lifted, there is no alternative proposal for supporting race relations and social justice projects.

· Is the legislation subject to public hearing requirements: No

· Other Issues

Please list attachments to the fiscal note below: