Form revised December 9, 2004
FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department: |
Contact Person/Phone: |
DOF Analyst/Phone: |
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Human Services |
Michael Look 5-1717 |
Kristi Beattie 4-5266 |
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Legislation Title: |
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AN ORDINANCE adopting the 2007 update to the City of Seattle 2005-2008 Consolidated Plan for Housing and Community Development, including an action plan, general policies for the use of the City’s funding resources for housing and community development; authorizing the submission of the 2007 update to the United States Department of Housing and Urban Development; authorizing the Human Services Director to make changes to the Plan for certain purposes; and ratifying and confirming prior acts.
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Summary of the Legislation: This legislation describes the planned allocation of certain funds, subject to the inclusion of sufficient expenditure allowances in the 2007 budget, and authorizes application for 2007 grant funds from the United States Department of Housing and Urban Development (HUD) for four Consolidated Plan programs: Community Development Block Grant (CDBG), the HOME program, Housing Opportunities for Persons with AIDS (HOWPA), and Emergency Services Grant (ESG).
Background: The City is an “entitlement jurisdiction” for the four fund sources listed above. In order to receive the annual entitlement amounts from HUD, the City must develop and submit to HUD a four-year Consolidated Plan for Housing and Community Development, with annual updates for each of the effective years of the Plan. The City is currently operating under the 2005 – 2008 Consolidated Plan. The purpose of the 2007 Update is to describe changes to the Plan based on strategic, policy, or budget priorities.
The 2007 Update continues the overall strategies described in the 2006 Update which are to focus Consolidated Plan funds on efforts to support the Ten Year Plan to End Homelessness, and maintain the City’s commitment to Southeast Seattle through the Rainier Valley Community Development Fund (RVCDF). In accomplishing these strategies:
Major changes in funding allocations for 2007 include:
· Eliminate CDBG support to staff implementation of Seattle Housing Levy activities. Substitute with General Fund appropriation in the Office of Housing.
· Reduce CDBG support for the Homewise Rehab & Homebuyer Assistance program. The program will be maintained in 2007 and 2008 using a balance of loan repayments made in 2005 and 2006.
· Eliminate CDBG support for the Parks Upgrade Program that provides job training for homeless and formerly homeless persons. Alternative funding is proposed to maintain this project in the Department of Parks and Recreation.
· Eliminate CDBG support for Community Facilities staffing. Reductions are made to alternative programs in the Human Services Department operating budget to provide offsetting General Fund, and are described in the 2007-2008 Proposed Budget.
· Reduce CDBG support for aging housing case management and housing assistance services and some homeless program. Reductions are made to alternative programs in the Human Services Department operating budget to provide offsetting General Fund, and are described in the 2007-2008 Proposed Budget.
· Eliminate CDBG support for the Façade Program. CDBG funds carried forward from prior years and 2006 appropriation will complete the pipeline of existing projects.
· Eliminate CDBG support for the Business Technical Assistance –Microenterprise Program. Reductions are made to alternative programs in the Office of Economic Development operating budget to provide offsetting General Fund, and are described in the 2007-2008 Proposed Budget.
· Increase funding for the RVCDF by $1.85 million as described above.
The 2007 Update anticipates the following revenue to fund the activities in the Table of Proposed Projects:
· CDBG Entitlement: $12,622,401
· CDBG Program Income: $972,200
· HOME Entitlement: $4,393,559
· HOME Program Income: $549,531
· Emergency Services Grant Program: $539,949
· HOPWA Grant: $1,615,000
These funds are to be allocated to three City departments: Human Services Department, Office of Housing, and the Office of Economic Development.
____ 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 see the Table of Proposed Projects section of the 2007 Update to the 2005 – 2008 Consolidated Plan for Housing and Community Development for details.
Appropriations:
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Fund Name and Number |
Department |
Budget Control Level* |
2006 Appropriation |
2007 Anticipated Appropriation |
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CDBG Main Fund (17810) |
Office of Economic Development
Office of Housing
Human Services |
Office of Economic Development (6XD10)
Office of Housing (6XZ81)
Human Services Department (H17810) |
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$5,023,675
$2,200,408
$6,370,518 |
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HOME (16490)
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Office of Housing
Office of Housing
Human Services |
Low-Income Housing Fund 16400 (XZ-R1)
Office of Housing Fund 16600 (XZ-600)
Emergency and Transitional Services (H30ET) |
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$4,307,021
$430,122
$205,947 |
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Human Services Operating Fund (16200) |
Human Services |
Emergency and Transitional Services (H30ET) |
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$539,949 |
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Human Services Operating Fund (16200) |
Human Services |
Emergency and Transitional Services (H30ET) |
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$1,615,000 |
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TOTAL |
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$20,692,640 |
Notes: The table above reflects the appropriation authority anticipated for the CDBG, HOME, HOPWA and ESG budgets as reflected in Section 2 of the Ordinance; actual appropriations will be made as part of the 2007 Adopted Budget.
Anticipated Revenue/Reimbursement: Resulting From This Legislation:
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Fund Name and Number |
Department |
Revenue Source |
2006 Appropriation |
2007 Revenue |
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CDBG Main Fund (17810) |
Office of Economic Development
Office of Housing
Human Services |
CDBG
CDBG
CDBG |
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$5,023,675
$2,200,408
$6,370,518 |
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HOME (16490)
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Office of Housing
Human Services |
HOME
HOME |
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$4,737,143
$205,947 |
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Human Services Operating Fund (16200) |
Human Services |
ESG |
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$539,949 |
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Human Services Operating Fund (16200) |
Human Services |
HOPWA |
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$1,615,000 |
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TOTAL |
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$20,692,640 |
Notes: The estimates above of the funding awards are based on the most recent information available from the U.S. Department of Housing and Urban Development. The actual awards may vary. The difference between the estimates and the actual awards will be reconciled during an amendment process in the summer of 2007.
Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:
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Position Title and Department* |
Fund Name |
Fund Number |
Part-Time/ Full Time |
2006 Positions |
2006 FTE |
2007 Positions** |
2007 FTE** |
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N/A |
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TOTAL |
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* List each position separately
** 2007 positions and FTE are total 2007 position changes resulting from this legislation, not incremental changes. Therefore, under 2007, please be sure to include any continuing positions from 2005
Do positions sunset in the future? N/A
Spending/Cash Flow:
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Fund Name and Number |
Department |
Budget Control Level* |
2006 Expenditures |
2007 Anticipated Expenditures |
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TOTAL |
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* See budget book to obtain the appropriate Budget Control Level for your department.
What is the financial cost of not implementing the legislation? This legislation is required if the City is to secure an estimated $20 million in federal funding for programs and services that serve Seattle’s homeless, low- and moderate-income persons and families and persons with HIV/AIDS. If this legislation is not implemented, programs supporting affordable housing creation, homeless shelters, and a variety of services for vulnerable population will be jeopardized.
What are the possible alternatives to the legislation that could achieve the same or similar objectives? Alternative funding in the amount of $20 million will need to be secured from other fund sources.
Is the legislation subject to public hearing requirements: Yes. The City is required to publish notice of a public hearing in the Daily Journal of Commerce advising citizens that they have a period of 30 days to comment on the proposed Consolidated Plan. This notice should also include a summary describing the contents and purpose of the 2007 update and informing the public how to access copies. A public hearing is required at the end of the public comment period. The notice was published in the Daily Journal of Commerce, a newspaper of general circulation. A public hearing occurred on September 19, 2006.
· Other Issues (including long-term implications of the legislation):
Please list attachments to the fiscal note below: N/A