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• STAFF REPORT DATE: February 23, 1993 TO: Thomas D. Burt, City Manager FROM: David Mark Urbia, Management Assistant ITEM: 1993 (YEAR XIX) URBAN HENNEPIN COUNTY CDBG PROGRAM BACKGROUND The Urban Hennepin County entitlement grant increased $562,000from 1992 to $3,327,000. However, 1990 census data is now being utilized (our population decreased from 1980 to 1990) and poverty data is a double weighted factor in the formula. Due to these changes, our projected CDBG amount has decreased nearly $10,000 to $19,308. • Due to the smaller grant amount, it is more difficult to fund a greater number of projects. Technically, the grant rules require each project to be greater than $7,500. St. Anthony and many other cities have not followed this rule in the past. I sense the Council wants the senior citizen program funded. After funding that program, there is not much money left. Single family rehab has a waiting list, so there is need. Please note, the senior program is a public service program, and the grant rules require a 20% cap on public service programs. The proposed amount of $6,000 is 31.1% of $19,308; however, this amount will only be reduced if the entire suburban Hennepin County communities exceed the 20% public service cap. In addition, approximately$20,000 in recaptured funds wilt be redistributed in the final budgets. St. Anthony's share will be extremely small, I estimate less than $100. At any rate, the City must designate which activity the recaptured fund amount should be applied to. RECOMMENDATION Fund senior citizen program at $6,000, and increase over last year's $5,608 funding, realizing this amount may be reduced. Fund single family rehab at the remaining grant amount, $13,308, with the • recaptured fund amount being applied to this activity.