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MEMORANDUM • DATE: May 3, 1995 TO: Michael Mornson, City Manager FROM: Kim Moore-Sykes, Management Assistant ITEM: Meeting at LMC re: CDBG Allocation of Ramsey County Cities Because St. Anthony is partly in Ramsey County, the City is automatically included in a 4- county consortium that includes Washington, Dakota, Anoka and Ramsey counties. Last fall, all representative cities of Ramsey County met and compiled a priority list of projects they felt were most needy of CDBG funding. Most cities said that funding of low - moderate income housing is a priority of the suburban cities in Ramsey County. But, due to a change in the process implemented at the federal level and the cities not realizing that this change meant that those projects not name or not considered high on the priority list were dropped from the funding. Apparently many cities thought that NWYFS was not too needy and/or quite capable of raising the needed capital funds for their move into the LMC building so they were not placed highly on the priority list and consequently they • dropped in priority on the allocation list. The purpose of yesterday's meeting was to bring the cities back to discuss the situation and to try to come up with ideas that would alleviate somewhat the financial problems that NWYFS is facing as the result of losing CDBG funding. Kay Andrews, Executive Director of NWYFS reported that they had originally requested $500,000 for capital funding to provide a public facility for social services but was told that figure was too high and to present a more realistic figure. She stated that NWYFS then came back with a request of $215,000; they received $90,000 because of the position cities had placed social services on Ramsey County's list. Kay reported that she needed an additional $100,000 - $150,000 to pay for the capital improvements she originally budgeted for this year. Judy Karon of Ramsey County suggested that perhaps, if the cities were willing, and once the federal government had decided the amount of money to be allocated,that a 7% contingency fund set aside could be used to provide money to NWYFS (the House wants to rescind 8% of the allocation and the Senate does not want to rescind any). She thought providing NWYFS the whole 7% was a little optimistic, that the real figure may be more like 4%. That would translate into approximately $58,000 that would be available to NWYFS. Terry Schwerm, city manager from Shoreview suggested that perhaps the cities would be willing to shuffle their CDBG funding around so that NWYFS could recoup incrementally some of the funding they lost. A question was raised about the need to go back and do