2002-24971 Reso
RESOLUTION NO.
2002-24971
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, RETROACTIVELY
APPROVING SUBSTANTIVE AMENDMENTS TO THE ONE-
YEAR ACTION PLANS FOR FEDERAL FUNDS FOR FISCAL
YEARS 2000/01 AND 2001/02 BY REPROGRAMMING $67,076
FROM FY 2000/01 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) ADMINISTRATION FUNDS FOR THE FY
2001/02 PLANNED REPAYMENT OF SECTION 108 LOAN
PRINCIPAL.
WHEREAS, the final quarterly interim payment in the amount of $323,711.93 for the
U.S. Housing and Urban Development (HUD) Section 108 Loan Program was due on July
25,2002; and
WHEREAS, it is necessary to retroactively approve the payment as a result of
budget transfers from the FY 2000/01 CDBG Administration to the FY 2001/02 Planned
Repayment activity for the Section 108 Loan; and
WHEREAS, there was a remaining balance of $256,736.32 in CDBG funds
reserved for the repayment of the Section 108 Loan principal from prior years, and it was
necessary to provide $67,075.61 of additional funding in order to pay the full quarterly
payment of $323,711.93 due; and
WHEREAS, at the December 19, 2001 City Commission meeting, the Commission
approved the Administration's late request to reallocate $164,209 of prior year unspent
CDBG funds from the repayment of the Section 108 Loan to the North Shore Park and
Youth Center for budget shortfalls in the construction costs; and
WHEREAS, the City Commission directed the Administration to use future
reallocations of CDBG funds for the repayment of the Section 108 Loan to remain in
compliance with the City's Fiscal Agency Agreement with HUD; and
WHEREAS, $67,076 from FY 2000/01 Community Development Block Grant
(CDBG) Administration funds was reprogrammed for the FY 2001/02 Planned Repayment
of Section 108 Principal.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, retroactively approving
substantive amendments to the One-Year Action Plans For Federal Funds For Fiscal
Years 2000101 and 2001/02 by reprogramming $67,076 from FY 2000/01 Community
Development Block Grant (CDBG) Administration funds for the FY 2001/02 Planned
Repayment Of Section 108 Loan Principal.
PASSED and ADOPTED this 11th day of
,2002.
ATTEST:
~~ PdA~
CITY CLERK
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T:/AGENDA\2002lSEP1102/REGULARlSection 108 Reallocation Reso.
APPROVED Aim
FOAM. LANGUAGe
a FOR EXECUTION
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
Seeks retroactive approval of a substantive amendment to the Fiscal Year 2001/02 One Year Action
Plan for Federal funds by reprogramming $67,076 from FY 2001/02 Community Development Block
Grant (CDBG) Administration funds for the planned repayment of HUD Section 108 Loan funds.
Issue:
To provide approval of the reallocation of $67,076 from FY 2001/02 CDBG Administration funds to make
the final quarterly planned repayment of Section 108 Loan funds in accordance with the City's Fiscal
Agency Agreement with HUD. The payment was due July 25, 2002.
Item Summary/Recommendation:
The final quarterly interim payment in the amount of $323,711.93 for the U.S. Housing and Urban
Development (HUD) Section 108 Loan Program was paid to JP Morgan Chase on July 25, 2002. There
was a remaining balance of $256,736.32 in CDBG funds reserved for the repayment of the Section 108
Loan principal. An additional $67,075.61 was needed in order to make the next scheduled loan payment
of $323,711.93 in full in order to remain in compliance with the Fiscal Agency Agreement with HUD.
The reallocation of CDBG administration funds enabled the City to remain in compliance with the fiscal
agreement governing the repayment of the Section 108 Loan and further allowed the Section 108 Loan
funded capital improvement projects to proceed without interruption.
Advisory Board Recommendation:
The Community Development Advisory Committee (CDAC) was advised of pending reallocation of funds
for the purpose of making the quarterly repayment on the Section 108 Loan at the July 16, 2002 CDAC
meeting.
Financial Information:
Source of
Funds:
D
Finance Dept.
City Clerk's Office Legislative Tracking:
John Quade, Community Development Specialist
Sign-Ofts:
AGENDA ITEM
DATE
C7;V
9-1/-<J/-'
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM
TO:
Mayor David Dermer and
Members of the City Commission
DATE: September 11,2002
SUBJECT:
Jorge M. Gonzalez~. .. ~
City Manager ( t'''" l)
A RESOLUTION F THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, RETROACTIVELY APPROVING
SUBSTANTIVE AMENDMENTS TO THE ONE-YEAR ACTION PLANS FOR
FEDERAL FUNDS FOR FISCAL YEARS 2000/01 AND 2001/02 BY
REPROGRAMMING $67,076 FROM FY 2000/01 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) ADMINISTRATION FUNDS FOR
THE FY 2001/02 PLANNED REPAYMENT OF SECTION 108 LOAN
PRINCIPAL.
FROM:
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
The final quarterly interim payment for FY 2001/02 in the amount of $323,711.93 for the
U.S. Housing and Urban Development (HUD) Section 108 Loan Program was paid on July
25, 2002. At the time the payment was due, there was a remaining balance of
$256,736.32 in CDBG funds reserved for the repayment of the Section 108 Loan principal
from prior year CDBG set asides. However, in order to remain in compliance with the
Fiscal Agency Agreement with HUD, $67,075.61 from the CDBG Administration funds was
reallocated to the Planned Repayment activity for the Section 108 Loan.
The reason for the shortfall in funds was due to an earlier reallocation of funds. In
December 2001, the Administration revised the original recommendation of the unspent
funds from prior years' funds, and instead, recommended the funds for the North Shore
Park and Youth Center. Resolution #2001-24688 approved the Administration's request to
revise the original recommendation and reallocate these funds ($164,209) to make up for
budget shortfalls in the construction of the building. The Addendum stated that the
Administration would use future reallocations of CDBG funds to recover these funds for the
complete amount needed for the repayment of the Section 108 Loan. Thus, the
Administration was tasked with identifying other CDBG funds for the repayment of the
Section 108 Loan.
September 11, 2002
City Commission Memorandum
Section 108 Reallocation Comm Memo
Page 2 of 2
In that regard, the Administration identified a budget surplus in the CDBG Administration
line item from FY 2000/01 and transferred funds for the payment of the Section 108 Loan.
No program or sub-grantee awards are impacted by this transfer. The administration line
item is strictly used to reimburse the City for expenses associated with the administration of
CDBG funds. Subsequently, the Administration made the full quarterly payment in the
amount of $323,711.93 in time of the payment due date of July 25, 2002. Although a
routine Administration task, HUD regulations require that the respective One-Year Action
Plans be amended to reflect the budget transfer of $67,075.61. Therefore, in accordance
with HUD regulations and the City's Citizen Participation, a Notice of Intent to Amend the
One-Year Action Plans for Fiscal Years 2000/01 and 2001/02 to comply with the 30-day
public comment period was advertised. No comments were received regarding the
proposed amendments.
CONCLUSION
The Administration recommends that the Mayor and City Commission retroactively adopt
the resolution for the repayment of the Section 108 Loan quarterly payment made on July
25, 2002.
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