LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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ADD-ON - SUPPLEMENTAL BUDGET RESOLUTION NO. 2021-51 - FUNDING FOR HARNESSING OPPORTUNITY AND POWER OF EDUCATION, INC. (H.O.P.E.)
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RECOMMENDATION:
recommendation
That City Council adopt Supplemental Budget Resolution No. 2021-51.
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2021; PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
At the July 12, 2021 Council Agenda Conference, a discussion item was brought forward by Councilmember Hill to discuss the possibility of providing funding for the H.O.P.E. Foundation to install a fire suppression system in the leased building at 3101 North Davis Highway to allow for an occupancy permit that could ultimately house up to 200 homeless individuals. Resulting from that discussion item City Council expressed a desire to explore the opportunity to utilize funds from the American Rescue Plan (ARPA) to assist in the funding for this project. The Mayor did mention at the meeting that there may be funding from other sources to assist the organization in their ability in receiving an occupancy permit in order to house those homeless individuals. A request was made by Councilmember Myers to utilize the unassigned fund balance in the General Fund.
After discussing the issue with the representative from the H.O.P.E. Foundation it was relayed that the utilization of the ARPA funds would most likely not be an eligible expenditure as the property is privately owned and the utilization of those funds on private property would be problematic. In looking at other funding sources, and based on Councilmember Myers’ suggestion to utilize the unassigned fund balance in the General Fund, it is recommended that the funding would come from that funding source. Currently, there is a balance of $456,732 in the General Fund’s Unassigned Fund Balance. Should City Council authorize the appropriation of $100,000, a balance of $356,732 will remain in the General Fund’s Unassigned Fund Balance.
An additional issue is with the utilization of any City funding to provide funding for improvements to a privately owned piece of property. Therefore, after discussions with the representative from the H.O.P.E. Foundation, a recommendation is being made to provide funding to the H.O.P.E. Foundation towards their lease payments in order to assist with their program provided, however, that they obtain a five year lease with the owner of the property. The costs associated with the improvements to the building will then come from the H.O.P.E. Foundation. The lease payments that will be provided to the organization will be in an amount not to exceed the costs associated with the improvements that will be made in order for them to receive an occupancy permit to allow them the capability to move forward with their program. Should City Council adopt this Supplemental Budget Resolution, a Miscellaneous Appropriations Agreement will be executed with the H.O.P.E. Foundation with the stipulations of the cost not to exceed $100,000 as well as not exceeding the costs of the improvements. Additionally, there will be a stipulation included in that agreement that the funding provided will be contingent upon the organization obtaining a five-year lease on the property and will remain in that building providing the services to their homeless clients over that five-year period.
PRIOR ACTION:
None
FUNDING:
N/A
FINANCIAL IMPACT:
Adoption of the Supplemental Budget Resolution will appropriate funding in the amount of $100,000 to provide assistance to the H.O.P.E. Foundation for their lease payments in an amount not to exceed the costs associated with the improvements to the building or $100,000 whichever is less. Funding will come from the General Fund Unassigned Fund Balance leaving a remaining balance of $356,732 in that account.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
7/14/2021
STAFF CONTACT:
Keith Wilkins, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2021-51
2) Supplemental Budget Explanation No. 2021-51
PRESENTATION: No end