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HomeMy WebLinkAboutItem 06.e May 6, 2019 Item No. RESOLUTION AUTHORIZING CONTINUED PARTICIPATION IN THE DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Proposed Action Staff recommends adoption of the following motion: Move to adopt a resolution to authorize continued participation in the Dakota County Community Development Block Grant, Home Investment Partnership, and Emergency Solutions Grant Programs. Overview Adoption of this resolution will result in the City continuing its participation in the U.S. Department of Housing and Urban Development (HUD) funded Community Development Block Grant (CDBG) Program, Home Investment Partnership (HOME) Program, and Emergency Solutions Grant (ESG) Program administrated by the Dakota County Community Development Agency (CDA) for fiscal years 2020-2022. As a city with a population above 50,000, HUD classifies Lakeville as a “metropolitan city” which makes Lakeville eligible to receive its own CDBG entitlement allocation (but not HOME or ESG allocation). The Dakota County CDA has notified the City of Lakeville that it may once again elect to defer its Metropolitan City Entitlement Status for the fiscal years 2020-2022 to remain a part of Dakota County’s urban county classification. Staff has reviewed the options available for participation in the CDBG program. While the city would receive additional funding if it chose to be an entitlement City, it would assume all of the administrative responsibilities of the program which require 15-20% of the total CDBG funding to be received. Therefore, the net total increase in available grant funds would be minimal. Three other cities in Dakota County are also eligible to be entitlement cities under the CDBG program and all three have chosen to continue to participate in the County program administered by the CDA. Lakeville and other entitlement eligible cities have the opportunity to reconsider their options for participation in the CDBG program every three years. The City has had an excellent working relationship with the Dakota County CDA with the CDBG program and thus staff recommends continued participation in the County program. Primary Issues to Consider • Would the additional funding that would be received justify the additional administrative expenses? Staff would contend that the answer is no. Supporting Information • Resolution authorizing participation in the county-wide CDBG, HOME, and ESG programs for fiscal years 2020-2022. • Attached letter from the Dakota County CDA dated April 12, 2019. Financial Impact: $ Budgeted: Y☒ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community and Economic Development Director CDBG Funds CITY OF LAKEVILLE RESOLUTION NO. ____ APPROVAL OF THE CONTINUATION OF COOPERATIVE AGREEMENT FOR THE DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIP, AND ESG PROGRAMS FOR FISCAL YEARS 2020 THROUGH 2022 WHEREAS, the City of Lakeville has been a participating jurisdiction with the Dakota County Community Development Block Grant (CDBG) Entitlement Program for Fiscal Years since 1984; and WHEREAS, the Dakota County Community Development Agency (CDA) is a Subgrantee of Dakota County for the administration of the CDBG and Home Investment Partnership (HOME) Programs; and WHEREAS, the Dakota County CDA has requested that the City of Lakeville affirm its continued participation in the Dakota Country CDBG, HOME, and Emergency Solutions Grant (ESG) entitlement programs for the next three fiscal years; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeville hereby chooses to defer its metropolitan city entitlement status for the U.S. Department of Housing and Urban Development’s CDBG and HOME programs; and BE IT FURTHER RESOLVED that the Dakota County CDA is designated as the administrative entity to carry out the CDBG, HOME, and ESG programs on behalf of the City of Lakeville, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. ADOPTED by the Lakeville City Council this 6th day of May, 2019 ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk