Title
Approval of Appropriations Ordinance in the Amount of $100,000 Transferring Funds From the General Fund Balance to the HUD Fund
Recommended Action
Finance Committee Recommendation:
Move to approve an Appropriations Ordinance in the amount of $100,000 transferring funds from the General Fund's fund balance to the HUD Fund.
City Manager Recommendation:
Move to pass an Ordinance appropriating $100,000 from the General Fund's fund balance to the HUD Fund on second reading.
Report
Issue:
Determine whether or not to approve an Ordinance appropriating $100,000 from the General Fund's fund balance to assist the HUD Fund with cash flow needs.
Staff Contact:
Stacie Tellers, Senior Accountant, Administrative Services, 360.753.8599
Dean Walz, Finance Director, Administrative Services, 360.753.8465
Presenter(s):
None - consent calendar item.
Background and Analysis:
The background and analysis have not changed from first to second reading.
Fund 107 - Housing and Urban Development (HUD) Fund
Fund 107 uses HUD-related program income: income received from housing rehabilitation loan repayments and interest for these loans; the proceeds from the HUD Community Development Block Grant (CDBG); Section 108 Loan proceeds; and other funds as appropriate or designated by the City Council for approved projects. These funds may be used for any legal purpose as authorized by the City Council, subject to the authorization from the Federal Department of Housing and Urban Development (HUD).
HUD requires the City to use program income on eligible project expenses prior to the receipt of CDBG funding; in addition, HUD requires that the City request Section 108 Loan draws after payment of eligible expenses.
The City spends program income first which may result in a timing issue for cash availability in the HUD Fund. The General Fund Balance could transfer $100,000 to the HUD Fund to address the cash flow issue. The funding would return to the Ge...
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