Explanation
BACKGROUND: The purpose of this legislation is to return $35,579.13 to the U.S. Department of Housing and Urban Development (HUD) for interest earned on eligible Community Development Block Grant (CDBG) funds in fiscal year 2021. HUD requires grantees and their subrecipients to maintain CDBG entitlement funds (CDBG Fund 2248) and revolving loan funds (RLF Fund 2249) in interest bearing accounts and to remit any earned interest to the federal treasury no less frequently than annually. During the fiscal year 2022, the CDBG entitlement fund earned $28,003.49 and the revolving loan funds earned $8,075.64 for a total earned interest of $36,079.13. Per 2 CFR 200, the City is permitted to retain $500 of earned interest for administrative costs; therefore, the amount to be remitted is $35,579.13.
FISCAL IMPACT: Interest earnings have been deposited into the CDBG entitlement fund and revolving loan fund and are available for disbursement to HUD from said funds. ($35,579.13)
Title
To authorize the appropriation of $27,503.49 within the CDBG Entitlement Fund 2248 and $8,075.64 within the CDBG Revolving Loan Fund 2249; and to authorize the Director of the Department of Finance and Management to expend $27,503.49 from the CDBG Fund 2248 and $8,075.64 from the RLF Fund 2249 for payment of interest earnings to the U.S. Department of Housing and Urban Development. ($35,579.13)
Body
WHEREAS, federal regulations require Community Development Block Grant (CDBG) recipients and subrecipients to remit to the United States Treasury interest earned on CDBG funds received from the U.S. Government; and
WHEREAS, interest earnings have been deposited into the CDBG entitlement and revolving loan funds and are available for this expenditure; and
WHEREAS, it is necessary to authorize the appropriation of $27,503.49 within the CDBG Fund 2248 and $8,075.64 within the RLF 2249; and
WHEREAS, it is necessary to authorize the Director of the Departmen...
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