Explanation
BACKGROUND: The U.S. Department of Housing and Urban Development (HUD) requires grantees and their subrecipients to maintain Community Development Block Grant (CDBG) revolving loan funds in interest bearing accounts, and to remit said interest to the federal treasury no less frequently than annually. During 2017, the city’s revolving loan fund earned interest of $23,574.69. Per 2 CFR 200, the city is permitted to retain $500 of earned interest for administrative costs; therefore, the amount to be remitted is $23,074.69. The amount budgeted in the revolving loan subfund for the 2018 expenditure of 2017 interest earnings to the federal treasury is $24,000. This legislation will authorize the expenditure of monies from the revolving loan subfund to remit 2017 interest earnings to the U.S. Department of Health and Human Services (HHS) in lieu of HUD, for the U.S. Treasury.
FISCAL IMPACT: Interest earnings have been deposited into the CDBG revolving loan fund and are available for disbursement to HHS from said fund. Previous two payments were: $18,835 for 2016 interest earned and $16,561 for 2015 interest earned.
Title
To authorize the Director of the Department of Finance and Management to expend $23,074.69 from the CDBG revolving loan fund for payment of interest earnings to the U.S. Department of Health and Human Services (HHS). ($23,074.69)
Body
WHEREAS, federal regulations require Community Development Block Grant (CDBG) grantees and subrecipients to remit to the federal treasury investment earnings paid on CDBG revolving loan accounts; and
WHEREAS, interest earnings have been deposited into the CDBG revolving loan subfund and are available for this expenditure; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Finance and Management to authorize the Director to expend such amounts as required for payment of interest earnings; Now, Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF CO...
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