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HomeMy WebLinkAboutCouncil Provided Information - 3/25/2025COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY tinyurl.com/SLCFY25 TO:Council Members FROM: Austin Kimmel, Sylvia Richards, and Allison Rowland Budget and Policy Analysts DATE: March 25, 2025 RE: Budget Amendment Number 4 of Fiscal Year (FY) 2025 Budget Amendment Number Four includes 1 proposed amendment, a grant for $3,998,800 in revenues and expenditures. The Administration is requesting approval from the Council because the size of the grant award exceeds the amount available through the Holding Account. As mentioned below the fund balance chart, with the adoption of Budget Amendment #4, the available fund balance will increase to 21.38 percent of the FY 2025 Adopted Budget. If the item is adopted as proposed, then Fund Balance would be $40,257,199 above the 13% minimum target. Fund Balance While the increased General Fund Balance is positive for the City’s fiscal position, it’s important to note that the annual budget has used an escalating amount of one-time General Fund Balance revenues to fill the annual budget structural deficit. The chart to the side was provided by the Finance Department to show how much General Fund Balance was used in the past seven fiscal years. Note the City’s current fiscal year is FY2025 so the FY2026 column is only for discussion purposes to show the impact of the trend continuing. The Council may wish to discuss with the Administration policy goals for the use of General Fund Balance in the next annual budget such as whether reducing the reliance on one-time funding to fill the structural deficit. Tracking New Ongoing General Fund Costs for the Next Annual Budget The table of potential new ongoing General Fund costs for the FY2026 annual budget is available as Attachment 1 at the end of this document. The total new ongoing costs from Budget Amendments 1 through 4 would be $6,381,054. Note that of the total cost, $4.1 million would be needed if the Homeless Shelter Cities State Mitigation grant is not available for FY2026. Project Timeline: Consent: March 4, 2025 1st Briefing: March 18, 2025 Public Hearing: March 25, 2025 Potential Adoption Vote: April 1, 2025 UPDATED Fund Balance Chart The table below presents updated Fund Balance numbers and percentages based on the proposed changes included in Budget Amendment #4. As mentioned earlier, with the complete adoption of Budget Amendment #4, the available fund balance will increase to 21.38 percent of the FY 2025 Adopted Budget. If all the items are adopted as proposed, then Fund Balance would be $40,257,199 above the 13% minimum target. The proposal includes one initiative for Council review. A summary spreadsheet outlining proposed budget changes is attached. The Administration requests this document be modified based on the decisions of the Council. PUBLIC PROCESS: Public Hearing Section E: Grants Requiring No Staff Resources E-1: Lead Hazard Reduction Grant Award – ($3,998,800 – Misc. Grant Fund) This item is to recognize a four-year grant award from Housing and Urban Development (HUD) in the amount of $3,998,800 for lead paint mitigation in homes within the Salt Lake City boundaries. The mitigation work will include exterior paint, windows, kitchen repairs and any other work requiring lead-based paint removal. As this grant is too large for the grant holding account, the Administration added it to a budget amendment. The original grant application submission memo from the Administration indicated that a new Housing Program Manager FTE would be added as part of the grant; however, the Administration has since determined that a new FTE will not be needed. The grant pays a portion of two existing FTE’s; one Rehabilitation Specialist II and one Rehabilitation Specialist I. The public hearing was held on October 1, 2024. Approximately 300 homes will benefit from this work from the Housing Stability division during the four-year grant period in conjunction with Housing Stability’s existing Home Rehabilitation and Repair program, funded through the CDBG (Community Development Block Grant) program. Originally, the city estimated that 120 homes would be rehabilitated; however, HUD indicates the city’s cost estimate per home was too high. HUD estimates that 300 homes can be abated. There is a required grant match of $443,353 which will be funded by existing budget for the Home Rehabilitation and Repair program, including staff costs and staff time spent on the projects. Applicants may apply through the Home Rehabilitation and Repair program. Additional budget detail: CATEGORY GRANT AMOUNT MATCH AMOUNT Salary $ 410,648.80 $ 78,150.00 Benefits $ 132,434.61 $ 25,203.00 Travel $ 21,094.96 Supplies and materials $ 22,200.00 Contracts $3,260,000.00 $340,000.00 Other direct costs $ 152,421.84 Total 3,998,800.21 $443,353.00 ATTACHMENTS 1. Ongoing Costs to the General Fund (See chart below) 2. Grant Application Submission Notification Memo 3. Lead Hazard Reduction Grant Abstract ACRONYMS CAFR – Comprehensive Annual Financial Report CIP – Capital Improvement Program CDBG – Community Development Block Grant Program FOF – Funding Our Future FTE – Full time Employee / Equivalent FY – Fiscal Year GF – General Fund HUD – Housing and Urban Development IMS – Information Management Services ATTACHMENT 1 Council Request: Tracking New Ongoing Costs to the General Fund Council staff has provided the following list of potential new ongoing costs to the General Fund. Many of these are new FTE’s approved during this fiscal year’s budget amendments, noting that each new FTE increases the City’s annual budget costs if positions are added to the staffing document. Note that some items in the table below are partially or fully funded by grants. If a grant continues to be awarded to the City in future years, then there may not be a cost to the General Fund but grant funding is not guaranteed year-over-year. Budget Amendment Item Potential Cost to FY2026 Annual Budget Full Time Employee (FTEs)Notes #1 Item A-1 Attorney’s Office Organizational Structure Change $722,888 3 FTEs: 1 City Prosecutor 1 Senior City Attorney 1 Deputy Director of Administration City Prosecutor $178,278 for 9 months/$237,704 annually Senior City Attorney Class 39 - $157,635.74 for 8 months/$236,454 annually Deputy Director of Administration Class 40 - $186,547 for 9 months or $248,730 annually. At the time of publishing this staff report, the cost to lease office space is unknown. The cost could be more or less than the current budget under the soon-to-be terminated interlocal agreement with the District Attorney’s Office. #1 Item D-8 $171,910 1 FTE: Capital Asset Planning Financial Analyst IV position Inadvertently left out of the Mayor’s Recommended FY2025 Budget. Position would be dedicated to impact fees compliance tracking and reporting for new state requirements. Impact fees fully reimburse the General Fund for the position’s cost. $2,945,957 grant funding* 4 FTEs: 3 Officer positions 1 Sergeant position *Amount of grant funding needed in order to fully cover the ongoing costs including the new FTEs. #1 Item E-1 Homeless Shelter Cities Mitigation Grant FY25 Costs currently paid for by the Homeless Shelter Cities Mitigation Grant in FY2024 that might be shifting to the General Fund in FY2025 $662,760 For ongoing costs related to 15 existing FTEs; the grant funds a total of 23 FTEs $662,760 is needed for ongoing equipment for all 15 officers. The Administration is checking whether existing budgets could absorb some of these costs. #2 Item A-2 Enhanced Security at Justice Court $200,000 A security report identified an issue needing to be addressed immediately. Budget Amendment Item Potential Cost to FY2026 Annual Budget Full Time Employee (FTEs)Notes #2 Item A-3 Community Oriented Policing Svcs or COPS Hiring Grant from U.S. Dept. of Justice for 2 new Sergeants & 10 new Officers FY 24-25 $1,285,642 in FY2026 For ongoing costs related to hiring 2 new Sergeant FTEs and 10 new Officers in the Police Dept. Ongoing costs include grant salary match plus vehicles, supplies & equipment. After the 48 month grant period ends, the estimated annual cost to retain the 12 police officers is $2,071,325. #2 Item A-4 Vehicles, Equip- ment & Related Police Officer costs not covered by the Homeless Shelter Cities State Mitigation Grant FY24-25 $498,692 is ongoing For ongoing costs related to the hiring of new officers Ongoing costs include ongoing salary increases, supplies, body cameras, vehicles, and computers. #1 & #2 D-7 Prosecutor’s Office Changes since Budget Amendment #1 (-$280,279) back to General Fund Balance 1 FTE Removed City Prosecutor FTE removed Reverses a portion of budgetary impacts & actions outlined in BAM#1, Item A-1. #3 A-2 IMS – Add 1 full-time Cybersecurity Engineer and convert 1 part-time Graphic Designer into full-time using funds from the elimination of additional part-time positions. $173,484 ongoing for Cybersecurity Engineer position Adds 1 Cybersecurity Engineer Position .50 Graphic Design position was requested but NOT approved by the Council. TOTAL $6,381,054 39 total FTEs of which 16 are New FTEs Note that of the total cost, $4.1 million would be needed if the Homeless Shelter Cities State Mitigation grant is not available for FY2026 Grant Application Submission Notification Memo TO: Office of the City Council I Cindy Gust -Jenson, Jennifer Bruno, Taylor Hill, Sylvia Richards, Linda Sanchez, Lehua Weaver Office of the Mayor I Erin Mendenhall, Rachel Otto, Jill Love Department of Finance I Mary Beth Thompson, Amy Dorsey, Sarah Behrens, Randy Hillier Office of the City Attorney I Jaysen Oldroyd, Katherine Lewis, SLCRecorder@slcgov.com Department Contacts I Heather Royall, Amanda Best, Tony Milner, Tammy Hunsaker FROM: Annie Christensen DATE: August 21, 2024 SUBJECT: Lead Hazard Reduction Grant Submission 8/16/2024 FUNDING AGENCIES: Housing and Urban Development GRANT PROGRAM: Lead Hazard Reduction Grant Submission REQUESTED GRANT AMOUNT: $3,998,800.21 Federal Share ($4,440,952.81 total) DEPARTMENT: Community and Development, Housing Stability Division COLLABORATING AGENCIES: None DATE SUBMITTED: 8/16/2024 SPECIFICS: ❑ Equipment/Supplies Only ❑ Technical Assistance ® Provides 3 Hourly Positions ® Existing ® New ❑Overtime ❑ Requires Funding After Grant Explanation: Please see below ® Match Required $442,152.60 ❑ In -Kind Services and ® Cash $252,552.60 SLC cash match + $189,600 Other HUD funds match GRANT DETAILS: Project Summary: Please see attached Period of Performance: 11/15/2024—11/15/2028 Personnel: Rehabilitation Specialist II: 0.75 FTE * 4 years 15% SLC Match Existing personnel Housing Program Manager: 0.10 FTE * 4 years 100% SLC Match New hire personnel Rehabilitation Specialist I 0.25 FTE * 4 years 15% SLC Match Existing personnel Federal award Identifier: FR-6800-N-13 Grants.gov submission: GRANT14234838 Salt Lake Citv Corporation Lead Hazard Reduction Grant Abstract 1. Type ofApplicant New Type of Jurisdiction > 3,500 occupied housing units (large, urban _jurisdiction) List Complete Target Area Salt Lake City, Utah Total Federal Amount Requested $3,998,800.21 Lead Funding $3,998,800.21 LBPHCILHRD Requested Healthy Homes Supplemental Request $0.00 Match Commitment 11% Total Lead -Safe Units Proposed 120 Total Healthy Homes Interventions Proposed 0 2. Salt Lake City Housing Stability is applying for the Lead Hazard Reduction Grant to serve residents who live in Salt Lake City boundaries. Salt Lake City has a population of 204,657, according to the 2022 Census, with a variety of housing stock. The average home was built in 1962, with over 25,000 built pre-1940, according to census data. According to HUD, Salt Lake City qualifies as an area of Highest Lead -Based Paint Abatement Needs with 9,304 occupied pre-1940 rental units. Salt Lake City includes all or part of 59 census tracts, with 17 of the tracts labeled as disadvantaged according to the HUD OLHCHH 2O22 NOFOs Mapping Tool. Salt Lake City Housing Stability currently operates a Home Repair program in Salt Lake City that also does lead -based paint mitigation as needed. There have been at least three projects a year that the Home Repair program could not assist due to the high levels of lead -based paint and necessary mitigation. If awarded the Lead Hazard Reduction Grant, the available award for each homeowner would increase and improve the likelihood of more projects being completed in Salt Lake City. The award will also increase the safety of homes in Salt Lake City for current and future residents. Housing prices have risen quickly over the last four years, and it is important for the City to keep residents in homes that are affordable. Allowing residents to improve the safety of their homes with grant products, allow residents to stay in their homes and continue to utilize income on other regular payments or needs like rent, mortgage, utilities, and/or groceries. The Lead Hazard grant would work in partnership with Salt Lake City Housing Stability's current Home Rehabilitation and Repair program, funded through CDBG. The match would come from the Home Rehabilitation and Repair program and staff. Salt Lake City also plans to leverage General City funds for salaries, benefits, and project work. Salt Lake City Housing Stability also frequently works with other Home Repair programs in Salt Lake County to communicate and collaborate on projects. Salt Lake City Housing Stability meets quarterly with those other organizations including Salt Lake County, Habitat for Humanity, West Valley City, ASSIST, Community Development Corporation of Utah, and NeighborWorks. The work planned to undertake with this grant includes general lead mitigation for exterior paint, windows, kitchen repairs, and any other work that may require lead -based paint mitigation. Salt Lake City is familiar with the federally required procurement process and requirements. Salt Lake City Housing Stability has an approved vendor list for contractors that are certified in lead - based paint from Utah Department of Environmental Quality. All Notice to Bidders are sent to the pre -qualified list for a pre -bid meeting and public bid opening. The lowest, responsive bidder is the contractor that is selected to work on the projects. Salt Lake City also plans to reach out to new contractors and certified lead -based paint inspectors, risk assessors, and supervisors to expand the contractors that we currently work with. Salt Lake City plans to mitigate lead hazards on 120 homes in Salt Lake City boundaries over the four year, 48 month, period of performance with a total budget of $4,440,952.81. The Federal Share request is $3,998,800.21 with a match from Salt Lake City of $442,152.60. The match will come from Salt Lake City general funds and CDBG Home Repair program costs.