AGENDA #5a

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	J.B. Culpepper, Planning Director Loryn Clark, Housing and Neighborhood Services Coordinator
SUBJECT:	Update: Process to Amend the Community Development Program to Allocate Residual Funds
DATE:	January 14, 2008

PURPOSE

This memorandum provides an update on the process to amend the Community Development program to reallocate funds.  Instead of conducting a separate process, we propose to include the reallocation of funds in the 2008-2009 Community Development budget process.

BACKGROUND

On November 19, 2007, we recommended that the Council establish a process to amend the Community Development program to reallocate funds.  This process included the Council holding a public hearing on January 23, 2008.

DISCUSSION

We no longer recommend a January 23 public hearing. Instead of amending the Community Development program to reallocate funds, we recommend adding the reallocated funds to the Town’s 2008-2009 Community Development grant.  After reviewing the Community Development financial accounts, we determined that there is approximately $5,000 of residual funds to reallocate.  Because it is a relatively small amount, we recommend incorporating these funds into the annual Community Development budget process.  We believe doing so will simplify the process for organizations that may apply for Community Development funding.

As a result, there would be no public hearing on January 23, 2008.  The first step in the 2008-2009 Community Development budget process will be a Council public forum to be held January 30, 2008.  The purpose of the January 30 forum is to receive ideas from citizens and organizations about how to spend Community Development funds.