03-14-1988 - Agenda Packet City Council - regular meeting

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REDUCTION IN FEDERAL GRANTS AND AID Tn CITIE:; Housing/Community Development. In 1986-1,+: , nnesota cities and counties receiver' $46.7 millior Community Development Biuck :.rants (CDBG). Fer Federal Fiscal Year 1988 (Octoher 1, 1987-September 30, 1988), cities and counties can count on receiving an average of 4 percent less than last year. Deficit reduction negotiatio„s between Congress and the Administration actually resulted in greater losses to cities than those proposed earlier by either House or Senate. Cutbacks to entitlement cities (those over 50,000 population or in a SMP 'I could reach 5.2 per- cent this year since more cities in Minnesota are now elig, a i 'vier that program. The eight entitlement cities in Minnesota will receive a total of $22.9 million in CDBG funds this year. Nor entitlement cities will benefit from $17.6 million in Small Cities CDBG competitive grant funds `or '88; four urban counties in the state will receive $5.7 million. In additior, the reduction in tax incentives for low and moderate -income housing construction jae result of municipal bond restrictions imposed by the 1986 Federal Tax Reform Act) was compounded by further cutbacks in federal housing assistance. Nationally, these funds declined by more than 3 percent compared to the previous year. Clean Water/Wastewater Treatment. For c" ng for federe, matching tyrants to comply with federal risen water stand, was more discouraging news aeaompar.;ing the del reduction agreemei .ants for wastewater treat- ment con -tion were slsn cut by 4 percent, leaving cities with $28.6 million in federal gram .unds, comp .red with almoot $30 million in 1986-Lr. Transp . Public tr� sportaaon funding as well as federal revenues to as- sist highv truition and airport development have been dispropc'ccrately reduced 'or .. Not: , transit finding suffered even more severe , 13acks xlan other areas of tr„r ation funding. Chie oth urban and rural areas ex- perienced declines In i transit assistance of an estimated $2.4 million since 1986-PI. c In early November, .386, President Reagan signed. 'o taw 1.7 billion to eliminate drug trafficking, improve drug :ca- as rehabilitation and treatment programs and reduce ,ug- . ie.ot3 was scheduled to receive $7.4 million in Federal Fiscal ': rat .48', P.v • .Aare of the special loca(,overnment and community group a:av ,ij'1,:: tu•"^- .j was set at ,? 9 million Faced with the deficit and compet:.ig d 1t= reverTlss, Congress ncc s:ashud funding Cy nearly , percent for fisce l 1988, Federal Mandates. 1.1 the meantime, many of the ntnadetes approved by the 1986 Con. =ss have becume effective during 1987. One. n particularhas affected cities, re,auving oficiAs to design more cur,prehensive emergency response plans for control of hazardous substances. Cities are discovenrj that they must eemply with corfusing and burdensome (even unworkable) recuirements for extensive reporting and notification procedures. Severe clod +nd even criminal penalties apply 18