06-10-1985 Council Packet - Laserfiche WebLink

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"UNCIL WETING JO 1 01585 TO: Mayor and City Council CITY 6F kOln/ FROM: Mark Bernhardson, City Administrato�vlb DATE: June 5, 1985 SUBJECT: Community Development Block Grant (CDBG) Programs For Crystal Bay Sewer Project Staff has received from Hennepin County and is presently developing Orono's program for administration of two grant programs as outlined below. It is anticipated nothing significant can be applied for on these programs until la-er this summer or into the fall, it will be at least until that time before we know the amounts to be applied for and approximately how much commitment can be made. SanitaEy Sewer Hookup Grant Program - In allocating Year X of CDBG Funds the Cr[y of Orono set aside $39,788 for this program which is used to help qualifying individuals pay off the hookups of their individual residences to the new sanitary sewer. Applications can not be be significantly acted upon until such time as there is a fairly firm dollar figure as to the cost of each of those individual hookups, which will not be possible until the system has been installed later this summer and into the fall. The City will however, have to get commitments for all this money prior to December 31, 1985 as the availability of these funds lapse at that time. This is a one time grant program and money should not be needed in the future to help pay for these hookups in Crystal Bay. (If a project in Stubbs Bay is implemente' for 1986 CDBG Funds would need to be allocated from Year XII to fund similar programs). Crystal Bay Assessment Deferal Grant Program - For CDBG Year XI (w is commences 7 1 5)—t a City oCOrono has allocated $27,894. Intent of this program is to assist in paying for the principal and interest coming due annually for qualifying individuals under the program. This program will be allowed to function on an annual basis to the extent that CDBG funding is ongoing. It is our present understanding that CDBG funding will be continuing for at least the next 2 to 3 years. Since this is an annual installment payment program there is some concern as to what happens should those funds no longer be available. There is however some provision to hedge against the termination of this program as we presently understand the prepayments of special assessemnts will be possible under the program. It is obvious that any appeals undertaken by qualified individuals will have an impact on this program. Program aspects that will be developed by staff before presentation and approval of the program includes - The administrative structure and.•r which this will operate (Orono