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32787.1 <br />TO: Mayor and City Council <br />FROM: Mark Bernhardson, City AdministratoK/46 MAR 301987 <br />DATE: March 27, 1987 <br />Gfsr OF ORONO <br />SUBJECT: Community Development Block Grant Funding <br />Year XIII <br />Public Hearing <br />Attachments: A. Gerhardson Memo Community Development Block <br />Grant - Previous Projects Dated March 23, 1987 <br />B. Hennepin Economic Resource Organization Letter <br />Dated February 25, 1987 <br />C. Hennepin County Year XIII Urban Hennepin <br />County C.D.B.G. Program Grant Dated January 29, <br />1987 <br />ISSUE - <br />1. To hold the required public hearing for C.D.B.G. program. <br />2. Determination of how Orono's $23,775.00 C.D.B.G. funds is to <br />be allocated for 1987. <br />INTRODUCTION - Community Development Block Grant funds are one of <br />two an ng sources the City of Orono receives from the Federal <br />Govergment. (The other is Federal Revenue Sharing which the City <br />did not anticipate receiving for 1987 when it did its budgeting.) <br />This source which was originated in the mid 70's was made <br />available for a fairly broad range of activities that fell within <br />the realm of community development. As noted in the attached <br />memo from John outlining the various projects, Orono has used <br />this in various areas, the most recent of which was substantial <br />assistance to qualifying individuals .n the Crystal Bay sewer <br />project area in an amount of approximately $100,000 for both <br />hookups and assess T, nt� ,racr.r.. (Thi; has been a combination of <br />the yearly grants Orono has received together with the receipt of <br />C.D.S.G. discretionary funds from the County.) <br />Budgeting for this program is done separately from the City's <br />regular budget cycle as the size of the allocation is not <br />determined until Febraury of each year and the City is not the <br />actual final recipient. In past years Orono has received in the <br />range of $30,990, however, this amount is decreasing because of <br />reductions on the Federal level. It is anticipated that this <br />program may last for a few more years, but will be at reduced <br />funding levels. Orono is a recipient of these funds through a <br />cooperative program from Hennepin County and as such is not a <br />direct recipient. Should the County select to change their <br />program nrono'a funding could also be affected. (Unlike <br />