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7. <br />Home Improvement Loan funding <br />Ms. Feier stated that the City’s CDBG program is a loan/grant program which funds this line <br />item under CDBG. It has a long waiting list and she was asked by Councilmember Price to <br />have it on tonight’s agenda about whether Council would want to take money out of the <br />reserves to fund additional home improvement grants for qualified low income applicants. <br /> <br />Mr. Sharpe asked if two three or four thousand dollars could be taken from another CDBG <br />line item and moved to the home improvement line item. Ms. Feier stated that anything <br />moved in the CDBG fund will have to be offset with money from the reserves. <br /> <br />Ms. Watson explained as the police overtime is money received from the CDBG fund. If this <br />money was not used from the CDBG fund the general fund would have to be used instead. <br /> <br />Mr. Price asked Ms. Watson if he was correct is stating that the County backlog is over 32 <br />and the City’s backlog is over 50. He stated the issue for the City is more critical as we <br />have a bigger backlog. Ms. Watson stated that the same person could be on both lists. Mr. <br />Price stated the question for him is whether we are going to do this program or not and not <br />do it haphazardly. He said that as it is, the people should be told that there is no hope of <br />getting this money. Mr. Price noted that the funding was for 65 years or older and Ms. <br />Watson stated that it is for low income without any age requirement. He noted that this <br />program has been around a very long time, is important and we have been studying this <br />since November. Mr. Price’s question to Ms. Feier was what is the requirement for <br />reserves? Ms. Feier stated the Council has identified a goal of 17½% as a target for <br />reserves which the City is well exceeding at this time. He asked if an additional $20,000 <br />was allocated to this program, if it would destroy the program at this time. Mr. Price moved <br />to allocate $20,000 from the reserves to the Home Improvement Loan program. Mr. Sharpe <br />seconded the motion. Next he asked Ms. Feier to start the Dollar Help program to help fund <br />this program, giving it a steadier stream of funds. <br /> <br />Mr. Wagner stated that the Home Improvement program is a worthy program but did not <br />think the use of the City’s reserves was an appropriate use. Mr. Wagner stated that the <br />guidelines of 17% is to be the minimum for reserves. He stated the real problem is what do <br />you use reserves for. If every good program uses reserves it would become an annual <br />event to reserve the City’s reserves. Mr. Wagner does like the dollar donation and would <br />like to see how the money comes in to see if it would support the program. Mr. Wagner <br />stated that next year at the time of the CDBG allocation, this should be addressed. <br /> <br />Mr. Sharpe stated that a way should be found in the City’ budget to fund this program, as <br />the CDBG funding gets smaller each year. <br /> <br />Mr. Crow stated he would support the dollar program and help in any way. He asked if this <br />was to be a one time funding to get rid of the back log. He stated that because of the <br />present budget shortfalls. He was not sure where the money would come from. Mr. Crow <br />stated that buying assets as lots is different than additional funding of CDBG projects. He <br />said the Council needs to prioritize the City’s needs. Mr. Crow stated he would not be in <br />favor of taking money from the reserves for this program. <br /> <br />Mr. Glickert agreed with not touching the reserves to fund this program. It was his <br />understanding the Council has anywhere from 17% to 23% in reserves currently as based <br />on the annual budget. Mr. Glickert noted that the Federal and State revenues are down and <br />the City needs to consider this also for the upcoming year. Mr. Glickert offered Mr. Price to <br /> <br /> 6 <br /> <br />