Consider approval of a request to amend the fiscal year 2022-2023 budget to accept and appropriate the Community Development Block Grant Mitigation funds for drainage improvements and shelter expansion projects.

The City was awarded funding from Community Development Block Grant Regional Mitigation Program (CDBG MIT-MOD) application 2022-100137-RMP in the amount of $8,012,700.00.  The Texas General Land Office (GLO) will administer this grant.  Vendor invoices will be approved by GLO, funds sent to the City, and then vendors get paid.

In September 2022, the City of Texas City was allocated funds under the CDBG MIT-MOD Program by the Houston-Galveston Area Council (H-GAC) on behalf of the Texas General Land Office (GLO). These funds must fund projects that reduce local risks, foster long-term community resilience that is forward-looking and encourage the prioritization of local investments with local impacts in risk reduction for hurricanes, tropical storms and depressions, and flooding.  Although funds were allocated in September 2022, the grant was not formally awarded to the City until June 20, 2023.  Some preliminary work, i.e. engineering and planning, has already been done under contracts Commission approved in October and December 2022 with grant consulting/administration firm GrantWorks, Inc. and engineering firms, KSA Engineering and Amani Engineering.

A budget amendment is needed to create a new fund to account for the grant revenues and project expenditures.

Information is attached.

The Finance Director recommends the following Budget Amendment:

CDBG MIT-MOD (Fund 245):
Drainage Improvements                       $3,784,354.00
Shelter Expansion Projects                  $4,228,346.00
Grant Revenue (CDBG MIT-MOD)     ($8,012,700.00)