2020-083 Development Services (Human Services) BudgetSeptember 18, 2020 Report No. 2020-083
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Detailed information regarding the proposed FY 2020-21 Development Services (Human
Services) Budget.
EXECUTIVE SUMMARY:
This Informal Staff Report was prepared to convey information regarding funding included in the
proposed FY 2020-21 Proposed Development Services Budget including, the annual budget
amounts, and year over year increase in funding.
DISCUSSION:
Community Development:
The FY 2020-21 Operating, Capital, and Grant Budgets includes $10,396,385 in total housing and
human services funding, which encompasses funding for several housing assistance and social
services initiatives delivered by the City and local nonprofit organizations.
Social Services Funding ($1,894,918)
The City provides grants and funding in support of programs and services provided by local
nonprofit organizations which $1,359,086 in the proposed FY 2020-21 budget and $157,769 from
the Community Development Block Grant for PY 2020-21. The programs include the Human
Services Grant ($500,000), Police Fairshare Grant to assist child victims of abuse ($180,405),
Homelessness Initiatives ($703,405), and DME’s P.L.U.S. One Utility assistance program. The
grant proceeds are utilized to provide financial support to the following organizations; City of
Denton Parks and Recreation, Communities in Schools, Court Appointed Special Advocates
(CASA), Denton Christian Preschool, Denton City County Day School, Denton County Friends
of the Family, Denton County MHMR, Fred Moore Nursery School Inc., Grace Like Rain Inc.,
Health Services of North Texas, Interfaith, PediPlace, Reaching Individuals Through Service &
Education (RISE), Retired Senior Volunteer Program Volunteers in Service to America (RSVP),
Salvation Army of Denton, Solutions of North Texas, Special Program for Aging Needs (SPAN),
The Junction (MKOC/ODB), The United Way of Denton County, and the Children’s Advocacy
Center of Denton County.
Human Services Funding Breakdown FY 2019‐20 FY 2020‐21
Social Services
Human Services Grant
1 $ 482,500 $ 500,000
Homelessness Initiatives
2 $ 783,405 $ 703,405
Police Fairshare Children’s Advocacy Center $ 165,486 $ 180,405
Utility Assistance‐DME PLUSOne $ 133,000 $ 133,000
Admin and Operations $ 348,018 $ 378,063
TOTAL $ 1,912,409 $ 1,894,873
1 includes CDBG
2 FY 2019-20 includes $80,000 in nonrecurring one-time improvements to the MKOC Shelter
September 18, 2020 Report No. 2020-083
Housing Assistance ($3,591,028)
The City’s allocation of Department of Housing and Urban Development (HUD) Community
Development Block Grant (CDBG) and HOME Investment Partnership Funds allow for funding
multi-year activities. Projects are awarded annually as recommended by the Community
Development Advisory Committee and approved by City Council through the City’s Annual
Action Plan. Over the last three years, the City has seen modest increases in HUD CDBG and
HOME allocations. Projects awarded include housing assistance programs, rental rehab,
infrastructure projects in low-income neighborhoods, and public facility improvements. All
project types included in the table are balances as of September 2020 on current funded projects.
Human Services Funding Breakdown
HUD Grants CDBG HOME
City Housing Programs $ 706,181 $ 1,172,411
Rental Rehab $ 0 $ 300,783
Infrastructure Projects $ 638,610 $ 0
Public Facility Improvements $ 429,367 $ 0
Admin and Operations $ 219,103 $ 75,233
TOTAL $ 2,042,601 $ 1,548,427
CARES Act CDBG ($1,485,440)
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) made available $5 billion
in Community Development Block Grant Coronavirus (CDBG-CV) funds. Of this amount, the
Department immediately allocated $2 billion on March 27, 2020 based on the fiscal year 2020
CDBG formula. This constituted the first round of CDBG-CV funds. In the first round (CDBG-
CV1), HUD allocated $618,736 to the City of Denton.
The next, $1 billion was required by the Act to be allocated to States and insular areas within 45
days of enactment of the Act. HUD accomplished this on May 11, 2020, and this constituted the
second round of CDBG-CV funds. The City did not receive any allocation in the second round.
The remaining $2 billion in CDBG-CV funds was required by the Act to be allocated to states and
local governments at the discretion of the Secretary on a rolling basis. HUD accomplished this on
September 11, 2020, and this constituted the third round of CDBG-CV funds. In the third round
(CDBG-CV3), HUD allocated $866,704 to the City of Denton. The City must commit these funds
to projects by August 2021 but will have up to six (6) years to expend the balance of these funds.
CARES Act ESG-CV ($1,425,000)
The CARES Act also made available $4 billion for Emergency Solutions Grants (ESG) funding to
support additional homeless assistance and homelessness prevention activities to mitigate the
impacts created by coronavirus under the Emergency Solutions Grants program. The first
allocation of ESG CARES Act funding (ESG-CV) released by HUD allocated $33,254,679 to the
Texas Department of Housing and Community Affairs (TDHCA), the State ESG Recipient. On
April 23, 2020, the TDHCA Board approved that the Continuum of Care (CoC) Lead Agency, the
Texas Homeless Network (THN) to receive $7,020,131 in these ESG CARES funds to distribute.
September 18, 2020 Report No. 2020-083
In June 2020, the City submitted a competitive application to the Texas Homeless Network (THN).
THN recommended to the TDHCA that the City be awarded $1,425,000 in ESG-CV funding.
Funds will be available in January 2021 and will have to be expended by July 31, 2021.
Human Services Funding Breakdown FY 2019‐20 FY 2020‐21
CARES Act
CDBG‐CV1, CDBG‐CV3 $ 0 $ 1,485,440
ESG‐CV $ 0 $ 1,425,000
TOTAL $ 0 $ 2,910,440
Capital Budget ($2,000,000)
The proposed FY 2020-21 Operating and Capital Budget increases funding for human services by
$2 million. The increase in funding is associated with the purchase of the Loop 288 Building,
which will be used utilized to assist people experiencing and at-risk of homelessness assistance.
Human Services Funding Breakdown FY 2019‐20 FY 2020‐21
Capital
Loop 288 Building $ 0 $ 2,000,000
TOTAL $ 0 $ 2,000,000
Police Mental Health Unit:
In addition to the items listed above, the proposed FY 2020-21 budget includes funding for a new
Police Mental Health Division with total expenses of $552,850. Five positions were reclassified
within the Police Department to Create the Mental Health Division which consists of four
Caseworkers and a Mental Health Division Manager. The mental health division includes funding
for crisis intervention, mental health assessments, case management, and mental health education.
Human Services Funding Breakdown FY 2019‐20 FY 2020‐21
Operating
Police Mental Health Division $ 0 $ 552,850
TOTAL $ 0 $ 522,850
CONCLUSION:
The FY 2020-21 Operating, Capital, and Grant Budgets increases funding for Human Services
initiatives by $496,523 in recurring operating dollars and $2,000,000 one-time capital expenses.
Federal funding is providing $2,910,440 in one-time COVID related CARES Act grant funding.
Human services funding increases across all funding sources is $5,406,963.
Major changes to the budget include:
September 18, 2020 Report No. 2020-083
One-time CARES Act funding for CDBG-CV1, CDBG-CV3, and ESG-CV;
Capital Funding for the Loop 288 building; and
The creation of a new Police Mental Health Division.
Attachments:
1. Source Funding Chart
STAFF CONTACT:
Cassey Ogden
Finance Department
940-349-7195 or Cassandra.Ogden@cityofdenton.com
Dani Shaw
Community Services
Danielle.Shaw@cityofdenton.com
City of Denton Community DevelopmentHuman Services Funding Chart2020‐212020‐21Social ServicesGeneral Fund2020‐21Social ServicesCDBGMulti‐YearHousing & CDCDBGMulti‐YearHousingHOME2020 +6YrsCARES ActOne‐TimeCDBG‐CV1 CDBG‐CV32020 Thru 07/31/21CARES ActOne‐TimeESG‐CVOne‐TimeDebt FundedTOTAL PRIOR YEARFY2019‐20 FY2018‐19 HS Grant (CDBG) $157,769148,978$ 148,500$ HS Grant (General Fund) $342,231333,522$ 322,500$ HS Admin & Operations (General Fund) $378,063378,063$ 348,018$ 341,606$ 1Children's Advocacy Center (Police)$180,405180,405$ 165,485$ 144,897$ 1Interfaith (DME)$133,000133,000$ 133,000$ 125,000$ Homelessness Initiatives ‐ ie. DCHLT ‐ CE/HMIS (UW) $18,85018,850$ 12,000$ 18,000$ Homelessness Initiatives ‐ DCHLT (UW) MOU $80,00080,000$ 80,000$ 107,748$ Homelessness Initiatives ‐ Barriers Fund MOU (UW) $40,00040,000$ 40,000$ ‐$ Homelessness Initiatives ‐ Street Outreach (SO) $64,60064,600$ 64,600$ ‐$ Homelessness Initiatives ‐ Rapid Re‐Housing (RRH) $100,000100,000$ 100,000$ ‐$ Homelessness Initiatives ‐ The Junction4‐$ 80,000$ ‐$ Homelessness Initiatives ‐ The Junction4$400,000400,000$ 400,000$ ‐$ Homelessness Initiatives ‐ Loop 288$2,000,000 2,000,000$ ‐$ CDBG/HOME 2019‐203,773,121$ 3,637,048$ 2City Housing Assistance Projects (HAP, HIP, MRP)$706,181 $1,172,411 1,878,592$ MY2Nonprofit Housing (DAHC, Fairoaks, Cumberland, etc.)$0 $300,783 300,783$ MY2City Infrastructure Projects $638,610 $0 638,610$ MY2Public Facility Improvements$429,367 $0 429,367$ MY2Admin & Operations (CDBG, HOME)$219,103 $75,233 294,336$ MYUnprogrammed Federal/State $49,340 $0$618,736 $1,425,0002,093,076$ ‐$ Unprogrammed Federal/State$866,704866,704$ ‐$ TOTAL BY FUNDING CATEGORY $1,737,149 $157,769 $2,042,601 $1,548,427$1,485,440 $1,425,000$2,000,000 $10,396,385 5,678,724$ 4,845,299$ All %16.71% 1.52% 19.65% 14.89%14.29% 13.71%19.24% 100.00%2019‐20$1,723,475 $148,978Cummulative Difference$13,674 $8,7911Funding Budgeted through other Department HBU2Multiyear activities ‐ Funds avaiable & encumbered but unspent (as of 09/01/20) Balance is revolving. PY 2019‐20 CDBG, HOME Beginning Balance was $3.78mil3Development Fee Grant not included ($225,000)4Previously MKOC/ODB9/18/2020