Davenport CAC approves reprogramming and reallocates $39,251 in CDBG funds to public-service applicants

The Davenport Citizens Advisory Committee on Jan. 6 voted to reprogram prior-year Community Development Block Grant (CDBG) funds into the current grant year and to reallocate $39,251 in current-year public-service funds after two subrecipients declined or could not use their awards.

Heather (city staff member), who manages the CDBG portfolio for Davenport, told the committee that year-49 funds that are unspent and unobligated must be reprogrammed into year 50 and, because of HUD rules, can be used only for non–public service activities this cycle. "The agreements do not extend beyond 1 year, so if any agency doesn't use all of their funding during the year, that funding comes back to the city or becomes available for reprogramming," Heather said, explaining the difference between reprogramming prior-year money and reallocating current-year awards.

Why it matters: HUD caps the public-services category at 15% of an entitlement grantee’s annual CDBG funding. That cap means rollover money from prior years cannot raise the current-year public-services limit; by contrast, current-year funds that are relinquished by subrecipients can be reallocated within the public-services category.

The committee first approved a motion to reprogram year-49 funds into year 50. Kiefer (CAC member) moved to reprogram the funds and Holloway (CAC member) seconded; the motion carried by voice vote. Heather said the city had $98,000 of unspent, unobligated year-49 money that is eligible only for non–public service activities and that one request for those reprogrammable funds had been received — a request for the housing rehabilitation and revitalization fund.

On the second action item, Heather explained that two current-year subrecipients told staff they could not complete their programs: the Davenport Boys & Girls Club closed its Davenport location effective Oct. 1 and forewent a little more than $20,000 of its award; Common Core (the applicant name in the record) did not spend any of its $18,724 award and did not apply for the next program year because its audit was not complete. Heather said the combined total available for reallocation was $39,251.

Committee members debated whether to reallocate the money strictly following the allocation formula used in March or to adjust that formula because one agency had other municipal funding. Hodges (CAC member) framed a motion, saying, "I'm going to make a motion that we approve column M so that the balance we're taking from those 2 organizations will get split evenly except for $6." Johnson (Reagan Johnson, CAC member) seconded the motion. After a roll-call vote the motion passed; committee members voted to recommend the Column M distribution (an equalized share under the established allocation model) to the City Council for final approval.

Committee discussion also addressed practical and procedural points. Members raised concerns about penalizing agencies that seek other municipal funds, and staff reminded the committee that CDBG is federal funding administered by the city and that subrecipients must meet CDBG documentation and audit requirements. Adela Russell (caller, CAC member) voiced concern that an agency that keeps receiving funds might lack the staff capacity to complete programming; staff noted that unspent funds at the end of the program year revert to the city for reprogramming the following year.

Staff noted that both committee recommendations will go to City Council for approval, likely in February (or possibly late January, depending on council scheduling). Heather also told the committee that the city’s financial report was not ready for review: the finance department had just sent the first reconciliation spreadsheet for July and staff expect a fuller multi-month report at the February CAC meeting.

The meeting closed with scheduling items: the CAC agreed to hold an optional work session on Jan. 21 (Eastern Avenue Library) for members who want to review applications and to hold in-person applicant presentations on Feb. 10. Staff reiterated that presentation formats are at the committee’s discretion but that once a process is established the city must follow it for all applicants.

Votes at a glance: - Motion to reprogram year-49 CDBG funds into year 50: mover Kiefer; second Holloway; outcome: approved (voice vote). Note: $98,000 in prior-year funds available for non–public service uses; one request received for the housing rehabilitation and revitalization fund. - Motion to reallocate $39,251 from Boys & Girls Club (~$20,000 remaining) and Common Core ($18,724) to other public-service applicants using the Column M distribution: mover Hodges; second Reagan Johnson; outcome: approved (roll-call vote). Recommendation forwarded to City Council for final approval.

Background and next steps: Reprogramming refers to prior-year unspent, unobligated CDBG funds and — per HUD rules explained by staff — cannot increase the current-year public-services cap. Reallocation involves current-year funds and can remain in the public-services category. Both CAC recommendations will be transmitted to the Davenport City Council for final action; any funds not expended by June 30 will revert to the city and be considered for reprogramming in the next cycle.