Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budgeting topic
No spam. Unsubscribe anytime.
Council amends budgets: CDBG administration returns to city and council increases sick-pay payout allocation
Summary
Council amended fiscal accounts to bring Community Development Block Grant (CDBG) program administration in-house with new allocations for home repair, down-payment assistance and façade improvements, and separately revised a budget amendment to increase a one-time payout for converted sick leave to $500,000.
The Pontiac City Council took two budget actions on Jan. 21: it amended the fiscal year budget to account for Community Development Block Grant (CDBG) funds being administered in-house and approved program allocations, and it amended a separate resolution so the city could process a full payout of accrued sick time under the council-adopted payout policy, increasing the authorization to $500,000 to cover estimated liabilities.
CDBG in-house administration: Council approved a budget amendment recognizing $1,473,045 in federal grant revenues and assigning those funds across program accounts, including $700,000 for a home-repair program, $400,000 for a building facade-improvement program, $100,000 for down-payment assistance and $273,045 for program administration. Administration said the city's newly hired CDBG administrator will manage operations previously outsourced; staff said the funds are available in the federal HUD system and the city is prepared to implement programs.
Sick leave payout increase: Council also amended an earlier budget resolution tied to a policy change that converted sick-time balances into a one-time payout. Based on updated payroll calculations and to provide a buffer for remaining months in the fiscal year, the council revised the payout authorization upward to $500,000 (the HR estimate reported earlier that evening was approximately $459,698 and the amendment reflected a conservative cushion). Council asked administration to proceed with payroll adjustments and to ensure payouts follow the adopted policy.
Why this matters: Both actions involve direct use of municipal or federal funds for community services and employee compensation. The CDBG amendment restores local control over housing and neighborhood programs; the sick-payout amendment implements council policy and resolves employee entitlements.
Ending: Staff said the CDBG administrator has been hired and will coordinate program rollouts; HR and finance were asked to complete necessary payroll steps and confirm payouts to former employees under the conversion policy.
