Redevelopment authority counters city offer
The Butler Redevelopment Authority voted Thursday to offer City Council a counterproposal for the authority's contract to administer the Community Development Block Grant and HOME programs.
Authority board members unanimously voted to offer their willingness to accept an 18-month contract under financial terms of the recently expired contract, which allows the authority to keep 18% of the grant to cover administrative costs. The current three-year contract expired Oct. 1.
Last month, council asked the authority to accept a shorter contract, only nine months, that would allow the authority to keep 10% of the grant for administrative costs.
The authority held an executive session before recessing its Sept. 10 meeting to Thursday and held another executive session at the beginning of Thursday's meeting before voting to make the counterproposal.
The administrative line item in the grant budget is used by the authority for staff salaries, planning, travel costs for CDBG projects, legal, accounting, auditing, equipment purchases and rentals, insurance, utilities, office supplies, postage, office rental and maintenance, outreach for housing programs and other expenses. The authority's counterproposal also includes an offer to submit the proposed 2020 CDBG application by the Oct. 28 deadline regardless of whether the contract is renewed. Council would have to approve the application at its meeting Tuesday.
In the proposed 2020 CDBG application for $308,571, the authority's 18% administrative compensation line item is $55,542. The amount would be $30,857 if the compensation is reduced to 10%.
The application seeks more than $223,000 for street reconstruction, $30,000 for housing rehabilitation and $55,542 for administration.
The streets listed in the application are Kaufman Drive, Donaghy Avenue, Maple Street, South Main Street and Wyoma Avenue. Part of Kaufman Drive was repaved in a previous CDBG project. The money sought in the 2020 application would pay for resurfacing the remainder of the street.