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6.L.- Page 1of5 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />Ago/ <br />DATE: June 8, 2020 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Waive second reading and adopt an ordinance adding Sections 2.41.16 through 2.41.18 to Chapter 2, <br />Article IV of the Redwood City Municipal Code to establish special revenue funds for the accounting of <br />Community Development Block Grant (CDBG) funds, HOME Investment Partnerships Program (HOME) <br />funds, and to create a Housing Support Fund derived from Transient Occupancy Tax (TOT) revenue from <br />short term rental uses and AB 1717 Prepaid Wireless Utility Tax Revenue <br />RECOMMENDATION <br />Waive second reading and adopt an ordinance adding Sections 2.41.16 through 2.41.18 to Chapter 2, <br />Article IV of the Redwood City Municipal Code to establish Special Revenue Funds in the City's financial <br />system to be known as the CDBG Fund, the HOME Fund and the Housing Support Fund. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Excellence in Government Operations <br />BACKGROUND <br />Currently, the City's Community Development Block Grant (CDBG) and HOME Investment Partnership <br />(HOME) funds are combined in a single special revenue fund. The U.S. Department of Housing and Urban <br />Development (HUD) has indicated that this was a concern during their July 2019 on-site monitoring visit <br />and recommended the City establish separate funds to ensure the City has the ability to track revenues <br />and expenditures at the fund level for each funding source. In the City's response to HUD's monitoring <br />report, staff indicated that separate funds would be established by June 30, 2020. <br />In 2018, the City Council adopted Resolution No. 15637 committing the Transient Occupancy Tax (TOT) it <br />collects from short-term rental uses (e.g. Airbnb) to the Affordable Housing Fund, which is intended to <br />Page 1 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />434 <br />