DATE: April 1, 2025
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Title
Community Agency Funding: Fiscal Year 2025-2026 Community Agency Funding Recommendations for Services, Arts & Music, and Economic Development and Infrastructure and Overview of the Fiscal Year 2026-2029 Five Year Consolidated Plan
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RECOMMENDATION
Recommendation
That the City Council:
1. Conducts a work session regarding the FY 2025-2026 Community Agency Funding recommendations prepared by the Community Services Commission;
2. Reviews and comments on the overview of the FY 2026-2029 Five Year Consolidated Plan; and
3. Reviews and comments on proposed changes to the Community Agency Funding process for subsequent fiscal years
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SUMMARY
This report provides an overview of the FY 2025-2026 Community Agency Funding (CAF) process, the Community Services Commission’s (CSC) proposed funding recommendations to City Council, and next steps.
The CAF process continues to be highly competitive, as applicants requested over $4.05 million dollars in program funding and the City has only an estimated $1.7 million in available funds for FY 2025-2026. As in prior years, the CSC made recommendations based on staff estimates for the City’s Community Development Block Grant (CDBG) entitlement award. The actual award amount is typically announced by late March; however, potential cuts to the Department of Housing and Urban Development (HUD) staff and budget may result in delays receiving the award amount, and executing the FY 2025-2026 award.
This report also provides a summary of the priorities and projects that will be presented as part of the City’s Consolidated Plan for the use of CDBG funding, which HUD requires the City to update every five years. The Consolidated Plan identifies the City’s priority needs for the next five years and establishes how those needs will be addressed in the coming fiscal year. Based on consultation with stakeholders, the plan will focus on the community’s public facilities, infrastructure, housing preservation, public service, and economic development needs.
Finally, this report includes recommendations to make changes to the CAF process that will reduce administrative burden on applicants and increase transparency and objectivity in the decision-making process. Staff recommend that the City Council conduct a work session to discuss the CSC’s funding recommendations, the proposed Consolidated Plan, and the recommended changes to the CAF process.
ATTACHMENTS
Attachment I Staff Report
Attachment II Funding Recommendations
Attachment III Public Comments on Recommendations