Staff outlines proposed CDBG allocations; two public hearings set for April 13

Chair introduced Deb Smith and her team to answer council questions on Community Development Block Grant (CDBG) allocations. Deb Smith, representing DCED, told council the spreadsheets show 'fiscal year 2026 proposed' and 'requested' columns and that the proposed numbers generally match prior allocations subject to small shifts.

Deb Smith said staff will hold two public hearings on Monday, April 13 — one at 10 a.m. and one at 6 p.m. — and will place the draft proposed annual plan (fiscal 2026) on public display April 3–May 4. She said if the city receives its allocation staff will bring a plan to council and may adjust it depending on the final allocation; if the allocation is not yet received, staff will return to council on May 6 to request submission to HUD.

Council members pressed staff on spend-down rates for prior allocations. Deb Smith said underspending often results from staff turnover or agency decisions not to accept CDBG funds; unspent funds are placed in a reprogramming pool that staff will propose for future projects. “We will then come to city council if we have received our allocation,” Deb Smith said, and staff committed to returning with detailed spend-down numbers for specific projects.

Why it matters: CDBG funding supports public-service activities and local nonprofits; persistent underspending can require reprogramming and affects which local projects receive funds.

What happens next: Staff will place the draft plan on public display starting April 3, hold two public hearings April 13, and return to council with a finalized submission if the city’s allocation is received.