Council briefed on housing allocations, CDBG limits and Envision funding in 2026 draft budget

City staff described several housing, community development and economic development allocations in the draft 2026 budget on Sept. 17.

Director of Administration Trisha Davey said the budget includes funds prompted by the 2024 housing study: “It incorporates a continued investment based on the recommendations in the housing study that was done in 2024,” and the CIP contains a few million dollars set aside to provide flexibility for potential public‑private housing partnerships.

Nut graf: The draft keeps most housing allocations intentionally flexible: a small direct county sales‑tax allocation is available for immediate needs, larger CIP dollars are reserved to support potential development partnerships, and federal CDBG spending is constrained by program limits on supportive services.

On specific allocations, staff said the city has a $25,000 unencumbered allocation from the Fond du Lac County sales tax intended for housing‑related needs. Trisha Davey and staff clarified that the CIP’s housing allocation is not targeted to one ongoing project but is instead budget authority to respond to developer opportunities.

Diane, speaking for community development, explained limits on federal Community Development Block Grant (CDBG) funds: “Under the federal grant guidelines, no more than 15% can be allocated towards supportive services, and we maximize that 15% towards supportive services. So we’re at our cap in terms of how much we can use to support our homeless programs.” She said the consolidated plan expenditures include $25,000 for the Saint Catherine Drexel Center and $25,000 for the warming shelter; paired with the separate county sales‑tax allocation, staff said the combined near‑term housing and homeless support discussed at the meeting amounts to $75,000 in allocated support.

Envision: Davey summarized the city’s continued relationship with Envision and the Chamber of Commerce. “We will continue our investment in the Chamber of Commerce function for our $10,000 membership,” she said, and the budget also sets aside $15,000 for any fee‑based services Envision might offer; those funds would remain unspent if no services are purchased.

Ending: Staff said more detail may be added before the October public hearing and reiterated that some funding sources carry legal restrictions (federal CDBG limits) that constrain how the city may allocate dollars for supportive services.