Community development reports strong CDBG/ARPA deployment but flags subrecipient capacity issues; council asked for more data

Community development staff told the council workshop the department has pushed a large share of CDBG, ESG and ARPA funds into local programs and projects and that the team is focused on technical assistance to help subrecipients spend allocated funds before program deadlines.

The director said the department manages roughly $3.1 million in reimbursable federal grants (CDBG, ESG, HOME and related funds) and that most annual administrative salary lines and program costs are reimbursed through those grants. Staff reported that quarterly reports from subrecipients show active spending and that the department closed out phase one of a citywide comprehensive plan.

At the same time, staff identified two subrecipients with significant challenges meeting spending requirements. The director said the city has begun one‑on‑one technical assistance and coordination meetings with those organizations and that staff would bring council a follow‑up memo detailing where ARPA or CDBG allocations are at risk of being deobligated or reprogrammed.

Councilmembers asked how unused allocations might be reallocated and whether money from underperforming ARPA/CDBG projects could be redirected to priority items such as youth services. Staff said reallocation is possible in some cases but can be limited by program rules; the city will provide a full accounting of current expenditures and any available reprogramming options as the federal year closes.

Staff also described planned outreach steps — partnerships with the school district and neighborhood meetings — to ensure residents know about available home rehabilitation and lead‑safety programs. No formal budget decisions were made in the session; council requested the requested expenditure and reallocation report before final budget votes.