City authorizes filing for $230,000 ESG grant to finish Community Resource Center renovations

The City of Hot Springs voted to authorize submission of a fiscal year 2026 Emergency Solutions Grant (ESG) application seeking $230,000 to support phase 2 renovations at the Community Resource Center (CRC), city staff said.

City staff presented the request as an application only and said the grant requires a 1:1 cash match. Sarah, a city staff member who provided the report, told the board, “The city of Hot Springs requests authorization to submit a fiscal year 20 26 emergency solutions grant application to the Arkansas Development Finance Authority in the amount of $230,000.”

The application would fund bathroom, shower and laundry upgrades described in staff materials as “critical improvements needed to make the CRC fully operational and capable of serving the clients it serves.” Staff said the city plans to meet the required match by leveraging roughly $200,000 of eligible costs anticipated in the CRC’s FY2026 operating budget (excluding the CRC director salary, which is not an allowable match). Staff also said a $25,000 contingency was added after construction estimates rose.

City Manager Bill (city manager) explained the timing challenge: the state opened ESG earlier than in prior years and the grant deadline came before the city’s FY2026 budget process. Bill told the board that if the city were awarded the grant but could not fund the match in the budget later, the city would decline the award. Director Dudley Webb pressed for a change to the motion so the board would review acceptance later; staff said the resolution could be amended to authorize filing while reserving approval of acceptance and match allocation until after the FY2026 budget is adopted.

Director Webb said he remained uncomfortable committing anticipated FY2026 budget funds before the budget is adopted; other directors said applying poses little risk because the city can decline an award if the budget does not provide the match. The motion to adopt the resolution carried 6–1 (Webb voting no). The resolution is listed as R-25-150 in the board packet.

The staff report noted the ESG application was intended as a backup to an Arkansas Community Assistance Grant Program (ACAGP) request for the same work; staff said if both grants are awarded they would coordinate scope and consider adding items such as a backup generator if funding allows.

If funded and accepted later, the work would follow previously completed CRC projects funded with other grants; staff said the city previously received a FY2025 ESG award for kitchen renovations and related services.

City staff asked the board to approve the filing; the board formally adopted the resolution authorizing submission of the ESG application. Director Dudley Webb was the lone vote against adoption.