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Capital projects face funding uncertainty as FEMA grant for post‑fire tree planting flagged at risk
Summary
Committee members reviewed a long list of capital projects — Old Town Skatepark, Gateway Project, Community Resource Center, AMI meter project — and staff told the committee a $1 million FEMA‑linked tree planting reimbursement may be at risk pending federal review; committee discussed SDCs, grants and the $1 million balloon bond due in 2030.
City staff told the budget committee the capital improvement program for fiscal 2025–26 includes several grant‑funded projects but also significant unfunded items that will require grants, user‑fee changes or SDC transfers.
“Grant revenues are considerably higher because of funding for the Gateway Project, Talent Resource Center, the Skate Park, and Post Fire Recovery Project,” Finance Director Tessa DeLine said during the presentation.
DeLine said staff learned late in the process that a FEMA‑related grant for phase two of post‑fire tree planting and irrigation may be subject to extra federal scrutiny. “OEM has advised us to be prepared to answer some questions, and they feel that those funds are potentially at risk,” DeLine said, adding that because the program is reimbursement‑based staff will not expend those dollars until the questions are resolved.
The committee reviewed the capital project list that includes the Old Town Skatepark (about $421,000 in the draft), the Gateway Project, and the Talent Community Resource Center. DeLine said some existing grants and reimbursements received in 2024–25 increased actual expenditures and that the city will run a supplemental budget to record grant revenues and the related project costs received after last year’s adopted budget.
Members and staff also discussed systems development charges (SDCs). DeLine said Talent collects parks, transportation, storm‑drain and water SDCs but that the SDC fund has had no transfers to CIP since 2023–24 and that staff will need to identify which projects are eligible and recommend transfers accordingly.
The committee raised longer‑term capital finance issues. Staff noted a water loan with a roughly $1 million balloon payment is due in 2030. DeLine said staff is considering options — prepaying, creating a debt‑service reserve fund, or other approaches — and will provide more analysis and a recommended approach at a later date.
No decisions were made; staff recorded committee questions and said they will provide updated revenue and capital pages at the next meeting for committee consideration.
