Staff recommends FY2026 CDBG allocation for Southwest Valley YMCA childcare expansion; council questions sustainability and local use
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Summary
Christina Panatescu, Community Partnerships Program Manager, told the Goodyear City Council work session on Feb. 10, 2025, that staff recommends using an estimated FY2026 CDBG entitlement of $397,718 to expand the Southwest Valley YMCA’s early learning center by reserving 20% for administration and directing roughly 80% toward construction and equipment.
Christina Panatescu, Community Partnerships Program Manager, told the Goodyear City Council work session on Feb. 10, 2025, that staff recommends using an estimated FY2026 Community Development Block Grant (CDBG) entitlement of $397,718 for planning purposes by reserving the full 20% allowed for administration and passing the remaining funds to a single capital project: expansion of the Southwest Valley YMCA’s early learning center.
Panatescu said the recommended allocation would reserve 20% of the estimated entitlement for program administration and use the balance—about $318,175 based on the planning estimate—toward construction and equipment to create dedicated classrooms. The staff recommendation, as presented, also allows up to 15% of the city’s total entitlement to be used for public services, such as teacher salaries.
Panatescu explained the CDBG national objective and eligibility criteria, noting that activities must principally benefit low- and moderate-income households or serve populations presumed to be low income. She said HUD data indicate roughly 31% of Goodyear residents would qualify under income limits for the program and that city policy has prioritized community facilities and public services in its consolidated plan. Panatescu also reviewed prior CDBG projects the city has funded, including streetlight replacements, a child-development center renovation and park improvements.
Representatives from the YMCA and its regional organization answered council questions. Garrett Rolsema (Valley of the Sun YMCA, vice president of operations) said the project would create dedicated classrooms and increase licensed capacity from 57 to 98 children, a 70% increase, and that the YMCA expects to assume teacher salary costs after an initial year of support. Kirsten Gray (vice president of childcare) said the early-learning program currently has 38 enrolled children and that roughly 35% of enrollment—about 13 children based on the December 2024 analysis—are Goodyear residents; she said many other enrolled families come from Luke Air Force Base and neighboring Avondale.
Council members asked whether the YMCA would receive funds directly and whether the expanded program could sustain teacher salaries beyond an initial year. Panatescu clarified that the pass-through would be to the YMCA (Valley of the Sun/YMCA structure), and Garrett Rolsema said the YMCA expects to cover ongoing teacher salaries after the first year as enrollment increases. Council also explored alternative uses the city considered and why some proposals were ineligible: ambulance purchases did not meet area-benefit criteria, sewer maintenance is ineligible as maintenance, and small sidewalk projects would not efficiently use the full allocation.
Panatescu told council staff will incorporate the recommended activities into a draft action plan available for public comment from March 10 to April 10, 2025; the plan will return to council for a public hearing March 24 and —unless there are substantive changes—may be placed on the May 5 consent agenda for adoption and submission to HUD by the statutory deadline.
