City staff presented options for the city’s community grants program on July 24, asking council for direction on term length, grant priorities and appointment of a subcommittee to review applications.

Staff summarized current funding sources and previously established priorities (housing, health and wellness, and the environment). The staff proposal recommended keeping restricted Early Childhood and Youth Programming (ECYP) funds available for scholarships and local programming; staff suggested allocating $15,000 of ECYP funds toward scholarships for recreation programming. The staff presentation outlined two grant types: operational grants (under approximately $7,000) and outcome grants (larger awards for discrete projects).

Council members discussed cycle length and reporting frequency. Several members said they preferred a two‑year cycle so newly elected members could participate in allocations; they directed staff to require reporting back to council during the grant term (at least once per term) and to avoid preset percentage allocations across priority categories to retain flexibility. Council members also discussed outreach to under‑served groups and the importance of funding summer and preschool‑age programming for families in Capitola.

Council Member Jensen and another council member volunteered to serve on a subcommittee that will review applications and recommend awards to the full council. Staff said the NOFA (notice of funding available) will be posted in August with awards recommended to council in October to allow allocations before year end.

Why it matters: The community grants program allocates local and restricted funds to nonprofits and programs serving children, seniors and other priority groups. Council’s decision on cycle length and priorities shapes which organizations can access local funding and how quickly programs can be started or expanded.