The Evansville City Finance Committee on Tuesday reviewed the mayor’s recommended allocations of federal CDBG, ESG and HOME funds and heard presentations from more than two dozen nonprofit service providers seeking funding or small adjustments.

Committee members and city staff framed the discussion around reduced federal allocations, timeliness requirements from the U.S. Department of Housing and Urban Development (HUD) and the need to prioritize “shovel‑ready” affordable housing projects.

Echo Housing and Community Development asked the committee to reinstate $25,000 for the final evaluation year of the city’s Promise Zone designation. Eric Tilkemeyer, chief impact and finance officer at Echo Housing, told the committee the Promise Zone evaluation is in its final year and that the organization has contracted with evaluator Dan Diehl for the past nine years. “I would ask that we reinstate the $25,000 for the final year of evaluation for the promise zone,” Tilkemeyer said, adding that the last report showed “over $870,000,000 of investment in the promise zone.”

FEED Evansville requested an additional $5,000 above the mayor’s recommendation so the group can hire a part‑time kitchen coordinator at the C.K. Newsome Community Kitchen. Lisa Vaughn, acting executive director for FEED Evansville, said the group applied for roughly $103,000 in total project support; the mayor recommended $15,000 and FEED asked the committee to increase that to $20,000 to cover most of a $25,000 part‑time coordinator salary. “We are respectfully asking you to consider an additional $5,000,” Vaughn said.

Reach Out Evansville described a larger initial request and accepted a reduced allocation while flagging the cut. Tom Muspruger, executive director of Reach Out Evansville, and Farajii Garth, the organization’s reentry director, said the group originally sought about $78,600 but was recommended $25,000; they said they would proceed with the smaller award but plan to request more funding in the future.

City staff walked the committee through programmatic details and recommended adjustments to HOME CHDO operating allocations. Colby, a Department of Metropolitan Development staff member, explained the mayor’s recommendation to lower three CHDO (Community Housing Development Organization) operating allocations and move $15,000 into the HOME “shovel‑ready” pot. “What was turned in was 25, and so they were allocating what was actually submitted on that proposal,” Colby said when explaining how some new agencies were guided to submit lower requests. Staff said the change would reduce each CHDO operating allocation to $5,000 and add $15,000 to the HOME shovel‑ready pot, increasing that fund to roughly the mid‑$560,000 range depending on final accounting.

Staff also said the city’s HUD allocations fell from last year: CDBG was cut by about $81,000, HOME by about $56,000 and ESG by about $5,000. Staff warned that agencies holding substantial prior‑year balances are less likely to receive new allocations until those funds are spent, because HUD requires entitlement communities to maintain a timeliness test (staff cited a 1.5‑year benchmark).

Committee members and staff described monitoring and compliance work intended to avoid HUD timeliness penalties and to ensure funds are spent. Staff said financial ordinances will be required to move any shovel‑ready HOME funds to named projects, and that such moves would return to council for authorization.

The committee received brief presentations from shelters, food providers, youth programs and housing agencies that largely accepted the mayor’s recommended awards. Organizations represented included Albion Fellows Bacon Center, Evansville Rescue Mission Day Shelter, Ozanam Family Shelter, United Caring Services, the YWCA, Arc Crisis Children’s Center, Tri‑State Food Bank, Memorial CDC and others. Several presenters thanked the committee for continued support and described how the recommended allocations would be used (operating costs, rapid rehousing, rental assistance, food distribution, youth programming and shelter operations).

The finance committee concluded the hearing after questions and follow‑up clarification of staff recommendations and monitoring procedures; staff said allocation details and any financial ordinances to move funds will appear again for council approval.