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City manager reports El Camino project progress, HUD connection for $1 million and federal funding updates
Summary
Atascadero’s city manager told the council he connected city staff with HUD to begin drawing down a $1 million congressional appropriation for phase 2 of the El Camino project and reported discussions with FEMA and congressional offices about other community projects and tax‑exempt bond financing.
City Manager Lewis reported to the Atascadero City Council that city staff have made a connection with U.S. Department of Housing and Urban Development staff to begin accessing a $1 million congressional appropriation earmarked for phase 2 of the El Camino project.
Lewis said the appropriation was secured through a congressional project request from Congressman Panetta in February 2024 and that the funding would support El Camino phase 2 work, including arches and street furniture. Lewis said, “Our first priority were was to locate, a million dollars in funding that was appropriated, through a congressional project request from congressman Panetta in 02/2024, and we've made that connection and started the process of being able to draw that money down.”
He also updated the council on other federal matters discussed during a Washington, D.C., trip: FEMA has provided several hundred thousand dollars and an obligation letter related to storm awards, and congressional community project requests by Senators Padilla and Butler for $1.2 million (dispatch center) and by Congressman Panetta for $850,000 (EOC equipment) were not included in the continuing resolution then under consideration in the House. Lewis said staff will continue to work with those offices to seek support in fiscal year 2026.
Lewis emphasized the importance of tax‑exempt municipal bonds for financing local capital projects, calling out that issuing bonds at taxable rates could add roughly $400,000 per year in costs — an amount he said would be equivalent to adding a couple of firefighter positions. He reported ongoing work under the DBE contract to advance replacement of Fire Station 1 and renovations to other public‑safety facilities.
No council action was requested; the remarks were presented as an informational update. Council members asked questions and were offered follow-up information about project timelines and funding contingencies.
