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Salinas council delays action on shelter contracts as staff detail funding cliff for homeless services
Summary
City staff told the council May 27 that one‑time grant funding has supported most homeless programs but will be exhausted by FY 2026–27; councilors directed staff to return with more detail and the consent items tied to shelter contracts were deferred pending that report.
City staff gave the Salinas City Council a wide‑ranging update on May 27 on homeless response programs that rely heavily on one‑time grant funding and face a funding cliff in coming years.
Assistant City Manager Lisa Murphy and Homeless Services Manager Keishla Lopez told the council the city and partners have received more than $76 million in grants since 2020 and added roughly $8.4 million from the general fund to support emergency shelter, outreach, rapid re‑housing, motel interventions and acquisition/operations for temporary housing. Staff said about $57.6 million has been spent to date and that approximately $18 million in remaining grant commitments will be expended by the end of fiscal year 2026–27, putting many ongoing programs at risk.
The presentation listed program outcomes through 2024: the Chinatown Navigation Center has served roughly 753 individuals and placed 37 in permanent supportive housing; the street outreach and response team (SORT) served about 742 people and placed 97 into permanent supportive housing or other shelter; the Salinas Share Center (family shelter, operated by Community Human Services under a county partnership) served 690 people and housed 46; downtown Streets Team served 223 individuals and housed 77. Staff described additional housing acquisitions—Salinas Inn (Fairview) and other Homekey conversions—where the city has committed acquisition or first‑year operating funds and where operations and regulatory agreements still need to be finalized.
Staff outlined the fiscal picture for each program and the timing of grant expirations. Key shortfalls presented to the council: the combined cost to continue the current slate of emergency shelter, outreach and related programs in FY 2025–26 is roughly $6.5 million; the city’s share of the Share Center annual cost was presented as about $1.85 million for FY 2025–26; the Chinatown Navigation Center has funding to continue only through October 2025 without a committed funding source thereafter.
Because two consent‑calendar contract amendments (items tied to the Share Center and the Chinatown Navigation Center) were time‑sensitive, councilmembers asked for more information before approving extensions. Council voted to defer those consent items until after the homeless response update and to direct staff to return with additional performance data and proposals for sustaining core programs. The motion to delay the consent items passed on a roll call vote (yes: Barajas, Barrera, De La Rosa, Salazar, Sandoval, Mayor Donahue; no: 0; abstain: 0).
County staff attended and told the council the county is tracking similar funding risks and said the county and city have been meeting weekly about coordination. County Homeless Services Director Roxanne Wilson told the council federal and state funding volatility puts the entire regional homeless system at risk and urged continued city–county collaboration.
Councilmembers and many public speakers urged continued funding for the Share Center and the Chinatown Navigation Center, as well as stronger oversight, grievance processes and measurable program outcomes. Several residents and Navigation Center clients gave personal testimony in support of continued shelter funding and described services that helped them stabilize.
Ending: Council directed staff to prepare a detailed performance and funding plan—covering the Share Center, Chinatown Navigation Center, SORT, downtown Streets Team, mobile crisis team and acquired housing projects—and return with options during the budget process; in the interim the council delayed action on the two time‑sensitive contract amendments until it had the fuller update.
