Neighborhood services staff gave the council an overview of Community Development Block Grant (CDBG) funds available for the coming fiscal year and presented a draft allocation plan that includes regional project contributions and a proposal to use targeted neighborhood CDBG funds for Cherry Hill Park playground equipment.

David McCullough, neighborhood supervisor, said the city's HUD allocation for FY26 is roughly $600,000 and that significant rollover funding ($247,000) is available after a corrected HUD accounting process. McCullough said federal rules typically limit public-service spending to 15% of the annual allocation and reminded the council that the city partners on regional projects (for example projects in Provo and Lehi) and contributes a portion of its allocation to that regional pool.

Staff outlined proposed allocations: continuing prior-year levels for victim services, homeless services and regional public-service contributions; funding code enforcement and one current Section-108 loan repayment; and keeping critical-home-repair and neighborhood-preservation funding levels similar to the prior year. That package left approximately $218,755 for discretionary CDBG use.

Staff recommended using the targeted CDBG neighborhood funds to replace play equipment at Cherry Hill Park, arguing the park sits adjacent to a HUD-targeted neighborhood pixel and is connected to a Title I elementary school. Staff noted precedent: Orem has used CDBG previously for neighborhood-targeted park improvements when the site meets HUD LMI targeting criteria. McCullough said using CDBG would free other city park funds (LWCF or general fund) and that crews and partners could leverage the CDBG allocation to complete more extensive park betterments.

Council members asked questions about targeting rules and boundaries; staff said recent census changes have tightened LMI targeting areas but that Cherry Hill sits within the required target geography for the proposed use.

Next steps: staff will prepare the draft allocations for the council's formal meeting, publish a 30-day public comment period and return for approval later in the budget cycle.