City staff presented the City of Gallatin’s five-year consolidated plan and the FY2025 Annual Action Plan for Community Development Block Grant (CDBG) entitlement status. The plan establishes the city’s approach to allocate a direct federal allocation estimated at $330,736 for the first year, with an anticipated five-year total near $1.65 million if funding remains steady.

Planning staff proposed focusing the majority of the allocation on public facilities and infrastructure investments that would serve low- and moderate-income census tracts (sidewalks and related public improvements were examples provided). The CDBG rules limit public services to 15% of annual funding; staff proposed including a public-services line for future program grants but did not fund public services in year one by default.

During public comment and committee discussion, multiple speakers urged the council to prioritize services for people experiencing homelessness — including meals and shelter options. Councilman Reyes moved (seconded) to ensure the 15% statutory public-services allocation be directed to nonprofit meal programs and to use additional funds, where feasible, to identify property or partner with nonprofits for shelter or acquisition in future years. After discussion about administrative capacity and federal compliance timelines, the committee voted to forward the consolidated plan and the citizen-participation plan to council for final action and to direct staff to administratively set the public-services 15% toward meals for people experiencing homelessness while proceeding with the public-facilities investments.

City staff told the committee that HUD requires adoption and submission by a firm deadline (materials due the week after the meeting) and that CDBG-funded public facilities can include sidewalks, water and sewer projects and park improvements in low/mod neighborhoods. Council asked staff to develop a simple grant program and procedures so local nonprofits can apply for public-services funds; staff said they would return to council with program guidelines.

Why it matters: CDBG entitlement status gives Gallatin a direct federal funding stream with flexibility to address local needs. The committee’s direction to prioritize meals for people experiencing homelessness responds to public testimony and creates an immediate operational requirement for staff to design an eligible nonprofit grant program under HUD rules.

What happens next: Staff will finalize consolidated-plan documents and the citizen-participation plan for formal adoption by the full council, set initial program rules for awarding the 15% public-services set-aside (meals), and continue to develop public-facilities scope (sidewalks and related work) for the first year.