Planning and downtown staff updated council Tuesday on the status of the facade grant program and asked council to consider a short‑term appropriation to meet immediate demand. Staff said the program offers matching grants of up to $5,000 — or up to $10,000 in high‑impact streetscape areas — to help property owners improve building exteriors and activate the streetscape.

"So this year, we allocated $50,000; that entire amount, paid out and encumbered by the November 1," staff said. Increased interest following streetscape improvements, coupled with high‑impact applications that qualify for the $10,000 ceiling, exhausted the budget. Staff said three applications already in hand would require roughly $25,000 in additional funding to be fully covered.

Council members asked where additional funds would come from; staff said any increase would be a budget amendment transferring money from the general fund to the Municipal Service District (MSD) and noted the city traditionally budgets $50,000 yearly for the program. Staff recommended council decide the level of one‑time supplemental funding (examples discussed included $25,000 plus a small buffer of about $10,000) and then communicate availability to downtown applicants.

A council member suggested staff consider long‑term sustainability and whether the MSD could become more self‑sustaining; staff replied that the MSD currently receives a substantial general fund subsidy and that next year’s budget discussion should consider future allocations.

Council did not take a final vote at the work session; staff said the matter would be on the Thursday agenda for formal action.