Kevin Butner, the cityplanning director, led a public meeting required under the Community Development Block Grant (CDBG) process and described how the program is administered in Alaska by the Department of Commerce, Community and Economic Development. Butner said "With Alaska, it's up to $850,000 per community, per funding round," and explained the three funding buckets: community development (infrastructure), planning, and special economic development (public‑private projects that create or retain jobs for low‑ and moderate‑income residents).

Butner said eligible projects include water and sewer mains, docks and harbor improvements, local service roads, ADA work and certain fire protection equipment (PPE is likely eligible, while large apparatus purchases may depend on state policy). For Kenai, he recommended a proposed project to install new water and wastewater mains and a local service road on Sixth Street north of Redoubt Avenue, which would serve planned low‑income and senior housing developments on city‑donated lots. Butner emphasized the city must hold two public hearings (one before award and another if awarded) and that project readiness matters: "Currently the only 1 we have that is also ready to go is the Sixth Street project, and we think this would take up the entire 8 50."

Council members probed eligibility definitions for low and moderate income (Butner said the figure is community‑specific and tied to household size and census tract data) and asked about the number and timing of rounds (typically one per year; the state opens applications in fall with awards expected in winter/early spring). Butner said matching funds are encouraged (commonly a 25% match) but not mandatory in Alaska and in‑kind match may be acceptable.

Butner encouraged residents and community organizations to propose alternative shovel‑ready projects if available, but reiterated Sixth Street is currently the most competitive and likely candidate to use a substantial portion of the available allocation.