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Council weighs options to expand outside-agency funding; staff outlines competitive, priority-based and outcome-driven models
Summary
Budget Director Lori Green presented three options for outside-agency funding: a general competitive fund, allocations by strategic-priority area, or a longer-term outcome-driven allocation tied to the city strategic plan; several council members signaled support for outcome sourcing while raising concerns about staffing, transparency and budget timing.
City staff presented three options for changing Hampton’s outside-agency funding policy and sought council direction to inform the FY26 budget process. Budget Director Lori Green summarized the options as: Option 1, a general competitive funding source to be awarded during the year; Option 2, allocations set for each strategic priority area; and Option 3, a longer-term, outcome-driven funding allocation tied to a completed strategic plan.
"This slide, bridal, summarizes the pros and cons of the expansion options that we provided," Lori Green said, then listed benefits and tradeoffs of each approach, noting that Options 1 and 2 are short-term approaches while Option 3 is long term and would require additional staff time to monitor newly emergent agencies. She also cautioned that a move to outcome-driven or RFP-style procurement might open eligibility to private-sector providers and would require procurement processes if nonprofits were not the best-suited providers.
Council members asked whether agencies currently on the list must reapply annually and whether opening the process would be treated as a grant or a recurring funding source; staff replied that agencies apply annually to document use of funds and that competitive grants would be more like the ARPA process the city used previously. Mayor Tuck asked whether artificial intelligence could ease staff burdens for monitoring and reporting; Green said AI "is a possibility that we can explore, certainly. We don't currently incorporate AI, but that is certainly a possibility." Several council members, including Vice mayor Gray, said they would welcome a mechanism to bring new agencies into funding consideration and emphasized the need for transparent criteria and a clear budget process; some recommended caps on award amounts or incremental admission of new agencies.
On balance, multiple members signaled openness to an outcome-sourcing approach (Option 3) that would align funding to strategic priorities and outcomes identified in the city’s pending strategic plan. City Manager said staff would bring details and, if council wants to change policy this year, incorporate options into the FY26 budget timeline. No formal policy change was adopted at the meeting.
