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Council directs draft 2026 CDBG priorities: Viejo Camino sidewalk, youth scholarships and ECHO support
Summary
Staff proposed draft recommendations for Atascadero's share of 2026 CDBG funds (county estimate ~$176,000); council gave guidance to prioritize the Viejo Camino sidewalk and ADA improvements, increase youth activity scholarships modestly, and allocate remaining public‑service funds to El Camino Homeless Organization.
At its meeting, the council reviewed draft recommendations for the 2026 Community Development Block Grant (CDBG) allocation and provided staff guidance on funding priorities.
Public Works analyst Ryan Betts told the council the county estimate for Atascadero's 2026 allocation is approximately $176,000. Staff proposed directing most of the public‑facilities/housing category (estimated at about $114,000) to Viejo Camino sidewalk and ADA improvements near Paloma Park and adjacent high‑density housing, including an enhanced mid‑block crosswalk and a bus‑stop pad. Betts explained public‑service awards are limited to 15% of the allocation and administration is capped at 20%.
Wendy Lewis of the El Camino Homeless Organization (ECHO) described ECHO's programs and asked that operational support be included; she said ECHO has expanded family services and reported it has exceeded last year's housing placements ("last year, which was 353; as of today, we've helped 355 individuals"). Terry Banish, community services director, reported the city’s youth activity scholarship spent $13,000 last fiscal year and served about 108 individuals and that the city currently budgets about $14,002 for scholarships.
Council members debated amounts and options (including bid alternatives to allow an enhanced crosswalk if funding permits). Several members said finishing the Viejo Camino sidewalk is a high priority to avoid chasing the project across multiple years. On public services, council guidance coalesced around raising the youth activity scholarship modestly; individual council members proposed figures in the $15,000–18,000 range, and the mayor’s averaging approach produced guidance of approximately $15,000 for scholarships with the remaining public‑services allocation to ECHO.
Staff will return with final recommendations to the county once the exact 2026 allocation is known (expected in the spring). Council also instructed staff to consider bid alternatives to allow the enhanced crosswalk to be included as a base or alternate bid item during procurement.
