Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Cdbg topic
No spam. Unsubscribe anytime.
Arcata approves mid-year budget adjustments and authorizes CDBG applications after staff warns of stricter federal readiness rules
Summary
Arcata Council approved mid-year budget revisions and authorized three 2025 CDBG applications; staff said stricter CDBG readiness rules (completed NEPA and bid-ready plans) made some previously proposed projects ineligible for this cycle and favored water-meter work if threshold requirements are met.
Arcata’s City Council on March 18 authorized submission of three 2025 Community Development Block Grant (CDBG) applications and adopted mid-year budget revisions after staff described both project-readiness requirements and timing-related adjustments to capital projects.
Community Development Director David Loya told the council that the 2025 CDBG round requires higher readiness for construction projects: environmental review (NEPA) must be complete and bid-ready plans and specifications must be prepared. Because of those thresholds the Grove housing project is not sufficiently ready to qualify for the current application round, while a water-meter construction project appears more likely to meet eligibility if required documentation is finalized.
Loya asked the council to adopt two resolutions to authorize the applications and to designate a certifying officer for NEPA review. Council approved the measures.
Assistant City Manager Tabitha Miller presented the mid-year budget review for fiscal 2025–26 and described anticipated timing changes. The packet and the staff presentation noted approximately $2.6 million in roll-forward purchase orders and capital timing adjustments, an estimated $665,000 in new recommended projects funded from a mix of the general fund and smaller special funds, and line items that included emergency repair at 11th and B Street, additional bike-share stations with 10 e-bikes, a facilities master plan, Foodworks kitchen floor replacements, roughly $113,000 for emergency EOC supplies and response readiness, $32,000 for cybersecurity, and $20,000 in fire-related expenses.
Miller said timing shifts on capital projects reduce near-term revenue and expense amounts but are intended to align expenditures with project readiness; staff noted one prior council authorization to use fund balance to cover a gap for a Reconnecting Arcata project. Council discussed the conservative budgeting approach and thanked staff for clear explanations of the impact on the general fund and capital program.
Both the CDBG authorization and the mid-year budget revision were adopted by council vote during the meeting. Staff noted that some grant-funded projects not starting this fiscal year will reduce corresponding grant-revenue recognition until project activity resumes.
Council members emphasized the importance of completing already-approved projects before adding new ones and requested continued staff diligence during the upcoming FY2026–27 budget cycle.
The council adopted the budget revisions and authorized staff to submit the CDBG applications and to complete the administrative steps required for NEPA and grant submission.
