Cottonwood staff propose 'Community Impact Grant,' separate senior-center funding and cap awards at $25,000

Kirsten Linden, Cottonwood’s Financial Services Director, told the council the city plans to rename its outside-agency program to the Community Impact Grant and reshape how outside funding is distributed, including separating senior-center support into its own service agreement and limiting the community grant pool to $125,000 for FY2027.

Linden said the program began as a $15,000 Building Communities Grant between 2016 and 2019, was consolidated into a scored grant process in 2020, increased to $150,000 in 2022 and later to $180,000, and that last year the city combined lines that temporarily boosted the award total. “My suggestion to change the name is Community Impact Grant, because that’s really what we’re trying to do is make an impact to our community,” Linden said.

Why it matters: Council members said the city should prioritize services for Cottonwood residents and vulnerable populations while ensuring limited municipal funds aren’t used to replace other jurisdictions’ responsibilities. Members repeatedly pressed staff about the senior center’s fundraising and how much of its service goes to residents outside the city.

Staff briefed the council on Meals on Wheels operations and funding pressures. A staff presenter said the program delivers roughly 33,400 meals annually; that the cost per meal is about $18.24 and NACOG reimburses about $10 per meal; and that about 41% of meals (roughly 5,615) go to Cottonwood residents, with other portions going to neighboring communities. The presenter attributed recent service stress to reduced NACOG funding.

Council discussion focused on three main choices: keep the grant pool tied to a percentage of undesignated reserves (the older approach), set a fixed-dollar pool for FY2027 (staff recommended $125,000 if the senior center is separated), or split funds into service agreements for organizations that provide ongoing services. Linden said a flat-dollar approach is administratively simpler and avoids promising projected revenue that may not materialize.

Members generally supported capping individual awards at $25,000 and removing the senior center’s funding from the competitive grant so the center would be covered by a separate service agreement. One council member urged stricter prioritization of feeding, housing and services for vulnerable residents and suggested deprioritizing applicants that already receive substantial outside support. Another asked for a field on applications allowing agencies to indicate recent federal-grant losses so the committee can weigh need.

Legal and procedural notes: Staff told the council that an Arizona Attorney General opinion has prompted the city to move some funding arrangements into formal, Council-approved service agreements so the terms and performance expectations are documented. Staff said such agreements will come back to council for approval.

Next steps: Staff will revise the grant packet and application to reflect the feedback — emphasizing Cottonwood resident impact, capping awards, adding clarifying application fields, and separating the senior center into a service agreement — and aim to release the program materials in May for awards in June and funding starting with the new fiscal year in July.

The council did not take a final vote on the program this evening; members provided direction for staff to return with revised materials for formal consideration.