Alma council votes to deobligate about $20,600 in CDBG program income for local use

The Alma City Council voted to deobligate roughly $20,600 in Community Development Block Grant (CDBG) program income during its July 15 meeting, a move that would allow the city to keep and reuse the funds for local housing or related projects rather than return them to state or federal coffers.

Lori Ferguson of the Southeast Nebraska Economic Development District (SCEDD) told the council the most recent reports show the city has "just over $20,600" accumulated from earlier owner-occupied rehab programs, and that Department of Economic Development (DED) guidance allows cities to deobligate idle CDBG funds as long as the balance is under $35,000. Ferguson said that, once deobligated, the money becomes the city's to invest or to use as a match for future grant opportunities; if not deobligated, the state could seek to reclaim the funds.

Treasurer Tashia Butterfield confirmed the funds are held in a special savings account and said she would revise the December 30 report if the council chose to deobligate. Council discussion focused on whether to free the funds for local use or leave them obligated and risk state reclamation; no public opposition was recorded in the minutes. On a motion by Councilmember Dyann Collins, seconded by Councilmember Larry Casper, the council voted yes: Chris Tripe, Larry Casper, Dyann Collins and Tom Moulton (4-0). The motion directs staff to proceed with deobligation paperwork and update reporting records.

The decision leaves the city with options: the funds may be added to the general fund, used as matching dollars for future CDBG or similar projects, or held for reinvestment in local owner-occupied rehabilitation. Ferguson noted the state previously advised deobligating smaller idle balances rather than waiting for the state or federal agencies to recapture them.

Votes at a glance — motions and outcomes from the July 15 meeting: the council approved the July 1, 2024 minutes (motion by Dyann Collins, second by Tom Moulton; vote 4-0); approved claims and invoices for July 2–15 totaling $130,020.86 (motion by Chris Tripe, second by Dyann Collins; vote 4-0); accepted the Treasurer’s report as presented (motion by Tom Moulton, second by Dyann Collins; vote 4-0); approved placement of a Caring Cupboard sign (2 ft by 5 ft, cost estimated $800–$1,000, paid by Caring Cupboard) to be placed by the Pelican on Main Street (motion by Dyann Collins, second by Larry Casper; vote 3-1 with Moulton voting no); and adjourned at 6:02 p.m. (motion by Chris Tripe, second by Tom Moulton).

What happens next: Treasurer Butterfield was identified as the person who will revise reporting to reflect the deobligation. The council did not schedule additional action on the funds at the July 15 meeting; future use would depend on staff recommendations and any subsequent grant applications or allocations.

The meeting record was certified by Mayor Hal Haeker and City Clerk Dawn McNulty, and the minutes indicate that required public notice and material availability procedures were followed.