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Council debates low-barrier shelter funding after staff reports mixed outcomes and high per-person estimates
Summary
Council members questioned the cost-effectiveness and outcomes of a city-funded low-barrier shelter after staff presented utilization and exit rates; the Homeless Services director updated participation figures and staff said further analysis will be provided at goal setting.
Council members pressed staff for more data on the city’s low-barrier shelter after the budget presentation showed utilization and exit numbers that prompted concern about long-term funding.
Freddy Martinez said the FY26 budget includes $4.8 million to lease and operate a low-barrier shelter run by Sam’s Ministries; the FY26 goal was to serve 450 unduplicated clients with a 55% positive-exit rate. Through January the presentation reported 110 clients served and 21 exits to stable housing.
Councilman Mark White highlighted the cost-per-person implications of current throughput: "We've done 110 people in the first quarter. So that would be 440 people for the year. If the numbers continue to track that equates to about $109,000 per person," he said, contrasting annual per-person costs with outcomes and urging a review of long-term funding choices.
Council members and staff clarified that additional counting and program-tracking adjustments were underway. Mark (director of Homeless Services & Strategy) corrected an earlier figure and said 183 people have been served at the shelter to date and described STRAC and hospital partnerships that identify unhoused individuals who then move into the shelter, freeing hospital beds.
City staff said Sam’s Ministries operates the shelter and that part of operations are paid by STRAC and hospital partners; Eric (city staff) said staff are developing a business plan and outcome measures to present at the May goal-setting session. Several council members requested deeper data on exit pathways, how long people remain sheltered, why beds remain vacant and whether alternative investments could produce better outcomes.
Why it matters: council members noted homelessness is a persistent local problem and asked whether ARPA-funded pilot approaches and current general-fund spending represent the most effective use of city resources. Staff said the shelter was initially ARPA-funded and is currently supported by the general fund, with further recommendations and a business plan to come.
What’s next: staff will dig into utilization, exit metrics, vacancies and long-term operating alternatives and present initial proposals during the May goal-setting process and subsequent budget sessions.
Attribution: facts and quotes are drawn from the City Council B-session presentation and council discussion on Feb. 18, including remarks by Freddy Martinez, Councilman Mark White and the Homeless Services & Strategy director (Mark).
