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Mesa council directs staff on FY27–28 HUD and local human‑services funding approach
Summary
Staff proposed reserving portions of federal CDBG, HOME and ESG funds for city‑led projects and continuing competitive human‑services and ABC (utility donation) grants; council asked for census‑tract eligibility maps and district‑focused priorities and agreed staff should return with project proposals in fall.
City staff asked Mesa’s council for direction on how to allocate federal and local human‑services funds for fiscal year 2027–28 at the July 16 study session.
Michelle (staff) outlined recommended options: reserve CDBG and ESG dollars for city‑led priorities, use HOME funds to advance city‑identified affordable‑housing projects, and continue competitive processes for the human‑services and ABC programs. Staff presented estimated FY27–28 funding levels based on current allocations: roughly $546,000 for public services, approximately $2.3 million for non‑public service allocations, an estimated $547,000 for human services, and about $104,000 for ABC (the utility donation program), while noting final federal numbers will be known next spring.
Councilmembers generally supported a more strategic approach that retains some federal funds for city‑led projects while preserving competitive funding for community nonprofits. Councilmember Duff emphasized the need to ensure human‑services needs are met and asked staff to provide maps showing low‑ and moderate‑income census tracts so councilmembers can identify eligible projects in their districts.
Staff said they will work with council members to identify district priorities and the departments will verify eligibility, readiness and compliance. The next steps are to return in early fall with potential projects and then present funding recommendations in spring once eligibility and regs are confirmed.
No formal funding appropriation was made at the study session; council provided direction to staff on approach and outreach.
