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Mayor presents FY2026 CDBG annual action plan; staff explains entitlement and drawdown process
Summary
City staff described CDBG entitlement levels and the reimbursement drawdown process; the mayor said FY2026 reflects a 1.59% entitlement increase and urged council to consider the resolution approving the plan after HUD review and grant agreement execution.
City staff reviewed the Community Development Block Grant entitlement figure and the steps needed to execute the FY2026 annual action plan.
"For reference, in program year 2025, the city received an entitlement for $695,929," staff member Alyssa said during the public hearing, and she explained that once the city submits the annual action plan and HUD approves it the city will receive a formal grant agreement and draw down funds as reimbursement through IDIS rather than receiving a lump sum.
Mayor Sherry Alcopello told council the plan posted for 30 days and represented a 1.59% increase overall. "When you look at the totality of it, it's not even 2%," the mayor said, noting rising labor and materials costs mean the increase buys less than in past years. The mayor described common uses for CDBG funds including street paving, housing rehab and homebuyer assistance.
Council reviewed the resolution that will appear on Monday's agenda to approve the FY2026 CDBG action plan; staff asked council to pass the resolution so the city can submit the plan to HUD and begin the reimbursement process once HUD executes the grant agreement.
No final action was recorded at this meeting; council will consider the resolution at the upcoming council session.
