TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Isaac Bravo, Management Analyst
SUBJECT:
title
Fiscal Year 2026/27 Allocation of Community Development Block Grant Funding
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RECOMMENDATION
recommendation
Conduct a public hearing to receive community input on the Community Development Block Grant funding applications;
Appropriate funding and create a budget for eligible projects and/or programs/activities;
Adopt Resolution No. 25-4900 entitled: A Resolution of the City Council of the City of Murrieta, California, Authorizing the Allocation of Community Development Block Grant Funds for Fiscal Year 2026/27; and
Authorize the City Manager to execute all related applications and agreements in a form approved by the City Attorney up to the final CDBG allocation by the County of Riverside.
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PRIOR ACTION/VOTE
On December 1, 2020, the City Council adopted Resolution No. 20-4341, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2021/22, and authorizing the City Manager to execute the required agreements with the County of Riverside (Vote: 5-0).
On December 7, 2021, the City Council adopted Resolution No. 20-4341, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2022/23, and authorizing the City Manager to execute the required agreements with the County of Riverside (Vote: 5-0).
On November 15, 2022, the City Council adopted Resolution No. 20-4341, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2023/24, and authorizing the City Manager to execute the required agreements with the County of Riverside (Vote: 5-0).
On November 21, 2023, the City Council adopted Resolution No. 20-4341, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2024/25, and authorizing the City Manager to execute the required agreements with the County of Riverside (Vote: 5-0).
On November 19, 2024, the City Council adopted Resolution No. 24-4793, authorizing the allocation of Community Development Block Grant funds for Fiscal Year 2025/26, and authorizing the City Manager to execute the required agreements with the County of Riverside (Vote: 5-0).
CITY COUNCIL GOAL
Foster and promote an engaged, connected and caring community.
DISCUSSION
The federal Community Development Block Grant (CDBG) program provides annual grants to cities for a broad range of activities that preserve and develop viable urban communities. The goals of the program are to provide decent, safe, and sanitary housing, ensure suitable living environments, and expand economic opportunities. To qualify for public service funding, eligible projects must predominantly benefit low- and moderate-income persons, eliminate slums or blight, or meet a need with particular urgency. The program’s principal beneficiaries are low-to-moderate-income persons, older adults, abused children, people experiencing homelessness, and people with severe disabilities. The City of Murrieta (City) can use CDBG funds to offset General Fund expenditures that meet the program criteria. Utilizing CDBG funds for these programs allows the City to allocate its General Funds for other purposes.
As a participating City in the County of Riverside Urban County CDBG program, each year, the County advises the City of the anticipated Fiscal Year (FY) allocation amount. For the FY 2026/27 program year, per the County’s notification, the City anticipates receiving an allocation of approximately $596,700. Under the City’s current agreement with the County, the County receives 13% of the City’s total allocation for its share of administrative expenses, associated with managing the program, and the City may utilize up to seven percent (7%) of the City’s allocation for its administrative-related expenses. Therefore, the County will retain $77,571, and the City will allocate seven percent (7%) or $41,769 to an administrative expense category to recover costs incurred by the City Manager’s Office for administering the program.
The remaining balance of $477,360 will be allocated to projects and program awards. Per CDBG guidelines, the City can allocate up to 15% of the total allocation of funding for “Public Service Projects,” which includes applications from non-profit organizations seeking funding to support their programs, if eligible. For FY 2026/27, the maximum allocation available for Public Service Projects is $89,505. This amount is three percent (3%) more than the prior year.
At the start of October 2025, staff opened the CDBG application period, which was advertised on the City’s website and through the regional newspaper. The City received applications from eight (8) organizations; the total requested amount for all organizations was $92,500. As set forth by the County, Public Service Project allocations must be funded for a minimum of $5,000 due to the administrative impact of participating in the program.
The table below lists the organizations and funding amounts allocated by the City Council in November 2024, for the current year (FY 2025/26). The timing of the process is such that eligible expenditures by non-profits can be reimbursed back to July 1, of that funding cycle. The City is in the process of entering into sub-recipient agreements with the organizations selected for FY 2025/26 funding and awaiting authorization from the County to proceed. Therefore, no reimbursement requests have been submitted to date for the FY 2025/26 funding cycle.
|
FY 2025/26 CDBG Funding Awarded |
|
Organization |
Funding Amount |
|
Assistance League of Temecula Valley |
$15,275 |
|
Boys and Girls Club of Southwest County |
$8,000 |
|
Cultivating Inclusion |
$8,000 |
|
Habitat for Humanity Inland Valley |
$8,000 |
|
Mission of Hope/Rancho Damacitas |
$8,000 |
|
Oak Grove Center |
$8,000 |
|
Safe Family Justice Centers |
$8,000 |
|
St. Martha’s Food Pantry |
$15,275 |
|
Voices for Children |
$8,000 |
|
Total: |
$86,550 |
City Review Process
For the FY 2026/27 program year, staff reviewed the community request applications using the competitive evaluation criteria included in the CDBG Application Review Process, including alignment with funding priorities (food pantries, women’s programs, domestic violence programs, and youth development programs); organization ability/capacity; and financial capacity/stability. Staff analyzed the application scores and organized CDBG applications from highest-ranked to lowest. The following is a summary of the eight (8) public service applications received and funding recommendations:
|
FY2026/27 Public Service Applications |
|
Organization |
Application Score |
City Council Priority |
Requested Amount |
Funding Recommendation |
|
Boys and Girls Club |
92 |
Child and Youth Development |
$15,000 |
$14,505 |
|
Voices for Children |
92 |
Youth Program |
$10,000 |
$10,000 |
|
St. Martha’s Food Pantry |
88 |
Community Food Pantries |
$15,000 |
$15,000 |
|
SAFE Family Justice Centers |
87 |
Domestic Violence Programs |
$10,000 |
$10,000 |
|
Cultivating Inclusion, Inc. |
82 |
Adult Program |
$10,000 |
$10,000 |
|
Western Eagle Foundation |
81 |
Community Food Pantries |
$10,000 |
$10,000 |
|
Mission Hope |
79 |
Adult Program/ Domestic Violence Program |
$10,000 |
$10,000 |
|
Habitat for Humanity |
79 |
Senior Citizen Assistance |
$12,500 |
$10,000 |
|
Total: |
$92,500 |
$89,505 |
Staff is presenting the funding recommendation (right column in the table above) to the City Council for consideration. After accepting public comments on the proposals and reviewing staff’s recommendations, the City Council may accept the recommendation as submitted, reject it, or amend it, at its discretion. This recommendation covers only Public Service Project component of the CDBG program.
The City has traditionally reviewed and scored applications in partnership with its consultant. This year, Riverside County CDBG administrative staff requested to be directly involved in the scoring and ranking process. As a result, scores were averaged between the City, its consultant, and Riverside County.
Applicants were scored on a variety of criteria, including organizational ability, financial capacity, implementation of activity, and benefits directly to the City of Murrieta. The individual rankings of City staff, the City’s consultant, and Riverside County were combined and averaged and presented in the table above. No applicant received the maximum score of 100, but all scored above 70, which is a threshold City staff considers acceptable for funding recommendations. Notably, Western Eagle Foundation did not apply during last year’s CDBG cycle but has received CDBG funding from the City in the past.
All applicants are recommended to receive CDBG funding this cycle. Including Habitat for Humanity. Although senior assistance programs are not specifically listed as a City Council CDBG funding priority, the City has received senior resident requests for help with minor exterior home repairs. Thanks to previous CDBG funding allocated to Habitat for Humanity, the City has been able to refer seniors to their services for assistance.
Finally, it is recommended that the remaining balance of the estimated funds, $387,855, be allocated to the City’s Pedestrian Safety Enhancement Project. The capital improvement project will include the reconstruction of 18 to 20 noncompliant pedestrian ramps throughout the City to meet the requirements of the Americans with Disabilities Act (ADA). Non-compliant curb ramps or crosswalks are barriers for pedestrians with disabilities. CDBG funding is eligible for use on projects that bring these facilities into compliance. Pedestrian ramp upgrades are prioritized based on the needs in the community and coordinated with upcoming pavement rehabilitation projects throughout the City.
FISCAL IMPACT
Approval of this item will result in the expenditure of approximately $596,700 in Community Development Block Grant funds, including $477,360 in program awards, $77,571 in the County administrative expenses, and $41,769 in City administrative expenses. Budget appropriations will be necessary to establish the revenue and expenditure budgets for FY 2026/27. Should the final award amount by the County be more or less than the anticipated $596,700, the City Manager is authorized to increase or reduce the individual allocations on a pro-rata basis, in accordance with the final allocation received by the City.
ATTACHMENTS
1. Resolution No. 25-4900