Santa Cruz City Council · Tuesday, September 22, 2026, 1:00 PM · Item 11 · Consent Public Hearing

NotableTaxes, fees & budget, Health & social services

Shift up to $100,000 in federal funds from Civic Auditorium to Senior Center work

In plain English

The city gets federal Community Development Block Grant money from the U.S. Department of Housing and Urban Development (HUD) and must say each year how it will be spent. Staff want to move up to $100,000 of 2023 grant money away from the Civic Auditorium accessibility (ADA) project, which is finished and came in under budget, and put it into the Market Street Senior Center renovation, which is short of money after the lowest bid came in. A yes vote would amend the 2023 Annual Action Plan, shift the $100,000 in the FY27 budget, and send the amendment to HUD for approval.

The money would pay for accessibility upgrades, new lighting and electrical work for energy efficiency, mold removal, and plumbing and fixture work at the Market Street Senior Center, used by older residents; staff say the shift also helps the city meet HUD's deadlines for spending grant funds.

Key facts

  • Up to $100,000 would move from the "2023 PY Civic Auditorium ADA Improvements" project to "2023 PY Market St. Senior Center Renovations."
  • The Civic Auditorium project was originally awarded $322,432.00 in the 2023 plan, reduced to $242,432.00 when the plan was amended on March 10, 2026, and has since been completed under budget.
  • The Senior Center project has already received $100,000 in PY 2020 funds, $160,000 in PY 2021 funds and $118,600 in PY 2025 funds, plus the $80,000.00 moved in March 2026, for a total of $458,600.00.
  • Work planned at the senior center includes ADA improvements, lighting and electrical upgrades for energy efficiency, mold remediation, and plumbing and fixture improvements.
  • Staff report no impact to the General Fund; the item is listed under Consent Public Hearing and includes two resolutions plus direction to submit the amendment to HUD.

Reasons to support

  • The senior center has a funding gap after the lowest responsive bidder was chosen, and staff say the transfer would let the project meet its completion deadlines.
  • The Civic Auditorium accessibility project is already complete and finished under budget, so the leftover grant money would otherwise sit unspent.
  • If HUD's timely-spending rules are not met, the report says the city could face more HUD oversight, have to write a HUD-approved plan to spend faster, and ultimately lose grant funding.

Reasons to oppose or change it

  • The money is being taken from a Civic Auditorium accessibility account, so the $100,000 would no longer be available for any further disability-access work at that building.
  • This is the second transfer out of the Civic Auditorium project into the same senior center project, following $80,000 moved in March 2026, which raises questions about how the senior center's costs were estimated before bidding.
  • Because the transfer exceeds the threshold in the city's Citizen Participation Plan, it counts as a substantial change to the adopted 2023 spending plan and is being handled on the consent portion of the agenda rather than as a separate discussion.

Official wording

2023 Program Year Annual Action Plan Amendment – Budget Adjustment (CD) LOCATION: Districts 1 and 4 Motion to: 1) Adopt a resolution amending the 2023 U.S. Department of Housing and Urban Development (HUD) Annual Action Plan for Community Development Block Grant (CDBG) to reduce funding to the “2023 PY Civic Auditorium ADA Improvements” project in an amount up to $100,000 and reallocate the funding to the project “2023 PY Market St. Senior Center Renovations”; 2) Adopt a resolution reallocating 2023-2024 Community Development Block Grant (CDBG) funding from the “2023 PY Civic Auditorium ADA Improvements” project in an amount up to $100,000 and reallocate the funding to the project “2023 PY Market St. Senior Center Renovations” and appropriating the funds in the FY27 budget; and 3) Direct staff to submit the Annual Action Plan (AAP) amendment to HUD for approval.
Official agenda

Summary written by claude-opus-5 from the agenda and the Staff report (agenda packet, pages 361-366). It can contain mistakes. The official documents govern.