AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: ALISON DOBAY
ACTING DEPUTY DIRECTOR OF PARKS, RECREATION AND LIBRARY SERVICES
SUBJECT: PUBLIC HEARING - RESOLUTION APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT REVOLVING GRANT FUND GRANT APPLICATION AND BUDGET FOR FISCAL YEAR 2025-2026 AND 2026-2027
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Summary:
The City Council will conduct a Public Hearing to consider the advanced use of Fiscal Year 2026-2029 Community Development Block Grant (CDBG) funds through a Los Angeles County Development Authority Revolving Grant Fund. Staff proposes to utilize the advanced funding from future fiscal years, totaling $150,000, for the Americans with Disabilities Act (ADA) Street and Sidewalk Improvements Project. Staff’s recommendation would increase the total CDBG funding for the 2025-2026 ADA Street and Sidewalk Project to $210,482. The CDBG allocation for the Senior Food Distribution program would continue to be funded at $10,000 per year through 2026-2029 and is not impacted by the advance grant funding request. The preliminary CDBG funding estimate for the 2026-2027 Fiscal Year allocation is approximately $63,901. Staff further recommends that the City Council authorize $10,000 of the forthcoming allocation for the senior food distribution programs annually.
Form of Notice: Notice was published in the Signal Tribune newspaper per Government Code Section 65091(a)(4) and posted in accordance with the Signal Hill Municipal Code Section 1.08.010 on Friday January 16, 2026.
Strategic Plan Goal(s):
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
1. Adopt the following resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, APPROVING THE CITY'S PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT REVOLVING FUND APPLICATION AND PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMS FOR FISCAL YEARS 2025-2026 AND 2026-2027
2. Authorize the City Manager to apply for the Los Angeles County Development Authority (LACDA) Community Development Block Grant Program for the Revolving Fund Grant in the amount of $150,000, and subsequently authorize the City Manager to enter into an agreement with LACDA Community Development Block Grant Program for the Revolving Fund Grant.
3. Approve a budget adjustment for Fiscal Year 2025-26 budget to include the proposed CDBG Revolving Grant in the amount of $150,000.
4. Approve the use of the City’s CDBG Unallocated Fund Balance of $857 to be used for the Fiscal Year 2025-2026 ADA Street and Sidewalk Project.
5. Approve the FY 2026-27 CDBG Allocation and the proposed expenditures.
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Fiscal Impact:
The proposed Revolving Grant funding for Community Development Block Grant (CDBG) projects and programs is an additional $150,000 in Fiscal Year (FY) 2025-26. Staff would include the Revolving Grant funding for FY 2025-26 in the Community Development Block Grant account (Fund 201). Additionally, the preliminary FY 2026-27 allocation is approximately $63,901. The Community Development Block Grant Revolving Fund funding is proposed to be allocated as follows:
|
Funding |
Term |
Budget |
|
FY 2025-26 Revolving Grant Advancement Account Number: 201-11-4310 |
February 1, 2027 to June 30, 2029 |
$150,000 |
|
Proposed CDBG Expenditures |
|
|
|
FY 2025-26 ADA Street and Sidewalk Improvements Project FY 25-26 Budget: $59,625 FY 25-26 Revolving Grant: $150,000 Unallocated Funds: $857 Account Number: 201-99-7939 |
February 1, 2026, to June 30, 2027 |
$210,482 |
|
FY 2025-26 Public Service Project: Food Distribution Program |
July 1, 2025, to June 20, 2026 |
$10,521 |
|
Total of Proposed FY 2025-26 CDBG Projects |
|
$221,003 |
|
FY 2026-27 Public Service Project: Food Distribution Program Senior Food Distribution Program Account Number: 201-40-5723 |
July 1, 2026, to June 30, 2027 |
$10,000 |
|
FY 2026-27 First Year Repayment of Revolving Grant Fund $53,901 |
July 1, 2026, to June 30, 2027 |
|
|
Grand Total of CDBG Funding |
|
$231,003 |
Background:
The California Department of Housing and Urban Development (HUD) regulations allow a variety of activities that meet documented National Objectives. The primary objective of the Federal CDBG Program is the development of viable urban communities, including providing decent housing, promoting a suitable living environment, and expanding economic opportunity, principally for persons of low-to moderate-incomes. Local CDBG programs must give maximum priority to benefiting low-to moderate-income households, special needs groups such as senior citizens or the differently abled, preventing or eliminating slum or blight conditions, and making public facilities accessible for people with disabilities in compliance with ADA. Each year, the City Council conducts a public hearing to allocate funds for the following fiscal year. Staff is providing for the City Council’s information, highlights of prior fiscal year CDBG allocations:
• In FY 2020-21, LACDA authorized the City to utilize all CDBG funding toward public service projects. On July 14, 2020, in response to community needs related to the COVID-19 pandemic, the City Council re-allocated the City’s CDBG funding for FY 2020-21 and approved supplemental Coronavirus Aid, Relieve, and Economic Security Act Funds (CDBG-CV) Funding. The City elected to use the funding to provide weekly supplemental groceries to a total of 44 low-income senior households and 38 low-income families.
• In FY 2021-22, the City provided supplemental groceries to low-income seniors every other week and approved the Signal Hill Park Open Space project, which involved demolishing two structures on East 21st Street. The City Council subsequently approved the use of funds from the General Fund for the Family Food Distribution program.
• In FY 2022-23, the City provided supplemental groceries to 35 low-income seniors and approved the ADA Rubberized Playground Surfacing at Discovery Well Park.
• In FY 2023-24, the City continued to provide supplemental groceries to 31 low- income seniors and approved the ADA Street and Sidewalk Improvements throughout the City.
• In FY 2024-25, the City continued to provide supplemental groceries to 32 low- income seniors and approved the ADA Street and Sidewalk Improvements throughout the City.
• In FY 2025-26, the City continued to provide supplemental groceries to 38 low- income seniors and approved the ADA Street and Sidewalk Improvements throughout the City. In December 2025, staff learned that LACDA reissued its Revolving Grant Fund program, which is available to participating cities in good standing and allows cities to request an advance of anticipated future CDBG fund allocations to advance current and future projects. Staff proposes to request $150,000 to be included in the FY 2025-26 budget for the ADA Street and Sidewalk Improvements Project.
Analysis:
LACDA notified the City that the FY 2026-27 CDBG allocation will be approximately $63,901, a decrease of $6,245 from FY 2025-26. In December 2025, LACDA informed the City that the FY 2026-27 maximum percentage of funds allowed to be allocated toward a public service project would be 15%. The remaining funds, 85% of the total allocation, may be used for non-public service projects, typically capital improvement projects. In addition to the expected funding, there is a fund balance of $857 that LACDA will allow the City to carry over. Staff recommends carrying over these funds and utilizing them for ongoing work related to the ADA Street and Sidewalk Improvement Project.
Revolving Grant Fund and Non-Public Service Projects: ADA Street and Sidewalk Improvements
In December 2024, LACDA issued the GMU Bulletin 24-0021, which informed participating cities that the Revolving Grant Fund Guidelines were available (Attachment A). The purpose of the Revolving Grant Fund is to allow participating cities in good standing the opportunity to request an advance of future CDBG fund allocations to implement and complete eligible CDBG projects.
Staff reviewed the feasibility of the grant funding and determined that it would be beneficial for the City to submit the grant request to LACDA and propose to request $150,000 through the Revolving Grant Fund (Attachment B). Public Works staff planned to use the FY 2025-26 CDBG Allocation to construct three ADA ramps throughout residential neighborhoods east of Cherry on 19th Street and 20th Street and the identified locations are listed on the Department’s Streets and Sidewalk Inventory.
Staff would add the proposed Revolving Grant Funds to the FY 2025-26 ADA Street and Sidewalk Improvements Project to allow for eight new ADA ramps and sidewalk improvements to be constructed as part of the FY 2025-26 ADA Ramp Project. In addition to the grant funding, staff proposes to use the City’s CDBG Unallocated Fund Balance of $857 to increase the total ADA Street and Sidewalk Improvement project to $210,482. The Revolving Grant Fund advance will be reduced from future allocations, beginning in Fiscal Year 2026-2027. Reductions from future CDBG allocations will continue over the next three fiscal years until the $150,000 advance is reimbursed. Based on the foregoing, there is no impact on the City’s General Fund.
Public Service Project: Food Distribution Program
Historically, the City has used CDBG funding to cover the cost of the Food Distribution Program. Based on HUD guidelines, only low-income and extremely low-income households are approved for the Food Distribution Program. The program participants are required to reapply for the Food Distribution Program with the City through a process of self-certification of household size and income each fiscal year.
As of December 31, 2025, a total of 38 senior households have participated in the Food Distribution Program this fiscal year. The FY 2026-27 allocation is estimated to cover the entire program costs for the year. However, due to the increased cost of groceries, staff estimates that the proposed CDBG funds for FY 2026-27 would only provide supplemental groceries to the existing 38 participants through December 2026. In anticipation of this shortfall, staff have contacted multiple organizations to secure grant funding to supplement the CDBG allocation for March through June 2027.
Conclusion
Staff recommends the City Council approve a resolution to authorize staff to apply for the Revolving Grant Fund and utilize the unallocated fund balance to increase the FY 2025-26 ADA Street and Sidewalk Improvements Project to a total of $210,482; allocate $10,000 of the FY 2026-27 CDBG Allocation for the Senior Food Distribution Program; and use the Revolving Grant Fund of $53,901 of the FY 2026-27 allocation during FY 2025-26. To implement these actions, staff prepared resolutions authorizing the use of funding and make certain corresponding budget adjustments (Attachments C, D and E).
Staff anticipates issuing a Request for Bids for the ADA Street and Sidewalk Improvements in Fiscal Year 2025-26 and will present a staff report to the City Council, at a future date, for the award of a contract to the lowest responsible bidder.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachment(s):
A. LACDA CDBG Bulletin and Revolving Grant Fund Guidelines
B. CDBG Revolving Grant Fund Application
C. CDBG Resolution 2026-27
D. Budget Adjustment Resolution - CDBG FY25-26
E. Summary of Budget Adjustments