2025-030 Grant Pause February 14, 2025 Report No. 2025-030
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Review of Grants Impacted by the Federal Funding Pause
EXECUTIVE SUMMARY:
On January 27, 2025, the Office of Management and Budget(OMB) issued memo M-25-13,
directing all state and local government agencies to pause activities related to the obligation or
disbursement of federal financial assistance. Subsequently, on January 29, 2025, OMB released
memo M-25-14, rescinding the previous directive effective immediately.
Although the pause appears to have been lifted, uncertainty remains regarding which federal
programs and funding streams are in good standing. In response, City staff conducted a
comprehensive review of all potentially impacted grants, including Texas Parks and Wildlife
Department(TPWD) Local Parks grants, Staffing for Adequate Fire and Emergency Response
(SAFER) grants, Community Development Block Grants (CDBG), Home Investment
Partnership Program American Rescue Plan (HOME-ARP), and entitlement Home Investment
Partnership Program (HOME) grants. As well as loan funding through the Water Infrastructure
Finance and Innovation Act(WIFIA) accounting for 49% of forecasted funding for water and
wastewater projects valued at $770 million. Forecasting analyses have been completed to assess
the City's financial risk should federal reimbursements stop for a period of three months.
Following discussions with City management, staff recommends continuing individual service
programs, such as Tenant-Based Rental Assistance (TBRA), while temporarily pausing all
infrastructure projects, including park development and replacement installations, until further
federal guidance is provided.
DISCUSSION:
To assess the potential budgetary impact, staff has prepared a three-month financial forecast for
all essential grant-funded programs and will reassess at the end of the period. The attached list
details worst-case scenario projections, estimating the City's financial exposure if federal
reimbursements are delayed or denied.
The Community Development Department has been able to draw down on federal funding after
the original memo was rescinded. The City's project partners for these programs continue to
operate as normal and provide services directly to individuals. Continuing these projects and
drawing down federal funding ensures the City maintains compliance requirements of those
February 14, 2025 Report No. 2025-030
programs which dictates that activities must be carried out in a timely manner which is measured
by the rate of expenditures of funds.
Community Development will complete any active projects that have already been approved and
will pause accepting new applications.
CONCLUSION:
Given the ongoing uncertainty surrounding federal reimbursements, the City will temporarily
pause on some grant funded infrastructure-related activities until further clarification is provided
by the federal government. This cautious approach will help mitigate financial risks while
ensuring the continuity of essential service programs. The attached spreadsheet reflects the
projected budget impact under various funding scenarios.
Paused Projects:
• TPWD Local Parks 2022—Villages of Carmel Park construction
o Status: This project has a signed agreement with TPWD. The agreement awards
the City $621,562 in federal funding from the National Parks Service with a City
match amount of$621,562 for use in the construction of the park. No federal
funding has been obligated or received to date.
o Phase: 100%Design with approved construction plans. Plans are out to bid for
contractor selection. Evaluation of bids to begin after February 19, 2025.
o Recommend soft pause until further notice. Background work may continue up to
the contract executed with a contractor and then pause at execution until the
federal funding freeze is resolved.
• TPWD Local Parks 2023 —Bowling Green Park renovation
o Status: This project has a signed agreement with TPWD. The agreement awards
the City $598,532 in federal funding from the National Parks Service with a City
match amount of$598,532 for use in the construction of the park. No federal
funding has been obligated or received to date.
o Phase: 100%Design. Civil Engineering Plans in review with Development
Services.
o Recommend soft pause until further notice. Background work may continue up to
the contract executed with a contractor and then pause at execution until the
federal funding freeze is resolved.
• TPWD Local Parks 2024—Briercliff Park renovation
o Status: This project does not have a signed agreement with TPWD. An award has
been announced of$750,000 in federal funding from the National Parks Service
with a City match amount of$750,000 for use in the construction of the park. No
federal funding has been obligated or received to date.
February 14, 2025 Report No. 2025-030
o Phase: 100%Design. Civil Engineering Plans in review with Development
Services.
o Recommend soft pause until further notice. Background work may continue up to
the contract executed with a contractor and then pause at execution until the
federal funding freeze is resolved.
• TPWD Local Parks 2025 —Lily Cantu Inclusive Playground
o Status: This project does not have a signed agreement with TPWD. An award has
been announced of$750,000 in federal funding from the National Parks Service
with a City match amount of$750,000 for use in the construction of the park. No
federal funding has been obligated or received to date.
o Phase: 30-60% Design
o Recommend soft pause until further notice. Background work may continue up to
the contract executed with a contractor and then pause at execution until the
federal funding freeze is resolved. Staff will consult with the finance tam before
proceeding to the next steps in the process.
o This project is also included in the 2023 Bond Program Year 1.
• TPWD Boating Access 2023 —Kayak launch planning at North Lakes and South Lakes
Parks
o Status: This project has a signed agreement with TPWD. The agreement awards
the City$97,500 in federal funding from the Sprot Fish Restoration Act through
the United States Fish and Wildlife Service with a City match amount of$32,500
for use in the planning and design of kayak launches at North Lakes and South
Lakes Parks. No federal funding has been obligated or received to date.
o Phase: 0%Design. A design consultant has been selected,but work has not
started.
o Recommend pause until further notice.
• Transportation Alternatives 2023 —Pecan Creek Trail
o Status: This project has a signed agreement with the Texas Department of
Transportation. The agreement awards the City$10,971,904 in federal funding
from the Federal Highway Administration a City match amount of$2,742,976 for
use in the planning, design, and construction of segments of the Pecan Creek
Trail. No federal funding has been obligated or received to date.
o Phase: 30%Design
o Recommend soft pause until further notice. Background work may continue up to
the contract executed with a contractor and then pause at execution until the
federal funding freeze is resolved.
February 14, 2025 Report No. 2025-030
Paused CDBG Activities:
• Denton Co. Friends of Family—2024/25 Human Services Agreement
o Status: An agreement has been executed with DCFOF for the Domestic Violence
and Sexual Assault Program for$40,000 in Community Development Block
Grant Funds. 100% of the funds have been obligated on a purchase order with the
agency.
o Phase: The City has reimbursed DCFOF $10,154.72 for program expenditures.
• Denton County Friends of the Family Public Facility Project
o Status: An agreement has been executed with DCFOF for$402,327 of
Community Development Block Grant for predevelopment costs for the
construction of the Family Justice Center. 100% of the funds have been obligated
on a purchase order with the agency.
o Phase: The City has reimbursed DCFOF $295,114.87.
Ongoing CDBG and HOME Activities:
All programs listed below are expected to continue as planned.
• Giving Grace—Tenant Based Rental Assistance Agreement
o Status: An agreement has been executed with Giving Grace for tenant-based
Rental Assistance for$856,811 in HOME Investment Partnership Grant(HOME-
ARP) Funds. 100% of the funds have been obligated on a purchase order with the
agency.
o Phase: The City has reimbursed GG $266,855.17 for program expenditures.
• Habitat for Humanity of Denton County—Habitat Village
o Status: Two agreements have been executed with HFH for$561,882.93 in the
HOME Investment Partnership Grant to construct 8 affordable single-family
housing units for the Habitat Village Project. 100% of the funds have been
obligated on a PO with the agency.
o Phase: No funds have been reimbursed to date. HFH is working with
Development Services on building permits to be issued. One permit is in progress,
and construction is expected to begin in three months.
• Habitat for Humanity of Denton County—2024/25 Minor Repair Program
February 14, 2025 Report No. 2025-030
o Status: An agreement has been executed with HFH for$45,946 in Community
Development Block Grant funds for critical repairs for low-income homeowners.
100% of the funds have been obligated on a purchase order with the agency.
o Phase: No funds have been reimbursed. HFH is working on developing program
guidelines.
• Health Services of North Texas—2024/25 Human Services Agreement
o Status: An agreement for the Poverty Primary Care Program with HSNT for
$50,000 in Community Development Block Grant Funds has been executed.
66.67 of the funds have been obligated on a purchase order with the agency.
o Phase: The City has reimbursed DCFOF $12,566.67 for program expenditures.
• Homebuyer Assistance Program—Housing Program
o The program year started October 1, 2024, with $167,246.82 in HOME
Investment Partnership Grant Funds for down payment/closing costs and
$127,495.55 in Community Development Grant Funds for repairs
o Phase: The City has expended $114,62.04 for program expenditures. No current
approved applications.
• Interfaith Ministries Demolition Project—2024/25 Project
o Status: An agreement has been executed with Interfaith Ministries for$35,000 in
Community Development Block Grant Funds to demolish a substandard storage
building on the Dangerous Building List. 100% of the funds have been obligated
on a purchase order with the agency.
o Phase: No funds have been reimbursed. The agency has been working with the
City on a bid packet to submit the project.
• Minor Repair Program—2024/25 Program
o Status: Community Services manages the Minor Repair Program, which assists
low—and moderate-income homeowners with critical home repairs. The program
budget is $340,413 of Community Development Block Grant Funds.
o Phase: The program has spent $64,442.95 and committed$111,354 on approved
applications. It currently has eight applications taken before the federal grant
pause, which is in progress and will cost an estimated$48,500 in repairs.
• Our Daily Bread—Tenant-Based Rental Assistance Agreement
February 14, 2025 Report No. 2025-030
o Status: An agreement has been executed with Our Daily Bread for Tenant-Based
Rental Assistance for$856,811 in HOME Investment Partnership Grant(HOME-
ARP) Funds. 33.34% of the funds have been obligated on a purchase order with
the agency.
o Phase: The City has reimbursed ODB $121,565.22 for program expenditures.
• PARD: Summer Kids Program—2024/25 Human Services Agreement
o Status: An agreement has been executed with Parks and Recreation for a $45,000
Community Development Block Grant scholarship for the 2025 Summer Camp
Program. No funds have been committed.
o Phase: No funds have been expended today until summer 2025.
• Rental Repair Program—Housing Program
o The program year started October 1, 2023, with $100,000 in General Funds and
$100,000 HOME in Community Development Grant Funds.
o Phase: The City has expended $24,500 for program expenditures. No current
approved applications.
• SPAN, Inc. —2024/25 Human Services Agreement
o Status: An agreement has been executed with HSNT for the Senior Nutrition
Program for$25,500 in Community Development Block Grant Funds. 100% of
the funds have been obligated on a purchase order with the agency.
o Phase: The City has reimbursed SPAN $6,375 for program expenditures.
Staff will continue to monitor the situation and provide updates as more information becomes
available. We hope to receive further information from the federal government by March 15,
2025, as stated in the OMB request to federal agencies.
ATTACHMENTS:
1. List of Federally Funded Grants and Programs
STAFF CONTACT:
Jessica Williams, CFO
Jessica.JWilliams@cityofdenton.com
Stephen Gay, General Manager of Water Utilities and Streets Operations
Stephen.Gay@cityofdenton.com
February 14, 2025 Report No. 2025-030
REOUESTOR:
Staff Initiated
STAFF TIME TO COMPLETE REPORT:
2 hours
PARTICIPATING DEPARTMENTS:
Water Utilities, Finance, Treasury, Community Development