City Development Director, Crystal Surdyk, presents her department’s budget to the city council. P-J photo by Sara Holthouse

Federal funding concerns that could affect the city Development Department have been resolved, for now, meaning the department’s budget is on solid ground.

A concern earlier in the year as to whether or not the Department of Development would be receiving federal funds from the CDBG and HOME programs led to some organizational decisions that needed to be made by the department when it comes to their budget, though there is no longer a concern with the confirmation of the reception of these funds. During Monday’s budget presentation to the City Council, Development Director Crystal Surdyk outlined the department’s budget, including their $450,000 allocation request, $15,000 higher than last year, and the previous concern with CDBG funding.

“The reason for adding all of the columns, we had some indication last year and the current situation with the federal government shutdown, we wanted to make sure we ran all of the scenarios in the event that we did not receive CDBG and HOME funding this year,” Surdyk said. “That would dramatically impact our budget, of course. However, that said, and we already shared this, we have been given that award and we do have a contract. So, assuming that all goes well and nothing is frozen or rescinded we should be good to go.”

A line item for ARPA consultants was discussed, as they are still needed for those programs that funding was allocated for, though Surdyk noted that most of that will wind down in the next few months. She then discussed the ongoing 19A properties projects, which are in progress, and the potential for a mini auction for city owned properties later this year. There are currently nine 19A properties total.

The council then briefly discussed trying to sell the empty lots at Country View Estates, something that Councilman Jeff Russell, R-At Large, said he has been harping on to get done for a few years now as they are doing nothing to help the city by sitting empty.

“I’m going to say it again, we should be selling these things for as little as a dollar with stipulations so we can get people building up there,” Russell said. “We’re sitting on these lots that are doing absolutely nothing for us and we continue to sit on them and I just don’t understand why.”

Surdyk agreed, saying it was about 20 years before any of those lots were sold and in about the last three years three were sold with one in conversation with someone who has inquired. Economic Development Coordinator, Aili Makuch, has been busy working on brochures and other types of marketing for these specific lots. Surdyk noted restrictions on sizes for these properties have also been loosened, and nine of them are left total, including the one that is in conversation with a potential buyer. Two of the lots recently sold are complete with people living in them and the third one is in progress. Along similar lines of advertising these lots better, Surdyk said the department has also acknowledged that they do not do a good enough job advertising.

“That is on our list for 2026 of things to do is to really take a look at our marketing, and that includes social media,” Surdyk said. “We’re working on putting together a social media strategy so there is more engagement, and marketing as far as the brand.”

Income and expenses for the Development Department are pretty straightforward with most items expected to stay in the same range as they have been, Surdyk said, also noting three new employees in key positions that have been brought in in this last year. The department has made cuts where they can, and have been able to save some money in some areas such as process services, because of utilizing services from the Department of State.

Returning to CDBG funding, Surdyk said the department gets their annual allocation, and off the top they get 20% to administer the whole program, and as they begin to administer the program activities they get another 10% on the project total. The 10% does not come in until the project is completed. It is the same way with HOME funding, but for HOME there is only the 10%, not the additional 20%.

Surdyk then highlighted some of the work the DOD has been doing, including code cases and permits issued, generating a little over $48,000 in fees. Surdyk also discussed the amount spent and projects allocated for CDBG and HOME funds, along with other funding and grants that are open and in progress. Surdyk also looked at the ongoing project list, other efforts, and the status of ARPA funding.

“Of course we all know by the end of 2026 all of the funds have to be spent,” Surdyk said. “I would say by mid-year they will all have been spent.”

There was also a brief discussion regarding phones and new computer equipment before Surdyk wrapped up her budget presentation.