By Sara Beth Williams–
On June 11, the City Council unanimously agreed to move from automatically distributing a fixed annual amount to neighborhood areas each year, to an application-based funding distribution method.
After reviewing the biennial budget in May, the Finance Committee, which consists of Mayor Jayna Karpinski-Costa and Citrus Heights City Councilmember Tim Schaefer, recommended revising the way funds are allocated to neighborhood areas each year, suggesting that neighborhood areas submit an annual application to apply for funding for the year in lieu of receiving the standard $500.
The Residents’ Empowerment Association of Citrus Heights, or REACH, receives $5,000 annually instead of $500.
The process now requires all neighborhood area associations, as well as REACH, to apply for funding annually, consistent with other grant administrations that the city requires for nonprofits who apply for grants.
Karpinski-Costa and Schaefer elaborated on the recommendation during the City Council meeting, saying that $500 isn’t always enough money for neighborhood areas.
“If a neighborhood has a greater than $500 need, I wanted to give them an opportunity to apply for a grant,” Schaefer said.
Data shows that neighborhood areas have been able to apply for grants available through various city grant programs for larger projects or traveling while also receiving the annual stipend. According to the city, in 2024, Neighborhood Area 6, which recently combined with 2, along with areas 4, 5, and 10 applied for grant funding and received a total of just over $8,500 that went toward new signage toppers and travel expenses to the Neighborhood USA conference. In 2023, Neighborhood Areas 3 and 10 applied for grant funding and received almost $4,000.
In 2025, Neighborhood Area 4 applied again and received an $1,800 grant in order to send another member of the board to the Neighborhoods USA conference.
In an email to The Sentinel, Neighborhood Area 3 President Glenda Green said she has had “numerous positive communications” with city representatives and City Council to date, but said she was “blindsided” by the council’s decision.
“It is precisely because of that history that I felt so blindsided regarding this recent funding change—which we weren’t informed of ahead of time, only after the fact,” Green said, adding that she is concerned about the “use it or lose it” provision in place for any unspent funds.
“By spending less in some years, the neighborhood areas were previously able to build modest savings that could then be used to fund projects in the future for lasting community impact. The claw back provision now makes it impossible to plan and budget for these larger events via fiscal responsibility,” Green said.
New Area 5 President Mike Hazlip said in an emailed statement that it’s too soon to tell how the change will impact his neighborhood area but expects there to be a “potential increase in time commitment” to develop and submit requests for funding each year.
Hazlip said there have been discussions between REACH representatives about coming together to discuss the changes.
“I personally would like to have had more time to fully discuss the matter with my fellow NA presidents and REACH representatives,” Hazlip said.
On June 25, Kathy Morris, current president and board member of REACH, spoke to the council in opposition to the change. Morris, who has also been president of her neighborhood association in the past and is active in the city, said she has never heard of any neighborhood areas having problems or difficulties with the amount of funding received annually. Morris also said that the majority of the $5,000 REACH receives goes toward liability insurance.
Morris said the application for funding asks the applicant to describe how the money is going to be utilized and explained that some neighborhood associations don’t plan ahead but use annual funds on projects or needs in the immediate communities on short notice.
“If the city is going to take over the authority to look at the allocation before the neighborhoods get money, does that mean the city is going to take over the responsibility for them, and therefore the liability?” Morris asked the council.
In response to Morris’s comments, Schaefer said if neighborhood areas wanted to do a mailer, $500 wasn’t enough, and that his neighborhood area “wasn’t spending the money” allotted to them each year.
“It’s about enabling the neighborhoods to bring more people in,” Schaefer said.
The Sentinel reached out to other neighborhood area board presidents and representatives by phone and email but did not receive replies before press time Thursday.
