Council weighs rescinding community services grant program; MOUs proposed to preserve core partners
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Summary
Mayor proposed a resolution to rescind the ad hoc community services grant program and instead fund key organizations through memoranda of understanding (MOUs). Council debated rescinding the annual grant program (on the consent agenda for Oct. 14); council ultimately agreed to pull the consent item for individual consideration.
Rowlett’s mayor proposed rescinding the city’s discretionary community services grant program and continuing funding for established partners through memoranda of understanding (MOUs), saying the annual grant process had become divisive and administratively burdensome.
At the Oct. 13 work session, the mayor said the grant program, formalized in 2023 and adopted in 2025, “has been polarizing” and that continuing MOUs with a few steady partners would be less politicized and provide clearer contractual outcomes. The mayor noted that grants already awarded through the FY26 budget will remain in place under the proposed resolution.
Several councilmembers agreed the existing process created winners and losers and consumed staff and council time; they supported moving core partners (sometimes described as the “big 3” or “big 4”) to MOUs with defined deliverables. Other councilmembers said the grant program provided flexibility for smaller or innovative community projects (for example, Sensory Temples and festival initiatives) and worried rescinding it could reduce opportunities for creative, grassroots programming.
Council discussed implementation details: MOUs would provide contractual language, specific program expectations and performance metrics, and could be included in the annual budget. Staff said existing MOUs (e.g., with Keep Rowlett Beautiful and other long‑standing partners) already provide that structure for some organizations. Councilmembers asked that existing FY26 awards continue and that any rescission not affect funds already allocated.
The item — a resolution to rescind the program — was placed on the consent agenda for the Oct. 14 council meeting. Because councilmembers wanted the chance to record individual positions, the item was pulled from consent and will be considered individually at the Oct. 14 meeting. No formal rescission occurred on Oct. 13.
Council asked staff to prepare information so that if the resolution is approved the next day it will maintain current FY26 grants in place while eliminating the discretionary annual application process going forward.