SHELBY — It’s a “hurry-up-and-wait” process for Shelby to receive funding from the federal government’s American Rescue Plan.
Shelby will receive nearly $1.8 million from the American Rescue Plan (ARP), a $1.9 trillion spending package from the federal government aimed at COVID-19 relief.
On Monday, council unanimously approved a resolution to establish the “Local Fiscal Recovery Fund,” authorize the finance director to accept all funds received in the ARP and deposit them into the fund, and affirm the funds will be expended in a manner consistent with the act.
These actions were required in order to move forward with receiving $1.77 million from the ARP. Now, it’s a waiting game.
“We’re all ready to accept the funds,” said finance director Brian Crum. “From what I understand, we will get half the funds this summer and the other half next summer.
“With this resolution, we’re set up through the logistical side of things, and internally on our own financial system. Now we just wait.”
According to the American Rescue Plan, local governments can use the funds across four broad categories:
• To respond to or mitigate the public health emergency with respect to COVID-19 or its negative economic impacts.
• To cover costs incurred as a result of such emergency.
• Replace revenue that was lost, delayed, or decreased, as determined based on revenue projections for the metropolitan city, non-entitlement unit of local government, or county as a result of COVID-19.
• Address the negative economic impacts of the pandemic emergency.
Local governments have until the end of 2024 to spend any funds received from the American Rescue Plan, Shelby officials said.
However, according to Councilman Garland Gates, other than these broad categories there is still not a lot of detail as to how the money could be spent.
“For lost revenue, I know that even in our appropriations discussions, the utilities director shared with us about revenue particularly in water and sewer that we did not get as part of the economic downturn of the pandemic,” Gates said. “But what we need to do right now as a city council is to do the three things in this resolution.”
According to Crum, Shelby City Council will have the ultimate rule on how the city will spend their ARP funds.
“Various department heads are giving us ideas of things they need, so if something does qualify it’s a way to spend the money,” Crum said. “But six months from now we might still be learning the definitions of what Congress intended with the act.”
In the meantime, Crum is staying informed as more information about how local governments can spend ARP funds comes to light. The Ohio Office of Budget and Management frequently sends newsletters and presentations, and Crum intends to communicate with the state auditor and fellow finance directors in neighboring cities.
Crum and members of council will also attend a presentation hosted by the Montrose Group, the same group hired by the city’s Community Improvement Corporation in 2017 to create an economic development study. The group is offering a free webinar to learn about how the ARP can develop critical projects in your community.
“Funding for Ohio municipal governments that can be used for four purposes: public health costs triggered by COVID 19; revenue losses caused by COVID 19; financial assistance to households, small businesses and nonprofits, aid to impacted industries, and support for essential workers; and investments in infrastructure, including water, sewer, and broadband services,” the group said.
“The American Rescue Plan Act creates a once in a generation opportunity to support those impacted by COVID 19 as well as to redevelop local infrastructure tied to critical community projects.”
The good news is, there is plenty of time to make these important decisions.
“In the last year – be it for city government or businesses or individuals – it’s been a crazy cash grab and then figure out how to spend it on so many levels in short time periods,” Crum said.
“I’m really glad they’re giving us until the end of 2024 to spend it because it’s not something to be taken lightly, and we want to make sure to invest it the best way we can without running ourselves into a situation where we have financial issues down the road. Patience is key with this.”
