Gadsden City Council gets breakdown on allocation of COVID relief funds
The bulk of this week’s Gadsden City Council pre-council meeting — which ran 15 minutes over its allotted hour — was devoted to one topic: $24,042,737 in American Rescue Plan Act funds.
That’s the amount Gadsden received in 2021 and 2022, in separate 50% installments, from the $1.9 trillion stimulus package passed by the U.S. Congress to help ease the economic wreckage caused by the COVID-19 pandemic.
The money was allocated by the previous City Council, and questions have been raised as to how it was parceled out, how much has been spent and how much is left.
So, on Tuesday, city officials — led by new Planning Director Rod Scott and now-retired Finance Director Lisa Rosser (who’s still helping out temporarily) — attempted to provide answers and clarity.
Scott distributed a handout to council members containing the specifics.
The money was allocated in three of the four categories authorized by ARPA: infrastructure, public sector revenue loss (with the city taking a $10 million standard allowance available to entitlement cities that receive Department of Housing and Urban Development funds) and nonprofit agencies (under the provision of “responding to the far-reaching public health and negative economic impacts of the pandemic.”)
Roughly half — $12,030,753 — was directed under infrastructure to drainage projects throughout the city’s seven council districts: $2.25 million for three projects in District 1, $1.06 million for eight projects in District 2; $5.35 million for four projects in District 3 (including the single largest expenditure, $5 million for Henry Street); $1.75 million for nine projects in District 4; $600,000 for four projects in District 5; $350,000 for four projects in District 6; and $670,753 for six projects in District 7.
That was in response to the need — Scott noted that Heath Williamson, the city’s director of engineering, has said $100 million wouldn’t fix all Gadsden's drainage issues — and the sentiment reflected at a public hearing on how the money should be used.
Funds were directed to an assortment of other uses, such as the new Senior Wellness Center on West Meighan Boulevard, street improvements, a fire station (Banks Park), a fire alert system, Memorial Bridge on Broad Street, a new fire truck, school resource officers, funding and equipment for police officers and a tip line for police.
It showed a bottom line of $5,909,252.65 spent and $18,133,484.35 left, but the unexpended money comes with a catch. A large chunk of it — $8,299,829.19 — is either encumbered for a specific purpose, with a purchasing order in place, or contractually obligated and cannot be reallocated.
Rosser said as an entitlement city, Gadsden’s money came straight from the U.S. treasury, not through the state, so the city faces “strenuous” reporting and documentation requirements as far as utilizing it, and would not easily be able to reallocate any unencumbered or non-obligated funds.
At the council’s April 4 meeting, former member Robert Avery asked that $2.4 million of the funds be reallocated and directed to the Northeast Alabama Black Chamber of Commerce for a variety of programs aimed at underserved people and areas.
Avery requested $600,000 annually over a four-year period, to be used for workforce development, façade grants, signage, youth employment, microloan programs, business startups, a business incubator and auditing and legal services for minority businesses. The money would be targeted at locations such as East Broad Street, Ewing Avenue, Forest Avenue and Wall Street.
He pointed out that the city had reallocated money from the Memorial Bridge project to the fire truck purchase; according to Scott’s handout, the remaining balance for the bridge can be reallocated, but only for revenue loss.
ARPA money must be allocated by the end of 2024 and must be used by the end of 2026.
This article originally appeared on The Gadsden Times: City breaks down COVID relief allocations
