Somerset County Commissioners approve dam amendment
The Somerset County Commissioners approved an amendment to the dam section of the Somerset County's Hazard Mitigation Plan to comply with the Federal Emergency Management Agency's Rehabilitation of High Hazard Potential Dams grant program.
The amendment benefits the dam owners' ability to apply for and receive grant money through FEMA's HHPD grant program. Pending FEMA review, the amendment will now put Somerset County's dam owners' grant applications in compliance with the FEMA template for eligibility and respective reward amounts.
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The grant program provides technical, planning, design and construction assistance for eligible rehabilitation which reduces dam risk and increases community preparedness. The purpose of FEMA’s grant program is to establish the framework and requirements to implement the HHPD grant program. The grant program came out in 2019 and local governments have to develop and adopt hazard mitigation plans to receive potential grant funding for their various hazard mitigation projects.
Joel Landis, director of the Somerset County Department of Emergency Services, said at Tuesday's County Commissioners' meeting that Somerset County's five-year plan update was completed in 2020. The plan was updated during the COVID restrictions and the new FEMA template wasn't received until after the full plan was already adopted.
To be eligible for HHPD funding, a dam must be non-federal; be located in a state with a dam safety program; be classified as “high hazard potential” is the state dam safety agency; and have an Emergency Action Plan (EAP) approved state dam safety program. Another way to be eligible for the funding is the dam must be in conformance with state law and pending approval by the state dam safety agency; and fails to meet minimum state dam safety standards and pose an unacceptable risk to the public.
Dams not eligible for HHPD funding include: federally owned dams; a licensed hydroelectric dam under a dam a hydropower project with an authorized installed capacity of greater than 1.5 megawatts; and dams built under the authority of the U.S. Secretary of Agriculture.
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For more information on the Somerset County Hazard Mitigation plan, visit www.co.somerset.pa.us/hazard_mitigation/, or call the Somerset EMA office at 814-445-1515.
In other business, the commissioners approved a resolution to invest money from the general fund with the Pennsylvania Local Government Investment Trust (PLGIT). PLGIT offered the highest rates for both money market funds and certificates of deposit, according to the commissioners.
PLGIT is a financial service organization created and run by local government officials exclusively for Pennsylvania’s municipalities, authorities, schools and other governmental entities.
The county met with four local financial institutions and a fifth declined to provide interest rate information.
"We weren't comfortable getting a quote from one local bank," said Commissioner Pamela Tokar-Ickes.
First National Bank had the highest rates of the local institutions. But the commissioners said there are two different money market variances. FNB has a money market flat rate guarantee. PLGIT is variable based on the daily rate, said Commissioner Colleen Dawson.
"PLGIT rate at the moment is higher," she said. "If they get higher, the return with the money market is more attractive."
She said money market funds are available daily and if the rates go down, the money can be taken out of the account.
The commissioners determined the amount of each deposit from the general fund based on short term CD rates and money market rates. As of Tuesday, $5 million will be invested in PLGIT's money market with a 2.46% interest rate; $5 million in a 60-day CD at 2.93%; and $15 million in a 90-day CD at 3.18%. FNB is the repository for the rest of the money in the general fund.
"We feel that will be adequate cash flow to meet the obligations for the remainder of this year," said Tokar-Ickes.
"Historically, I've not seen these kind of rates," she said, comparing the percentage rates to previous rates. "We really are taking advantage of this environment and will realize a gain on interest rates for the county."
With these rates, the county will see at least $58,000 a month in interest, the commissioners said. With the $15 million in the 90-day CD, the interest will be $114,000.
"Money market gives us flexibility," Dawson said. "The 90-day CD won't be accessed until next year. That puts the county in a different position."
Somerset County Treasurer Tony DeLuca said after the meeting that short term CDs are good, but he thinks FNB is the better choice because it has a fixed rate and local banks pay local taxes and use local employees.
"The county could invest some in PLGIT, but not the whole basket in PLGIT," he said.
He explained that now he'll have to operate two different data systems. Had the commissioners stayed with FNB, he could transfer money from one account to another with a click of the mouse and it would be recorded as it is transferred. With PLGIT, the transfer would have to be done by a certain time each day and it will take a day to be recorded, he said.
This article originally appeared on The Daily American: Somerset amends plan to apply for HHPD dam grant program
