Council Discusses Funding Allocations for COVID Recovery
Nov 26, 2021 12:00AM ● By Story by Shaunna BoydCITRUS HEIGHTS, CA (MPG) - The Citrus Heights City Council recently held a Study Session to discuss the next phases of funding allocations for the federal American Rescue Plan Act (ARPA). Signed into law in March 2021 by President Joe Biden, ARPA appropriated $1.9 trillion for Covid recovery, with the allocation for Citrus Heights totaling $15.6 million. The City already received the first disbursement of $7.8 million back in May, and the second disbursement of another $7.8 million is expected in May or June of 2022.
For Phase 1 of the funding expenditures, the City Council voted in August to allocate $5.3 million to rebuild staffing at the Citrus Heights Police Department by restoring 22 vacant positions. The City must decide how to allocate the rest of the funding. Meghan Huber, economic development and communications manager, said, “It’s a situation with much gravity, given that these are one-time funds that we’re responsible for stewarding effectively and to meet direct need in our community.” For all allocations, the City must identify how the financial need is a result of the pandemic and how the expenditure addresses that need.
Huber recommended that Phase 2 funding (which would use the remaining funds from the initial disbursement) focus on providing grants to small business and non-profits impacted by Covid. Phase 2 would also include support for the travel, tourism, hospitality, and entertainment industries, which the federal government has identified as those most negatively impacted by Covid.
When the second disbursement is received next year, Phase 3 of the funding could be targeted for homelessness prevention, blight abatement, and housing and resident support. Phase 4 would use remaining funds for City infrastructure and addressing revenue loss due to Covid.
Councilmember Daniels said the point of ARPA is to “rescue American businesses” and give them the ability to “move forward in the future with success.” He suggested a strategic grant process that ensures funds go to businesses with strong recovery plans, because then their success will benefit the City. Daniels said he is “leery” of allocating any more funds to non-profits or to address homelessness.
Councilmember Schaefer agreed, and he wasn’t enthusiastic about funding going toward blight abatement or issues of homelessness. He suggested the bulk of the funds go to small businesses through a competitive grant program.
Huber pointed out that many businesses were able to stay open throughout the pandemic and can’t demonstrate a negative financial impact due to Covid, but those business owners are very concerned with keeping their businesses and customers safe and reducing crime and blight. Homelessness in particular is “one of the largest complaints that we do hear from businesses,” said Huber.
Schaefer countered that those business owners should participate in the process and bring forward ideas to help solve the problem.
Vice Mayor Middleton agreed that homelessness is a major issue for local business owners, and while she wants businesses to be involved in the process, she said, “It’s really our job to figure that out and help them solve the problem, not to put the burden back onto them.” Middleton also wanted to ensure equitable and inclusive access through robust outreach to the Hispanic and Slavic communities.
Mayor Steve Miller said he would like to see funding go toward creating affordable housing and to expand the City’s Navigator program.
After incorporating the Council’s feedback—as well as input from residents and the business community—an action item will come before Council in January so the funding plan can be officially approved.