Federal money can help local cities fund infrastructure

Local cities will be able to spend money from the federal American Rescue Plan Act, with a combined total of about a million dollars, on things like infrastructure and helping residents.

The cities receive money based on their estimated 2019 populations.

A list of distributions to cities from the Department of Treasury shows that Electric City, with a population of 1,002, qualifies for $279,706; Grand Coulee, population 1,048, qualifies for $292,547; Coulee Dam, population 1,080, qualifies for $301,480; Elmer City, population 248, qualifies for $69,229; and Nespelem, population 392, qualifies for $109,426.

The cities each receive half the money in 2021, the other half in 2022. 

According to http://www.wacities.org, cities can use ARPA funds to “support public health expenditures, address the negative economic impacts caused by the public health emergency, replace lost public sector revenue, provide premium pay for essential workers, and invest in water, sewer, and broadband infrastructure.”

“Cities have until December 31, 2024, to obligate funds and until December 31, 2026, to spend funds,” the website explains. 

In an email to The Star, Director of Government Relations Candice Bock of the Association of Washington Cities elaborated on how the funds can be used to help residents.

“Cities can use ARPA funds for addressing the negative economic impacts caused by the pandemic and public health expenditures,” she said. “We are awaiting final guidance on the use of funds from the Treasury Department, but it appears that cities can provide assistance programs like housing, food, and utilities assistance programs. Additionally, business assistance also is likely an eligible expense. I have also seen some discussions from other parts of the country where they are looking at direct income assistance models, but I haven’t heard about that in Washington.” 

Electric City Clerk Peggy Nevsimal told the city council at their July 13 meeting that the money can, to her understanding, probably be used to cover a revenue shortfall in the city resulting from COVID, such as money lost from not charging for utility late fees.

The Star reported in December 2020 that Electric City collected $8,700 in late fees in 2019, Grand Coulee collected $5,100; Coulee Dam collected $22,125; and Elmer City collected $2,450. 

The cities have been unable to collect late fees since the COVID pandemic began due to a proclamation from the governor. 

Grand Coulee City Clerk Lorna Pearce said at Grand Coulee’s July 20 council meeting that the city was up to $20,000 in uncollected late fees since the Covid pandemic began.

Grand Coulee additionally has about $50,000 in delinquent utility bills, not including the late fees. 

The local cities all have various expenses related to water and sewer as well, with one example being Elmer City and Coulee Dam’s shared wastewater treatment facility that was recently built, and Grand Coulee and Electric City looking into updating their shared wastewater treatment facility.

“It’s by vote of the council what we do with [the money],” Nevsimal told the council. “That money is out there and what I know for sure is you can use it for infrastructure. …  It’s a nice chunk of change to do something with.”