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City to receive $495k in federal COVID-19 stimulus

Justin Addison, Editor/Publisher
Posted 3/16/21

The City of Fayette will receive $495,280.61 as a part of the American Rescue Plan Act which was signed into law by President Joe Biden on Thursday, March 11. The $1.9 trillion bill, touted by …

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City to receive $495k in federal COVID-19 stimulus

Posted

The City of Fayette will receive $495,280.61 as a part of the American Rescue Plan Act which was signed into law by President Joe Biden on Thursday, March 11. The $1.9 trillion bill, touted by Democrats as a coronavirus aid package, will also provide $50,835.79 to the City of Armstrong, $17,129.45 to Franklin, $194,686 to New Franklin, and $199,659.42 to Glasgow.

Nearby cities of Higbee and Harrisburg will take in $101,303.21 and 20,260.64, respectively.

The package was passed by both houses of Congress entirely on party lines, with not one Republican voting in favor. It will provide $1,400 checks to many Americans, extend $300 weekly jobless benefits, and expand the child tax credit for one year. The plan includes $350 billion in aid to state and local governments. St. Louis will receive nearly a half-billion dollars, while Kansas City will take in almost $200 million. Nearby, the cities of Columbia and Jefferson City will receive $24,300,869.40 and $7,641,052.71, respectively.

Unlike funds released under the Trump administration’s CARES Act, this round of funding has far fewer restrictions. There are four broad categories that dictate how the monies may be spent. Cities may directly assist hotels and tourism-driven industries that have suffered under lockdowns and other restrictions put in place by governments during the COVID-19 pandemic; allow cities to pay essential workers, not just city employees; allow cities to keep the funds as reimbursements for lost revenues and sales taxes; and allow funds to be used for any sewer, water, or broadband project, regardless of its relation to the coronavirus. Cities may also transfer the money to non-profits.

The funding will be a boon to rural communities such as Fayette, which actually saw higher tax revenues during the pandemic as shoppers stayed local. Fayette actually took in $36,150.01 more in 2020 than it did in 2018. (Revenues from 2019 were not compared due to fines assessed on the city due to its failure to meet state filing deadlines for annual financial statements.)

“Obviously, we’re excited about receiving what, for Fayette, is a great amount of money,” said Fayette Mayor Kevin Oeth. “We are going to look at where we stand, and put that money out in a manner that we hope will be considered wise and address the needs of the community.”

Should members of the community feel there are specific needs that could be addressed, they should contact their alderman or alderwoman so those needs can be brought before the council, Mayor Oeth said.

Just how the money is spent will be up to the city council. Fayette City Administrator Tyler Griffith said on Monday that he will advocate that $50,000 be used to pay Fayette’s portion of the soon-to-begin sidewalk project on South Church Street. The city must pay 20% of the total. The rest is funded by the Missouri Department of Transportation. He also suggests the funds pay for new police radios which must be in place by 2023.

“I am looking forward to partnering with the City Council on developing plans on how that money can be spent that best benefits the need of Fayette,” Griffith said. “The community will be seeing more communication on the city council’s strategy on the use of this money in the near future.”

Cities will receive the funds in two separate payouts. The first is expected within 60 to 90 days, the second in 12 months. Cities will have until December 2024 to spend the money and must account for all expenditures.

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