During their Sept. 6 meeting, City Commissioners will discuss the city’s federal COVID relief funds.

During the work session, Tom Hazen, the city’s grant manager, will review the community applications for American Rescue Plan Act funds and the scoring process.

The grant applications were due in July and the city received 34 applications totaling $10,464,425.81.

City beginning review of ARPA applications from community agencies

In May, commissioners capped the ARPA funds for community grants at $3 million.

During their regular meeting, commissioners will consider a request from the Great Falls Development Authority for $1.4 million in COVID funds to provide gap financing to local businesses.

Staff is recommending approval.

City caps ARPA funds at $3 million for community grants

The city received about $29.6 million federal COVID relief funds. Of that, $10.15 million was CARES Act funds for reimbursement or eligible public safety expenses related to the pandemic.

According to the city staff report, CARES Act fund usage is discretionary.

City approves $1.3 million in ARPA funds to refurbish fire engines

The city received $19,472,737 in ARPA funds. Those dollars have more specific regulations and must be allocated by December 2024 and spent by December 2026.

GFDA submitted two requests in the city’s grant process. The first was for $1.4 million to finance the Milwaukee Station apartment complex project.

County approves $13.3 million in ARPA allocations

According to the city, GFDA has since secured sufficient capital for that project and adjusted their proposal to use the funds for its revolving loan fund, which goes to local businesses as gap or bridge loans.

“GFDA has stated that it has received $12 million to $15 million in requests from developers and businesses. However, they also relayed that these programs are in planning and may not all materialize,” according to the staff report.

City finalizing plans for use of ARPA funds; beginning discussion of public safety levy

GFDA also submitted a request for $2 million to $4 million to fund infrastructure related to new housing projects, according to the city.

Those funds would be used to create a new low interest revolving loan fund and repayment would be contingent on sale of the property after utility infrastructure was installed, according to the city.

Those proposals weren’t compliant with ARPA regulations and GFDA had submitted them as potential uses of CARES funds, according to the city.

City still working on plans for use of $19.47 million in ARPA funds; process for community grants

“GFDA has established success in implementing gap/bridge loans in the Great Falls history. Its employees have voiced the need for additional capital to expand loan activities since the city began receiving COVID response funds. The city has no internal capacity to achieve the same results as GFDA in this regard,” according to the city staff report.

Expanding infrastructure has been discussed internally by city staff.

City Commission approves budget, intent to raise taxes

The city planning department presented several proposals for housing development and infrastructure expansion during the July 5 commission meeting. Those included creating a fund to subsidize permit costs on a project by project basis; expanding water treatment facilities on the north side; and expanding infrastructure to the imminent NeighborWorks Great Falls development on the southern end of the city.

Those proposals emphasize areas of “identified need, benefit low and moderate income developments and are compliant with ARPA requirements,” according to the city staff report.

Demand for new housing high in Great Falls area; costs slow development

The city has already used $1.14 million of CARES funds to replenish several city funds that suffered losses due to COVID; as well as $1.67 million to offset this year’s budget shortfall.

“While the emergency of the global pandemic has begun to wane in recent months, new factors have developed that continue to negatively impact economies on a municipal, national, and global scale. Workforce shortages, inflation, shipping interruptions, and a potential recession have prevented countrywide operations from returning to pre-COVID norms. Locally, developments such as the Calumet assessment protest makes prediction of short-term financial prospects extremely difficult. Overall, evaluating the future need for CARES funded budgetary subsidies is challenging at this time,” according to the city staff report.

City board recommends approval of next West Ridge housing phase

If the commission approves the $1.4 million allocation to GFDA, the city will have a remaining CARES balance of $5.94 million.