Using the funds
Royal Oak: City’s $29.7M in stimulus ‘a great opportunity,’ manager says
Royal Oak city officials expect to determine how they will spend millions of dollars the community is getting in federal COVID-19 stimulus funds during upcoming budget meetings.
City Manager Paul Brake said Royal Oak is anticipating to get $29.7 million in funds under the American Recovery Plan, according to reports from the Michigan Municipal League and U.S. Rep. Andy Levin’s office.
“At this point that number is an estimate and the numbers can change,” Brake said. “But I’ve never seen anything like this and it’s a great opportunity.”
The funding will come in two payments, one in the next 60 days and another next year.
“It’s a lot of money and it sort of takes your breath away,” said City Commissioner Patricia Paruch.
How the city will spend the money will become clearer as city officials learn more about what the funds can be used for.
Thus far, it’s fairly clear municipalities cannot use the funds for tax cuts or to cover legacy costs such as shortfalls in retirement funding, Brake said.
The funding is intended to cover a three-year period until 2024, Brake said.
From infrastructure improvements and funding shortfalls to efforts to help businesses hit hard by the pandemic, there are plenty of places city officials can choose from to offer aid with stimulus money.
“I think one of the goals of this is to get people back to work,” Paruch said. However,
unlike some other communities, Royal Oak hasn’t laid off any city workers, she added.
Brake said the full effects of economic fallout from the COVID-19 pandemic won’t be known for some time.
Still, the impact on city projects has become obvious. The cost of the Civic Center project jumped by close to $2 million dollars as it has neared completion in the past year due to delays, and rising costs of materials and labor.
With a new City Hall and police station already built and operational, a new downtown park is to be built and completed by the end of October.
A restroom for the park had to be delayed until at least next year because the pandemic helped drive up material and labor costs.
Royal Oak parking revenues — which fund bond payments to a new parking deck — are down.
Brake expects that parking revenues will be sufficient in the future when the pandemic wanes.
He recommends that the city look to its recent strategic planning goals when considering how to spend some of the stimulus money.
“I hope once we make up for any shortfalls, that this (funding) allows us to pivot — not only on recovering, but to help the city advance on meeting its infrastructure needs,” Brake said.
One of the most obvious needs is to build on improving storm water management efforts. Fallout from the amount of storm water runoff that can overwhelm the drain system came in August 2014 during a historic rainstorm that flooded streets, freeways and basements around the city, causing millions of dollars in damage.
Stimulus funds would not entirely cover the costs of fixing the problem, but could accelerate the effort, Brake said.
Paruch said assistance is needed also for businesses, along with housing and food for those in need. Infrastructure spending might also include some money to help with Royal Oak’s sewer upgrades, sidewalk replacement program, and an ongoing effort to replace lead water service lines to residential homes, she said.
Discussions on how stimulus funds should be used will be part of budget meetings starting at the end of April and early May, Brake said.