SEEKING INPUT
Troy to form advisory group on $45.6M ARP fund allocation
TROY, N.Y. » The Collar City will receive $45.6M in emergency stimulus funds under the American Rescue Plan. During a recent Troy City Council meeting, Deputy City Comptroller Andy Piotrowski provided a preliminary breakdown on what the funds may be allocated toward.
Following a webinar with NYCOM, and U.S. Senate Majority Leader Chuck Schumer, Piotrowski acknowledged much of the fund usage remains contingent upon guidance from the U.S. Department of Treasury. The city will also review accounting procedures with the State Comptroller’s Office.
According to the legislation, funding is broken down into half installments, meaning $22.8M in the first tranche and $22.8M in the second. All funds received are for one-time, one-shot revenues and should not be used for recurring expenditures.
“The first tranche I expect to receive approximately May 11 of this year. The legislation itself calls for the funds to be sent within 60 days of the legislation being signed. The second tranche is expected to be issued one year after the date of the first tranche [May 11, 2022],”
Piotrowski remarked.
“The funds will come directly from [the] Department of Treasury to Troy. This is important to note, entitlement communities, those who receive CDBG funding, the funds flow directly from the federal government to the local municipality itself,” Piotrowski continued.
“The plan as of now is for all of the funding to originate in the general fund and then we will transfer the monies out from the general
fund to the applicable fund or funds where it needs to go to. That will be done through budget amendments,” Piotrowski added.
Piotrowski also noted how the funds could potentially make the 2021 city budget whole.
“There’s a scenario where federal funds could be used to recoup lost revenues. As everyone knows in the 2021 budget we reduced state aid [by] 10 percent. Federal funding as we have said all along if federal funds came in we would make 2021 revenues, particularly state aid whole,” Piotrowski said.
“If the state budget makes state AIM whole itself, we could repurpose the funding that was intended to be used to recoup the lost 2021 state aid for another purpose within the bill,” Piotrowski noted.
As far as restrictions go, funds cannot be used for any type of pension costs. Any funds used by the city that are not approved as de
fined by Treasury must be repaid by the city to Treasury. Funds will be distributed strategically will be available to be used through Dec. 31, 2024.
Piotrowski further detailed the “four buckets” as to where the funds can likely be distributed.
The first being to respond to the public health emergency or negative economic impacts stemming from it.
“It’s outlined as assistance to businesses, homeowners, and non-profits, aid to impacted industries,” Piotrowski explained.
“The bill specifically outlines industries such as tourism as an eligible industry,” Piotrowski noted.
“[The] second is premium pay to essential employees who worked in the office or in the streets during the pandemic,” Piotrowski added.
Piotrowski also commented on the third leg pertaining to recouping lost revenues.
“Is it better to give it to businesses, homeowners, and non-profits, or is it better just to put it on the city’s balance sheet and put it in the bank account?” Piotrowski remarked on the philosophical question.
“I would argue it’s more beneficial to the residents and businesses of the city to put the money toward
the first allowable use, making the funds available to those groups as opposed to just taking the money and putting it in our bank account,” Piotrowski opined to that end.
“It’s better for everyone and it’s also better for the city long term,” Piotrowski added.
Additionally, the fourth bucket pertains to the necessary investments in water, sewer, and broadband infrastructure, capital projects as defined by Treasury.
According to Troy Mayor Patrick Madden, the city is forming an advisory group that will assess where to best target those funds.
“The allocation of $45.6M in federal funds to the Collar City under the American Rescue Plan is great news for our community. This federal rescue program will deliver much-needed resources to help our City recover from the financial impact of COVID-19, rebuild the economy, and assist those impacted by the pandemic,” Madden stated on the relief.
“Further guidance on this funding is expected from the Department of Treasury. We will exercise the strongest level of oversight on [the] use of these expenses, including auditing, accounting, and reporting. It is important to recognize that these are onetime funds and should not be used on recurring expenses,” Madden continued.
“I’m announcing the creation of an advisory group to collect input pertaining
to provide assistance to the local economy. This advisory group will include city representatives and members of the business community to identify needs and work to address where possible,” Madden explained.
Specifically, Madden said the group will comprise of himself, Deputy Mayor Monica Kurzejeski, Piotrowski, City Council President Carmella Mantello, City Council Pro Temp. Ken Zalewski, and members of the business community.
“We are immensely grateful to President [Joseph] Biden, Senator Schumer, and our federal representatives for their tireless efforts to secure the necessary funding for local governments under the American Rescue Plan. A full recovery from this pandemic will take time, but by working collaboratively with our partners in government, business, and local leaders, I’m confident we can build Troy back better,” Madden added.
Mantello echoed those sentiments on the funding as well.
“Last year, I and my City Council colleagues unanimously passed a resolution imploring our federal representatives [to] pass a direct COVID-19 stimulus federal aid package for municipalities of all sizes,” Mantello stated.
“Thanks to Senator Schumer’s leadership in Washington and Congressman [Paul] Tonko’s support, we have a unique opportunity to both recover from the pandemic and set a course for longterm growth,” Mantello explained.
“It is important we come together on a plan to maximize these funds,” Mantello added.
As part of the first tranche in 2021, the city plans on definitively paying off the $3.3 million debt issued as part of the pandemic, including principal and interest on bond anticipation notes (BAN) and interest in revenue anticipation
notes (RAN), as well as making the 2021 budget whole.
Below are those definitive and preliminary 2021 first tranche proposals:
• Pay off debt issued as part of the pandemic in
2020 including principal and interest on BANs and the interest on the RAN.
• Amend the 2021 budget to remove fund balance and reserve appropriations.
• Premium pay to employees.
• Funding for local businesses.
• Recoup expenses paid for as a result of the pandemic.
• Technology upgrades to better respond to public health emergencies.