City to grant small businesses relief funds
Council allocates $320K in CARES Act money for program
Of the $11.3 million that Yuma will receive for COVID-19 funding, the city has allocated $320,000 to grant small businesses relief funds up to $10,000.
The City Council unanimously approved the establishment of the grant program during the Wednesday meeting. The funding will come from the CARES Act federal program through the state.
“Part of my frustration personally with this whole COVID thing is the lack of ability for local government to do much,” Mayor Doug Nicholls said. “Everything’s being held at the state level as far as different actions and closures and those kinds of things. Tonight we’re able to consider something we can do here locally and that’s to take a slice of that CARES Act funding and put together a grant relief program for those businesses that have actually been closed by the governor’s order, things like gyms and hair salons, and those kinds of businesses that the governor specifically closed or severely limited their ability to operate like closing indoor dining.”
The grants are designed to offset some of the economic hardship that the pandemic is causing on businesses.
“It’s not the intention that it would obviously fix every dollar businesses have lost over the last three to four months, but it helps hopefully bridge and keep businesses afloat as we get through this together as a community,” Nicholls clarified.
He added: “The idea is again to try to provide relief for those who are employing employees in the city, that are keeping our business community going” and who are suffering “really through no fault of their own with the current COVID crisis.”
He noted that if the $320,000 isn’t sufficient, the council might consider allocating more funds to the grant program.
City Administrator Phil Rodriguez said that the city hopes to have all the details worked out by next week and would be working with
media partners and the city television channels to get the word out.
Federal guidance notes that CARES Act funds may be used by local governments to respond directly to the emergency by addressing medical or public health needs, as well as to provide “economic support to those suffering from employment or business interruptions due to COVID-19 related business closures.”
Additional guidance gives governments “discretion to determine what payments are necessary. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need of such assistance. The amount of a grant to a small business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure.”
Incidentally, Deputy Mayor Karen Watts noted that one of her social media accounts had been hacked and fake posts had been sent out about “free coronavirus money,” but she cautioned that they did not come from her and asked people not to call the numbers in the posts.
In other action, the council unanimously set the levies for the property tax and Mall Maintenance District, which maintains downtown off-street parking areas, for fiscal year 2021. Last month, the council approved a 2021 budget of $249 million based in part on the now adopted property tax levy that is anticipated to raise $14.2 million in tax revenue. This estimate is based on the assessed property values provided by the Yuma County assessor and multiplied by a tax rate of $2.3185 on each $100 of assessed valuation.
The tax rate of $2.3185 remains the same as last year’s, but the city expects to collect an additional $254,403 due to increased home values.
The tax rate for the Mall Maintenance District is $3.4152 on each $100 of assessed property value, which is lower than the 2020 tax rate of $4.7398. The levy is anticipated to raise about $110,000 in tax revenues for 2021.
No members of the public asked to address the agenda item.