Portsmouth has options for $56.8M relief funds
Portsmouth is getting millions in its coffers through the American Rescue Plan, and the city has plenty of options on how to spend it — and three years to figure it out.
Staff from Virginia First Cities Coalition, an advocacy group for 16 of the state’s oldest cities, met with the Portsmouth City Council last Tuesday to lay out the city’s options for the $56.8 million it will receive.
Jim Regimbal, a fiscal analyst who works with the coalition, listed myriad options, including direct household assistance, relief to small businesses and nonprofits, affordable housing development, pay bumps for “essential” workers and major infrastructure projects.
He said the rescue plan also has a provision that lets localities that saw their revenue grow by less than 4.1% during the pandemic use money on items typically in the annual budget. Portsmouth’s revenue is on track to grow by just over 1%.
Councilman Bill Moody called the funds coming to Portsmouth a once-in-a-lifetime opportunity. Generating new revenue is often a challenge in Portsmouth. Like in most cities, real estate taxes are Portsmouth’s main source of income, and the city has a high concentration of federal land that’s tax exempt and little undeveloped land left. The city also already has the highest property tax rate in the region.
The city has until the end of 2024 to decide how to use the money and another two years after that to spend it.
While the City Council hasn’t dug deeply into plans for the money, Councilwoman Lisa Lucas-Burke already has been hearing from residents and organizations with a “laundry list” of items in which they want the city to invest. During public comments at recent meetings, speakers have drawn attention to violent crime in the city and suggested that a portion of the money should go to enhancing public safety.
Moody suggested the council hold public sessions focused on hearing from the community about how the money should be spent. City Manager Angel Jones said the council would discuss the process for developing a spending plan and solicit input from members at their meeting July 27.
The American Rescue Plan was enacted in March and totaled $1.9 trillion. The plan is sending $7.2 billion to Virginia, and most of the funds will go to the state.
Hampton Roads localities and educational institutions will get $790 million.