Federal funds being set aside for city workers
Budget committee to recommend 30% of total received be paid to employees
Forrest City is planning to set aside about one-third of the more than $2.8 million the city has been awarded through the American Rescue Plan for premium pay for employees.
Members of the city council’s budget committee Tuesday afternoon agreed to recommend to the full council that 30% of the city’s $2,855,766.67 be paid to employees.
"It is an amount of up to $13 per hour that is paid to an eligible worker in addition to wages of remuneration, that's a keyword, the eligible worker otherwise receives," Forrest City Mayor Cedric Williams read to committee members from American Rescue Plan paperwork. "Premium pay cannot exceed $25,000 per eligible worker."
Remuneration is money paid for work or a service.
Councilman Marvin Metcalf was insistent that the budget committee act swiftly to push forward with whatever needs to be done to get employees the funds.
"Let's don't procrastinate and go ahead and do it," said Metcalf.
Councilman Justin Reeves asked how the funds could be distributed.
Williams said there are several ways to do it, but is recommended the committee make a budget with the American Rescue Plans for the amount before distributing funding.
Reeves also asked when the funds had to be allocated, to which Williams answered 2024.
"The Municipal League has advised not to get in a hurry because everything hasn't been specified," said Williams. "One of the five different areas we do want to move forward in though is this premium pay."
Reeves also asked if Williams had spoken to other cities that have moved forward with premium pay.
"Honestly, the mayors I have visited with, the revenue they have spent is the lost revenue portion due to that being moved to the general fund and being able to spend that any way they like," said Williams. "But that is why we want to have a plan."
Metcalf reminded budget members they were only discussing the allotment percentage to present to the full council. He further stated he felt the funding should be dispersed as soon as possible for those who were “more exposed” to the Covid virus.
Metcalf also said he favored lump-sum payments over small payments.
Councilman Lowry Astin asked how many employees the city has, to which the Glynis Lynch answered 172.
Out of the percentages presented, 20%, 25% and 30%, Metcalf made a motion for the
(Continued from Page 1) 30% to be set aside for premium pay reasons, totaling $856,730.
Reeves voiced concerns that it wasn't the budget committee's responsibility to say how the money was supposed to be dispersed.
"Right. We are just setting aside an amount from the American Rescue Plan funds to bring forward to the council," said Williams. "Then the council will vote on that and then decide how the funds will be dispersed. Again, these are federal funds and they have special handling procedures."
Astin said he agreed with the 30%, but felt the lower-income employees needed the funds more due to being affected more by the pandemic.
When put to vote, the committee agreed to present the amount to the council, which meets next on Tuesday, Oct. 5.
Williams also told the committee about new line items in the budget, one of which is excess collections of $519,023.65 from the 2014 bond issues.
"The bond attorney recommends we spend those funds on projects from that 2014 bond issue," said Williams.
He also reported that the city's accounts are in a “positive” place but reminded the budget committee that there would be several large expenses coming up soon on road repairs.
“We need to continue to be cautious in this current environment," said Williams of the supply and demand inflation caused by the pandemic.