City Approves $3.8 Million In ARPA Funds [The Cullman Times, Ala.] – InsuranceNewsNet - Insurance News Net

Apr. 12—Like its other municipal neighbors, the City of Cullman is receiving federal relief funds through the American Rescue Plan Act (ARPA). But unlike the comparatively large $16 million payout obtained by the Cullman County Commission — the county’s largest ARPA recipient — it’s a small enough windfall to simply fold into the city’s general services budget.

At its regular meeting Monday, the Cullman City Council approved its ARPA funds allocation plan, accepting a total of $3.8 million — paid out in two installments of $1.9 million each — to be used to replace “lost revenue,” under the Act’s terms, incurred by the COVID-19 pandemic.

In Alabama, municipal entities receiving less than $10 million in ARPA funds may elect to allocate the money under a standard allowance that — unlike with the county commission — doesn’t require them to distinguish whether the funds are used for health mitigation measures or for general government services. Cullman’s city council chose to do just that: The ARPA standard allowance, according to the city’s resolution, “provides an estimate of revenue loss that is based on an extensive analysis of average revenue loss across many states and localities, and offers a simple, convenient way to determine revenue loss particularly for SLFRF’s smallest recipients.”

That means the city can mete out its ARPA funds at its discretion for streets and other infrastructure, so long as the spending addresses a general governmental services need. The council’s ARPA plan resolution states that “it serves a public purpose to use the total amount of SLFRF [State and Local Fiscal Recovery Funds] funding for ‘government services’ which generally include any service traditionally provided by a government including the construction of roads and other infrastructure, provision of public safety and other services, and health and educational services.”

In other business at its regular meeting, the council:

* Was led in the Pledge of Allegiance by the Boy Scouts of local Troop 219 based out of First United Methodist Church, who were in attendance to help fulfill their required service hours.

* Approved the issue of general obligation warrants in the amount of $2,000,000 for improvements at Cullman Regional Airport, a measure initiated at the council’s previous meeting by a vote to borrow the funds through People’s Bank of Cullman. The money, to be repaid over 10 years at an interest rate of 2.9 percent, will fund projects including the construction of a 100’x100′ hangar, the purchase of property, and other improvements.

* Set a public hearing for 7 p.m. on May 9 to solicit comment concerning a proposed ordinance to rezone property located east of King Edward Street SW and 3rd Ave SE. The hearing will be held in the main auditorium at Cullman City Hall during the council’s regular May 9 meeting; the proposal already has received a favorable recommendation from the city planning commission.

* Approved a special event request from Brian Monk of VFW Post 2214 for monthly social events held between 6 p.m. and 11 p.m. at the VFW Post located at 112 Veterans Drive SW, to span from May through October.

* Approved a special event request from St. Bernard Preparatory School to hold this year’s Bloomin’ Festival on April 23rd and 24th.

* Approved an event request from Cullman Parks, Recreation and Sports Tourism to hold this year’s Strawberry Festival at the Festhalle and Depot Park on May 7.