×

What a windfall

How will rescue relief be used at local level?

Campbell Mayor Nick Phillips points to ceilings damaged by flooding and heavy rain. The city hall building on Tenney Avenue is undergoing some work to correct damage, but additional federal funding in response to COVID-19 last week could help the city update its building for employees and the community, Phillips said.

Mahoning Valley cities, villages and townships over the coming years have, in the words of U.S. Rep. Tim Ryan, “a once-in-a-generation opportunity.”

But how will their allotments of the latest $1.9 trillion federal COVID-19 relief bill — with about $260 million of it coming here — be put to use?

Local leaders largely are still figuring that out, and some of the funding figures are not yet firm.

But they agree it’s an unexpected windfall, with more than $200 million going directly to the two counties as well as Youngstown and Warren, the largest cities.

Girard, on the border of both counties, for example, is set to get $1.81 million. Mayor Jim Melfi said 2020 hit the city’s income tax take hard — some $500,000. That tax money goes into the general fund and that fund goes toward police and fire.

Melfi said he would like to see the money go toward those safety forces.

“We are going to look at exactly what we can use this money for,” Melfi said. “We have needs everywhere. We’re a year in, and we know where the weaknesses were made by COVID-19.”

Youngstown gets a staggering $88,629,500 because of its poverty and unemployment issues while still having one of the larger populations in Ohio. Warren is expected to receive $29,752,062. Mahoning County is set to get $44,351,660 while Trumbull County is to receive $38,395,838.

But the smaller communities, such as Girard and Hubbard, also have needs that have gone unmet for a long period, noted Ryan, D-Howland.

“It was good news to hear. It can only help our community and residents,” Hubbard Mayor Ben Kyle said of word straight from Ryan that the city is expected to receive $1.4 million.

“We can use it for replacement revenue and for infrastructure projects for water, sewers and broadband. We can make 30-year investments in projects we have wanted to get done that can benefit the entire community,” Kyle said.

During the pandemic, the city’s 2020 income tax was down 5 percent from the previous year, he said, but no employees had to be laid off.

According to Ryan, the money can go toward revenue loss and cover premium pay of up to $13 per hour above regular wages for essential employees as well as infrastructure projects including water, sewer and broadband.

The money must be spent by Dec. 31, 2024. Here are the views of some more local leaders on how the money could be used.

TENTATIVE PLANS

Some communities have tentative plans.

When Campbell Mayor Nick Phillips received a call Wednesday from Ryan, he was “taken aback” by the news that Campbell would be receiving about $1.53 million.

“That’s a really huge blessing for us,” said Phillips. “We’re going to be good stewards of the money.”The city may look into using the money to improve the city building on Tenney Avenue, which is used by both city employees and residents.

“I really want to see the money used for the health and betterment of our community,” Phillips said.

That would include revamping restrooms with touch-free sinks and toilets and upgrading windows, to make them sound and waterproof.

Another possibility could be looking at equipment for the street department, Phillips said. “Our crews have been working with the same equipment” for 30 to 40 years, he said.

Campbell has three salt trucks that are more than 30 years old. It’s estimated that a new truck would cost between $90,000 and $115,000, Phillips said.

A blacktop truck also would be replaced for around $60,000.

WAIT AND SEE

Some communities are taking a wait-and-see approach.

Youngstown’s anticipated $88,629,500 is more than what Trumbull and Mahoning counties are receiving combined. But the city isn’t going to rush into a decision as to how it will spend the money and wants input from citizens, government officials and the city’s economic development partners, said Mayor Jamael Tito Brown.

“All of the options available will be considered,” he said. “The question is how we use it. We will look at infrastructure that’s been neglected over the years.”

Brown described the money as “a legacy opportunity” for the city.

“It’s been 50 years since the mills closed,” he said. “This will put Youngstown in a better financial situation. We need to do infrastructure with a vision toward the future.”

He also said the money will “be good economic security for families. Without this money that we’ve been advocating for, the whole house of cards was going to fall. We’re grateful for the money.”

Brown added: “It’s a great way for the citizens to benefit from the money they’ve given the federal government over the years. We’ll assess our needs and wants. We’ve got a great opportunity and we need to make sure we capitalize on it.”

To put the $88,629,500 into perspective, the city is budgeting $65 million this year for its general fund and the funds the general fund subsidizes: police, fire, emergency 911 center, street, parks, health and road improvements.

The city’s total annual budget is about $132.6 million including water, wastewater and environmental sanitation.

Youngstown received $2.35 million less in collections from its 2.75 percent income tax last year than it had budgeted. That was largely because of the COVID-19 pandemic, said Finance Director Kyle Miasek.

Miasek expects the city’s 2021 income tax collections to be $803,600 less than last year.

The city received $5.3 million last year in federal COVID-19 relief funds.

Youngstown had 67 full-time city workers and 22 part-timers take voluntary furloughs starting in late April and lasting for about three months. The furloughs saved the city about $400,000.

“Wait and see” is Struthers’ approach, too, where the city is estimated to receive $1.9 million. Mayor Catherine Cercone Miller said the city will wait until guidelines are clear “before we start discussing anything.”

CHANGE EXPECTED

The Congressional Research Service provided unofficial estimated ranges and amounts are likely to change, especially at the township level. Preliminary figures for all communities have not been released. The U.S. Department of Treasury will finalize figures a later date.

The Ohio Township Association said: “There are conflicting reports on whether Ohio townships will directly receive funds” because of changes made between the House and Senate versions.

Ryan said his office also is trying to get a clarification, but said: “There is money for the townships.”

Liberty used the $650,000 in the first round of funds for payroll costs, PPE, a truck, sanitation, and touchless technology for entrance doors and the restroom at the township administration building and fire stations, along with some donations and air circulation improvements. The pandemic did not cause revenue dips or cause layoffs in the township.

With $4.6 million more expected in the next round, Trustee Arnie Clebone said trustees will have to give it some thought before appropriating the money.

“We don’t want to get ahead of ourselves, but I’d like to use it for something sustainable that could permanently help build our tax base, maybe something to help create more jobs and make Belmont Avenue more attractive,” Clebone said.

Jason Loree, Boardman’s administrator, said officials there are cautiously waiting to see if the township will receive the estimated $7.2 million to $8.7 million. “We’re still up in the air,” Loree said.

Same with Austintown, which could be getting $6.5 million-plus, though language of the assistance plan for townships is unclear. Township Administrator Mike Dockry said, for now, there’s nothing to discuss because he hasn’t seen anything official.

When parameters on how to spend the money are solidified, Poland Township expects to designate the funds where “permissible by the act,” Paul Canter, fiscal officer, said. The township may receive $2.7 million to $3.2 million.

Together, the trustees “will address the needs of the township and appropriate the funds accordingly,” he said.

Weathers-field Town-ship Trustee Steve Gerberry said cloudiness with townships receiving the funds makes it difficult to plan. The trustees will have to sit down with the fire and police chiefs and the administrator to see where the need is. “We need to see the guidelines, too, and see how they apply to our need,” Gerberry said.

COUNTY USES

At the county level, Mahoning’s Audrey Tillis, director of budget and management, said $13.8 million previously was received in CARES Act funds with about 65 percent being allocated to the community for programs such as helping small businesses. Funds used for county government improved technology to help people work from home, such as phones and computers, among other things, she said.

The county probably will use some of the coming $44 million to replace revenues lost to the pandemic and again to help small businesses, she said.

“With these funds, I think the commissioners will be focusing on the community,” she said.

Ryan spoke to the Mahoning County commissioners last week, saying the money is “basically a great shot in the arm for Mahoning County. I think it’s an opportunity not just to stabilize, but for us collectively to do something big for the broader community.”

But Tillis said she needs more information on the guidelines before she knows how else the coming $44 million can be used.

Mahoning County revenues were up about $5.6 million in 2020 compared to 2019, but she anticipated them being up at least $1.6 million higher than that if COVID-19 had not happened. Some of the funds negatively impacted by COVID-19 were court fees, investment income, sales taxes, casino revenue, bed taxes that come from hotels and motels, and various other fees.

The $5.6 million represents the increase in the general fund, which covers services such as the auditor’s office and treasurer’s office, and the criminal justice fund, which covers departments such as the sheriff, jail and prosecutor’s office.

The criminal justice fund was up almost 10 percent, about $3.2 million, but those numbers are skewed because the county commissioners have been adding revenue to that fund to build it back up after the loss of sales taxes because of Managed Care Organization funds that were eliminated in 2017, Tillis said.

Previous CARES Act funding helped diminish lost revenues at the jail, she noted.

Revenues in the 2020 general fund were about $2.4 million higher than in 2019, about 6 percent, but that figure is skewed by an additional $1.9 million in workers’ compensation funds that were received last year, she said.

Mahoning County Com-missioner Anthony Traficanti said Friday he believes one good use for the money would be to “help businesses with whatever we can.”

He added that he would like to find a way to “get some community input. Let’s see what the community thinks.”

Counterparts in Trumbull County are reviewing the new guidelines for the nearly $38.4 million expected in the latest round of funding.

But it appears the funds will be able to be used on more infrastructure-type projects, which could help with broadband projects, Commissioner Mauro Cantalamessa said, or long-awaited and difficult-to-fund sanitary sewer projects, Commissioner Frank Fuda said.

In the first round of CARES Act funding, Trumbull County received $10.5 million. Through Feb. 5, the county spent approximately $7.698 million.

The county did not lay off people during the pandemic, though it instituted a hiring a freeze in most departments. The funds were spent on variety of things, including technology, cleaning equipment, plastic dividers, payroll for certain types of workers, personal protective equipment, and aid to local businesses and nonprofits.

NEWSLETTER

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *
   

Starting at $2.99/week.

Subscribe Today