County to receive $1.6 million from ARPA funds

PRESCOTT – Nevada County will soon be getting a $1.6 million windfall – however, there are strings attached.

Mary Godwin, executive director of the Prescott-Nevada County Economic Development Office, told the Nevada County Quorum Court, at its April meeting Tuesday evening, the funds will be coming from the American Rescue Plan Act, part of the $1.9 trillion recovery plan through the Biden administration. Prescott will receive $570,000, while Rosston will get $50,000, Emmet will get $90,000, Willisville, $30,000, Bluff City and Bodcaw, $20,000 each and Cale, $10,000. The strings are – there are only certain ways these funds can be spent.

According to information from Hagerty Consulting, Inc., the money can only be used for: Economic Recovery; Housing, Health and Human Services; and Infrastructure. There are specific ways the money can be used in each of these categories.

For economic recovery the money can be used to re-imagine workforce operations to account for business disruption and adapt to a virtual environment; implement comprehensive workforce training solutions; offer small business working capital grants to re-establish operations or grants to expand digital business capacity; and support nonprofit community to expand capacity and hire new staff to support recovery efforts.

Under housing the money can be used: to provide ongoing rental assistance and foreclosure prevention programs; establish temporary housing programs by partnering with local hotels and rental companies; adapt closed businesses and public facilities into affordable housing units; or use policy to promote equity and housing stability.

For health and human services: implement basic need program to support families who experience income fluctuations; offer financial literacy courses to families receiving support through government programs; support nonprofit community and to expand capacity to hire new staff to support recovery efforts; and stage resources for a coordinated behavioral health and substance abuse response.

For infrastructure: improve broadband access through capital infrastructure projects to expand free wi-fi to residents throughout the community; adapt infrastructure systems to preserve essential water service and meet changing demands; and bolster local food processing and delivery systems.

First and foremost, Godwin said, the court will need to develop a plan, which could require several meetings of the budget committee. Those counties and municipalities receiving funds have until 2024 to implement a plan and spend the money. Any funds not spent must be sent back.

The money will arrive in two stages, with the first 50 percent coming as soon as May 10, and the remainder no sooner than 12 months after that, according to Hagerty.

According to Hagerty, these funds are in response to COVID-19 because of its negative economic impacts in all areas of life. However, the money from these funds can’t be used to make deposits into any pension funds.