After public feedback, here’s how Merced leaders will spend $27 million in federal funds
Merced’s $27 million chunk of federal American Rescue Plan Act (ARPA) dollars was partitioned into more than a dozen pieces on Monday night — representing strategic investments that city leaders say will address the community’s needs.
The spending plan, passed via a 6-1 vote with Councilmember Kevin Blake dissenting, was the culmination of two public hearings where community members and city officials spent hours debating how to best make the large sum of federal funds go furthest locally.
Among the many projects slated to see injections of ARPA cash are affordable housing, city beautification, job training, youth programs, nonprofit support, city COVID-19 expenses and community stimulus payments.
Mayor Matthew Serratto described the lead up to Monday’s direction as a “long road.”
“We’ve had two public hearings, a study session, lots of analysis and outreach on our own time as well. Tons of work,” Serratto said. “We’ve been hearing everybody, listening to everybody. Now its time to do our jobs and act.”
City Council’s final direction on funding areas will now be used by Merced staff to build an implementation plan for the city’s operational budget.
The federal dollars are eligible only for uses that fall within four categories. Acceptable ARPA uses are public health and economic impacts, premium pay to eligible workers, compensation for reduction in revenue due to COVID-19 and infrastructure investments.
Here’s how the city is planning to invest its $27 million in ARPA funds:
Affordable housing, job programs, stimulus payments get boost
Following the recommendations made by the public and elected officials at the first ARPA public hearing in November, city staff on Monday presented the council with a list of programs to fund that fall within each of the eligible categories.
The guidance attempted to satisfy many of the appeals made by community members and elected officials alike, but not every request made the cut.
Among those requests not listed on the final investment plan were continued calls for a guaranteed universal income program for Merced youth. Dozens of local youth and youth advocates called on City Council on Monday, as they have previously in recent months, stating that “young people are more than just our future, they are our present.”
Although all members of the City Council expressed agreement with that sentiment, only a minority voiced support for such a program.
Councilmember Kevin Blake’s preference for a high dollar investment of $7.5 million for regional sports facility was also shot down in favor of boosting other programs
After a failed first motion that included the full $7.5 million price tag for the sports facility, the City Council worked with staff to alter the recommended spending plan in an effort to better satisfy the community.
The changes generally went toward bolstering affordable housing and youth programs — two of the city’s most frequently cited issues that most council members felt should be better represented with ARPA investments.
“We need to train and develop the youth so we don’t have to support them later in life,” said Councilmember Bertha Perez after the failed motion. She added that without more funding for affordable housing, “We’re going to find everyone living in the park we’re putting $7.5 million into.”
Ultimately, water projects, broadband, the Applegate Park Zoo and regional sports facility each saw some portion of their ARPA investment cut so that affordable housing projects could be bumped up to $6.5 million, nonprofit support $1.5 million and investment and job training programs as well as stimulus payments up to $1 million each.
The remaining programs remained at their city staff-recommended allocations. A complete list of the programs and more on what they entail can be found in the city’s ARPA strategic investment plan presentation.
Many details of the selected ARPA-funded projects still need to be hammered out, such as details of the stimulus payments and job training.
“There’s lots of variables in a program like this,” City Manager Stephanie Dietz said of the stimulus payments, later adding, “It would not be staff’s desire for the city to run this program.”
Due to lacking the staffing capacity, the city will put out bids for a third party to guide the stimulus program, she said. Eligibility for the program will be another consideration.
Dietz also noted that staff will look into how to help residents in need of childcare support, which several community members requested during Monday’s meeting.
