Placer County explores uses for recovery funds

The Placer County Board of Supervisors held a special meeting Wednesday to explore county projects where American Rescue Plan Act (ARPA) fiscal recovery funds could be utilized. According to Placer County Finance and Budget Operations Manager Daniel Chatigny, ARPA was signed into law March 11 and established the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund to expand support for the COVID-19 public health emergency, previously provided through the CARES Act. Chatigny said Placer County will receive an allocation of $77.4 million of fiscal recovery funds. According to the staff report, the county received the first half of the funds, $38.7 million, on May 19 and is expected to receive the remaining funds in May 2022. The funds must be obligated by Dec. 31, 2024, and fully spent, with all work completed by Dec. 31, 2026. During the June 22 meeting, Chatigny said the eligible categories to use the funding are: respond to the public health emergency and address negative economic impacts, provide premium pay for essential workers, replace lost public sector revenue and invest in water, sewer and broadband infrastructure. The funds cannot be deposited into pension or rainy-day funds or be used for offsetting tax cuts, debt service, legal settlements, matching funds or general infrastructure outside of water, sewer or broadband. Chatigny presented the board with a list of potential projects, focusing on revenue loss, health, broadband, affordable housing and infrastructure. The proposed projects include: $11 million for sewer extension to the Sunset Area. $17 million for Placer Ranch sewer extension to the foothills. $8 million for Placer County Government Center infrastructure. $10 million for countywide broadband infrastructure. $8 million for affordable housing/homelessness. $1.5 million for parks and trails for mental health. $5 million for the Jail SB863 Mental Health Facility. $550,000 for revenue loss. $3 million for Lincoln sewer. $13.3 million for Health & Human Services. "There were funding dollars that we've allocated and built up in the fund to do some of these projects," Placer County CEO Todd Leopold said. "The opportunity to utilize these dollars without using general fund capital is why we're looking at doing that. That would potentially free up money for you to do other projects." Chatigny confirmed it was a list of potential projects and added, "I think there's probably a fairly strong perception or assumption that these numbers will change and they won't all come in rounded to the even zero and they will fluctuate up and down." District 5 Supervisor Cindy Gustafson inquired as to how the $10 million for broadband would be utilized to help the Placer community. Jarrett Thiessen, information technology chief information officer with Placer County, confirmed the IT department is working with county service providers to identify where the underserved and unserved areas are to gain a better understanding of what projects would be best to utilize the proposed $10 million. During public comment, community members asked the board to consider the physical and mental effects the vaccines have on residents, if the funding had any strings attached and if denying the funds was an option. Chatigny confirmed there probably would have been a period to not request the funds and "the treasury has an opportunity to claw back any funds that are unspent or any funds that were spent on projects deemed ineligible." Chatigny also confirmed the only restrictions are those that provide guidance on the projects and expenses for which the funding can be used. Veronica Blake with the Placer Community Foundation submitted a comment noting affordable housing should be prioritized around the Highway 65 corridor development project, funding should be used for affordable housing in North Auburn and her support of expanding broadband. "The pandemic has definitely shown us the importance of making sure all of our residents have access to the internet to get information," she said. Sean Barclay, general manager for the Tahoe City Public Utility District, and Brad Johnson, general manager for the North Tahoe Public Utility District, requested the establishment of a competitive countywide community grant program to assist with investing in water infrastructure for fire suppression. Gustafson said there are "a lot of needs that aren't getting met," noting county obligations and there being no discussion about biomass. "We are freeing up general funds and we can certainly entertain over time thoughts about how we help these sort of projects that they're proposing because I do think they're critically important in various communities," Gustafson said. District 4 Supervisor Suzanne Jones requested that San Juan Water District be added to the discussion if assisting independent special district projects is discussed in the future. San Juan Water District serves Granite Bay and Roseville. District 1 Supervisor Bonnie Gore noted they should review things that were severely impacted by COVID-19. Chatigny confirmed a performance project plan on how the county plans to use the funds will be drafted and brought back to the board at the beginning of August. Board Chair Robert Weygandt adjourned the meeting by saying, "This is the first major step by the board in a process that will emerge and become more detailed over time."