The City Council voted Tuesday night to amend the city budget appropriation ordinance to include $29.14 million in federal funds expected from the American Rescue Plan Act, which is an economic stimulus bill passed by Congress and signed into law by President Biden earlier this year.
Cities and counties across the nation are receiving the direct federal aid. The aid is intended to speed up the United States' recovery from the economic and health effects of the COVID-19 pandemic. Funds are allocated based on each locality’s population.
Each locality will receive payment in two installments of 50 percent. Danville has received its first installment and will receive the second installment no sooner than 12 months after the first payment.
A special fund has been set up to hold the money and will be transferred to projects as later determined. The federal Treasury Department has provided general guidance on allowable and non-allowable uses for the funds. A summary of the proposed uses of the money includes:
- Support urgent COVID-19 response efforts to continue to decrease the spread of the virus and bring the pandemic under control.
- Replace lost public sector revenue to strengthen support for vital public services and help retain jobs.
- Support immediate economic stabilization for households and businesses.
- Address systemic public health and economic challenges that have contributed to the unequal impact of the pandemic on certain populations.
In other matters last night, City Council voted to:
- Amend the city budget appropriation ordinance to add $740,000 in state funds for the Riverfront Park project.
- Authorize the city manager to submit a one-year action plan as required by the U.S. Department of Housing and Urban Development. The plan is necessary for the City to receive Community Development Block Grant and HOME Investments Partnership Program funds.
- Approve changes to the City’s personnel system regulations, compensation plan and classification plan.
- Approve a moral obligation agreement with American National Bank. The agreement covers the renewal of a loan from the bank to the Industrial Development Authority (IDA) for the purchase of the former U.S. Green Energy property at 1350 Barker Road. As part of the renewal, the bank requires the moral obligation of the City to repay the loan if the IDA fails to do so.
- Approve a support agreement with the Danville-Pittsylvania Regional Industrial Facility Authority (RIFA) as a condition of a loan from the Virginia Tobacco Commission to RIFA. The loan will be used to finance removal of a two-mile portion of Appalachian Power Company’s transmission line that runs through three lots within the Southern Virginia Megasite at Berry Hill.
Also during the business session, the City Council reviewed the latest financial reports and held a first reading on amending the city budget appropriation ordinance to allow for use of additional federal funds to be used to complete design services for the rehabilitation of the south ramp and taxiway connections at the Danville Regional Airport.
A first reading is an introductory step required by the City Code before some issues can be voted upon by the City Council. This step serves to provide public notice of pending action. The City Council can vote on these matters at its next meeting.