Lorain releases ARPA plan, final numbers on hold

LORAIN — Final numbers for Lorain's American Rescue Plan spending are on hold while the city waits to secure its second round of funding. Lorain was awarded $32 million in federal coronavirus relief aid as part of the American Rescue Plan Act passed a year ago. Earlier this week, Mayor Jack Bradley released the city's spending plan, based in part on a survey sent to residents last summer. ARPA funds can be used for public health, negative economic impacts, services to disproportionately affected communities, premium pay, water, sewer and broadband infrastructure and revenue replacement. Of the roughly 1,500 residents who responded to the city's survey, the bulk considered addressing the city's street crime a high priority, followed by water and wastewater infrastructure and support for small businesses, according to the city's report. Lorain will use a large percentage of its funding to shore up budget shortfalls due to COVID-19, with the final amount based on a formula provided by the U.S. Department of Treasury. That money will eventually flow into the city's general fund, giving officials more flexibility in how it's used, Bradley said, but would still need to pass an audit expected in 2024 or soon thereafter. Other uses include hiring 10 new police officers to combat a sharp rise in crime over the pandemic, Bradley said. That will cost about $5.5 million over the next five years. The city saw a sharp spike in homicides for 2021, its deadliest year in recent memory with 12 people killed in the city, according to Lorain Police Department statistics. The number of homicides and violent crimes committed with firearms has gone up across the country, and Lorain was not alone. From January to May 2021 alone, the city saw 10 fatal shootings — outpacing yearlong totals for 2017 to 2020. Felonious assaults involving firearms and shots fired into a home were also up during that time compared with years prior. Other uses of ARPA funds include investments in city parks, and cleaning up brownfield sites like St. Joseph's Community Center, Pellet Terminal and Stoveworks. The city is able to use ARPA funds in the majority of the city, based on qualifying census tracts. Like other federal funding, the majority of funds must be spent in low-to-moderate income areas. Funds will also be used to support small businesses affected by the pandemic, and removing or rehabbing blighted housing stock. There was some fear lawmakers would claw back the second round of funding, Bradley said. ARPA dollars were split into two tranches, with the first doled out in May 2021, and the second expected this spring — but some legislators proposed stopping the second disbursement. An omnibus budget bill passed in the U.S. House late Wednesday night excluded a $7 billion rescission of state and local funds, allowing mayors like Bradley a sigh of relief. But Bradley is waiting to approve final budget numbers for Lorain's ARPA funds until its second $16 million is safely in city coffers, he said, and once they've hired a consultant to help assure the proposed expenses will meet the Treasury's guidelines. That consultant is expected to cost $80,000 to $100,000 of ARPA funds, he said. "I'm just doing everything I can to let my voice be heard regarding how important this money is to the city of Lorain and how we have some very good uses for it and we'll be prepared to use it to improve things in the city once I know for sure we have it in the bank," he said. The Associated Press contributed to this story. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.