FAYETTEVILLE, Ark. (KNWA/KFTA)- On Tuesday, Fayetteville City Council voted to reallocate 10 of its 18 million American rescue plan dollars to cover the city’s fiscal losses.
“So, in other words, it’s reimbursing the city for revenue losses that occurred during the coronavirus period,” says chief financial officer for the city of Fayetteville Paul Becker.
$10 million is the max standard allowance that the United States Treasury is now allowing cities to reallocate for revenue loss.
Becker calculated that during the pandemic, the city lost out on $6.9 million worth of revenue.
He says the money will still be spent on public services.
“But it moves from the requirements of the grant, which are pretty stringent in many cases, to the city where we can look at different types of programs, and it gives us different options which we didn’t have,” says Becker.
Different options such as sidewalk repairs, Park improvement, and water quality, just to name a couple.
However, when it comes to things like food insecurities and additional rental assistance, he says it won’t be the top priority for this $10 million.
“Those would have been eligible under those, they still are eligible, and we already have funds allocated for that,” says Becker.
City Councilwoman Teresa Turk made a point to mention this was one of her concerns.
“It’s not that I don’t trust the city or the council, but I think the way the article was set up what is the appropriate balance and response to the Covid,” says Turk.
Becker, though, is confident the preestablished programs to tackle public support is sufficiently funded.
“There are other programs that are through the state and through the county and from other places to address that,” says Becker.
Now the $10 million has been reallocated for revenue losses, the council will vote on how and where to spend the money.
As of right now, there are no projects in the books.