Sussex County Finance Director Gina Jennings presented her plan to spend $45.5 million in American Rescue Plan Act money to the County Council on March 8.
Jennings recommended the majority of the money go toward wastewater infrastructure, while putting a few million each toward the county’s Housing Trust Fund, new county paramedic and dispatcher positions and nonprofit grants. The details of her proposals must still be determined, and the council will vote on most of her recommendations (those that require $50,000 or more) individually at a later date.
The county received half of the American Rescue Plan money in May 2021, with the rest expected to arrive in May 2022. It must all be spent or under contract by the end of 2024.
“I want to be able to sustain this moving forward and not create a program that we’re going to have to raise taxes in order to sustain. Once the funds are gone, they’re gone. We can’t assume there’s going to be more,” Jennings said. “Most of my recommendations are going to strengthen the programs and services that we already have in place today.”
Wastewater infrastructure
Jennings recommended more than half of the money ($25 million) be spent on sewer infrastructure and upgrading the county’s existing Wolfe Neck and Inland Bays wastewater facilities. An additional $3 million is earmarked for cybersecurity measures for these facilities.
“If you ever read on cybersecurity or anything like that, what wants to be attacked is the sewer system,” she said. “If you can’t flush, that’s a problem. We don’t want to be held hostage.”
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Affordable housing
Jennings recommended using more than $6 million to enhance the county’s Housing Trust Fund, which has two programs: direct buyer assistance and the Development Loan Fund.
Direct buyer assistance money goes to low-income families for things such as for a down payment on a house. Previously, people making 80% or less of the area median income could receive up to $10,000 in assistance. With American Rescue Plan funds, families making up to 120% of the area median income can receive $10,000, and families making 65% or less of the area median income can receive up to $30,000.
The money will significantly bolster the Development Loan Fund, turning it into a grant fund until the money runs out. The program will offer $500,000 grants to “developers and nonprofits that serve residents with an area medium income of 65% or lower,” according to Jennings.
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She also recommended $2 million go toward other low-income services, like emergency repairs, sewer connections and home weatherization.
The county hopes to roll out applications for these programs this spring, Jennings said.
Nonprofit grants
Jennings recommended putting $5 million toward a grant program, to be used by nonprofits to respond to COVID-19 and its impact. The grants should not be used for affordable housing, since the county is already addressing that issue, Jennings said, and should be for $500,000 or more.
“Due to all these requirements in ARPA and all the reporting and compliance, it’s not worth small grants,” Jennings said. “I recommend larger grants so that we can stay compliant.”
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This particular part of Jennings’ plan is already underway. Nonprofits can apply for a grant here. The county council will ultimately decide which nonprofits receive grants.
Paramedics and dispatchers
About $1.4 million should be used to hire four new paramedics and four new dispatchers, Jennings said. American Rescue Plan money will be used for two years, she said, then the positions could be funded by the county’s real estate transfer taxes.
Kitchen incubator
Half a million should go toward building infrastructure for a kitchen incubator, Jennings recommended. The state already provides operational funding for the program, which offers “kitchen space combined with business assistance to help underserved and aspiring entrepreneurs in the hospitality industry,” according to county spokesman Chip Guy.
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Substance abuse statewide
The council heard its first request for American Rescue Plan money immediately following Jennings’ presentation.
New Castle County is asking Kent and Sussex counties to contribute to a statewide substance abuse disorder needs assessment. The total cost is about $445,000. Kent and Sussex are being asked to contribute $75,000 each, with New Castle paying the remainder. The council approved the request.
The grant is considered “intergovernmental” and is separate from the nonprofit grants. Jennings recommended allotting $250,000 total in American Rescue Plan money to intergovernmental grants.
See the county’s “checkbook”
In anticipation of public interest in how American Rescue Plan money is being spent, Jennings also introduced a new, online, financial information portal March 8.
Sussex County Open Finance allows users to view the county “checkbook,” examine payroll and vendor payments and view financial breakdowns in charts and graphs, among other things.
Shannon Marvel McNaught reports on Sussex County and beyond. If you value her work, please consider subscribing.
