Chelan city council hears ARPA funds distribution plan

CHELAN – The city council heard recommendations at its Tuesday, Sept. 10 meeting for the distribution of ARPA (American Rescue Plan Act) funds on hand that have been under consideration since June. City Planner Wade Farris presented and reviewed the existing funds on hand together with his recommendation for how to allocate them.

The city received an allocation of $1,183,905 in ARPA funds. These funds are intended to address needs including public health response, negative economic impacts, and improvements to water, sewer, and broadband infrastructure. They were allocated to the city to support the community’s recovery from the economic impacts of the COVID-19 pandemic. 

ARPA funds must be obligated by Dec. 31, 2024, and spent by Dec. 31, 2026. Given these deadlines, the city has three months to come up with a distribution plan that ensures funds are used efficiently and for their intended purposes within the allowed timeframe.

The agenda bill discussed at last week’s meeting proposes the following allocation:

• Public Health: $200,000 for the Lake Chelan Food Bank. 
• City infrastructure and facility improvements of $749,905 allocated to: 

 ‣ $400,000 WA Street Booster Pump Station.

‣ $349,905 City of Chelan Facilities Audit & Assessment.

• Community Youth: $234,000 for the Chelan Valley Boys & Girls Club.

Funding request policy

In other business the council discussed establishing a formal policy to set a maximum dollar amount for funding requests from community agencies. 

The city has received multiple funding requests for various amounts over the years, There is no current standardized policy or cap in place to guide these requests. Establishing a policy will help streamline the process, promote transparency, and ensure that all requests are evaluated on a fair and consistent basis.

In 2024, for example, the city approved $137,800 in requests. In 2023 that figure was $124,900. 

Key considerations include: - 

• The overall budget and available funds. 
• The needs and priorities of the community. 
• The potential impact on public agencies and services.

Two options have been identified for discussion: 

1. Allocate funds collected from Short-Term Rental (STR) license fees - approximately $80,000 per year – for community funding requests. 
2. Identify a flat amount from the general fund to allocate to agency donations. 

Mike Maltais: 360-333-8483 or michael@ward.media