Bangor will discuss ideas for how to spend more than $20 million in federal relief funds at a Tuesday City Council workshop, potentially bringing the city closer to deciding how to spend a large, one-time pot of funds for which it still has no firm plans.
Bangor is one of six Maine municipalities that received federal funding awards ranging from $9 million to $46 million via the American Rescue Plan Act, a stimulus package Congress passed in March 2021 in part to help states and local governments recover from the pandemic.
But while other cities, like Portland and Lewiston, have announced some spending plans, Bangor officials have been slow to say what they will consider doing with the city’s $20.5 million award. Advocates have urged city and county leaders for more than a year to consider spending two-thirds of the funds on building more affordable housing and funding mental health and substance use disorder treatment.
The Bangor City Council will discuss ideas for what to spend the money on and metrics to use in making spending decisions at its Tuesday night workshop, according to a memo from City Manager Debbie Laurie.
Grantees must spend the money on replacing lost public sector revenue, premium pay for essential workers, investing in infrastructure like water, sewer and broadband internet, and helping local businesses, households and communities recover from the pandemic’s public health and economic setbacks, according to U.S. Treasury rules. Money must be earmarked by 2024, and must be spent by 2027.
Penobscot County has allocated more than $2 million of its $29.5 million grant so far, with the funds going to organizations that address public health, mental illness, substance use disorder and hunger. Millinocket Regional Hospital received $1 million last week to expand its emergency department as part of a second round of awards.
Penobscot County Cares, an advocacy coalition, has called for Bangor to spend its ARPA award on building more affordable housing and funding substance use and mental health treatment since last year.
The Treasury Department did not finalize rules for ARPA funding until January, and city staff have since held a “variety of public input sessions and indicated their support to consider partnership opportunities with Penobscot County on their application process,” Laurie said.
Most of those who offered their feedback wanted the city to spend its funds on government services, like expanding broadband access and improving sidewalks, and on workforce, transitional and low-income housing, according to survey results.
“ARPA funding is temporary in nature, and while it may seem we’ve acted slower than others, it is a historical opportunity to invest in the future of our City, a responsibility the City Council takes very seriously,” Laurie said.
“Guidance suggests that adequate time should be taken to carefully consider all alternatives prior to committing the resources and that wherever possible, expenditures are spread over the qualifying period which ends in December 2026.”