Village set to receive $1.2 million in rescue money

The Village of Grafton is expected to receive $1.2 million in federal funds through the American Rescue Plan Act of 2021 supporting local governments affected by the coronavirus pandemic.

During Monday’s Committee of the Whole meeting, Director of Administrative Services Paul Styduhar said municipalities will be allocated funds based on population from the act, which was signed into law on March 11. Last month, the village was expecting to receive $1.16 million.

Officials said the funds will be received in two phases, with the first half by July 11, 2021, and the second by July 11, 2022. Spending plans must be submitted by Dec. 31, 2024, and the money must be spent by Dec. 31, 2026. 

The funds can be used in four categories, including:

• Replacing revenue based on lost income resulting from the Covid-19 pandemic and public health services;

• Responding to a public health emergency or its negative economic impacts, including assistance to households, small businesses and nonprofit groups or aid to impacted businesses such as tourism, travel and hospitality;

• Investing in water, sewer, storm sewer, broadband infrastructure and roadwork;

• Responding to workers performing essential duties during the public health emergency by providing premium pay to eligible workers or by providing grants to eligible employers whose workers perform essential work.

Village President Jim Brunnquell recommended the Village Board create a list of spending priorities for the funding and said the village should send a survey to residents and business owners, as well as nonprofit and social service agencies, to determine their needs.

Styduhar said U.S. Treasury Department will issue further guidance on how the funds can be allocated in the next two months. He said the village could receive an additional $35,000.

Officials said that if the village spends more than $750,000 in funds in a given year, it is required to undergo a yellow book (federal) audit.

“If we exceed the $750,000 in spending in a given year, the audit process could be very time consuming,” Styduhar said.