Akron mayor on plan for federal stimulus: 'It's time to execute'

Akron got its first look last week at how the mayor intends to start spending more than $145 million from the federal American Rescue Plan Act (ARPA).

“Shovel-ready” plans aimed at racial inequities — from eradicating lead in waterlines to supporting minority businesses, incentivizing affordable housing and giving out thousands of doorbell cameras in high-crime areas — are at the front of the line. Mayor Dan Horrigan will make those plans clearer in the coming weeks when City Council gets an amended budget.

Over the course of six weeks, the mayor and his Cabinet members plan to present a framework for the spending based on six previously announced categories. Horrigan unveiled that categorical blueprint in April, eager to throw more resources at the stubborn inequities laid bare by the pandemic's disproportionate impact on minority and low-income neighborhoods and families.

In an interview last week, Horrigan told the Beacon Journal that this once-in-a-generation influx of federal funds could put into action the recommendations of years and years of task forces, studies, community discussions and collaborative strategic plans.

What's on the list:18 ideas in Akron to start spending $145 million in federal aid

How all the funds will be allocated by the end of 2024 (and spent by the end of 2026) is a work in progress. There's more input to gather from two yet-to-be-scheduled community town halls, a consulting firm contracted to help with compliance and auditing, and ongoing talks with council members, community stakeholders and residents.

Even before he knew the exact dollar amount the city would receive, the mayor asked every council member to share their top concerns and the best ways to tackle them in their respective wards, Council President Margo Sommerville said.

Before that, Horrigan joined other mayors and municipal leagues across the country to lobby the prior presidential administration for more help and testify before the U.S. Congress in favor of the flexibility to spend that help on the city's specific needs.

"It’s time to execute,” he said.

While the mayor has identified 18 initial programs, projects and initiatives that address more pressing needs, what ultimately gets funded, and to what extent, will depend on evolving needs and resources. For example, while the mayor wants to use ARPA funds to replace old water mains and remove the last 3,200 lead-contaminated waterlines that feed homes, Congress is debating a $1.5 trillion infrastructure bill that could be used for some of that work, which would free up ARPA funds to be spent elsewhere.

Council pushes for oversight

This first step, though, didn't land well when the mayor sought council's approval last week for authorization to accept and spend the funds — half of which, about $72 million, arrived in June. The other half comes next year.

Just like any other source of outside funding, Horrigan’s finance team had the Law Department draft legislation that would add the money to the city’s books. But one line in the legislation received extra scrutiny from two council members, each an attorney.

“Any future deposits of ARPA funds, as the City may receive from the U.S. Treasury,” the line reads, “are hereby deemed appropriated, without further action of this Council, and are permitted to be expended for any purpose consistent with this ordinance.”

"It’s really critical that we not rush this process,” said Councilman Shammas Malik, whose last job before being elected was to draft and review contracts, agreements and legislation for the city’s law department.

Nancy Holland, the other lawyer on City Council, acknowledged she’s new to lawmaking and doesn't question the “good intentions” of the administration. But she, too, was "stuck" on that line.

“Plain reading of this legislation provides that this council is essentially being asked to surrender its participatory role in the deliberative process in terms of spending decision-making,” she said.

The mayor’s staff said that couldn’t be further from the truth. Per federal requirements, all spending will be tracked quarterly for the next five years. And before spending anything, the mayor said council would be asked to approve that spending in annual and amended budget bills, including the first one expected in the next six weeks.

Council's participation

Sommerville said city lawyers will be at the council meeting Monday to give a fuller explanation of why the line in question was inserted and address any other concerns.

As for future participation, Sommerville endorsed the path the mayor has laid out for the coming weeks.

“This is a lot of money, right?” she said. “We want to be able to take our time so that we really are intentional in how we are investing this money. These six individual presentations are really going to allow council an opportunity to see what are some of the proposed projects on the table. But it’s also going to give council an opportunity to bring forth some other ideas to address these areas.”

When the mayor solicited ideas from council in April and May, Sommerville requested funding for Dreams Academy, a local network of African American mentors for children ages 7 to 15.

“Very early on, mayor met with each and every council member to ask, ‘What are your priorities in each ward?’” said Sommerville, who doesn’t see an end to that participatory dialogue.

Consultant hired

Two or three times a week, select and revolving members of Horrigan’s Cabinet meet on an executive committee, which includes Sommerville, to steer how the city will handle ARPA funds.

An early decision of the mayor and the committee was picking Guidehouse from six consultants that answered a bid to provide the city audit and compliance expertise.

“I think this is the best piece of insurance that we can have, to have ongoing legal and audit guidance on how these specific federal funds should be spent," said Horrigan. "It is a significant amount of money with a significant amount of public scrutiny, as it should be. It will be transparent and we will be accountable.”

The city will spend the ARPA funds and then, starting Oct. 31, report every quarter. The federal government will audit the spending. While less restrictive than CARES (Coronavirus Aid, Relief and Economic Security) Act funding received last year, any expense that doesn’t meet U.S. Treasury or congressional guidelines, which are subject to change, could be clawed back.

Guidehouse will advise Akron on how other cities and states are spending ARPA funds. But the ultimate decision is Akron’s alone, the mayor said.

Promising transparency, equity

Gabby Bryant, a managing consultant with Guidehouse, laid out the firm’s four-point plan for transparency and community engagement: public information sessions, targeted efforts to gather input from residents, an online spending tracker (built with input from City Council) and racial equity “through a lens of the structural and historic challenges still evident in the city.”

“Not every community was affected by the pandemic equally,” Bryant said. “And we need to take that into account as we’re assigning our projects and also understand that barriers have always existed for people to create pathways to take part in this process that is equitable and inclusive.”

Guidehouse is billing the city by the hour. ARPA funds can be used to cover the administrative cost of hiring the consultant.

“Unfortunately, there’s no way to quantify what it’s going to cost,” Akron Deputy Finance Director Shelley Goodrich told City Council. “Obviously, it’s going to depend on how much we have to rely on them throughout the next five years. Some of this, obviously, we will be able to rely on them more at the beginning, especially once we get the final guidance and we know what’s eligible and what’s not eligible.”

Reach reporter Doug Livingston at dlivingston@thebeaconjournal.com or 330-996-3792.