DULUTH – A year after facing a substantial budget shortfall due to the pandemic, Duluth leaders are now grappling with how to spend a major influx of federal money.
On Monday night, the Duluth City Council gave its first thoughts on spending the $58 million the city will receive via the American Rescue Plan, the $1.9 trillion pandemic relief package approved earlier this year.
The money is directed to states and local governments and can be spent on direct aid to businesses or households, public health investments, and water, sewer and broadband infrastructure, among other categories.
"We cannot use these to replenish reserves, and ... for any projects that are not explicitly listed, we need to be able to justify how the project was caused by COVID and how using this funding is going to solve this problem that COVID caused," said Jen Carlson, the city's finance director.
Duluth received the first half of the money last month and will receive the second half in May 2022. The cash infusion is so large the city's spending will be audited by the state, Carlson said. The city's entire general fund budget for 2021 is $94.3 million.
Several council members said a major broadband investment would be welcome as the city seeks to attract additional providers and potentially lower costs for residents.
"Are there spinal networks that we can help build that will help bring other providers to town?" Council Member Arik Forsman said.
Park maintenance, community centers, housing, water and stormwater infrastructure also topped the wish list for many council members.