The American Rescue Plan Act of 2021 included $350 billion in state and local recovery funds, including about $133 million for Hamilton County and its municipalities.
Local governments receiving allocations of less than $10 million can use the funds for almost any government services and projects aside from rainy day funds, debt payments and "extraordinary" pension contributions, according to the U.S. Treasury's final rule for state and local recovery funds.
Counties and metropolitan cities like Chattanooga receive recovery fund payments directly from the U.S. Treasury, which requires them to submit reports on how the funds are spent.
Smaller governments, generally those serving populations of less than 50,000, receive the federal funds in payments from the state in amounts based on their populations and aren't subject to the same reporting requirements.
The smaller governments in Hamilton County are set to receive about $23 million in recovery funds distributed in two equal tranches about 12 months apart, with the first distributed around October 2021 and the second expected to come around the same time this year.
The Chattanooga Times Free Press checked with smaller governments receiving allotments greater than $1 million to see how they plan to use the funds, which must be allocated by December 2024 and spent by December 2026.
Soddy-Daisy City Manager Burt Johnson said city officials are still discussing how to use the around $4 million allocated to the city, but plans include spending about $2 million to build either a new City Hall or police station.
The city is spending about $250,000 in recovery funds on park improvements, such as a new concession stand at South Park with an estimated cost of up to $150,000 and a new bridge on the Big Soddy Creek Gulf property off of Back Valley Road to replace a bridge that washed away during heavy rains several years ago. The cost of the bridge is expected to be between $80,000 and $100,000, he said.
"Amounts on most things are still in the air," Johnson said, adding that the city is waiting on bids to come in for a major resurfacing project that may require the use of the recovery funds to cover the overage.
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How some Hamilton County municipalities plan to use millions in federal recovery funds
Some of the funds are going toward premium pay for employees who worked through the pandemic, he said.
The town of Signal Mountain is spending about $1.6 million of its $2.5 million recovery allocation on infrastructure projects, including $724,000 for drainage improvements and pipe replacements in various locations, $143,195 for a Tennessee Department of Transportation project at Palisades Drive, $530,000 for repaving on Shackleford Ridge Road, $122,500 for replacement of a water pump and $80,000 for an interconnect between the town's water utility and Walden's Ridge Utility District, according to Town Manager Elaine Brunelle.
The town is spending $51,000 on portable radios for the Fire Department and $50,000 to remodel Fire Station 1 to include women's accommodations, as well as $300,000 for a street sweeper, $180,000 for three lease payments for a bucket truck and $65,719 on in-car and body cameras for the Police Department.
The town also dedicated $300,000 to employee retention bonuses, according to Brunelle.
The city of Red Bank is using $480,000 of its $3.5 million allocation on stormwater infrastructure, which it will combine with a $1.6 million grant from the Tennessee Department of Environment and Conservation to cover the cost of projects, including a retention pond at White Oak Park, the replacement of three bridges on Stringers Branch and a jetter truck, according to Finance Director John Alexander.
The city is spending $500,000 on technology improvements, including audio and visual equipment, an electronic sign, business process automation and technology support for the Public Works Department. The city will spend $1,150,000 on improvements to facilities, including a public works facility and Fire Station 2, as well as $312,500 each on radios for the Fire Department and in-car cameras for the Police Department.
Red Bank is spending $532,150 on employee pay bonuses, with each full-time employee receiving 5% of the average salary for full-time city employees, Alexander said.
Another $9,200 will go toward overtime pay for 911 staff, and $66,000 will be used for a road project on Ashmore Avenue, he said.
About $150,000 will be distributed to local nonprofit organizations, which will be able to apply for the funds through a committee to be established soon based on the city of Chattanooga's model. Funds will be distributed in $50,000 increments over the course of two years, Alexander said.
East Ridge City Manager Chris Dorsey said the municipality will spend about $3.5 million of its $6.2 million allocation for stormwater drainage on its multimodal transportation project under construction on Ringgold Road.
"Stormwater costs would typically come out of the general fund, so that will be a huge help," he said.
City officials have yet to decide how the other half of the recovery funds will be spent, Dorsey said.
Collegedale City Manager Wayon Hines, Assistant City Manager and Chief Financial Officer Michelle Toro did not respond to numerous calls and emails requesting information on how the city plans to spend its allocation of about $3.4 million.
Contact Emily Crisman at ecrisman@timesfreepress.com or 423-757-6508.