Alexandria Figuring Out How to Spend Anticipated Federal Stimulus Funds

As Congress deliberates approval of a $1.9 trillion stimulus package, Alexandria is trying to figure out how it will spend its share.

Alexandria is anticipating $26 million to $34 million, depending on the final plan. The $1.9 trillion stimulus proposal includes $350 billion for local governments.

“Our pleas for Washington to come to the table with some significant local government expenses have apparently nearly been answered,” Mayor Justin Wilson said at City Council’s legislative meeting on Tuesday. ”

Last year, the city received $27.5 million in federal funds that were allocated to the state government. This time, the federal funds would go directly allocation to localities, and would be available in May at the earliest.

City Manager Mark Jinks presented a preliminary proposal to Council on how the funds should be spent. It resembled the city’s 2020 Coordinated Community Recovery Plan, which focused on food insecurity, rental eviction prevention and small business grants. Jinks said that the city has been waiting for federal funding since last May, when the U.S. Senate sat on Heroes Act funding after it passed through the House of Representatives.

“We want to get your feedback, let you know where we are, and we’ll come back in probably the beginning of April when we know what the appropriations are,” Jinks said. “What we don’t know is how long do we have to spend the money. If we have three or four years to spend
it, then that’d be a different spending strategy, then if like the last bill said, you had to spend it in 12 months, which we did.”

Alexandria’s consumption tax receipts, including sales, restaurant and lodging revenue generated about $65 million per year, according to Visit Alexandria CEO Patricia Washington.

“This year we’re forecasting to be down $13 million before recovering halfway back up to $58 million in FY22,” Washington said.

Kate Garvey, the director of the city’s Department of Community and Human Services, wants to continue the supporting eviction protection efforts, as well as the city’s food assistance program with ALIVE!.

“It depends a lot on the amount of money that comes to us,” City Councilwoman Del Pepper said.

Wilson said that the city should use the funds to make structural investments for lasting changes.

“Instead of funding childcare, let’s get a childcare facility,” he said, and asked that city boards and commissions fill out a survey on how they think the funds should be spent. “Let’s build capacity that is our going to outlast just recovery of this year, and help us in the future.”