VALLEJO, CA – On Tuesday, May 4, The Vallejo City Council and department directors convened on the front steps of City Hall to graciously accept a $26.2 Million dollar ceremonial check from Congressman Mike Thompson.
The one-time injection of $26.2M comes to Vallejo through the federal government's American Rescue Plan Act intended to support local government agencies in their recovery from the economic impact the covid-19 pandemic has had on those organizations. While Vallejo likely won't see the first half of the actual money until July or August of 2021, the City is prepared to begin the process of economic recovery.
In 2020, the City of Vallejo deferred important purchases and maintenance to ease the financial impact the pandemic has had on the City.
Interim Fire Chief Kyle Long said, "This money is a blessing for the City. I am hopeful that we can finally replace one of only two aerial ladder trucks the fire department has with some of those funds." The department retired its second ladder truck in 2019 and planned to replace the 29-year-old in 2020.
As of today, the US Department of Treasury has not issued the final detailed guidelines for how cities can spend the money, although they have confirmed that these funds cannot be used for pensions.
"After the guidelines are released, if they allow for it, it will be important for us to replenish the $6.75M we borrowed from our reserve funds to carry us through 2020. Our Council did an excellent job building that reserve for emergencies like last year's crisis, and it only makes sense to continue to be prudent and prepared," said Rekha Nayar, the City's Finance Director.
City Manager Greg Nyhoff also commented, "I will make recommendations to Council about where we should allocate these funds based on the cuts Vallejo suffered in 2020. We already have an idea of the areas where funding is needed, such as seeding programs that support the community, create stability, and build equity."
Nyhoff added, "Ultimately, the City Council will decide how the funds are allocated in a process similar to how we deliver the budget. Community input is essential and vital in this process, and I invite every Vallejoan to be a part of those Council meetings and share their ideas with us."
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