Approval of some or all of the remaining 25 applicants for Aberdeen CARES Act small business grant funding was delayed Wednesday when the City Council recommended the review of applications be taken on by a different committee.
“There was a committee we asked to review those applications, the Good Neighbors Revolving Fund Committee, and they just felt it was kind of out of their wheelhouse to make that decision,” said Ward 4 Councilwoman and Finance Committee Chairwoman Deborah Ross, adding the four-member committee thought the task “was outside the work they had been asked to perform in the past.”
At the Wednesday council meeting, it was recommended and approved that the remaining 25 small business relief grant applications be reviewed by the city’s ad hoc budget advisory committee, created at the beginning of the COVID-19 pandemic.
“We were worried about shortfalls in revenue and the committee was formed to sort of track how things are going and what we might do to recommend about the annual budget as things go along,” said Ross about the formation of the ad hoc budget advisory committee. So rather than form a new committee to review the CARES Act grants, “the Finance Committee said we already have this (ad hoc budget advisory) committee in place, so that is what we are going to do.”
The Good Neighbors Revolving Fund Loan Committee is made up of Bank of the Pacific’s Tony Enzler, Windermere Real Estate’s Tom Quigg, Aberdeen Main Street Executive Director Wil Russoul, and Steam Donkey Brewery co-owner Stephanie Bennett. Its normal function is to oversee the city’s revolving loans to private property and business owners to make exterior improvements to properties in the city.
The committee that will now review the CARES Act grant applications is made up of three members of the city Finance Committee, the Public Works Committee Chair and the Public Safety Committee Chair.
A total of 44 applications were received for the grants of up to $10,000 for businesses who suffered losses during pandemic-related closures and other restrictions. The Good Neighbors Revolving Loan Fund Committee recommended 13 to the council at its last meeting in July; of those, nine were approved for a total of $30,757.
According to a Finance Committee report, the amount left pledged by the city for the grants is just shy of $170,000. With 25 applications left, the committee recommended 25 for funding and had originally asked the council to tentatively approve those as the committee spent more time reviewing the applications, the grant amounts requested by them exceeding the available funds from the city.
Ross said it’s likely the ad hoc budget advisory committee will have its recommendations before the City Council by the next council meeting, Aug. 26.
“That’s important to me personally,” she said. “We need to get that money out there. Businesses are suffering and we need to get them the help we have available.”
And while “there is some pretty strong sentiment out there” by the public about some of the businesses that have applied, “it’s important to review the parameters that were initially set up and base the decisions on that,” said Ross.
Budget outlook
Ross told the City Council Wednesday that revenues for the city are better than expected in light of the pandemic; in fact, “Sales tax is up from the previous year, and up from our estimate,” she said. “Things are not looking as bad as we initially thought, which is very encouraging. I understand the sales tax in the month of July was higher than last year, and the Business and Occupation Tax is pretty much on target. I hope the trend continues.”
