Borough applies for pandemic aid to cover lost revenues

The borough assembly last Friday approved submitting an application for $1.8 million in pandemic relief aid to replace lost sales tax, port and harbors and other revenues in 2020.

The funds, if granted, would come from the state’s share of the American Rescue Plan Act, a $1.9 trillion COVID-19 relief fund Congress approved in March.

Cities and boroughs received a direct federal allocation under the act — Wrangell’s share was $485,000 — while the state is going to share some of its money with municipalities that got hurt above and beyond the dollar amount of their direct funding.

The state is sharing $50 million with cities and boroughs that apply to the Division of Community and Regional Affairs’ Local Government Lost Revenue Relief Program and can show a revenue loss in calendar year 2020 due to the pandemic.

Wrangell’s general fund revenue was $5.9 million in calendar 2020, Finance Director Mason Villarma said at the assembly meeting but, according to the state’s revenue-loss calculation formula, the borough’s revenues would have been projected at $7.7 million. The borough’s application is for the difference of $1.8 million, well above the program’s threshold of a 10% loss needed to qualify for the relief money.

 

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