PF council accepts more than $7M in ARPA funding

POST FALLS — City council members voted to accept $7,797,234 in American Rescue Plan Act funds Tuesday night, with Mayor Ron Jacobson breaking a tie vote.

Proposed expenditures include: $1.5 million to modernize the city's cybersecurity, $1 million to enhance the wastewater contingency plan, $1.4 million to $5.1 million to support the facilities master plan, $800,000 to build the Montrose Ball Fields, $551,000 to complete the Landings development and $2.45 million to reconstruct Seltice Way.

Following a council workshop on ARPA funding held three weeks ago, the council tabled the decision until Tuesday’s meeting.

Councilman Joe Malloy said he was prompted by negative public testimony heard by the council in March to “put on his tin-foil hat kind of eye,” and dig deeply into the statutes surrounding acceptance of the funds and any possible consequences for the city of Post Falls.

“I can honestly say in the 10 years I’ve been on the council, I’ve never done so much research for a single vote,” Malloy said.

A thorough examination of the 472-page ARPA document proved there was “a lot of vague and ambiguous” language, but Malloy identified no reason to reject the funds, he said.

Among public objections cited, citizens expressed fear that the city of Post Falls could be sued by the federal government about how ARPA funds could be spent.

Malloy found no evidence of this. He did find 17 cases where states sued the federal government regarding ARPA fund expenditures that “directly or indirectly offset tax cuts,” he said.

The executive orders connected to those cases mandated no penalty for those states and only served to prevent continuation of lawsuits against the federal government.

The city of Post Falls has not increased or lowered taxes for 10 years, making the point moot, Malloy said.

Malloy examined each executive order related to federal COVID-related mandates in connection to accepting ARPA funds.

Possibly problematic executive orders (13994 through 14043) were subject to Malloy’s scrutiny. None were found to leave room for negative consequences in case of funding acceptance.

For example, executive order 13996 is about establishing a COVID testing board and workforce response program in the realm of public health. The city of Post Falls employs no public health professionals and has never had a program for the testing, contact tracing or quarantine of its citizens. Malloy concluded the order is not applicable to the city.

Executive order 13998 concerns promoting COVID safety in public transportation.

The city of Post Falls provides no public transportation service, Malloy said. Though the city partially supports the operation of Citylink buses monetarily, it is not responsible for the governing of the service.

Consequently, the order brings “zero risk to the city,” in the case that ARPA funds are accepted.

Malloy clarified that ARPA funds would be used to support infrastructure projects, not increase government reach.

“All the projects which the city has proposed to direct these ARPA funds were already planned or in progress well before ARPA was even a glint in the Biden administration's eye,” Malloy said. “Had COVID never happened, these projects would still be happening. These projects will happen whether or not we accept ARPA funds.”

Were ARPA funds rejected, the variables affected would be completion timelines and how the projects are funded, Malloy said. The COVID pandemic and subsequent federal restrictions resulted in a revenue loss over $10 million for the city, he said.

The city can make up for “the majority of that loss” with ARPA funds, Malloy said.

“A vote to not accept the funds is essentially a vote to increase city taxes, cut city services or delay critical infrastructure projects,” Malloy said.

Though ARPA is a “terrible piece of legislation,” Malloy asserted the funds will be spent and the state liable for them whether Post Falls benefits from them, or not.

Mayor Jacobson responded to Malloy’s “thorough analysis,” and cited his past experience managing federal funding. For example in the case of the CARES Act and PPP loans.

Councilman Kenny Shove remained opposed to acceptance of the funds.

“Looking through all the details of the implications it seems like it’s pretty good and we should accept it. The problem I have with it is a matter of principle. I see that it’s giving more power to the federal government, for us to be tied in with them,” Shove said. “I would love to see Post Falls step farther and farther away from the federal government. To say we can be our own, we don’t need the federal government to bail us out.”

Council President Kerri Thoreson indicated she’d be failing in her service to the city, were she to motion rejecting the funds.

Thoreson joined Councilmen Lynn Borders and Malloy in favor, while Shove, Josh Walker and Nathan Ziegler voted against. Mayor Jacobson’s vote in favor passed the motion.