City would be biggest loser in CDBG cut
Washington firefighter Steve Ference works between calls at the Wheeling Street station on April 3 to wash one of the city’s trucks that was purchased with federal block grant funds.
Washington firefighter Dan Grossman works between calls at the Wheeling Street station on April 3 to wash one of the city’s trucks that was purchased with the help of federal block grant funds.
Washington firefighter Steve Ference, left, and Capt. George McMullen work between calls at the Wheeling Street station April 3 to wash one of the trucks that the city purchased with the help of federal block grants.
Washington firefighters Steve Ference, left, and Dan Grossman work between calls at the Wheeling Street station on April 3 to wash one of the city’s trucks that was purchased with federal block grant money.
This brick sidewalk along South Main Street in Washington was built with redevelopment funds.
Lamp posts and new sidewalks along South Main Street in Washington were constructed with redevelopment funds.
Of the 65 municipalities in Washington County that receive an allocation through the Community Development Block Grant program, the city of Washington stands to lose the most if the federal program is defunded or reduced.
In 2016, the city received $570,500, more than any other municipality from the distributing entity, Redevelopment Authority of Washington County. While funding for programs such as home rehabilitation or blight demolition can be adjusted, a large portion of the allotment is used to repay a bond issue that financed the purchase of a fire department truck and a downtown revitalization project that was completed in 2008.
“How are we going to pay this? We’re taking proactive steps. We’ll be setting up a meeting with the redevelopment authority,” said Councilman Joe Manning, head of the finance department. “We can reduce line items … but the bond and fire truck payments are static. They have to be made.”
Rob Phillips, redevelopment authority assistant community development director, said when a representative of the authority meets with municipalities, it is always expressed that funding is expected but not definite.
“We’ve never been able to guarantee those funds. It’s worked out that it’s always been available,” he said. “Certainly, a cut would be a big impact.”
The first two stages of the business district streetscape project included burying overhead utility wires, sidewalk and curb installation, lighting, trees and signs along North and South Main Street.
The $17 million project was partially funded by a bond issue taken out in 1999. It was refinanced in 2012 and 2014. The redevelopment authority, on behalf of the city, makes biannual payments with CDBG money.
According to Susan Koehler, Washington deputy finance officer, one bond issue has about $630,000 remaining with a payment schedule through October 2021. The other has $697,500 outstanding, to be paid through September 2023.
A final payment of about $165,000 for the fire truck purchase will be made later this year.
Councilman Ken Westcott, who was on council at the time the bonds were floated, voted against it because, “I opposed taking money from the people,” he said. “The (CDBG) is the lifeblood of the community. It affects low- to middle-income families.”
CDBG funds are used to raze blighted properties, for road improvements in low-income neighborhoods and for a home rehabilitation program that provides low- and moderate-income occupant homeowners with forgivable loans to fix housing problems and for energy conservation improvements. Eligible homeowners receive a maximum loan of $24,500. If a homeowner remains in the home for at least 10 years, the loan is forgiven.
There are about 50 homeowners on the city’s waiting list for the rehab program.
“There are a lot of things the federal government can cut. I don’t think this is one of them,” said Westcott.
Although the fire truck bond is almost paid, Manning noted the city has been using CDBG funds since the 1970s to replace or repair fire equipment.
“Moving forward, if we need a fire apparatus, we would have to find that money,” he said. “That would be on the taxpayers.”
Manning said he received a letter from the redevelopment authority, asking the city to reach out to legislators with CDBG concerns.
The final phase of improvements on South Main Street, from Railroad Street to Park Avenue, is expected to conclude by the end of June.
The $1.5 million third phase is being funded by a combination of local share account, Department of Community and Economic Development, Southwest Pennsylvania Commission and U.S. Army Corps of Engineers money.