Every August the League of Cities and Towns holds its annual conference. Elected officials, local government staff and those serving local government attend the conference.
Arizona State officials and federal officials and agencies attend as well. A quick walk through the expo provides a snap shot of the event. Arizona State agencies in attendance included:
- Az State University Board of Regents
- U of A
- ASU
- NAU
- ACA (Az Commerce Authority)
- Az Corporation Commission
- ADEQ
- Az Dept. of Housing
- Az Dept. of Administration
- ADOT
- Az Dept. of Economic Development
Public Affairs organizations attended as one might expect and housing 501c3s attended. The Association of General Contractors, health care organizations, building trade organizations, APS, SRP, economic development, port authorities, mining companies, infrastructure organizations, financial strategies and grant writing, entitlement and planning companies, communication companies and other organizations and companies.
In short, everything you could imagine a city, town or county needing in order to address the needs of its businesses and residents was represented. And that is what makes attending this conference so interesting and valuable.
The first day I attended the Resilient Infrastructure and Sustainable Water Future session. This session was a four hour discussion, table workshop and panel discussion on infrastructure grants to local government through the Infrastructure Act. Local governments were identifying infrastructure needs, mostly roadways, broadband, water, wastewater, housing, medical facilities and deferred maintenance projects.
Most of the time was spent identifying grants, discussing layering of grants and the intricacies of grant writing. Federal grants are difficult to write, time consuming and a complex maze of language interpretation.
Most cities, towns and counties cannot afford to hire a grant writer and so some are discussing pooling resources to hire a grant writer for projects that intersect common areas and goals.
With all the enthusiasm, no one asked a basic question…What happens if the OMB rule requiring 100% American Made projects with 100% American made materials doesn’t change? What happens to local government budgets if they receive a grant, and the OMB rules prevent the federal agency from reimbursing or matching the funds expended?
What happens if the federal government essentially reneges on its promise? It has happened before. What do cities, towns and counties do if their project budget assumes federal funds? How does that affect their budgets and their resident/business services?
It is a question I asked of those at my table. Two Az State Legislators, a Mayor and a City Councilwoman. Since none of them had heard or read anything about the OMB rules and their promulgation at the various federal agencies, it was an item to ponder at a later time.
And so my question to WeSERV members is, as you look at your business in agriculture, commercial or residential real estate, what problems can you foresee?
Is your city, town or county already awarded federal funds (Ex: Middle Mile Broadband) or are they submitting grants with the clear expectation that half or more of the project/s will be funded by federal grants?
Do you see a negative impact to your local government? Do you have an alternative way to finance most or all of the infrastructure projects that would provide local government with less risk if the federal government pulls back the money?
You may not have a total solution, but you may have a piece. Something you, other businesses or wealth management and financing professionals suggest at an individual level that can be scaled to a community.
I would be interested in knowing your suggested solutions so that our local governments can maintain control of their budgets while building needed infrastructure, even if the OMB rules cause federal funds to not be available.
Call or email me: WeSERVGAD@weserv.realtor – 623-931-9294