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A proposal to use more than 81% of Luzerne County’s current $56.4 million American Rescue Plan allocation to provide a one-time $600 rebate to approximately 77,000 owner-occupied primary residences was postponed by a council majority Tuesday.
Several council members reiterated they won’t approve any expenditures until the final federal regulations are released in September, allowing them to verify permissible uses and explore all options for the rare windfall.
The county administration also presented new information Tuesday, saying the National Association of Counties, or NACO, informed the county to “be very careful” and “to be prudent and to wait” to ensure a rebate meets federal requirements.
County Acting Manager Romilda Crocamo said the county also would have to document the impact of COVID-19 on properties receiving the rebate and develop criteria to meet federal reporting requirements.
She urged council members to consider how they are going to come up with $46 million for the rebate if the final American Rescue regulations deem that use is unacceptable.
“The administration is not opposed to this in theory, but there’s a lot that has to be worked out,” Crocamo said of the rebate.
County Budget/Finance Division Head Brian Swetz said he has received mixed opinions on the permissibility of a rebate and said final rules also have not been issued on the paperwork and reporting requirements for American Rescue expenses.
“If we do this tonight, and it’s not allowable, how are we going to make this money back?” Swetz said.
Seven council members voted to postpone: LeeAnn McDermott, Chris Perry, Kendra Radle, Sheila Saidman, Robert Schnee, Matthew Vough and Tim McGinley.
Opposing the postponement were Stephen J. Urban, Walter Griffith, Linda McClosky Houck and Harry Haas, who had introduced and heavily pushed the proposal.
Haas vehemently objected to the postponement and said it’s an “extremely appropriate” use of the funding. He argued property owners need the help now, predicting another shutdown is coming due to the fast-spreading coronavirus Delta variant. He also noted the rebate would equate to 41% of the county’s overall allocation when next year’s receipt of $56.4 million is factored in.
Radle said she will vote to postpone any decisions on American Rescue spending until the final rules come out. She also said no council members are qualified to predict what will happen with the Delta variant and that they have no right to instill fear to “push a vote.”
Saidman said there’s no “need to be rash” in making a decision because fund recipients don’t have to commit to a plan until the end of 2024.
Perry said he is not fully for or against the rebate proposal but already had warned he will await the final federal regulations.
McDermott concurred and said there is no guarantee the county will receive another $56.4 million next year. She also told Haas there is no reason to “try to shame people” in pushing them to vote for his proposal now.
McGinley also took issue with arguments made by Haas and said next year’s funding receipt can’t be counted on until it is received because “things change” at the federal level.
Schnee said he is not against the rebate but is uncomfortable voting before the final rules.
McGinley said council will eventually vote on the rebate along with other possible uses for the money.
The county administration has suggested using some funds for projects to reduce a controversial stormwater fee, bolster small businesses and possibly cut the Wyoming Valley Levee fee.
During public comment Tuesday, citizen Brian Shiner suggested council look into using the money for a new prison to replace the county’s aging structure on Water Street in Wilkes-Barre.
Manager search
Council decided to hold a virtual-only meeting at 5 p.m. Aug. 5 to interview the remaining eight citizens interested in serving on the outside manager search committee.
Prior plans to perform a virtual-only interview session had been halted due to questions about whether an in-person meeting is required now that the state has lifted its coronavirus emergency order. Acting county Chief Solicitor Vito DeLuca said he is confident the virtual session is permitted for interviews because council won’t be voting on any matters and the public will have the opportunity to watch the session and provide public comment via the Zoom platform.
Several council members expressed support for the virtual session Tuesday, saying it will ensure the eight applicants will be treated the same as 10 previously interviewed in that online format.
Council plans to decide the number of committee members and vote on appointments at its Aug. 10 meeting, which will be in-person with a remote attendance option.
Required by the county’s home rule charter, the volunteer citizen search committee must seek, screen and recommend qualified applicants to council.
Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.