Gig Harbor to get $323,100 in crisis relief money from Congress; how to spend it up to council

The City of Gig Harbor will receive $323,100 in coronavirus relief funds funneled by Congress through the states, the state Department of Commerce has announced.

But the city is waiting to see exactly when and how it will get the money and what strings will be attached before deciding how to use it, City Administrator Bob Larson said.

The allotment to Gig Harbor is part of a $300 million grant to the State of Washington under the CARES (Coronavirus Aid, Relief and Economic Security Act), which is being distributed to cities and counties by population.

The funds are flexible, allowing cities and counties to use their allocation for everything from public health and human services expenses to small business and economic support, the Commerce Department said in a release.

Larson said the city is working on a plan for using the money, which is tentatively set to be presented to the City Council at its May 26 meeting.

The city wants to use the funds to “provide support to our community members — businesses and individuals,” Larson said.

But first, he added, the city needs more information.

“We’ve been very cautious thus far because even though Governor Inslee has announced the distribution of the funds and the amounts for each city, we haven’t been provided with any details about the conditions (if any) under which we will be authorized to spend the funds, when we’ll receive the funds, whether the funds will be in the form of reimbursing for expenditures or a check paid directly to us, etc.” Larson told The Gateway in an email Friday.

“There are a lot of details that need to be researched and worked out and eventually the program will need council approval,” he added.

According to state Commerce director Lisa Brown, funds may be used for costs incurred by the local government in response to the COVID-19 public health emergency during the period Mar. 1 thru Oct. 31. Allowable expenses include, but are not limited to:

• Medical and public health expenses.
• Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the emergency.
• Expenses of actions to facilitate compliance with public health measures.
• Expenses associated with the provision of economic support in connection with the emergency.
• Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the fund’s eligibility criteria.

“Commerce is committed to moving these critical dollars as quickly as possible so communities can plan and prepare for safe reopening and recovery,” Brown said in a press release.

Neighboring cities will receive similar grants based on population. Port Orchard will receive $431,700; University Place $992,700 and Lakewood $1.79 million.

Tacoma, with a population of 211,400, will receive more than $6.3 million.

With much of downtown Gig Harbor shut down by coronavirus restrictions, business owners have been pressing the city for help. The owner of the city’s largest hotel suggested that the city return the lodging tax, something Mayor Kit Kuhn said the city is legally unable to do.

The City Council last month approved a 60-day waiver of city water and sewer fees, which the mayor said would save the average ratepayer about $120 a month, and cost the city $588,000 in lost revenue.