The city of Cortland will delay spending any further federal stimulus funds until it has determined how much money it has remaining — and whether it ever legally authorized the projects, Mayor Scott Steve said Wednesday.
The city has no record of whether its Common Council authorized spending $765,000 from the American Rescue Plan, from which the city received $2.05 million.
Former Mayor Brian Tobin questioned last week why the city used $10,000 from sales tax revenue to fund events to draw people downtown and support business during construction on Main Street. He said $50,000 was already allocated in “funding for events” from the city’s American Rescue Plan funds.
However, Steve responded that he researched the issue and found no authorization to spend that money, since the $50,000, plus an additional $715,000 for various organizations and services, were never officially approved.
A vote at the Nov. 16 council meeting prioritized spending $1.16 million for a list of city government projects, such as playgrounds and vehicle purchases, but explicitly "leaves out" another $765,000 for community and government projects, including $50,000 earmarked for “funding for events.”
Steve questioned whether even the $1.16 million was properly approved. The resolution from Nov. 16 was to "adopt funding priorities," which Steve said never officially authorized its use. But he said he will respect the intent of the council. There are also no details on spending items, such as "city hall facility updates, to protect visitors and employees."
“My recollection was that I put it in front of council,” Tobin said, adding the lists were separated because the $765,000 portion was still subject to revision. There is no record in the City Council meeting minutes of the second portion of funding being approved.
The funds that were left out also include aid to organizations such as Disabled American Veterans, the Cortland Area Communities That Cares, and Family and Children Counseling Services.
Both city Councilpersons Troy Beckwith (D-7th Ward) and Bill Carpenter (D-6th Ward), who have served throughout the time since the American Rescue Plan funds were distributed to the city, say they have no specific memory of voting on the rest of the funds.
Tobin said he he believes the council voted to spend the money, although he doesn’t remember when. He said the checks for those organizations have been sent out.
"Based on this resolution, he (Tobin) did it illegally," Steve said.
Tobin said he remembers speaking with Matt Whitman, executive director of Cortland Area Communities That Cares, which was set to receive $2,000, and was told the organization received its allocated American Rescue Plan funds.
Whitman was not available Wednesday to comment. Lisa Hoeschele, executive director of Family and Children Counseling Services, said she and her organization's chief financial officer believe they received money from the American Rescue Plan, from which $8,000 was set aside.
“Brian (Tobin) called and told me the funds were coming,” she said.
Steve said he isn't saying the agencies don't deserve the funding, and added that he will use the list as a reference for resolutions after the budget is complete.
If checks were given to organizations without proper legal authority, the city could potentially ask for the money back.
Until Steve knows how much money has been distributed, and to which organizations, the city will not spend more of the stimulus funds, he said. Steve expects to get that information in the city's next financial report, in August, which will also include the most recent American Rescue Plan payment the city received.
