LAKE COUNTY — Special interest was paid last week to possibilities opened by the federal stimulus money that may materialize into funds for public projects around the area at the annual Lake County development and housing grant public hearing.

The county commissioners and local agencies gathered at the courthouse in Polson to take public comment on the public facilities, affordable housing and economic development needs and priorities.

Proposed stimulus projects in Lake County

The grant process takes place each year, but the addition of the millions of federal dollars to the state budgeting and legislative processes has produced a flurry of extra activity for agencies like the Lake County Community Development office, which has for weeks been paying close attention to the possibilities inspired by the stimulus money.

“We’ve tried to be a clearing house for the stimulus package,” the development office’s executive director Billie Lee said. “It has certainly complicated the issues as people tried to figure out how they were able to be eligible for the money.”

On Friday, Lee took one of Lake County’s wish lists to the Montana Department of Natural Resources. Several Lake County projects could qualify for a particular chunk of money dedicated to sewer and water projects through the state revolving fund.

The Polson Main Street water replacement and Streetscape projects, two lift stations for Ronan’s sewer projects and an upgrade of the St. Ignatius park system were projects identified as being best positioned for this set of funds. The priority was given to projects that will be ready to bid by June 17.

“Because of the tight deadlines from the federal government, it’s important that we have really shovel ready projects . . .that have contracts that can be let by early summer,” Lee said.

Projects chosen as most ready from the county must have also already received grants, or other funding that will cover the entire project cost, Lee said.  Funds for these projects are given as a loan, with 50 percent forgiven. Interest on the balance owed is set a highly reduced rate.

Competition is tough, and once the money is allotted, it’s gone.

“Everyone in the state is after this money,” she said. Other projects will remain “on the list” in the event more money become available.

At the meeting, Lee laid out the numerous grant possibilities and stipulations, calling for extra project ideas, beyond those already identified as “shovel ready” projects, from local government representatives and organizations. A county mental health facility, handicap accessibility at Riverside Park, new water treatment plans and equipment for the city of Ronan were all projects brainstormed as needs the extra money could cover. The specific nature of the stimulus funds will limit the qualifications of some projects. 

Funding depends heavily on Legislature

The night before Lee trekked to Helena, her office was scrambling to get more out the word on the announcement that $20 million of the federal money may be distributed through the Montana Legislature’s as discretionary funds. Ten million would go to counties and $10 million would go to certified towns and cities. Projects had to be submitted with a survey barely 18 hours after Lee’s office received notice the Legislature was considering this kind of distribution.

“We immediately started calling our communities to make sure they got projects in before the deadline,” Lee said.

Ronan listed projects pertaining to street and road updates, while Polson focused on several water projects. Lake County submitted bridge work and courthouse weatherization, with a $226,000 price tag, as projects for inclusion.

These projects go directly into House Bill 645, the Implement receipt of and appropriate federal stimulus and recovery fund bill currently being heard in the House Appropriations Committee.

Now, it’s hurry up and wait time. HB 645 has to pass the Legislature intact to have any money fall into Lake County. This year’s session is set to adjourn on April 25. Lee said the discretionary fund stipulation could be “hugely positive” for towns, cities and counties.

“It was the only way the cities and counties could have some control,” Lee said.

But it is still up to the legislators, and there’s always a possibility they see it differently, she said.

If funds are allotted, “all the cities and counties have to meet the conditions of reporting to the state and federal government . . . but the upside is that the money will be available rapidly,” Lee said.