During a recent city council meeting, officials discussed a range of topics, including a tax abatement request from the Lions Club and the status of a significant roundabout project.
The council unanimously approved a tax abatement resolution for a property assessed at $33,900, with a current tax amount of $237.30. This annual request was deemed routine, allowing the Lions Club to continue utilizing the facility for storage, including supplies for their holiday initiatives.
The more pressing issue discussed was the roundabout project, which has received approximately $4 million in grant funding from the Appalachian Regional Commission (ARC). However, city officials revealed that the project is facing financial challenges. To date, nearly $1 million has been allocated for design costs, but an additional $180,000 is now needed to complete the design phase. This has raised concerns about the overall budget, as the remaining $3 million may not be sufficient for construction.
City officials noted that the roundabout project was initially linked to increased university enrollment and redevelopment plans for Center Street, but the pandemic has altered these dynamics. With rising construction costs and a lack of anticipated financial support from Frostburg State University, the council is considering temporarily pausing the project to reassess funding strategies.
The urgency of the situation is compounded by the need to allocate remaining American Rescue Plan Act (ARPA) funds by the end of the year. Council members expressed a desire to prioritize these funds for other projects rather than risk a budget shortfall on the roundabout.
As discussions continue, city officials are exploring alternative funding sources and potential reallocation of ARPA funds to ensure that the city can meet its financial obligations and deadlines. The council plans to revisit the roundabout project in future meetings, with a focus on finding a viable path forward.