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Staff outlines Penny for Pasco grant appropriations for water plant, lift station and pipe replacement; matches and use of impact and impact fee funds to be re‑
Summary
Staff summarized grants appropriated under Penny for Pasco for a fire truck, lift station repairs and a major pipe replacement and said much of the local matching obligation is covered; council asked staff to provide a clear schedule of appropriation, match amounts and reserve balances.
During the budget workshop staff reviewed recent grant appropriations tied to the Penny for Pasco program and how those grants are reflected in the FY2026 draft. Finance Director Adam Thompson said the city has carry‑forward balances and appropriations connected to several projects: an $800,000 grant for a fire truck (the city's match $200,000 already appropriated), a $1,000,000 appropriation for lift‑station repairs with a $200,000 city match, and a $2.5 million pipe‑replacement project that staff said also includes local match dollars carried forward from prior funds.
Thompson said reimbursements from the state for work already invoiced are expected and that some payments will be made directly by the state rather than passing through the city's cash flow. Councilors asked for a clearer schedule showing the grant appropriations, local‑match requirements and which funds have been encumbered so they can see how much remains available for other capital projects.
There was some confusion in the workshop discussion about the exact local-match amount for the $2.5 million pipe project; staff referenced roughly $494,850 transferred toward that project and later referenced a $600,000 match figure in the discussion. The city attorney was asked to clarify allowable uses of restricted impact‑fee funds and whether particular transportation or water‑system impact fees could be applied to specific projects.
Ending: Staff will produce a reserve and appropriation schedule that shows grant amounts, local matches, encumbrances and available balances and will return with legal guidance on allowable uses of impact fees for the council’s review.
