Resident asks if federal actions threaten city grants; staff says solar tax credit and a FEMA ambulance grant could be uncertain

A Lebanon resident asked whether any planned city projects funded by grants might be threatened by recent federal-level developments. City staff told council the most immediate uncertainty involves a federal tax credit related to the city’s municipal solar array and that a separate FEMA-related ambulance grant is currently on hold.

During public recognition, resident Yana Strauchat asked whether city projects funded by grants were at risk. City staff replied that the main item of concern is the federal tax credit for renewable energy the city expects to receive for an existing solar array. Staff explained that the tax credit is technically a federal tax rebate rather than a standard grant and that the city’s financial team and auditors are working with accountants to assemble the documentation needed to claim the rebate. Staff said the city has already spent the funds for the solar installation and had planned on receiving the rebate, but that it is currently unclear whether changes at the federal level would affect that rebate or whether previously pledged amounts would be grandfathered.

Staff also identified one FEMA-related ambulance grant that appears to be on hold; it was described as smaller than the solar rebate in terms of fiscal impact. City staff described the overall situation as unclear because some federal funding flows are direct while others are indirect, and changes may be subject to ongoing legal or administrative processes.

The resident thanked staff for the explanation and said she appreciated the update. City staff said they and their accounting team will continue monitoring the federal situation and preparing documentation as appropriate.