Department of Local Affairs Announces $6.1M for Communities

Department of Local Affairs (DOLA) Executive Director Susan Kirkpatrick announced that $6.1 million has been awarded for construction, infrastructure and other community projects that will help improve public facilities and services such as roads and water systems in communities throughout the state.

Kirkpatrick said, “These grants will allow communities to make key investments in projects that will put people to work and strengthen local economies in the short-term, while making communities more livable and economically healthy in the long-term.”

Funding for the Energy and Mineral Impact Assistance Grants is derived from state severance tax and federal mineral lease revenues. The Department of Local Affairs has awarded $1,548,381 toward Tier I projects and $4,641,032 toward Tier II projects. Tier I grants fund projects up to $200,000 and Tier II grants fund projects greater than $200,000 up to $2,000,000.

Tony Hernandez, director of DOLA’s Division of Local Government said, "Communities that are impacted by energy and mineral development throughout the state will benefit from these grant awards. The competition for the severance and federal mineral lease grant dollars is stiff. Projects that meet basic needs like water, sewer, drainage, and local roads received highest priority. Projects that demonstrated a strong energy conservation or renewable energy component also received priority.”

The program’s grant process was revamped and refined in 2008 to make it more transparent, accountable and strategic. DOLA worked with legislators, local officials and the energy industry to enhance the effectiveness of the application, review and award process. The grant program was created by the legislature in 1977.

These grants come from revenue from FY 2009 - 2010, and are not impacted by the Governor’s announcement of budget balancing actions for 2010.