Stimulus adds up for Norfolk, transit group

NORFOLK

The city will receive about $20 million from the federal stimulus package, and that's in addition to tens of millions of dollars the school system and Hampton Roads Transit will receive.

The City Council received a breakdown Tuesday of funds the city has confirmed it will get, including $9.2 million to rehabilitate public housing and $6 million to improve roads.

City Manager Regina V.K. Williams said the city has applied for added funds, including $16 million to improve sewer systems in some of the city's oldest neighborhoods.

HRT is to get $24 million. About $15 million will be used to complete funding for a new bus dispatch and maintenance facility on 18th Street in Norfolk. The environmentally friendly building is to cost $52 million and has been funded mainly by the state. HRT hasn't decided how to spend the rest of its stimulus money.

The $787 billion stimulus package was passed by Congress in part to jump-start the economy by creating jobs. Although critics note that much of the spending extends existing government programs, Williams said the region's aggregate spending will create jobs.

"You put it all together, and construction firms will be hiring new people and paying overtime to some of their existing employees," she said.

Williams said the money will do little to ease city budget woes. The city faces as much as an $11 million deficit in this fiscal year, and an estimated $25 million in the next fiscal year, which begins July 1.

For the most part, stimulus money can't be used to fund the day-to-day operations of the city government, she said.

Norfolk officials said they likely will spend most of the road construction money on resurfacing roads and rebuilding the Norview Avenue Bridge.

Six public housing projects will receive upgrades, including new windows, better roads and upgraded access for the disabled. Oakleaf Forest will receive the most at $3.9 million.

About $2.1 million is to be used to fight homelessness. Nearly $1.4 million will be used for infrastructure improvements in low- and moderate-income neighborhoods. An added $1.5 million would be used to help the police buy new equipment.

Pilot writer Debbie Messina contributed to this report.

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com