City absorbing federal funds

Electric City is able to keep $278,979 in federal American Rescue Plan Act funds it wasn’t sure how to spend.

The city had planned a special city council meeting to decide last week, just before and application deadline, until a final ruling from the U.S. Treasury Department was distributed, clarifying how the money could be used by local governments.

The $1.9 trillion plan passed by Congress was signed into law by President Joe Biden in March and includes $350 billion in funds for state, local, tribal and territorial governments in Coronavirus State and Local Fiscal Recovery Funds.

The rule clarifying the use of that money came out April 1.

It can be used for:

• capital expenditures,

• expanding public sector hiring and capacity,

• premium pay for essential works,

•and broadening eligible broadband, water and sewer infrastructure.

That’s all according to the National Conference of State Legislatures, which has page on its site it calls a “working document” devoted to interpreting the latest news on the use of the funds.

But if the award is less than $10 million, a local government can use it to just bolster its budget, City Clerk Peggy Nevsimal said she had learned.

Nonetheless, Electric City’s planned uses now would seem to fit the general criteria.

Nevsimal said she has tentatively marked it for use, subject to the city council’s OK, for

• a sewer lining project that is expected to cost about $1 million and will need up to a 75% match for the main funding source from the U.S. Dept of Agriculture,

• to help fund a new brush truck for the fire department,

• to help fund a new city utility truck.