City council to prepare for American Rescue Plan funds

The San Marcos City Council will provide direction to staff regarding American Rescue Plan funds during a special meeting on Tuesday. 

The city has been allocated $18,101,483 from the American Rescue Plan funding. The American Rescue Plan is a $1.9 trillion economic stimulus bill passed through Congress and signed into law by President Joe Biden on March 11. Through the ARP, the U.S. Treasury launched the Coronavirus State and Local Fiscal Recovery Fund, which totals $350 billion.

The City of San Marcos received $9,050,741 on June 1 and will receive the remaining funds 12 months from now, according to the city council’s agenda packet. The council’s packet also states that funds must be incurred between March 3, 2021-Dec. 31, 2024 with funds expended by Dec. 31, 2026. City staff is recommending the funds received be allocated and the remaining funds expected next year to be allocated, then give the city time to recover and see what continuing needs exist for the city and community. 

The Treasury Department has established four guidelines for APR funding — "Supporting urgent COVID-19 response efforts to decrease spread of the virus and bring the pandemic under control; replace lost revenue for eligible state, local, territorial, and Tribal governments to strengthen support for vital public services and help retain jobs; support immediate economic stabilization for households and businesses; and address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic."

The city has listed several recommended operational uses for APR funds — including six listed to address public health response, three for water/sewer infrastructure, two to address negative economic impact and one to serve hardest hit communities — totaling $6,775,980. Staff has also listed multiple additional considerations for the city council to discuss: Five for downtown vitality, three for workforce development, two for COVID-19 response and one for workforce housing. 

During Tuesday’s meeting, the council is asked to consider the city manager’s recommendations for operational uses of APR funds and provide direction for allocation of remaining $2,274,761. The council is tentatively set to discuss a resolution of support during its regular July 6 meeting based on its direction given during Tuesday’s meeting. 

Prior to the special meeting, the city council will hold a budget workshop where they’ll be presented information and hold a discussion regarding the Fiscal Year 2020-2021 Financial Update and preliminary 2021-22 Budget. 

Tuesday’s budget workshop is scheduled for 1 p.m. followed by the special called meeting at 3 p.m. Residents can watch both meetings Tuesday online at http://sanmarcostx.gov/421/City-Council-Videos-Archives or on Grande channel 16 or Spectrum channel 10.