EDWARDSVILLE — Now that the American Rescue Plan (ARP) funds have been enacted, what does that extra cash infusion mean for Edwardsville, Glen Carbon and Maryville?
In an April 16 email, Edwardsville Finance Director Jeanne Wojcieszak wrote, “No final decision has been made. We are awaiting the guidance to be issued by the U.S. Treasury Department. According to projections released, we anticipate $3.1 million.”
These are cash infusions split into two disbursements, said Wojcieszak, not something the city will receive over the next decade or an ongoing basis. Per guidance from the Illinois Municipal League (IML), municipalities will be allowed to use ARP funds on eligible costs incurred by Dec. 31, 2024. Eligible costs include:
• Costs to respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses and nonprofits, or aid to impacted industries such as tourism, travel and hospitality;
• Costs to respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the municipality that perform essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
• Costs for the provision of government services to the extent of the reduction in revenue of a municipality due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the municipality; or,
• Costs to make necessary investments in water, sewer and broadband infrastructure.
At an April 13 finance committee meeting, costs to make necessary investments in water, sewer and broadband infrastructure seemed the likeliest use for the funds for Edwardsville, which would actually go a long way toward helping the city rid itself of long-standing debt in its water fund.
“I’ll be honest with you with the ARP, the criteria is so limited,” said City Administrator Kevin Head. “What [Wojcieszak] briefed me on so far, is that may be the area we want to focus on, our water and sewer infrastructure because our system is old.”
He said he thinks Public Works Director Eric Williams projects $1.8 million in water mains for FY 2021-2022, which starts May 1.
“It’s making a dent in a huge project,” said Alderman Craig Louer. “At some point, it’s going to take more than that to get us up to par.” He added it’s a reason to find additional revenue streams to fund this account.
As of Feb. 28, the city’s water cash account was almost $4 million in the red. The previous water rate increases, including this year’s hike, have gone to operations, maintenance and capital improvements, not to pay on the negative balance.
“That’s what I was trying to propose earlier,” said Head. “This year, in May, is our last big jump in rates. From that point on, we just go to the five percent. What I recommend we do with this American Recovery Plan is, take that money and we put it in the water infrastructure account because that’s going to be a legal expense that we can use that money for. It’s $3.1 million; we’re almost out of debt at that point.”
Head said if they deposit the ARP money in the city’s general fund, it’ll be spent on other projects.
Wojcieszak called for everyone’s attention then she listed several points — the water cash account is in the negative. The ARP is providing funds to local governments and it’s different than the CARES funds the city received. The ARP funds are for specific expenses, some of which the city did not have during the pandemic, such as employee hazard pay.
Water and sewer infrastructure is one of the options but “It’s not going to reimburse [us] for a debt,” she clarified. “We’re going to have to spend $3.1 million in a water project, in a sewer project and then [it will] reimburse us,” she said.
Officials did not see a problem finding $3.1 million in capital projects to identify.
“I want to make sure that it’s clear – it will reimburse projects. It’s not just stick in the bank and that negative goes away,” she said.
On April 16, Glen Carbon’s Director of Finance, Scott Borror, weighed in. “According to estimates provided by the IML, we are anticipating [almost] $1.6 million. A plan will be developed once we have an opportunity to review the program in full.”
On April 20, Maryville Mayor Craig Short replied via email, “The Village of Maryville is estimated to receive just over $982,000 from the ARP. However, we have not been given any guidelines or stipulations from the federal or state governments other than what has been publicized with the passing of the bill.”
Madison County will receive $81 million. According to the IML, other Metro East communities will receive the following amounts – Alton, $3.23 million; Belleville, $5.05 million; Bethalto, $1.13 million; Collinsville, $3 million; East Alton, $735,604; East St. Louis, $3.21 million; Fairview Heights, $2 million; Fairmont City, $303,000; Grafton, $79,000; Granite City, $3.47 million; Hamel, $100,074; Highland $1.21 million; Livingston, $99,332; Marine, $113,911; O’Fallon, $3.65 million; Pontoon Beach, $696,933; Roxana, $177,168; Shiloh, $1.67 million; South Roxana, $245,984; St. Jacob, $162,960; Wood River, $1.24 million; and Worden, $128,613.
Reach reporter Charles Bolinger at 618-659-5735
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How American Rescue Plan monies will impact area municipalities - The Edwardsville Intelligencer
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