The borough expects to receive an additional $604,000 in federal pandemic relief aid through the state, and will move cautiously as it considers how best to use the money for the community’s benefit.
The assembly will need to decide “what is the best long-term investment for us,” Borough Manager Lisa Von Bargen said last Friday.
The administration will present recommendations to the assembly for its consideration after staff have reviewed federal guidance on spending the funds.
The $604,000 is part of American Rescue Plan money directed to the state, from which the governor and Legislature this year appropriated $50 million to share with cities and boroughs statewide.
It’s in addition to $485,000 coming to Wrangell directly under a federal formula, bringing the community’s total under the American Rescue Plan close to $1.1 million.
The borough assembly at its Sept. 14 meeting approved a resolution requesting the $604,000 from the state, with spending decisions to come later. Similar to last year’s federal aid under the CARES Act, this latest round of assistance, under the American Rescue Plan Act of this past spring, comes with federal guidelines for what the money can be spent on.
Generally, the spending must be related to the pandemic, either covering expenses or revenue shortfalls, helping communities repair their economy, including work on water and sewer systems. “The full scope of options for eligible expenditures will be provided to the assembly,” the borough manager wrote in her presentation for the meeting.
“We need to have a plan for that money in the next few months,” Von Bargen said last Friday. The borough has until June 30, 2024, to spend the funds.
Last year, Wrangell received $3.85 million under the CARES Act. Congress this year imposed fewer restrictions on spending American Rescue Plan money than it had on CARES Act funds, in addition to providing more time for states and municipalities to spend the money.
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