New CARES funds could come with caveats

Published 6:00 am Thursday, March 18, 2021

The federal government recently passed another COVID-19 relief package, this time to the tune of $1.9 trillion. Of those funds, around $360 billion has been allocated for state governments and capital projects as well as cities and counties, according to figures provided by the Alabama League of Municipalities.

Locally, Limestone County is set to receive $19.18 million, while the City of Athens has been allocated $5.07 million. The questions now are how will the cities and counties receive those funds, and will there be any specific requirements on the money’s use?

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Mayor Ronnie Marks said he has been meeting with ALM in an attempt to have these questions answered.

“We are still waiting on guidelines and directives on what this money can be spent for,” he said. “We believe a portion of it will be for infrastructure or offsetting costs of infrastructure.”

Those questions aside, Marks said he is excited about the funds set aside for Athens. He said he has heard the money will have to be spent by 2024, but that should be the easiest part of the equation.

“As fast as we are growing, we will have some critical needs we can put this toward,” Marks said.

He mentioned the sewer project on Lindsay Lane South and the area that is expected to grow around the upcoming Buc-ee’s Athens as potential projects for which some of the funds may be used.

“We are grateful and happy to be getting this money,” Marks said. “We will spend it wisely once we get all the details.”

Sharing the wealth

Alabama is set to receive $4 billion of the $1.9 trillion in funds. Of that, $2.12 billion is set aside for the state government.

Counties will receive $951 million, and a group classified as “other non-counties” will get $362 million divided up amongst its members. Each of cities and towns in Limestone County receiving funds were covered in this category.

The following cities and towns will be receiving part of the latest CARES Act funding: Ardmore ($270,000); Ardmore, Tennessee ($330,000); Lester ($20,000); Elkmont ($90,000); and Mooresville ($10,000).

Some larger metro cities in the state, like Decatur and Huntsville, were categorized separately. Decatur is set to receive $12.04 million, while Huntsville’s share is $35.11 million.

Good stewards

According to Greg Cochran, executive director of the ALM, larger areas in the state that host big events and attract tourists have been hit hardest by the pandemic, while cities and towns that are not quote as large have done “OK.”

He said the ALM is advising those cities and towns to “put this money in your account and take a breath.”

“Think about legacy projects that you can do,” he said. “Think about water and sewer projects that are going to make a long-term impact.”

According to the League, the new CARES Act funding can be used to respond to the COVID-19 pandemic and the economic effects it has caused, provide premium pay to essential employees or grants to their employers, and invest in water, sewer or broadband infrastructure.