Santa Maria officials to consider ways to spend $40M in American Rescue Plan funds

May 4—Santa Maria officials are hoping to use $40.6 million in one-time federal funds to complete local energy efficiency projects, pay back unexpected costs due to COVID-19 and increase city services through broadband.

The city will receive an initial installment of funds through the American Rescue Plan on May 11, and is set to receive the rest in May 2022, according to City Manager Jason Stilwell.

Under the American Rescue Plan Act, cities must use all funds by December 2024 for endeavors that support economic recovery and provide aid to residents and businesses.

Stilwell said while the city has several projects and costs in the queue that require additional funds, only some can be accomplished within the federal constraints.

"We have $100 million worth of projects to do, and the challenge will be which ones comply with the federal guidelines and which can be completed in a relatively short timeline," Stilwell said.

The Santa Maria City Council will be asked to approve receipt of the rescue plan funds during its Tuesday meeting, as well as approve the hiring of temporary limited service personnel to oversee some of the funded projects.

Officials have not decided on a final list of projects to fund while they await more specific guidelines from the federal government. However, some key areas fit the bill.

One use of the money, Stilwell said, could be to expand the city's private broadband network to increase access to services like public transportation by providing real-time information about bus routes and arrival times.

In addition, some of the money could be used to cover general administrative cost associated with COVID-19 safety, such as purchase of personal protective equipment for city staff and installation of germ guards in city buildings.

The city also has used CARES Act funds to cover such costs, allowing for the ongoing relocation of the city's finance office from City Hall to a nearby building that better allows for social distancing.

Besides immediate needs brought on by the COVID-19 crisis, officials hope to use American Rescue Plan dollars for projects that may otherwise be delayed due to a lack of funding.

Energy efficiency projects, such as updated cooling, heating and lighting systems and solar roofing in city buildings, as well as a creation of a solar garden, all could benefit from the one-time funding and reduce city costs in the long run.

"All the energy projects have all been approved and reviewed by the council. Some had a longer return on investment than the council wanted, but the return would be immediate with the use of this stimulus money," Stilwell said.

American Rescue Plan funds will be discussed during Tuesday's meeting of the Santa Maria City Council, which will be livestreamed on the city's YouTube page at youtube.com/CityofSantaMariaCalifornia.

To view the meeting agenda, visit tinyurl.com/8kp27vye.