Edinburg City Council to review federal fund allocation

The Edinburg City Council has tabled a resolution amending one proposed allocation budget and project list from the American Rescue Plan Act of 2021, which granted the city $27 million. 

Assistant City Manager Tomas Reyna presented a slideshow explaining proposed changes to the second allocation of the city’s ARPA funds during the March 21 city council meeting. 

“I would like to ask the council if we can hold on to this,” Mayor Ramiro Garza Jr. said. “These items weren’t presented in the packet, so this is new information.”

Edinburg received $27,132,536 through the “State and Local Fiscal Recovery Funds,” according to the presentation. The allocation was divided in two parts, one received in September 2021 and the second, in August 2022. 

Amounts for some of the categories on the first allocation were amended Sept. 20, 2022, and the second allocation was approved that same day. 

The city plans’ categories include public health; negative economic impacts; services to disproportionately impacted communities; premium pay; water, sewer and broadband infrastructure; revenue replacement; and administrative. 

Reyna presented proposed changes for the second allocation to the public health category, reducing its original funding of $9,776,268 by $1 million and increasing the revenue replacement category funding of $1,990,000 by $8 million. 

“We’re asking for three projects to be redone,” he said. “One of them is to bring down the improvements to City Hall for the Space Needs Assessment to $250,000. Also, we’re asking to add the Emergency Ambulance Service for $750,000. And, we’re also asking for our grant match for our community fire training facility of $1 million.” 

Place 1 Councilmember Daniel “Dan” Diaz asked why the budget for City Hall renovations had a drastic decrease on the proposed plan. 

Reyna replied that the remaining money was moved for the ambulance service and the new firehouse training facility. 

City Manager Myra L. Ayala further explained this along with a time-sensitive aspect of the plan. 

“The only item that there may be some time-sensitivity to is the training facility because it is a grant fund match,” Ayala said. “We did request $1.5 million for the original training facility, and [the U.S. Department of Housing and Urban Development] only allocated $500,000. So, it’s up to the city to come up with the million in order to make that happen.”

The deadline for accepting the training facility grant of $500,000 is Friday. 

Ayala clarified that the proposed  ARPA allocation changes are being presented for the council’s consideration.

“I agree with moving these funds around, but my question is, ‘When [was the council] asked the option of where to move the money?’” Diaz asked. 

Mayor Pro Tem David White said there are parts of the city with sewage issues that could use that $1 million.

“Maybe we need to move these ARPA funds somewhere else,” White said. “I mean, we got a whole sewage issue that we have been struggling to find the money for and maybe it’s right here.”

Marissa Garza, director of the Grants Administration department, said the training facility comes from a grant fund match from HUD for the project and it has been a two-year process.

The city council voted against approving the resolution.

Diaz then motioned to approve the time-sensitive grant fund for the training facility and to review all other parts of the ARPA allocation. Place 2 Councilmember Jason De Leon seconded, and the motion passed. White cast the sole vote against the motion.

The Government Finance Officers Association website states that ARPA funds state and local governments to enhance financial stability until economic conditions and operations normalize after the effects of COVID-19.