Jeannette allocates some of its $900K in American Rescue Plan funds

The first half of Jeannette’s American Rescue Plan allocation is being moved into the general fund.

Solicitor Tim Witt said that is the first step to begin spending the money, $267,000 of which already has been earmarked.

Council has been mulling over for months how to use its $900,000. The group was waiting for final rules regarding spending of the federal funding, which were released weeks ago and permitted municipalities to use up to $10 million for revenue replacement without having to prove they lost income during the coronavirus pandemic.

A resolution approved Tuesday by council moved about half of its allocation into the general fund and authorized the spending for three matters previously OK’d — bonuses for employees, a manhole repair and radio upgrades for the fire department.

Witt said council will have to approve any future expenditures of the funding. If the group doesn’t specifically direct that money to a project or purchase, it will remain in the general fund and offset normal city expenses, he said.

The second half of the funding is expected to be disbursed this summer. The city will be audited on the use of the American Rescue Plan funds.

The American Rescue Plan is a $1.9 trillion stimulus package approved in March that includes funding for counties and local municipalities. The money must be spent by the end of 2024. Officials have discussed using the money for infrastructure projects and small business grants.

The matters amounting to $267,000 of the funding are:

• $130,000 for the repair of a manhole at Green and North Second streets that is part of litigation against the city.

• $17,000 in bonuses for employees who worked through the coronavirus pandemic. Each employee would get $500.

• $120,000 for the fire department to upgrade radios.