Jackson receives first installment of American Rescue Plan funds

The City of Jackson received its first installment of American Rescue Plan Act (ARPA) funds Monday, according to city clerk and treasurer Liza Walker.

The installment totaled $1,496,845. Mayor Dwain Hahs said Tuesday at the city's annual mayor's retreat the city will do a report to determine how to spend the ARPA funds.

Hahs told Jackson Board of Aldermen members Tuesday they will not have to choose how to allocate the ARPA funds right away. Cities have until 2024 to decide how to spend the money and must spend it by 2025, Hahs said.

"I think we've got some time," Hahs said. "We're busy with the use tax for the rest of this year."

The Jackson Board of Aldermen voted earlier this month to put an internet sales or "use" tax on the November ballot. Hahs said if the use tax passes, it would bring in an estimated $500,000 to Jackson annually.

Hahs said the city will focus on how to allocate funds from use tax revenue if it passes. City officials will begin looking into how to allocate ARPA funds toward the end of this year and the beginning of 2022, Hahs said.

The National League of Cities outlined several ways recipients may use ARPA funds. Hahs mentioned at Tuesday's mayor's retreat Jackson could use the funds to replace lost revenue.

"We're somewhere between being able to claim $200,000 to $800,000 in lost revenue" because of the pandemic, Hahs said.

Future installments

City of Jackson officials initially expected to receive $2.75 million in federal funds from the ARPA, but the city could receive more, Walker said.

"There have been cities that have been declining to receive [ARPA funds]," Walker said. "As cities decline to receive those funds, that increases the amount that other cities could get."

Walker added Jackson officials anticipate the next installment could be the same amount or greater.

According to the National League of Cities, ARPA funding will be released to state and local governments in two tranches. The Treasury Department began releasing the first tranche to state and local governments May 10.

The second half of funds will be released under the second tranche one year after the disbursement of the first.

Walker said she applied for the funds on behalf of Jackson on Aug. 11. The city's second tranche will come sometime next year, she said.