Copperas Cove city council, city manager discuss use of coronavirus relief funds

By BRITTANY FHOLER

Cove Leader-Press

The Copperas Cove City Council heard an update and began discussion on the ways the city can spend the funds it is receiving from the federal government through the American Rescue Plan Act Coronavirus Local Fiscal Recovery Fund during a workshop meeting held Tuesday evening.

The city of Copperas Cove is eligible for funding from American Rescue Plan Act (ARPA) Coronavirus Local Fiscal Recovery Fund (CLFRF) in the amount of up to $8,235,166.01. 

The city applied for the funds and received its first payment, 50 percent of the total amount, three weeks ago on Aug. 24. The other half of the grant amount will be received one year from the date the first amount was sent - in 2022.

“The $8.2 million can be used for a variety of different projects, and tonight I am not asking council to begin making allocations,” said City Manager Ryan Haverlah. “It’s really to prime you so that you are aware of what the eligible uses are.”

Haverlah explained that the primary purpose of these funds is to address the impacts of the coronavirus.

“The primary purpose of it being coronavirus, we can use these funds to assist with hospital efforts, vaccination efforts, supplies and materials such as masks or PPE,” Haverlah said. “Another area that can funds can be used is specifically to address lack of revenue or loss of revenue as a result of the coronavirus.”

For Copperas Cove specifically, those areas of loss of revenue are not going to be related to property tax or sales tax, he added. The city has actually seen an increase in sales tax over the last 18 months or so, and very significantly in the last nine months.

“Hotel Occupancy Tax is an area that has been negatively impacted as a result of the situation surrounding the coronavirus where people are not traveling and not visiting,” Haverlah said. “They’re not being tourists to other locations, so that is one area where I will share with you options that other cities have allocated funding towards to address the decrease in revenue so that it can assist with tourism in those areas. Another area that this funding can be used for is infrastructure, of nearly all kinds.”

Infrastructure covers water or wastewater, streets, even broadband internet or infrastructure from a technology standpoint, he said.

Some other cities have allocated this funding for loss of revenues for hotel occupancy tax by allocating the funding to eligible activities within the HOT Fund eligibility requirements and then provide that funding to those organizations that typically would have received that funding but did not due to a reduction in funding.

In Copperas Cove, the organizations that have received funding from the city’s Hotel and Occupancy Tax Fund in previous years include the Chamber of Commerce and Visitor’s Bureau for Rabbit Fest and Krist Kindl Markt expenses, as well as the Five Hills Art Guild.

Haverlah explained that the allocations that the city council has made from the Hotel Occupancy Tax Fund have not been reduced from the allocations that were previously approved, and instead council decided to utilize the fund balance to make up any difference.

Other areas that cities have allocated funds to include water and wastewater improvements, street improvements, and even sidewalk improvements coupled with park improvements.

“One or two of the areas that [the federal government] specifically clarified or provided guidance on are projects that enhance or improve neighborhoods for an active community or for wellness are projects that are eligible,” Haverlah said. “The other area is projects that enhance or improve childhood wellness, so some cities and counties have allocated funding towards parks, park improvements, park amenities. I’ve seen one city that has allocated funding to a brand-new park in a part of the city that didn’t have that type of amenity for its residents.”

Another area eligible for funding is expanding broadband access, which Haverlah said that Coryell County officials have indicated they intend to allocate a portion of the funding the county receives for expanding broadband access in the rural areas of the county.

“Copperas Cove does have that issue as well. The connectivity of the community is an eligible use of these funds, so ensuring that services are connected to our residents and residents have access to the necessary services particularly with healthcare and education is an eligible activity.”

Haverlah shared that there are organizations that have already approached the city regarding funding requests and listed some organizations that have received funding in Bell County.

Bell County has allocated funding to the Boys and Girls Club and Habitat for Humanity, and the city of Killeen has also allocated funding for the Boys and Girls Club and to establish a new bus route for the Hill Country Transit District which operates the HOP bus system.

Haverlah said he has asked city staff to develop projects or eligible uses of the funds to bring back to council to determine which ones to fund. Many of the projects will come from the Capital Improvement Plan, he added.

“We’ve been planning for infrastructure improvements within the city, so we know what the needs are and how those needs can be addressed with this funding,” Haverlah said.

Discussion among council members was brief. Councilmember Fred Chavez requested more information regarding any revenue loss associated with Parks and Recreation and people signing up for activities. Councilmember Jay Manning suggested focusing on streets improvement, especially streets that have been neglected but also some newer streets that are now showing cracks, while Councilmember Dianne Campbell said she felt they should definitely focus on areas that do not have broadband access, especially in light of any school closures.

 The council will meet again on Oct. 19 to discuss this funding and any allocation.