ANDERSON — The Anderson City Council has voted to use any non-obligated American Rescue Plan funds on planned improvements to the water system.

The council Thursday voted to allow several nonprofit organizations to apply for the funding by the end of the year.

It also voted to move $250,000 from the money set aside for the administration of the plan to the Homeless Task Force.

Mayor Thomas Broderick Jr. asked the council to obligate approximately $1.4 million in American Rescue Plan funds that were not appropriated to the city’s $17 million water system upgrade.

“We all knew this day was coming,” Broderick said of the remaining funds from the $23.1 million the city received. “If the funds are not obligated by Dec. 31, they have to be returned to the federal government.”

He said the funds must be appropriated where a contract is already in place, noting only the recent awarding of contracts for the first phase of the water project is in place.

“We’re out of time,” Broderick said. Broderick said he didn’t oppose moving the $250,000 to the Homeless Task Force.

Lance Stephenson, president of the city council, said he would have liked to see all the remaining funding provided to non-profits to benefit the citizens of Anderson.

Broderick said the council approved the process for the distribution of the funds and any contract would have to be reviewed.

City controller Doug Whitham said the city has more projects that can be done to improve the water utility.

“We don’t have any other obligations for the funds,” he said. “We want to make sure the money stays in Anderson.”

Several local residents asked the council to deny the request to obligate the funds for the water utility.

Councilwoman Tiffany Harless made a motion to table the resolution to allocate the funds, which failed by a 6-2 vote. Councilman Greg Graham was not at the meeting.

By the same vote, the council approved using any remaining funds for the water project, with Harless and Councilman Ollie H. Dixon voting against the measure.

Resident Cheryl Horning said contracts could be signed by the end of the year with United Way, Anderson Housing Authority and the South Madison Community Foundation.

She said United Way would use the funding to assist people with utility bills.

Resident Kellie Kelley asked if the city’s economic development department had been working since August to find homeowners eligible for funding.

Greg Winkler, executive director of the Anderson Economic Development Department, said in the first round only 15 people applied for funding, and 149 applied in the second round.

Resident Angie Strickler said the city should take the remaining funds and help residents of the city.

“The focus should be helping people keep their homes,” she said. “There are a number of people dealing with addiction and mental health issues that need help.”

John Bostic, who served on one of the committees overseeing distribution of the funds, said only Anderson developed a plan for the appropriation of the funding.

“The city did come up with a plan for the people of the city,” he said. “The council was involved.

“We helped people pay their mortgages, taxes and utility bills,” Bostic said. “We gave money to nonprofits, and everyone had an opportunity apply and voice their opinion.”
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