Maverick County and City of Eagle Pass Discuss How to Spend CARES Act Funds
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2020
Maverick County Commissioners Court and the City of Eagle Pass City Council held a joint workshop on Thursday, June 11, 2020, to discuss issues between the two political entities regarding how to spend monies received due to Coronavirus under the Coronavirus Aid, Relief, and Economic Security Act (CARES).
Congress passed the CARES Act and President Donald J. Trump signed it into law on March 27, 2020. The purpose of the CARES Act is to protect American people from the public health and economic impacts of COVID-19. The CARES Act provides fast and direct economic assistance for American workers, families, and small businesses, and preserve jobs for American industries. The CARES Act is an over $2 Trillion economic relief package approved by Congress.
As part of the CARES Act, Maverick County received a total of almost $1.7 Million and the City of Eagle Pass received a total of $1,582,900 (Million). Seventy-five percent of these funds will go towards funding the un-budgeted expenses incurred by the two local governmental entities as a result of the coronavirus pandemic such as the Emergency Operations Center and its staff and other expenses. But twenty-five percent of the CARES Act funds are to go to local workers, families, and small businesses to assist them with their expenses concerning COVID-19. The City of Eagle Pass has $395,725 and Maverick County has another approximately $400,000 to spend on economic development as part of their 25 percent allocation.
Eagle Pass Mayor Luis E. Sifuentes presented four ideas that the City of Eagle Pass is currently entertaining on how the CARES Act funds might be used in the community. Sifuentes highlighted the four ideas include 1) a Loan Program; 2) A Grant Program; 3) Rental and Mortgage Assistance to Local Citizens; and 4) a Grant Voucher System Program.
Sifuentes stated that he liked the Grant Program and the Grant Voucher System Program and disfavored the Loan Program. Sifuentes noted the Eagle Pass Housing Authority received $600,000 from the CARES Act.
County Judge Saucedo noted that both the City and the County have about $400,000 each to utilize for assisting local citizens and small businesses with their COVID-19 expenses. Saucedo added that Maverick County received almost $1.7 Million from the CARES Act, which 25 percent of it may be used for economic development such assisting local citizens and small businesses. Saucedo pointed out the purpose is “to have money go to local businesses.”
Saucedo highlighted that the CARES Act funds for economic development do not have any set of parameters and it is up to each governmental entity to determine the guidelines to implement on how to distribute the funds. Saucedo stated that he does not oppose using part of the County’s $400,000 going to small businesses in the City of Eagle Pass because they are also part of Maverick County. Saucedo described the program being capitalist, but some described it as “socialism.”
Meanwhile, Mayor Sifuentes stated “I have been discussing this in my head” for the past month on how to distribute these funds to the community.
Gus Garcia of Shepherd Government Associates made a presentation before the two governmental entities and stated that the rules are “ambiguous” and the guidelines are “vague.” Garcia noted that he and his firm contacted the Texas Governor’s Office for guidance on the rules and guidelines on how to spend and disburse these funds, but received little guidance other than to contact the U.S. Small Business Administration and other counties and cities on what they were doing.
Garcia highlighted that his firm’s research found that the funds have to be distributed in “a fair, equitable, and transparent” manner to citizens, families, and small businesses. Garcia added that these funds must be used up or disbursed completely by December 30, 2020 and any unused funds would need to be returned to the United States government.
Garcia added that his firm recommended be disbursed to citizens, families, and small businesses experiencing financial distress due to COVID-19 expenses and pandemic. This must be done in an “equitable” manner that needs to be fair and transparent to the community. For instance, the program can be distributed on a “First Come, First Served” basis, said Garcia. Grants or the Grant Voucher System Program can be done for example for the amounts of $5,000, $10,000, and $15,000 depending on the criteria established by the City and County.
Saucedo suggested the idea of distributing the funds through a lottery system instead of a “First Come, First Served” basis. Saucedo added that 98-99 percent of Maverick Countians are economically distressed. Saucedo requested Garcia and his firm to look into the feasibility of a lottery system because the public looks to Mayor Sifuentes and him for accountability. Saucedo added that the City and County need to spend all of its allocation and do not want to return any money to Washington, D.C.
County Commissioner Jerry Morales stated that he liked everything that he was hearing and seeing at the workshop. “There is a great benefit coming to the community,” said Morales.
County Commissioner Roberto Ruiz stated that the lack of parameters and guidelines suggests the “Governor’s Office is expecting us to invent the wheel in a fair, equitable, and transparent” fashion. Ruiz added this is a “quite a challenge. It’s a challenge.”
County Commissioner Rosy Cantu stated that she liked everything that was presented at the workshop and will benefit the citizens and small businesses of the community.
County Judge Saucedo stated Mayor Sifuentes and him like the Grant Voucher System Program of the four proposals.
Mayor Sifuentes added that “we are trying to help as many people as possible” in the community, although not every one can receive assistance since the funds are limited to about $800,000 between the two entities.
Eagle Pass Economic Development Director Arturo Madrid pointed out that the goal is to have the application be one page and Gus Garcia added that the person or small business applying would probably need to attest to the information in the application.
Maverick County and the City of Eagle Pass did not take any formal action at the June 11 meeting since it was only a joint workshop for discussion purposes, but should be finalizing a program and its guidelines in the immediate future.
