ABERDEEN, S.D.(Aberdeen American News)- The Aberdeen City Council has agreed to put $5 million in federal stimulus funds toward planned improvements at the city’s water reclamation plant.

In November, the council heard about the need for $56.3 million in improvements at the plant. That work would help expand treatment capacity from 8 million gallons per day to 12 million gallons per day.

In December, the council agreed to submit a funding application to the state Department of Agriculture and Natural Resources. The application is under review as the state determines how to spend the federal funding received through the American Rescue Plan Act.

One American Rescue Plan Act spending proposal from the state is to match local funding contributions of up to $5 million, according to city council agenda documents. City Manager Joe Gaa said in addition to matching that money, the state could potentially award another 30% of project costs, or just shy of $14 million, as a grant.

According to city documents, Aberdeen is expecting to receive a little more than $5 million in American Rescue Plan Act funds, but has only received half its allocation, or $2.53 million.

The stimulus funding can be used for water and wastewater system improvements.