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Council hears staff plan to reallocate remaining ARPA funds to a mini excavator, legal fees and pool wage shortfall
Summary
Staff proposed reallocating an unused housing developer incentive from ARPA to purchase a mini excavator, cover $7,000 in bond-counsel fees and offset a $13,996 pool-wage shortfall so all ARPA funds can be obligated before the program deadline.
City staff told the Common Council on Nov. 12 they plan to reallocate remaining American Rescue Plan Act (ARPA) funds so every dollar is “obligated” under federal rules before the year-end deadline.
Nicola (staff) said the city received $1,265,129 in ARPA funds (distributed in two equal payments in 2021–22 and a smaller supplemental payment of $58,001.59 in 2023). After accounting for completed projects and one ongoing project (Rountree Streambank stabilization), staff proposed reassigning an un-obligated $75,000 housing developer incentive to buy a replacement mini excavator for the streets division and using the remaining ARPA balance to cover $7,000 in legal fees for bond counsel on the lead service line replacement financing and about $13,996 to cover a shortfall in 2024 pool wages caused by the aquatic center closure.
Nicola explained that Chosen Valley Testing and other project changes have left roughly $20,996 available after a $65,000 estimate for the mini excavator (project S T 8 in the 2025 CIP). The recommendation is intended to fulfill ARPA’s requirement that funds be obligated by Dec. 31, 2024, and spent by Dec. 31, 2026, avoiding the need to return federal money. Staff said the mini excavator can be ordered (obligated) in 2024 and paid in 2025 with existing CIP budgeting.
Why it matters: obligating the funds preserves local flexibility to complete projects using ARPA rather than returning unobligated funds. The proposal also addresses an unbudgeted county-bond counsel expense and a municipal payroll gap created when pool admission revenue failed to offset wages during the pool closure.
Council members asked for a follow-up on prior ARPA allocations (a council member asked about a previously set-aside $75,000 for broadband); staff said they would trace earlier reallocations and report back at a future meeting. No formal council action on this reallocation was recorded on Nov. 12; staff presented the recommendation for council consideration.
