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Odessa reports $20.33M ARPA award; $14.4M expended, small return to Treasury, premium‑pay transition noted
Summary
City finance staff told council the city received $20,332,959 under ARPA, has expended about $14.4 million to date with encumbrances for ongoing projects, and expects to return roughly $18,325 to the Treasury. Staff warned that premium pay for first responders funded with ARPA will shift to the general fund after remaining ARPA balances are used.
City finance staff briefed the Odessa City Council on Feb. 25 on the status of the city’s American Rescue Plan Act (ARPA) funds, reporting a total award of $20,332,959, expenditures to date of about $14.4 million, and an expected return to the U.S. Treasury of roughly $18,325 because some projects came in under budget.
Finance presenter Kayla summarized how ARPA money arrived in two tranches and how council decisions and subsequent project changes reshaped allocations. She said the first tranche arrived in July 2021 and the city received the second tranche in June 2022; the council subsequently revisited and reallocated earlier awards. Kayla told council that city departments have identified and encumbered funds for ongoing projects and that encumbered funds remain in purchase orders until invoiced.
Kayla explained the city used ARPA for a mix of priorities, with public safety, utilities and public works among the expenditures cited. She said the city purchased emergency equipment (for example, striker cots and tenders ordered for emergency services), funded projects at the Darrington plant, and allocated funds for street and public‑works projects that are in design or procurement. Kayla said the police restroom and parking lot projects and several Darrington work items are in various stages of completion or encumbrance.
Council members pressed on questions about premium pay for first responders. Kayla said the original premium‑pay allocation for first responders totaled $10.6 million and that approximately $2.267 million remains in that pot, which the city expects will fund roughly two more quarters of the premium payments this fiscal year. She explained that once those ARPA funds are exhausted, the general fund will assume the ongoing premium‑pay cost and that finance staff will perform journal entries to reconcile payroll expenses to ARPA while ARPA monies are available.
Councilman Thompson and others raised historical questions about prior allocations to medical providers; Kayla said some previously proposed allocations were never expended and were returned to the ARPA pot for reallocation. Kayla also told the council the city must meet appropriation and spending timelines set by the federal program; she said the council had a December 2024 deadline to appropriate certain funds and that some projects have later expenditure timeframes tied to federal guidance. Kayla said from the city’s accounting perspective roughly $18,325 will be returned to the Treasury because a few projects closed under budget.
On timing and oversight, Kayla said the finance office is creating a project and grant accountant position to better manage incoming federal funds and ensure the city meets program deadlines and reporting requirements.
Ending: Council asked additional budgeting and reconciliation questions and Kayla said staff will complete required journal entries to allocate payroll costs, continue oversight of encumbered projects and return the small unspent balance to the Treasury as required by the program.
