County outlines ARPA spending changes, approves amended grant-project ordinance

Chatham County staff presented an American Rescue Plan Act quarterly update and asked the Board of Commissioners to approve an amended grant-project ordinance to reflect lower-than-expected bids and revised salary projections. Commissioners voted to approve the amendment unanimously.

The county has obligated its full $14.4 million ARPA award; the current deadline to begin reporting expenses is Dec. 31, 2026. Staff said some projects moved from straight ARPA to “ARPA-enabled” funding because their expenses do not meet Treasury obligation requirements.

The staff presentation called out two changes driving the requested amendment. First, a county hydrant repair project originally estimated at about $1 million came in significantly under budget at a low bid of $726,000; the contract covers replacement of about 60 hydrants with additional repairs possible. Second, projected personnel costs (salaries and benefits) have increased, and staff proposed reallocating funds to match those projections. Staff noted accrued interest earned on ARPA balances that will be traced to the general fund and recognized against projects.

Status updates given during the presentation included: - The county has obligated the ARPA award and must meet Treasury reporting requirements by the expenditure deadline. - The county’s school HVAC project was described as about 40% through design with an anticipated bid period and potential construction start in August; staff said the lower hydrant bid will not prevent future change orders but believed the 60 replacement hydrants could be completed relatively quickly. - The Emergency Assistance Program (EAP), now ARPA-enabled, has served 83 households through March and expended about $339,000. - Other ARPA-enabled work cited included a fiber extension, Parkers Ridge design engineering and non-profit grants; staff identified roughly $1.2 million of ARPA-enabled funds not yet allocated and projected that number could fall to about $1.0 million later in the year depending on spending.

After discussion about project scope and flexibility to shift obligated funds, a commissioner moved to approve the amended grant project ordinance to reflect the lower hydrant bid and updated salary projections. The motion carried with all present voting in favor. Staff said Treasury guidance allows municipalities to reallocate funds among obligated projects so long as obligation criteria continue to be met.

The board discussion also touched on how hydrants were selected (staff said contractors and fire districts identified the hydrants in most dire need) and that additional hydrants could be added to the scope if additional funds are allocated.

The approval places the amended project ordinance into county records; staff will continue to monitor bids, change orders and Treasury guidance and will report back if further amendments are required.