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Rocky Mount staff outlines ARPA spending, proposes roughly $900,000 in cuts to outside agencies; council asks for consistent grant oversight
Summary
City manager and finance staff reviewed American Rescue Plan Act (ARPA) spending and said most ARPA funds have been expended or encumbered; staff proposed about $900,000 in cuts to outside agencies and discussed the library contribution and reimbursement practices for certain nonprofit programs.
City Manager Benjie Daniels and finance staff reviewed the city’s use of American Rescue Plan Act (ARPA) funds and recommended additional budget reductions to non-departmental/outside agencies.
ARPA and one-time vs. ongoing costs
Daniels explained the city received roughly $11.5 million in ARPA funds and that federal rules allowed municipalities to designate a large portion as revenue-replacement. He told the council that, after prior commitments and encumbrances, roughly a half-million dollars remained available for discretionary use. Daniels cautioned that much ARPA spending was used for ongoing personnel and subscription costs and that those uses can create recurring budget obligations when the one-time ARPA funds are exhausted.
Proposed cuts to outside agencies and the library
Staff described a set of proposed cuts to outside/non-departmental agencies that initially totaled about $853,000 and—after late reconciling and additional manual entries—had risen to about $900,000. Daniels said one line item involving the library showed a discrepancy of about $70,000–$90,000; staff placed a conservative placeholder of $20,000 in the presented document but reported a high confidence that an additional $50,000–$60,000 of savings is available pending library accounting and negotiations.
Reimbursement practices and nonprofit oversight
Council members raised questions about differences in how outside agencies receive city support. Staff said some programs (for example, a youth-employment program managed by OIC/YouthConnect) operate on a reimbursement basis with timesheets and receipts submitted before the city reimburses expenses, while most other outside organizations receive an annual check after the budget is adopted. Several council members asked staff to pursue more uniform reporting and to require consistent documentation for organizations that receive city funds.
Next steps
Daniels said staff will proceed with the proposed cuts and reconcile the library item; he also said staff would return with more detailed documentation. Several council members asked staff to explore partnerships and alternative private or grant funding to preserve critical services where possible.
Ending
No formal vote was taken; council directed staff to proceed with the recommended cuts in their planning materials and to return with reconciled figures and uniform reporting proposals.
