Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the ARPA Drains topic
No spam. Unsubscribe anytime.
Eaton County obligates ARPA funds, approves MOU to reduce drain assessments after $5M state grant
Summary
The Ways & Means committee voted to obligate ARPA funds and approved an MOU with the drainage district so the county can apply a $5 million state grant and ARPA dollars to reduce assessments for the Bank Intercounty drain project.
Finance Director Melissa summarized remaining American Rescue Plan Act (ARPA) funds and proposed reallocation. She recommended $125,000 for a housing support program and that the remainder be applied to the Bank Intercounty drain project. "If we have any residual as of Dec. 31, 2024, we will have to send those back to the treasury. So we need to have these reallocated by that date," Melissa said.
Staff explained a $5,000,000 state grant will be applied "off the top" of construction costs to reduce assessments countywide. Melissa presented estimated annual savings attributable to the $5 million grant: roughly $26,110 annually for Eaton County, an estimated $77,249 reduction for Delta Township, and about $179,526 per year dispersed to residents as the grant lowers assessments. She also described additional estimated savings from a county pre‑bond payment and ARPA allocation: a projected annual reduction of $219,654 if the county makes a pre‑bond payment, $381,926 in interest savings over the life of the bond, and an estimated $3,212,995 savings to the county if ARPA funds are applied as proposed.
Outside counsel Mark Nettleton of Michael Myers advised that under ARPA regulations an enforceable contractual obligation — such as a memorandum of understanding (MOU) with the drainage district — can constitute an obligation for ARPA purposes even if the final assessment amount has not been set. "Entering into this memorandum of understanding with the drainage district obligates constitutes the county's obligation to pay, the amount so that you can check that box and say that you have complied with ARPA by Dec. 31, 2024," Nettleton said.
The committee passed a resolution to obligate ARPA funds for the projects described and approved the MOU with the drainage district by voice vote. Commissioners asked staff to track accrued interest on obligated funds and noted that interest earnings may be used for allowable county purposes.
