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Gastonia outlines $15.5M ARPA spending, recognizes interest revenue and moves to appropriate $901,889
Summary
City Manager Michael Peoples presented a comprehensive American Rescue Plan Act spending update (about $12.4M spent to date), explained required encumbrance deadlines and won unanimous council approval to recognize $901,889 in prior‑year interest and move those funds into a capital projects account for future use and possible design work at Snyder Place.
City Manager Michael Peoples presented a detailed update on the city’s use of American Rescue Plan Act (ARPA) funds at the Nov. 7 Gastonia City Council meeting, summarizing completed projects, ongoing capital investments and a staff recommendation to recognize prior‑year interest earned and move it into a capital projects account.
Peoples reported the city received roughly $15.5 million in ARPA funds; approximately $12.4 million had been spent through September across categories including community center playgrounds, police body‑worn cameras and tasers, public works campus renovations (phase 1 at $3.9M), pool and recreation improvements, cybersecurity upgrades, and projects benefiting qualified census tracts. He noted the city elected the standard allowance for revenue replacement and emphasized the federal requirement to encumber funds by the end of the calendar year to comply with guidance, while expenditure of encumbered funds may continue through 2026.
Staff explained a $1.08 million total in interest earnings on ARPA balances, with $901,889 proposed to transfer into a general fund capital projects account. Council considered resolution I3 to recognize prior years’ revenues and approve budget amendment 2,520,026 to move $901,889 into a capital projects fund; the motion passed unanimously.
Peoples also discussed a proposed $84,000 allocation (from interest earnings) for design work on phase 2 of the Snyder Place facility at 151 Snyder Place to examine options for office and meeting space. Council indicated support for placing interest funds into a capital account as a placeholder so staff can pursue design work and potential future match opportunities; any construction or encumbrance beyond design would be brought back to council for appropriation.
Other highlights in the ARPA update included funds used for Greer Middle School athletic field improvements in partnership with Gaston County Schools ($750,000), historic storm response and community recovery projects, and various state‑ and federal‑directed appropriations for water, sewer and resilience projects.
On the water infrastructure front, staff reviewed a federally required lead and copper service line inventory process and an upcoming direct mail notice to customers. The city explained it will inventory public‑side service lines and work with homeowners and grant programs to identify replacement strategies; an estimated $2 million was set aside for replacement assistance contingent on the inventory results and future federal guidelines.
Next steps: Staff will record the interest recognition and place the funds in a capital projects account, proceed with Snyder Place design work if directed, continue to encumber required ARPA funds before the federal deadline and deliver updates to council as design estimates and grant agreements progress.
Quote: "Everything that needs to be encumbered will be before 12/31/2024 to be compliant with federal regulations," City Manager Michael Peoples said.
Votes at a glance: - Resolution I3 (recognize prior years’ interest revenues and transfer $901,889 to capital projects): unanimous
The council asked staff to continue monitoring federal guidance and to return with firm design cost estimates before any construction appropriation.
