Willmar City staff told the council the city has about $254,006.23 in American Rescue Plan Act (ARPA) funds left to obligate this year, prompting a discussion over how to finish previously promised commitments.

City staff member Kyle summarized ARPA spending and the September 6, 2022 resolution that authorized the Tyler Technologies contract, saying the city has spent roughly $737,000 on Tyler to date and that the contract included an annual membership of about $150,867 and implementation costs capped at $501,000. "There’s approximately $254,000 that remains to be allocated and obligated before the end of the year," Kyle said.

Why it matters: Councilors face a choice between using limited ARPA dollars for one-time capital needs — playground equipment, park finishing work or public-safety items — and reserving funds for housing and long-lived investments. Several members said the housing commitment is a community priority.

Discussion and direction: Councilors debated three main options: (1) honor a prior commitment to provide $150,000 to the local housing trust administered by the Kandiyohi County HRA; (2) shift some housing-dedicated state funds toward that commitment while preserving ARPA for capital items; or (3) split the commitment across funding sources. Staff noted that donations to the Kandiyohi County housing trust can be restricted by donors to projects within Willmar, addressing a council concern about local control.

Several councilors voiced support for a package that would allocate $150,000 to the housing trust, $87,000 to finish park/playground projects and leave a modest remainder toward Tyler implementation (council discussion put that remainder in the low‑tens of thousands). No formal resolution was adopted at the work session; staff said they would draft options and bring a formal resolution back to the council.

What remains unclear: Staff said additional Tyler implementation costs remain and could total "tens of thousands" or more depending on modules implemented; they also noted some implementation modules can be paused to reduce immediate costs. Staff committed to returning with an updated budget packet for the council's truth-in-taxation hearing and to show levy impacts of any changes.

Next steps: Staff will prepare formal resolutions and budget alternatives for the council in the next packet, including scenarios that preserve housing commitments while covering Tyler implementation costs from alternative sources such as sale proceeds or other funds.