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Westerly council reallocates unspent ARPA funds to town projects and local nonprofits

Westerly Town Council · October 7, 2024
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Summary

Council approved a staff-recommended package to reallocate unspent American Rescue Plan Act funds to shortfall town projects, with conditional awards of $50,000 to the WARM Center and $25,000 to the Ocean Community Chamber of Commerce and the remaining potential balance held for sewer relining.

The Westerly Town Council on Oct. 1 approved a staff proposal to reclaim and reallocate roughly $778,943 in unspent American Rescue Plan Act (ARPA) dollars, locking in several immediate town projects and setting aside remaining funds for sewer work or nonprofit awards if the balance becomes available.

Town Manager summarized the situation, saying “there is $240,266.82 that has not been allocated” and that staff had identified an additional $538,943.53 in funds that need reassignment because projects will not be under contract by the federal deadline. The manager told the council that any funds not placed under contract by Dec. 31, 2024, will revert to the federal government and recommended prioritizing town capital projects already under contract or close to it.

After debate over priorities, the council voted to accept the manager’s recommended reallocations for immediate town needs: HVAC shortfalls at town facilities, Bradford demolition shortfall, Craigfield (Craig’s Field) asphalt work, and replacement lighting for softball/baseball fields (a configuration staff said would realize rebates from the utility provider). Councilors said funding those obligations now would reduce the risk of higher costs or tax impacts later.

The council also approved three conditional allocations tied to the remaining potential balance (approximately $388,xxx before later adjustments): a $50,000 conditional award to the WARM Center to continue a small, less-congregate shelter program for primarily older women, a $25,000 allocation to the Ocean Community Chamber of Commerce for a tourist-center expansion (reduced from an original $50,000 request), and direction to place approximately $313,003.97 toward a sewer relining project if that balance is realized by year end. Town staff said the awards to outside organizations are conditional on the final unspent balance becoming available and on eligibility confirmation from the municipality’s ARPA consultant.

Russ Partridge, executive director of the WARM Center, told the council the program helps seniors transition from congregate shelter and asked that the center be considered for reallocated ARPA funding. “It provides shelter in a very different way,” Partridge said, describing a three-to-four person program that offers dignity and support for older women facing homelessness. Carrie Clark, who spoke during citizen comment, had urged the council to address housing conditions at Wesley Housing during the meeting.

Councilors voting in favor said the package protected taxpayers by prioritizing projects already under contract or likely to be under contract, while some councilors pressed to open a portion of the funds to nonprofits addressing social-service needs. The council adopted an amendment to accept the manager’s four immediate reallocations and voted, by voice/roll-call, to approve the conditional nonprofit awards and the conditional sewer allocation; meeting minutes record the votes as carried unanimously for the motions on the floor.

The town manager and consultant will confirm ARPA eligibility for the proposed nonprofit awards and return any necessary documentation to the council before disbursement. The council also signaled it would consider a separate process in the next budget cycle to increase recurring subsidies for local nonprofits if warranted.