Rock Island staff seeks ARPA reallocations for roundabout, downtown rebuild and other projects; dog-park funding prompts council debate

At a regular council meeting, staff recommended reallocating American Rescue Plan Act (ARPA) funds to several capital projects and urged the council to approve interagency agreements for projects extending into 2025 so the city can meet federal obligation rules.

Samantha, who presented the ARPA update, said the federal Treasury’s updated guidance gives some flexibility but also imposes strict eligibility tests for transportation projects. She told the council that the city must obligate restricted ARPA funds by year-end and that using interagency agreements (IAAs) would preserve flexibility for projects that continue into 2025.

Staff proposed reducing the Southwest Treatment Plant pump station allocation from the $2,500,000 included in the 2022 budget to $1,000,000 because of increased scope and costs and to reallocate the balance to other priorities. Staff also reported the Mill Street work—previously budgeted at $1,400,000—has expanded after engineering updates to a multi‑million‑dollar project and will require alternative funding sources.

Samantha recommended several projects to receive restricted funds, including a 35th Street West/Rock Island Parkway roundabout (she said Congressman Sorensen had allocated about $1,466,000 toward the project, with roughly $300,000 estimated for engineering) and a 31st Avenue reconstructions/road-diet project. She said the city had earned about $1,400,000 in interest on ARPA funds and proposed an interfund loan to support the Sunset Marina, to be repaid over ten years, should federal funding not materialize.

On public-safety equipment, staff said a fire truck ordered more than a year ago could be billed and paid from restricted funds now to secure eligibility; the payment option would be a way to obligate ARPA dollars for an eligible expenditure.

Councilors asked whether remaining ARPA dollars could continue support for youth programs PEP and GRIT. Staff said roughly $900,000 could potentially be freed through reporting employee benefits and that final allocation choices would occur in the budget process. Councilors also debated using leftover ARPA funds to partially fund a proposed dog park estimated in the transcript at $675,000 (an artificial-turf surface accounted for much of the cost); several members explicitly opposed artificial turf for health and maintenance reasons and suggested private fundraising or a grass surface.

No formal votes on ARPA reallocations occurred at the meeting; staff said it would bring IAAs and any project agreements back for council approval in the next meeting cycle to meet federal deadlines.

The meeting adjourned following the discussion.