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Muscatine County waives ARPA repayment requirement for Muscatine Power and Water
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Summary
Muscatine County supervisors voted to waive a repayment provision in a prior ARPA grant agreement for Muscatine Power and Water after the utility’s manager said the board likely did not intend the term to apply to a government utility; supervisors discussed legal and budgetary implications before approving the waiver.
Muscatine County supervisors voted April 20 to waive a repayment requirement tied to an ARPA-funded broadband grant after Muscatine Power and Water said the utility did not intend to be treated as a for‑profit recipient.
Gage Houston, general manager of Muscatine Power and Water, told the board that “we are not a for profit company” and that MPW misunderstood the repayment term when it executed the agreement. Houston said the county grant (used to close a funding gap alongside state NOFA 7 funds) would have required repayment if the grantee charged customers for services created with the funds, which MPW staff did not expect at the time of application.
County Attorney Corey explained the contract language as written: if a grantee is authorized by law to charge customers for services provided using county ARPA funds, the grantee must repay the county from revenues received. Several supervisors said they were uncertain whether the specific “for profit” language appeared in the original 2022 agreement or only in a later repayment schedule document dated 2025. One supervisor warned that waiving the repayment without a written agreement could expose the county to legal arguments from other grantees who repaid under identical terms.
After discussion about precedent—some grantees such as Wilton Telephone Company walked away from awards rather than repay, while Liberty Communications has made partial reimbursements—Supervisor (S3) moved to waive repayment for both Liberty Communications and Muscatine Power and Water. The motion was seconded and the board approved the waiver.
County accounting staff confirmed that funds already repaid by Liberty remain on the county ledger and would need to be reallocated if the board finalized forgiveness. Board members noted those funds could be repurposed to capital projects if the waiver is implemented.
Gage Houston thanked the board after the vote, saying MPW accepts responsibility for the misunderstanding and will be clearer on contract terms going forward. County counsel noted that, under the contract language, a waiver normally requires a written agreement between the parties; the board did not record such an agreement in the meeting record and supervisors discussed the potential need for formal documentation or follow-up action.
The board moved on to other agenda items following the vote.
