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Freeport council asks staff to work with county on $1.5M remaining ARPA funds from sewer project
Summary
Council directed staff to coordinate with Walton County on how to use roughly $1.5 million remaining from county ARPA funds tied to the 331 South sewer expansion, after staff reported the project came in under the $6M allocation and used about $4.5M.
The City of Freeport council voted to have staff coordinate with Walton County finance and the county commission about options for roughly $1.5 million in remaining ARPA funds that were originally allocated to the city’s 331 South sewer expansion.
City staff told the council the county allocated $6 million in ARPA funding for the project and the city has submitted pay requests as the contractor billed work. “We used 4.5 million of their money,” the city manager said, and the project is essentially complete and under the original $6 million obligation. That leaves an unused balance the county may either reassign to related projects or, if it cannot obligate the funds to eligible projects, return to the federal government.
Council discussed three options: ask the county to redirect the remaining funds to similar sewer projects the city proposed, request an amendment to the county’s obligation, or let the county retain discretion to use or return the funds. Staff warned that Treasury guidance and federal ARPA rules make the remaining funds restricted and that county action — not unilateral city action — would be necessary to repurpose the funds.
After discussion council passed a motion directing staff to present the city’s proposals to county finance and the board of county commissioners and to report back with the county’s preference and any recommended next steps. Council members emphasized they wanted the city to be able to show the county immediately how it would use the funds rather than simply terminate the obligation and risk the money reverting.
The council’s motion was procedural direction to staff; no appropriation or reallocation was finalized during the meeting.
