Shelby County board amends budget to pay $436,424 courthouse exterior contract after ARPA shortfall

Shelby County's board voted to amend the FY2026 budget and authorize payment for phase one of courthouse exterior repairs, approving the $436,424 contract despite depleted ARPA reserves.

The sheriff said contractors have begun the exterior work and that phase one totals $436,424. Finance staff said ARPA project reporting did not include some prior obligations, creating a shortfall that required moving costs into the courthouse maintenance line. "We have to pull it from another bucket to pay these bills," a board member said during the discussion.

Treasurer Erica (first name in county records) explained that two earlier payments tied to the Performance Services contract were recorded to an ARPA project line but were not reported to the federal ARPA ledger, leaving the ARPA project effectively short. She recommended recoding those payments into a courthouse maintenance line so the contractor can be paid and ARPA reporting can be reconciled.

Board members questioned who creates and controls line-item codes and whether sufficient documentation exists. The sheriff and other members noted a $250,000 DECO grant has been awarded and can offset part of the contract, though grant revenue must be recorded as revenue and cannot directly reduce an expenditure line without proper accounting. One member summarized: "Subtracting the DECO grant of $250,000 leaves about $186,000 still outstanding for work they're finishing now."

After debate, the board called the roll; the budget amendment to pay phase one passed, 15–1. Several members said phase two (interior work) should be returned to the budget committee for fuller review before obligating additional funds.

The board also earlier voted to recode Performance Services payments from ARPA project lines into the general fund courthouse maintenance account to resolve the ARPA reporting discrepancy. County officials said the recoding will allow reconciliation with federal reports and permit future reimbursement submissions.

The county will submit invoices to the state for the DECO grant reimbursement; officials said timing of state reimbursements remains uncertain and could affect when the county recoups those costs.

Next steps: county staff will finalize the recoding paperwork and continue submitting grant invoices; the board directed the budget committee to review any proposed interior-phase contracts before further obligations are made.