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Council reads legal opinion saying transferred ARPA revenue must come to council before spending
Summary
Council made public and read a legal opinion concluding that $40 million in ARPA revenue moved into the general fund remains subject to council approval and public-purpose constraints; the motion to publish and read the opinion passed unanimously.
City council on April 13 publicly read a legal opinion concluding that American Rescue Plan Act funds transferred into the general fund remain subject to council approval before spending.
The opinion, dated April 13 at 4:25 p.m. and read aloud by the councilwoman in the 7th Ward, responded to questions about whether the $40,000,000 transferred into the general fund must be allocated according to the ARPA categories and whether council must approve subsequent spending. "The answer is yes," the councilwoman read, adding that expenditures must also meet public-purpose guidelines.
The legal memo analyzes resolution 230,464.1 (adopted Dec. 20, 2023), explains distinctions between resolutions and ordinances, and notes that while ARPA money in special-account 287 carries a December 31, 2026 spending deadline, the $40 million placed in the general fund is not subject to that same date restriction. The opinion advises that uses of those dollars must confer a direct benefit of a reasonably general character to a significant part of the public and may be subject to other constraints governing general-fund spending.
Council members said they sought the opinion to clarify whether resolutions transferring ARPA funds removed council oversight. The motion to make the legal opinion public and read it into the record passed 6-0.
What happens next: the opinion will remain part of the public record and councilmembers said they expect future spending tied to those dollars to be brought to the council for approval or further legal review.
