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Ocean View reviews ARPA spending and moves ahead on utility sale and FY26 budget planning
Summary
Council reviewed final ARPA encumbrances, confirmed roughly a million dollars funded about a dozen projects, and heard that the proposed sale of the town's outsourced water utility to Tidewater is progressing with PSC filings expected and an anticipated closing by the end of April; council also launched FY26 budget guidance and approved an audit contract extension.
Town staff presented a final accounting of American Rescue Plan Act funds and sought early direction for the FY26 budget at the council's first meeting of the year. Staff said roughly $1 million in ARPA funds supported about 10–12 projects and that all funds were encumbered by Dec. 31, 2024.
Staff told the council that if a specific encumbered project does not proceed, those funds could be reallocated among ARPA projects rather than returned immediately to other uses. Council members asked clarifying questions about encumbrances and were told the remaining ARPA balances and interest will be managed according to federal guidance and town accounting rules.
Council also received an update on the pending sale of the town's outsourced water utility to Tidewater. Staff said necessary documentation was received in late December and that submission of an application to the Public Service Commission is underway, with staff hopeful the sale will be completed by the end of April; sale proceeds are expected to pay off town debt and create funds the council will later allocate.
As part of early FY26 budget guidance, staff asked whether Council wanted to continue the early-payment discount on real-estate taxes and whether to keep current employee health insurance contributions. Council supported continuing the discount and generally favored maintaining current insurance arrangements while staff completes detailed budget work and returns with final recommendations. The town also confirmed its long-range financial planning engagement with PFM, with a presentation planned during the FY26 budget process.
Separately, the council authorized the town manager to extend the contract with PKS and Company for external audit services for three additional years (FY25'FY27) and approved the inclusion of a capitalization policy into the town policy manual to clarify thresholds and useful-life guidance for capital versus repair accounting.
