Princess Anne leaders agree by consensus to temporarily move $250,000 in ARPA funds to cover bills and payroll

At a special work session, the Princess Anne Town Commission agreed by consensus to temporarily move up to $250,000 from American Rescue Plan Act (ARPA) funds into the town's general fund to cover immediate bills and payroll pending formal approval at a regular or special meeting.

The decision followed a presentation by a circuit rider and advisor to the town, who told commissioners the town's primary revenues (including property tax receipts) will not arrive until late September, leaving a 60—90-day cash gap. "It is recommended that the town commission approve the transfer on a limited time basis only of $250,000 on the American Rescue Plan funds to the town's general fund," the circuit rider said.

The memorandum presented to the commission projected a nearly $200,000 operating deficit for fiscal year 2025 and listed one-time expense items suggested for ARPA reimbursement: contributions $65,500; finance software $8,000; police vehicles $123,001.46; police IT $22,500; police body cameras $15,000; and a trash truck $30,000, for a subtotal cited around $264,146. The presenter said using ARPA for those one-time costs would eliminate the anticipated deficit and create a modest contingency reserve.

Commissioners debated alternatives, including cutting ARPA line items (the presenter suggested removing a $50,000 parking-lot allocation, a $50,000 systems grant and $200,000 in minority business grants, together freeing roughly $300,000). Several commissioners objected to repurposing funds targeted at minority programs: "We shouldn't put this expect to take from minority" one commissioner said, urging a separate discussion before reallocating that money.

Tensions rose during the session when the Town Commission President said past internal losses and recently approved pay raises had contributed to the shortfall. "Our employees of this town have stolen hundreds of thousands of dollars from this town," the president asserted; the allegation was made in the meeting and was not substantiated or resolved during the session.

Staff reported an additional revenue shortfall tied to a maritime lease arrangement and related accounts that now route most income into other reserve accounts rather than directly to the town. The commission was also presented with a broker/attorney invoice for lease negotiations, described in the packet as $53,000; staff said they had expected a smaller first-year commission and that the full five-year commission had been invoiced.

Legal and procedural issues were discussed: the circuit rider and town counsel noted that legislative actions cannot be adopted at a work session. Commissioners therefore expressed consensus to proceed with a temporary transfer so payroll and bills could be paid immediately, and agreed to confirm and record the transfer at the next regular meeting or at a specially noticed session. Staff said the bank requires in-person signatures to effect the transfer and asked that the town manager and two commissioners coordinate with the bank to complete the transaction.

The meeting ended with a request to move into closed session for personnel matters; no formal roll-call vote on the ARPA transfer was recorded at the work session itself. The commission plans to consider a formal motion and vote at the next regular meeting or a specially called meeting.

Next steps: staff will clarify exact bank requirements for the transfer, commissioners will review which ARPA line items (if any) could be removed, and the commission will place a formal motion on the agenda for the upcoming regular meeting.