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Finance staff give council update on $38.6 million ARPA award; $1.5M connectivity extension slated for West Side
Summary
City finance staff told the council most of the $38.6 million ARPA award has been spent or committed; outstanding items include $1.5 million for a digital‑connectivity extension targeting West Side housing sites, $2.8 million for a low‑barrier shelter and several community grants. Staff said contracts are executed and deployment is expected this year.
City finance staff told the Chattanooga City Council at a strategic planning session that most of the city’s $38,600,000 American Rescue Plan Act award has been spent or committed, and outlined several remaining allocations that staff plan to deploy this year.
Weston, a member of the city finance team, said the original award included about $30,000,000 set aside for the "One Chattanooga" relief and recovery plan and that the remaining items include targeted program dollars. "So original ARPA award was $38,600,000," Weston said, and later listed outstanding line items including a $1,500,000 extension to fund a digital‑connectivity project, $2,800,000 set aside for a low‑barrier shelter, $900,000 for the Chamber Foundation’s CHAT 2.0 Chattanooga Future Fund and $125,000 for extended hours at the James A. Henry center.
The $1.5 million is intended to extend a connectivity program modeled after Hamilton County Schools’ EdConnect, with the Enterprise Center and EPB administering the work for targeted West Side neighborhoods. Kevin, also on the finance team, described beneficiary counts staff provided: roughly 566 units at one Lehi‑side site, public Wi‑Fi at the James Henry Hub and other community locations, and in‑home access for about 876 units in Emma Wheeler Homes, Dogwood Manor and Mary Walker Tower, properties managed by the Chattanooga Housing Authority. "This is modeled after HCS EdConnect powered by EPB, it is not actually part of that program," Kevin said, adding it targets non‑HCS low‑income residents.
Council members asked about the duration and the pace of implementation. One council member said the original plan envisioned a 10‑year commitment; Kevin replied he would confirm the duration and follow up. On implementation status, Weston said the city has an executed agreement with the Enterprise Center and that the project is "underway" though not yet fully spent. Kevin told council the administration is committed to deploying the funds and said staff aim to spend down the remaining ARPA allocations within the calendar year.
Finance staff also reviewed accounting details for the ARPA award. Weston said interest accrued on held ARPA funds increased the program total to about $42,000,000 overall, and that roughly $200,000 in uncommitted interest remained as of the end of May. "You guys control the purse strings," Kevin reminded the council, noting that any use of funds that deviates from the One Chattanooga plan requires a council resolution.
Several items the finance team flagged were already scheduled for council consideration: Weston said the Chamber Foundation CHAT 2.0 item appears on future considerations this week, and the low‑barrier shelter allocation was expected to be discussed in an August meeting. The Enterprise Center connectivity agreement is executed and staff said they will provide follow‑up on specific duration and the deployment schedule.
Next steps: finance staff will return with requested clarifications about the connectivity commitment length and other schedule details; council will see related resolutions and agenda items at upcoming meetings.
