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Peletier leaders weigh how to obligate remaining $38,300 in ARPA funds before year-end

Town of Peletier Board of Commissioners · November 1, 2024
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Summary

Town staff told commissioners they have about $38,300 in remaining ARPA funds that must be obligated by Dec. 31; staff recommended a grant-project ordinance to obligate eligible expenses and allow later reimbursement, and noted the expenditure deadline extends into 2026 under program rules.

Town staff told the Peletier Board of Commissioners on Oct. 28 that roughly $38,300 remains in the town’s ARPA account and that eligible expenses must be obligated by Dec. 31 to preserve the funds.

Planner/finance staff Rosemary McCall explained that the town can create a grant-project ordinance so eligible work is "obligated" this calendar year and then expended later under the ARPA timeline, which allows actual expenditures to occur into 2026. "As long as that grant project ordinance is approved, you're gonna have it obligated and expended immediately," McCall said, describing the reimbursement process.

Commissioners discussed options including obligating funds now for routine eligible expenses (for example, documented attorney fees, planning services or utility costs), encumbering funds through contracts, or identifying capital projects that meet ARPA eligibility. Staff cautioned that once funds are obligated to a specific contract or project, re-obligating them can be difficult if the contract falls through.

No specific spending decision was recorded on the transcript; the board asked staff to identify eligible uses and return with recommendations so the town avoids forfeiting the remaining ARPA allocation.