Palatka moves to reobligate remaining ARPA funds to municipal services

City staff and a consulting director from Accenture told the commission July 23 that Palatka has spent the majority of its American Rescue Plan Act funds but faces an obligation deadline that requires obligating remaining funds to eligible activities before the end of the calendar year.

“We received a total of $5,234,421,” Interim City Manager Cynthia W. Curry said, and “to date, it’s funded is $4,124,005.65.” Consultant Joseph Sheets, who works with municipalities on federal grant compliance, explained Treasury rules and the revenue‑replacement category that allows municipalities to obligate remaining ARPA funds to general government services. Sheets recommended using the remaining unobligated balance to support fire, wastewater reclamation and police operations to lower the risk of returning money to the federal government.

Sheets told the commission that obligations under Treasury’s definition include purchase orders, contracts and payroll obligations if positions were budgeted before Dec. 31, 2024. He said reallocating funds to personnel and infrastructure that can be documented as obligated reduces clawback risk. “An obligation by Treasury’s definition is ... an order for property or services, entering in contracts, awards, and similar transactions that require payment,” Sheets said.

After questions about eligible uses and whether certain community‑based organizations should be prioritized, the commission voted to adopt the staff’s spending plan on a roll call. The plan splits available funds among municipal services the city can validate and document in case of an audit.