The Martinsville City Council heard an update on its American Rescue Plan Act (ARPA) funding and discussed how remaining funds could be used at its Sept. 16 meeting.
Grant Manager Sita Conde said the city received about $15,473,451 in 2021 when Congress passed ARPA. These funds were obligated or encumbered by Dec. 31, 2024, and must be fully expended by Dec. 31, 2026.
“We are at the stage of our timeline in which we’re still working to spend all awarded funds while also abiding by the recordkeeping requirement, which calls for staff to hold onto all documentation through December 31, 2031,” she said.
After the city used the revenue loss option, Conde said Martinsville still has $2,153,752.02 to allocate internally toward unfinished ARPA projects or to address capital needs.
“City council had previously committed funding to demolition, a career exploration program, the SCADA (Supervisory Control and Data Acquisition) system, the comprehensive land use plan, Martinsville Middle School generator, and the amphitheater project,” she said.
After completing these projects, Conde said the city will be left with $975,500.74 in ARPA funding.
“Our next steps are fulfilling our remaining obligations, submitting payments to our vendors, and working with department directors to determine how to spend that remaining $975,501,” Conde said.
Interim City Manager Rob Fincher said one reason for the deep dive into the city’s ARPA funds is to dispel a rumor that the city lost its money.
“The city did not lose any ARPA money,” Fincher said. “What we are looking at when we say that we’re looking for what we’re going to do with that remaining money — this was money that was due to projects coming in under budget and projects being completed requiring less funds. That’s what opened up this money.”
Fincher said some projects will require additional funding, including the new SCADA system for the water department, which came in over budget.
“So, some of these funds will be utilized to pay for that overage that came in. Some of the other funds may end up coming in slightly under, which, for instance, the middle school generator, we’re anticipating that actually being less than what we actually listed here as being committed,” he said.
Noting the city didn’t have a direct budget for capital projects this year, Fincher said the remaining ARPA funds will be used for various capital needs.
“We are in the process of reviewing the capital requests. We are forming a capital committee that will be meeting to assess the needs of the city, and that way as a group we can look at what capital funds need to be spent,” he said.
The committee will report back to council on how the ARPA funds should be allocated. Fincher said the city has no plans for new outside projects.
“Our capital needs are to the point where it’s going to be necessary to use all of those available funds for those projects,” he said.
Council member Aaron Rawls asked if a list of all projects that used ARPA funds could be provided.
“I would need three hands to finger-count the number of times we’ve approved the spending of this money, and it doesn’t match. I just want to understand what we actually did or didn’t. We probably all got a call from someone who’s like, ‘Where’s the money?’ I’m just trying to figure out exactly what went out and who’s still waiting,” Rawls said.
Fincher said projects still waiting for ARPA funding are being worked through and noted that the career exploration program was completed and signed off that day.
“So, it’s a process of going through and looking at” them, he said.
In other matters, the council:
*Approved a resolution allowing the city to move forward with financing through the Virginia Resources Authority (VRA) for an electric substation repair, estimated at $2.4 million.
*Held a public hearing for citizen input on city and United Way Community Development Block Grant (CDBG) applications.
*Approved transferring ownership of 932 Biden St. to the West Piedmont Planning District Commission for the purpose of building a single-family home through the Martinsville Housing and Redevelopment Authority.
*Approved the adoption of Public-Private Education Act (PPEA) of 2002 guidelines for city requests for proposals (RFPs).
*Heard public works and water resources department updates during a work session.
*Approved proclamations honoring Constitution Week (Sept. 17-23), Adult Education and Family Literacy Week (Sept. 18-22), and National Recovery Month (Sept.).
*Heard an update from the Martinsville branch of the Blue Ridge Library system.
*Approved the consent agenda, including meeting minutes and bills.
*Heard comments from council members.
