Supervisors face time crunch to allocate ARPA funding

Published 2:34 pm Friday, November 1, 2024

Lauderdale County supervisors are coming down to the wire as they work to allocate the last of the county’s American Rescue Plan Act funds ahead of the Dec. 31 deadline.

The federal legislation, passed in 2021, provided $14 million to Lauderdale County, along with funds for other counties, states and municipalities nationwide, to help stimulate the nation’s economy and help it recover from the COVID-19 pandemic. In the bill, a deadline of Dec. 31, 2024, was set to obligate ARPA funding or risk having it returned to the federal government. The funds must be spent entirely by Dec. 31, 2026.

In a work session Thursday, County Administrator Chris Lafferty said supervisors need to get the ball rolling now to have projects bid out and awarded by the end of the year.

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“Anything ARPA needs to be on Monday’s agenda to be put out for bid,” he said.

The county is working with two different pools of ARPA funds, Lafferty said. In the general fund, which can be spent on most legal purchases and projects, supervisors are looking at a surplus of $164,000 that has yet to be obligated. However, he said, a bridge project on Zero Road, currently out for bids, is being paid for from the ARPA general fund and will likely eat up any remaining money in the pot.

An engineering estimate for Zero Road put the cost of the project at $1.3 million, but that estimate is two years old, Lafferty said. Costs have gone up since then, and that $164,000 will likely be used to make up the difference.

Supervisors on Thursday also decided to pull $50,000 in general fund ARPA money that was being held for a vehicle for the coroner’s office as it does not appear the vehicle is still needed. Those funds will be redirected toward batting cages, playground equipment and other purchases for the West Lauderdale Youth Association.

The county also has additional restricted ARPA funds, which are reserved for water and sewer infrastructure, HVAC work and other specific uses spelled out in the legislation. That money also needs to be tied up ahead of the Dec. 31 deadline. Lafferty said supervisors have approximately $125,800 remaining that they need to obligate.

Part of the excess comes from a project to redo the HVAC at Lauderdale County Animal Control, which was estimated to cost $480,000 but was bid on by contractors for $359,500. The Board of Supervisors is expected to award that project Monday.

Supervisor J.J. Anders said he wants to use some of the funds to redo the bathroom facilities out at the Van Zyverden community ball fields. The county previously allocated $10,000 toward a new septic tank for the fields, but the additional money could go to build new facilities or to renovate what is currently there, he said.

Supervisor Kyle Rutledge said Whynot community ball fields also need some work on their bathroom facilities as they are not compliant with the Americans with Disabilities Act. The lowest of two quotes, he said, put the cost of the work at approximately $28,000.

New band stands and additional RV stalls at Q.V. Sykes Park topped Supervisor Joe Norwood Sr.’s list, but neither project falls under the allowed uses for restricted ARPA dollars. Running water and sewer lines to the RV stalls, however, is an acceptable purchase.

The board agreed to divide up the remaining restricted ARPA funds with $74,999 going to the Van Zyverden fields, $28,000 to the Whynot fields and $20,000 going to Q.V. Sykes. By staying below the statutory $75,000 threshold for each project, supervisors avoid having to go through the bidding process and can move forward with two quotes.

Lafferty said that will leave an excess of $2,800 in the restricted ARPA funds to handle any change orders that may come up.

Even without having to go through the bid process, each supervisor will need to make quick progress getting the needed quotes so purchase orders can be generated and the funds obligated before the deadline, Rutledge said.