Members of the North Augusta City Council learned there are new guidelines for spending America Rescue Plan Act funds during their Jan. 31 study session.
City Administrator Jim Clifford said the U.S. Treasury department released its final rule on Jan. 6.
One of the changes allows municipalities to take a standard allowance for revenue loss of up to $10 million rather than complete a full revenue loss calculation. Municipalities opting to use the standard allowance may use the money for government service with streamlined reporting requirements.
“Ultimately, the decisions on how the money is obligated is the responsibility of the council,” said Clifford, adding, “But the staff recommendation is going to be heavily weighted in infrastructure spending.”
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Assistant City Administrator Rachelle Moody said North Augusta received just over $11.8 million in recovery funds. Half has been received with the rest expected by October or November.
Moody said staff is recommending the city use the standard allowance.
“You can take this standard, $10 million revenue loss allocation and by doing that it goes directly into your coffer,” she said. “It essentially means that money can be spent on anything in government services. If it’s a service we currently provide we would be able to spend our ARPA money on that.”
Moody said the new guidelines also allows the city to use the money to cover it’s share of matching funds for future federal grants.
The staff recommendation spending money on water and sewer system including repairs to the southwest interceptor line sewer line.
Dana Lynn McIntyre is a general assignment reporter for The Augusta Press. Reach her at dana@theaugustapress.com
