North Augusta has received its first installment of funds from the American Rescue Plan Act. The city received $5,935,544.61 of an anticipated $11 million. Congress approved the funding program in March 2021.
At the Nov. 29 study session, City Administrator Jim Clifford gave council members a broad overview of the funds, including how they will be managed and how the money can be used.
In July 2021, council approved Clifford’s plan to keep ARPA funds in a separate account, with strict guidelines on who has access and how the money will be released.
“No money will be transferred from that account without council direction,” he explained. “That money is now gone into a savings account or a checking account. The city staff is not authorized to withdraw funds from that account without direct counsel permission. Meaning, at some point in time, we provide you some recommendations on how we think that money ought to be obligated, and you’ll make a decision on that.”
The funds can be used for investments in water, sewer and broadband infrastructure projects. Money can also go to support public health expenditures and replace lost public sector revenue.
ARPA Quick Reference Guide by augustapress on Scribd
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One question is whether the state will use some of its ARPA money to provide local municipalities with matching funds for projects.
Clifford said, “If that occurs, that may change some of the calculus on the ratios of how we’re going to look at our projects, meaning we could get more infrastructure projects completed if the state chooses to match those funds.”
He does not anticipate an answer until the legislature returns to session in January.
The city will get the other half of its allocated funds by November 2022. Funds must be earmarked for projects and other accepted uses by December 2024. The project must be completed and the money spend by December 2026.
The city will be required to provide its first project and expenditure report to the federal government on April 30, 2022. It must make reports annually after that.
Dana Lynn McIntyre is a Staff Reporter with The Augusta Press. You can reach her at dana@theaugustapress.com
