The Committee of the Whole on Nov. 5 recommended the village board adopt a resolution formally obligating remaining American Rescue Plan Act (ARPA) funds to two pending projects and to general government services.
Village staff told the committee the village has an ARPA allocation estimated at $1,400,000 from 2021 and must obligate those funds by Dec. 31, 2024, with expenditures expected to be completed by Dec. 31, 2026. "We have to obligate that by December 31 this year," the staff presenter said.
The staff presentation named two near-term priorities: a Bridal Street parking-lot and a small-business/market incubator or pop-up market project, both of which staff said are unlikely to be fully covered by grants that the village has applied for. Trustee Malecaux said outside grant decisions that could reduce the village's costs are not expected until 2025. "The grant decisions are not going to be forthcoming until 2025. So we have a little bit of a problem here," Malecaux said.
Staff recommended the resolution commit ARPA funds to help offset shortfalls on those projects and to use any remaining dollars for general government services. The committee was told an ARPA line already exists in the village's capital package; the staff presenter said the money is available and will be appropriated this year into specific projects once the board acts.
On a motion to send a resolution obligating the funds to the full board, the committee voted to approve the referral. The motion was moved by Ed Hart and seconded by Saima; the roll call recorded all present trustees voting yes and one trustee absent. The committee chair said a formal resolution listing the specific uses will be developed for the board's consideration next month.
Why it matters: federal ARPA funds must be formally obligated by the end of the calendar year to meet Treasury rules; delaying obligation risks losing the ability to apply those funds to local projects. The committee's recommendation would allow the village to commit ARPA dollars now while awaiting external grant outcomes that staff said likely will not be decided until 2025.
What's next: Committee staff said they will bring a draft resolution that enumerates the two priority projects and the residual use for general government services to the board at the next meeting.