As the deadline to obligate American Rescue Plan Act (ARPA) funds draws closer, some cities are scrambling to allocate funds before the end of next month. At its meeting Nov. 12, the North Liberty city council discussed plans for allocating its remaining ARPA funds, eyeing several nonprofit causes and opportunities for local economic development. The […]
As the deadline to obligate American Rescue Plan Act (ARPA) funds draws closer, some cities are scrambling to allocate funds before the end of next month. At its meeting Nov. 12, the North Liberty city council discussed plans for allocating its remaining ARPA funds, eyeing several nonprofit causes and opportunities for local economic development.
The city has until Dec. 31 to obligate a little over $300,000 before it reverts back to the U.S. Department of Treasury. The U.S. Code of Federal Regulations defines “obligation” as “an order placed for property and services and entering into contracts, subawards, and similar transactions that require payment.”
One item the city discussed was affordable housing, with an eye to increasing contributions to the Housing Trust Fund of Johnson County. The council previously approved a contribution of $400,000 to the organization with the intent to leverage ARPA funds with a Low Income Housing Tax Credit, but did not receive the award for the project.
“It was a very competitive market,” said Ryan Heiar, North Liberty city administrator.
An allocation of $5,000 to
United Action for Youth (UAY) was also discussed. The organization is raising money to continue funding their transitional living program with the goal of raising a minimum of $100,000.
“We need to get them out of a hole this year, and we can do it,” said council member Brian Wayson, although cautioning that funding for an ongoing project of that nature would be “tricky.”
Council members highlighted needed updates to the North Liberty Community Center, which had an estimate of $900,000 to upgrade the shower rooms, family restrooms and locker area at the indoor pool. ARPA funds were originally earmarked for this project but consideration was withdrawn when city officials discovered the cost of the project was significantly higher than the original budget of $250,000.
"As has been the case in the last few years, this facility is showing its age and will need continual investment to keep it operational," the meeting agenda stated, listing several recent projects related to maintenance, with a staff recommendation to allocate funds to rehabilitate the parking lot.
The council also discussed allocating some of the funds to boost economic development, with suggestions ranging from hospitality to workforce development.
“We don't have really much of anything as far as incentives or economic development for small businesses here, and I think with this one-time funding, it gives us that opportunity that we've not had and may not have again for a while,” said council member Brent Smith.
Senior director of community development with Greater Iowa City Inc.
Cady Gerlach was present to provide feedback on how the organization could help the city effectively utilize funds for the local economy, suggesting, among other options, the creation of grant programs based on criteria the city wants to target.
“We can work with you as a council to develop the project that you want, and we can be flexible as the community economic development organization to make it effective for you,” she said.
At the discussion’s conclusion, the general consensus was $200,000 toward the North Liberty Community Center for projects that would update the facility -- though nothing specific was settled on -- $100,000 toward Greater Iowa City Inc. for economic development, and $5,000 for UAY.
