What is ARPA Funding?
On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. Governments across the country received funds to help combat the negative effects of the COVID-19 pandemic. Through ARPA, the Town of Indian Trail will receive $12.7 million to assist in response to the pandemic and rebuild a stronger community. To date, the Town has received $6.35 million and expects to receive the remaining funds in July or August of 2022.
How Can ARPA Funding be Spent?
The federal government outlined five categories where funding can be spent.
- Addressing COVID Public Health - to utilize funding to better support public health. As public health is handled through Union County, the Town does not have many funding opportunities in this category.
- Addressing COVID Economic Impact - where COVID created additional harm to citizens aside from health concerns.
- Replacing Lost Revenue - municipalities can take a maximum Revenue Replacement Allowance of $10 million. The Town has chosen to take the maximum Revenue Replacement Allowance.
- Providing Premium Pay - government employees who worked through the pandemic experienced a greater risk of contracting COVID-19. This category would provide hazard pay to those eligible employees
- Infrastructure Investment - making necessary investments to provide or improve access to clean drinking water, improving wastewater, stormwater infrastructure and expanding access to broadband internet. Stormwater infrastructure is the only item in this category where the Town could use ARPA funds.
The Town of Indian Trail chose to take the standard Revenue Replacement Allowance of $10 million, the maximum amount allowed by ARPA. The Town will use these funds to pay for the Union County Sheriff’s Office contract for the next two-and-a-half years, which is an allowable use under ARPA. This will create $10 million in surplus general funds to be used for various projects that will help support the community.
Of the remaining $2.7 million of ARPA funds, $2 million is being used to fund the First Avenue stormwater project.
Remaining ARPA Funds to Allocate
The Town has $700,000 in remaining ARPA funding to allocate to additional infrastructure projects or premium pay.
To date, the Town has dedicated the following available surplus funds:
- $4,327,215 for fire trucks for the Baker’s, Hemby Bridge, and Stallings Fire Departments
- $346,085 to the Porter Ridge and Indian Trail Athletic Associations
- $125,780 to the James B. Crump VFW Post 2423
- $400,000 toward water lines for Indian Trail residents currently on well water
At its July 12, 2022, meeting, the Town Council also voted to approve the use of up to $700,000 to benefit the non-profit organizations Food for Families, Common Heart, and Cameron’s House.
Timeline for Use of Funds
- Funds must be obligated by Dec. 31, 2024
- Funds must be spent by July 1, 2026
If you have any questions about ARPA funding, please contact Director of Public Works Adam McLamb at email@example.com or call 704-821-5401.