How 3 Indiana cities will empty their COVID-era ARPA accounts
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During the pandemic, cities and towns across the state received hundreds of millions of dollars in federal funds meant to both keep their public services afloat and deliver game-changing projects for their residents. Now, the clock is ticking to make sure each of those dollars have a purpose.
As a spending deadline looms, Inside INdiana Business is highlighting how three cities are using up those dollars, according to city government minutes, meetings and reports. Cities have focused their efforts on public good projects—like water main extensions, city-owned infrastructure, rental support and green space creation—that often have trouble receiving financial support and have expensive price tags.
The American Rescue Plan Act was a widespread, layered relief plan to support the communities on a granular scale during the pandemic. As well as stimulus checks and small business grants, the State and Local Fiscal Recovery Funds program dispersed $350 billion to state and local governments in 2021.
By the end of the year, local governments need to obligate how the remaining funds will be used, which essentially means the money needs to be binding through a contract, award or other transaction. After those funds are funneled to a line item, those dollars will need to be spent by either September or December 2026, depending on the use. If either deadline is not met, the balance must be returned to the federal government.
Fort Wayne
The city of Fort Wayne has used its $50 million in ARPA funds for dozens of projects stemming from on-the-ground public health staffing to sidewalk repaving to parks and beautification. At a March 19 city council meeting, Deputy Controller Valerie Ahr credited the city’s organization and planning for its success in how it’s spent its federal funds.
Their effort resulted in $2 million of generated interest, she said, which the city council later approved largely for infrastructure improvements.
“I’m really happy that we’ve been able to put the extra, additional money to use for these projects,” Councilwoman Michelle Chambers said at the meeting. “I think we’ve set a wonderful example here in our city because some folks haven’t spent their money yet.”
The roster of expenditures includes $750,000 to remodel the underused basement of city government building Citizens Square, $450,000 for three ADA-compliance elevator upgrades and $100,000 to build a bus shelter near the Turnstone Center for Children & Adults with Disabilities to better serve the people who frequent the not-for-profit.
Another $200,000 will support the recently created Historic 2035 Neighborhood Plan, which seeks to bolster three neighborhoods through beautification and safety improvements like new sidewalks, signage, amenities, streetscapes, neighborhood programs and historic preservation initiatives.
“We have a list of well over 100 action items that would impact the neighborhoods directly,” Community Development Administrator Dan Baisden said at the meeting. “This money would be used to help get some projects started in 2024.
These recent projects fall in line of how the northeast Indiana city has been spending this funding over the past three years. It spent $8 million specifically on neighborhood infrastructure like sidewalks, curbs and street lighting. Residents also saw the benefit of $3.5 million plugged in to expand broadband access.
Fort Wayne has also funded projects core to federal officials’ mission with ARPA. The city spent $5 million on public health support, including hiring police department social workers, a clinic grant program and personal protective equipment purchases. Small businesses were supported with $1.5 million as were impacted not-for-profits. Several city parks and trails also saw hundreds of thousands to millions of dollars.
Terre Haute
Over a dozen ARPA ordinances have graced the Terre Haute city council’s dockets this year as the city gets its ducks in a row to maximize its remaining dollars.
The west central Indiana city had nearly $20 million of ARPA funds remaining at the start of the year. In a 30-minute update given at a council meeting in February, newly-elected Mayor Brandon Sakbun talked about the refreshed direction the city wanted to take when spending these funds.
“Bottom line is, by the end of this year, these dollars need to be obligated to projects,” he said during the Feb. 1 meeting. “There’s a very long administrative process and audit process and closed conversations to make sure that we responsibly spend these dollars, turn in our receipts and follow the processes set by the state and federal government.”
The proposed spending Sakbun mentioned would include major stormwater and wastewater projects, a city hall makeover, several park revitalization boosts, infusion of funds to battle food deserts and support of the ongoing downtown transformation.
Each of these have since been approved for funding appropriations.
In mid-March, $14.35 million was approved for two stormwater projects, the first phase of the city hall renovation, downtown infrastructure building and two park projects. Sakbun said several projects had other avenues of funding as well. Another $2 million was also approved in April to support an Indiana American Water extension project to service 380-400 homes.
In April and May, the city council approved several allotments to address the food deserts priority. This includes $100,000 to food pantry Manna from Seven for operations, $250,000 to Terre Foods Cooperative Market to establish itself, and $150,000 for Catholic Charities Terre Haute to its expand capacity.
The city also approved $1 million to support Terre Haute-based social services provider Chances And Services for Youth’s construction of a new child care facility near major employers on the city’s east side. The location, which plans to be open from 6 a.m. to 6 p.m. and on weekends, seeks to aid in the child care shortage.
Thrive West Central also was appropriated $10 million by the council for its Homes for the Future initiative, which includes four different developer programs. Since the effort’s inception, CEO Ryan Keller the organization has sparked the construction of 271 new units of which ARPA funds supported 189 — and does so with private investment match. Thrive West Central plans to launch two new housing programs as well as a housing symposium, he said.
At the council’s next meeting on June 6, the city will consider a $250,000 allocation to its Goodwill Excel Center.
Hammond
The city of Hammond is focusing its HOME Investment Partnership ARPA dollars, which is operated by the U.S. Department of Housing and Urban Development, on low-income housing creation and homelessness. It seeks to tackle these issues by increasing availability of housing units to those experiencing or at risk of homelessness, preventing homelessness through supportive services, and expanding the capabilities of not-for-profits already working in this space.
Of the $1.7 million the city has to work with, $523,753 will go toward prevention assistance services; $400,000 will support tenant-based rental assistance; another $400,000 will go toward the development of affordable rental housing; and a total of $176,500 will go towards operating and capacity-building costs of not-for-profits, according to the city’s allocation plan. The city said in the plan it plans to leverage other funding sources as well for the creation of new units.
The goal is to support 33 households with rental assistance, four new affordable housing units and 90 cases of supportive services and case management.
The city council passed a first and second reading of an ordinance for a new fund containing the city’s award April 22.
The city is also nearing the completion of its $70 million Crossroads YMCA, which was previously allocated $5 million of ARPA support. The 120,000-square-foot building was expanded from an initial $45 million vision after the success of the Southlake YMCA in Crown Point. After renovations, leadership expects to support 200 new jobs and 50,000 members.