Operating Budget 2025-2026

American Rescue Plan Act (ARPA) Fund (continued)

Accounting for ARPA: The Town must adhere to the federal requirements associated with ARPA, as detailed in the Final Rule and the related Compliance and Reporting Guidance documents issued by the U.S. Department of Treasury regarding eligible use of funds, application of Uniform Guidance, internal controls, and financial reporting. The Town has established two Special Revenue Funds to account for the ARPA grant, which requires quarterly reporting to the U.S. Department of Treasury and is subject to the Single Audit requirements of the U.S. Office of Management and Budget (OMB). The Affordable Housing Development Fund and the American Rescue Plan Act (ARPA) Fund are Special Revenue Funds created to tract the eleven ARPA projects that were approved by Town Council. The Affordable Housing Development Fund will account for a $4 million investment in affordable housing and the ARPA fund will account for the remaining $9,364,987 in ARPA funds. Blacksburg Transit plans to use its $4.7 million ARPA award for various operating expenditures. The $2.1 million awarded to the HOME Consortium Fund will be used to fund a HOME Program Coordinator position and supplement the program in support for creating housing opportunities for low and moderate-income residents in the New River Valley. The Police Department plans to use its $255,000 allocation to fund minor equipment purchases. In accordance with the Final Rule, all ARPA funds must be formally obligated by December 31, 2024 and fully expended by December 31, 2026. Once the funds are spent by December 2026, the ARPA fund will be dissolved. A plan to determine future funding for the Affordable Housing Development Fund is currently being developed. Looking Ahead: The eleven projects funded by ARPA will be completed over the next four years and prioritized with current capital projects to ensure the December 2024 and 2026 deadlines are met. From the eligible uses outlined in the Final Rule, the Town selected projects that fell into one of the five following categories: • Affordable Housing • Bicycle and Pedestrian Improvements • Economic Recovery and Small Business Assistance • Recreational Trails and Outdoor Spaces • Support and Services for Our Most Vulnerable Residents Through this process, the Town has learned a great deal about the community’s priorities and that knowledge has significantly influenced the final list of projects the Town decided to fund with its $13.3 million ARPA allocation. Many of the projects chosen for funding are not traditionally funded by local governments, including strengthening childcare workforce, supporting food security programs, creating new community gardens, and making a significant investment in affordable housing opportunities for Blacksburg’s workforce. The funding summary for ARPA projects is included in this section. Moving forward, the Town will begin to implement the eleven projects, which will be accomplished over the next four years. This will include working with community partners to increase capacity for services, procuring contractors to design and build several of the construction projects, providing regular updates to the community on how projects are progressing, and offering opportunities for further input and engagement. The community input the Town received through this process also highlighted a number of other priorities for town residents. This feedback will be used to inform project prioritization and future funding decisions for the Town’s Capital Improvement Program (CIP) budget process. The eleven projects funded through ARPA, along with continuous public involvement, will have a profound impact on our community for many decades to come.

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