Federal COVID funds help county pay off projects

Bartholomew County government paid off three major expenditures with federal American Rescue Plan (ARP) dollars during the third quarter.

The largest was $936,000 for a new lighting system at Dunn Stadium, county auditor Pia O’Connor said. Custer Electric Inc. of Rushville submitted the only bid that met the specifications outlined by the Bartholomew County Parks Department.

Just south of the stadium, the county installed sanitary sewer service, electrical pedestals and water upgrades for recreational vehicles and campers at the Bartholomew County Fairgrounds. The project, which had been on the drawing board for over 40 years, was paid off with $32,000, O’Connor said.

The final expense was necessary to make preparations for the upcoming repairs to the Bartholomew County Courthouse, the auditor said. A total of $40,000 in ARP funds were spent during the summer months on inspections and review costs, O’Connor said. More ARP dollars will likely be spent on repairs and upgrades, county officials said.

In total, the county spent $1,034,178 during the third quarter. But Bartholomew County government received a total of $16,273,089 from the federal grant to avert a severe financial crisis caused by the COVID-19 pandemic.

With $4 million earmarked for expenses related to creating countywide broadband cable, the county still has a balance of $8,187,667 in ARP funds, O’Conner said.

The county has been allowed to claim $10 million in lost revenue with few strings attached, except that the expenditure falls into fairly broad categories.

However, it is prohibited to use ARP money to lower taxes, increase pension funds or finance general county government expenses.

For money that doesn’t fall into the lost revenue category, elected officials are limited in spending to the following four general areas, according to an agreement approved by both the federal government and the state of Indiana:

  • To respond to the public health emergency with respect to COVID-19 or its negative economic impacts. This could include assistance to households, small business, nonprofits, or to aid impacted industries such as tourism, travel and hospitality.
  • To respond to workers performing essential work during the public health emergency by providing premium pay to eligible workers of Columbus, Bartholomew County government, and non-entitlement units of local government. The funds could also provide grants to certain employers who have eligible workers who perform essential work.
  • For the provision of government services to the extent of the reduction in revenue to Columbus, Bartholomew County government, and non-entitlement units of local government, due to the COVID-19 public health emergency. This provision would be relative to revenues collected in the most recent full fiscal year of the local governments.
  • To make necessary investments in water, sewer or broadband infrastructure as approved by the U.S. Treasury.

But the ARP funds have frequently been used to pay expenses that would normally have been financed through the county’s general fund or local income tax. As a result, elected officials have been able to spend some conventional financial sources on needed projects that had previously been considered unaffordable.

County government must have contracts in place for the funds no later than Dec. 31, 2024. However, the county has until the end of 2026 to actually spend the funds.