TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
FROM: Jeffery Yates, ICMA-CM, Assistant City Manager
DATE: November 24, 2025
RE:Title
Approve Use of ARPA Interest Funds for Electric Buses, Maker's Space, and Grant Matches
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
GOAL 2: Responsive city government supporting a diverse & viable economy
2.1: To ensure a diverse City tax base
2.2: To invest in community places to ensure revitalization and increase quality of life
GOAL 4: Desirable place to live, work, & recreate
4.4: To provide a clean and beautiful community with increased green spaces
4.5: To ensure a place for people to live in great neighborhoods
GOAL 5: Financially sound city providing exemplary city services
5.1: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities
Executive Summary:
The City of Fayetteville earned $2.9 million in interest from the investment of its $40.4 million in ARPA funds, and after earlier FY 2025 allocations to the Microgrant Program and a transit grant match, the remaining one-time dollars are now available for reinvestment in the community. Because these funds are one-time in nature, staff recommend allocating them to one-time projects that deliver lasting benefits: providing the City's required match for a pending federal electric bus grant, completing the build-out of the new Maker's Space facility, and establishing a reserve to match future grants. Together, these investments continue the transformational impact of ARPA by strengthening transit, supporting local innovation, and positioning the City to bring additional external funding into Fayetteville.
Background:
The City of Fayetteville received $40.4 million in American Rescue Plan Act (ARPA) funding to help our community recover from the i...
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