Subject:
Title
Spending of ARPA Interest Funds: Vienna250
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
Sept. 14, 2026 work session - ARPA Interest Funds: Vienna250
Aug. 24, 2026 work session - ARPA Interest Funds: Vienna250 - deferred to Sept. 14, 2026
April 27, 2026 council meeting - Donation of Funds to Historic Vienna, Inc. for Vienna250 Programs
EXPLANATION AND SUMMARY:
Staff is seeking Council’s direction on whether the proposed $50,000 in ARPA Interest funds for Vienna250, including the allocation of $20,000 to Economic Development and $15,000 to Parks & Recreation, and $15,000 for Vienna250 contingency, and whether this use is consistent with Council’s original budget authorization.
Key QUESTIONS:
1. Does Council agree that the proposed use of $35,000 in ARPA Interest funds for Economic Development ($20,000) and Parks & Recreation ($15,000) is consistent with the intent of the funding approved in the FY2027 budget?
2. If Council does not support the proposed use, should the funds be returned to the ARPA Interest account for future Council-directed priorities?
At the April 27, 2026, Council meeting, staff presented a recommendation to transfer $56,000 in funding received from Fairfax County for Vienna250 programming to Historic Vienna, Inc. (HVI), which would administer the funds and coordinate event-related expenditures. Council approved the recommendation.
During the discussion, Council revisited prior budget work sessions regarding the allocation of $50,000 in Town funding for Vienna250, including the potential use of ARPA interest funds and the importance of transparency and accountability in managing the funds. Staff noted that ARPA interest funds have no spending deadline and are not subject to the same restrictions as the original ARPA funds. They also confirmed that $50,000 had been included in the new budget request for Vienna250.
Staff recommended that any additional $50,000 in Town funding for Vienna250 also be transferred to HVI, along with a clear outline of the proposed uses of the funds, and that the spending plan be presented to and approved by Town Council. While the Town's purchasing procedures do not require Council approval for expenditures under $75,000, staff recommended that Council nevertheless review and approve the proposed spending to ensure transparency and accountability. The item received general support from Council for the proposed funding structure.
On Aug. 12, 2026, staff sent an email to the Town Council (attachment 1) with an update on how the Council-approved $50,000 in ARPA Interest funds can support Vienna250 while also making investments that provide longer-term value to the Town:
• Economic Development - $20,000: Reusable patriotic banners and an expanded Shop Local mailer highlighting Vienna250. The banners will support future seasonal decorations and placemaking, while the funding will allow Streetscape capital funds to remain available for business district improvements.
• Parks & Recreation - $15,000: Event operations and safety equipment, including barricades, signs, a towable trailer, storage equipment, misting fans, a rolling cooler, and other resources to improve the Town’s ability to support future events.
• Vienna250 Contingency - $15,000: Reserved for additional Vienna250 opportunities or needs through the end of 2026.
Any unspent funds would be returned to the ARPA interest account. The overall proposal shifts a portion of the funding from one-time celebration expenses toward legacy investments that can continue benefiting the Town beyond Vienna250.
Departmental Recommendation: Staff recommends that Council provide direction on the proposed use of the $50,000 in ARPA interest funds, including whether to approve the proposed $35,000 in Economic Development and Parks & Recreation investments and the $15,000 Vienna250 contingency.
Next Steps:
1. If Council approves the proposed use of the $50,000 in ARPA interest funds, staff will move forward with allocating the spending.
2. If Council does not approve the proposed use of the $50,000 in ARPA interest funds, the $50,000 remains in the ARPA interest funds.
Expected Completion Time Frame:
Approved funding - Completion by June 2027
Finance Recommendation: Recommend Town Council approve the proposed use of ARPA interest funds.
Purchasing Recommendation: Recommend Approval.
Town Attorney Recommendation: The Town Council may approve the proposed expenditure of interest funds for qualified ARPA projects in its discretion.
Town Manager's Recommendation: I recommend the Town Council provide direction on the use of the $50,000 in ARPA interest funds, as presented.
Cost and Financing: $50,000
Account Number:
Prior Funding Approval: ARPA Interest Funds
Decision Needed by This date: Sept. 28, 2026
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to approve the proposed use of $50,000 in ARPA interest funds for Economic Development ($20,000), Parks & Recreation ($15,000) and Vienna250 contingency ($15,000) as it is consistent with the intent of the funding approved in the FY2027 budget."
Or
“I move to reject the proposed use of $50,000 in ARPA Interest funds for Economic Development ($20,000), Parks & Recreation ($15,000) and Vienna250 contingency ($15,000) as it is not consistent with the intent of the funding approved in the FY2027 budget and should be returned to the ARPA Interest account for future Council-directed priorities.”
Or
Other action deemed necessary by Council.