Ann Arbor spent $4.5 million of its ARPA funds on solar panels

Ann Arbor spent $4.5 million of the $24 million it received through the American Rescue Plan Act on solar power infrastructure. It was the city’s largest allocation of the funds and listed in the category “Replacement of Lost Public Sector Revenue.”

The city used funds in ways consistent with federal guidelines, Mariah Walton, Ann Arbor’s deputy city administrator, wrote to Michigan Capitol Confidential in an email. Federal rules “allowed local governments to use funds for general services if they experienced revenue shortfalls,” Walton added.

The U.S. Department of Treasury let local governments treat up to $10 million of their federal relief money as if it were general revenue that would have been collected if not for the COVID-19 pandemic. The American Rescue Plan Act was a $1.9 trillion spending package enacted in 2021 under the Biden administration.

Cities could spend the money on government services such as infrastructure, public safety or building projects.

Ann Arbor classified the solar projects under the category of lost public sector revenue.

The city explained why it chose to spend the money on solar projects in a YouTube video.

It also provided an explanation on its website: “This project would install over 4 Megawatts of solar on 19 city facilities, saving the City operating costs, enhancing resilience, and reducing climate pollution. Sites identified include nearly every park with a major facility, the water treatment plant, City Hall, the water recovery facility, the airport, and the public works building. The installations would also be designed to eventually accommodate energy storage, which would enable these facilities to operate even during power outages. This is especially important for critical facilities, such as the water treatment plant and public works.”

Ann Arbor also provided brief descriptions of projects that local officials considered as they decided how to use the federal funds.