How it happened
The federal Community Development Block Grant program was awarded by the GLO in 2019 for the Spring Pines Drive detention pond project, which was projected to cost $840,000 to construct, according to the city. However, the project was completed under budget and left $73,105.60 in unspent grant funds, according to information at the June 12 City Council meeting.
City Manager Heather Neeley said the GLO did not tell the city the unspent grant funds had to be returned until December 2021.
It was not until May 26 that the GLO sent the city repayment instructions and a 30-day notice to return the remaining grant money, she said.
Quote of note
“We did receive grant money for this project, and our engineering at the time failed to determine the appropriate calculations, and we have earmarked this money to return to GLO,” Oak Ridge North Mayor Paul Bond said.
What’s next
The grant funds have remained in a separate city account due to the strict regulation placed on the funding by the GLO. Once the city receives the final documents from the construction management company, the remaining funds will be sent back to the GLO, and the account will be closed, according to information at the meeting.
No taxpayer funds will be used for the repayment of the grant funding, according to the city.
