§ 27-72-410 - Expenditure requirements.
27-72-410. Expenditure requirements.
Expenditure of funds credited to the State Aid Street Account of the State Highway and Transportation Department Fund shall be in the following manner:
(1) The combined state and municipal funds may be utilized as matching funds for acquiring additional federal-aid funding for street work, unless specifically prohibited by federal law;
(2) All rights-of-way required on state aid street projects shall be acquired by the municipality, and any cost of rights-of-way shall not be considered a part of the cost of any project contemplated by this subchapter;
(3) No state aid street funds shall be released to the municipality until the municipality executes an annual agreement that the thirty percent (30%) matching share will be available and that the state aid street funds and matching funds will be carried as a special item on the municipal budget and utilized exclusively for street improvements authorized under this subchapter;
(4) Eligible street improvements can be performed by municipal forces or by contract administered by the municipality or Arkansas State Highway and Transportation Department. However, any projects in excess of fifty thousand dollars ($50,000) shall be submitted to bid, and the lowest responsible bid shall be accepted;
(5) The state aid street funds will be provided on a seventy percent (70%) cost-reimbursable basis as progress vouchers are issued or after the project is complete.