(a) From funds provided by the General Assembly therefor, the Chief Fiscal Officer of the State, with the advice of the Arkansas Rural Development Commission, is authorized to make grants to unincorporated communities and small cities or towns in this state, whenever:
(1) Representatives of unincorporated communities or small cities or towns in this state develop a written plan for a community, city, or town project and submit the plan, in the case of an unincorporated community, to the quorum court of the county or, in the case of a small city or town, to the governing body of the city or town, for its approval and adoption;
(2) (A) The members of the community or small city or town presenting the request to the quorum court or the governing body shall have submitted proof that, through donations of either money or property in kind, the citizens of the community, city, or town, have pledged or will make available one-fourth (1/4) of the cost of the project and that no tax funds are included in the citizens' support.
(B) The members of the community, or citizens of the city or town, may also provide the county's or city's or town's one-fourth (1/4) share in lieu of the county's or city's or town's defraying one-fourth (1/4) of the cost of the project; provided, if a small incorporated town has sufficient revenues in its general fund to cover one-half (1/2) of the project costs, the town shall have the option to utilize said funds as an alternative to the other method set forth in this section;
(3) The quorum court of the county or governing body of the city or town approves and, if the citizens of the community, city, or town do not provide the county's or the city's or town's share, appropriates the funds or provides property in kind to defray one-fourth (1/4) of the cost of the project; and
(4) The facts enumerated in subdivisions (a)(1)-(3) of this section are certified to the Chief Fiscal Officer of the State by the county judge of the county or the mayor of the city or town, setting forth the name of the person or persons who will administer the funds if the state grant is approved, outlining the details of the project, and certifying that the project has been determined by the quorum court of the county or governing body of the city or town to be an approved community, city, or town project eligible to receive funds under the provisions of this chapter.
(b) Upon receipt of the certification of the quorum court or governing body of the city or town and upon determination that all matters required by subsection (a) of this section have been complied with, the Chief Fiscal Officer of the State may approve a state grant to be used in connection with the community, city, or town project in an amount of one-half (1/2) of the estimated project cost; however, in no event shall the total cost of any one (1) project under the provisions of this chapter exceed thirty thousand dollars ($30,000), and the state's share thereof shall not exceed one-half (1/2), or fifteen thousand dollars ($15,000), of the amount.
(c) (1) Project funds from all sources shall be expended through a fund established on the books of the county, city, or recorder treasurer.
(2) All project expenditures, with the invoices attached, shall be approved by the county judge or mayor and shall remain on file in the office of the county judge or mayor for three (3) years or until audited, whichever is later.
(d) (1) All projects must be completed within twelve (12) months after the date of the grant award.
(2) A final report, on a form provided by the Chief Fiscal Officer of the State, of all funds expended, along with the state's one-half (1/2) of all unexpended funds, shall be submitted by the county judge or mayor to the Chief Fiscal Officer of the State no more than sixty (60) days following the project's completion or within the one-year period, whichever comes first.
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