City of Fullerton, CA
February 15, 2022
1 Proposed ARPA Spending Plan
Recommendations
2 Obligate and appropriate the remaining $16.5 million of unobligated ARPA funds to program / project areas in accordance to US Treasury guidelines and formally approve and adopt the ARPA Spending Plan of $32.7 million in final form (using the Attachment 2 template).
Authorize the City Manager or designee to execute and administer agreements and issue purchase and change orders per City Council approved ARPA Spending Plan in final form and within project and program budgets.
Ratify obligation and appropriation of $2 million of the $11.6 million of ARPA allocation for Revenue Replacement within City Manager authority towards non-budgeted Water Main Replacements.
American Rescue Plan Act (ARPA) - Background
HR 1319 American Rescue Plan Act (ARPA) - Provides $130 billion in Federal funding relief to local governments in responding to effects of COVID-19.
Primary eligible uses:
To respond to the pandemic or its negative economic impacts; For premium pay to eligible workers performing essential work during the pandemic; For the provision of government services to the extent of the reduction in revenue (Revenue Replacement); To make necessary investments in water, sewer, or broadband infrastructure.
Fullerton’s total allocation is $32.7 million
$16.35M received in May 2021; $16.35M to be rec’d in May 2022 3 ARPA - Ineligible Uses of ARPA Funds
Deposits into Pension Funds or Paydown of Pension Liability; Federal Grant Matching Requirements or Level of Effort Uses; Paying Down Outstanding Debt or Debt Service Payments;
Direct Replenishment or Deposits into Financial Reserves or Rainy Day Funds; Settlements, Judgments or Consent Decrees
4 ARPA – General Program Requirements
ARPA grant time period is from March 3, 2021 to December 31, 2024 ARPA funds for eligible costs must be incurred or obligated within this time period by December 31, 2024; Spent on direct and indirect costs within allowable US Treasury categories.
Direct US Treasury Expenditure Categories (7): Public Health, Negative Economic Impacts, Services to Disproportionately Impacted Communities, Premium Pay, Infrastructure (Water, Sewer & Broadband), Revenue Replacement, & Administrative Costs.
Revenue Replacement – Provides the “broadest” and most “flexible” use of ARPA Funds Can support any government services or discretionary projects/programs up to the Revenue Loss Amount (unless Treasury has stated otherwise).
Initial Revenue Replacement was first estimated to cover full $32.7M (est. August 2021) Revenue Replacement now estimated to be $24M-$27M; maximum $20M is recommended 5 US Treasury Expenditure Categories
EC #
Eligible Use Category
Examples of Allowable Uses
1 Public Health
COVID-19 Testing/Vaccinations; PPE Equipment; Medical Expenses; Capital Investment in Public Facilities responding to health emergency; Payroll for Public Safety & Health Officials; Other Public Health Services 2 Negative Economic Impacts
Household Assistance Programs (i.e. rent, utility grants etc.); Unemployment Benefits; Job Training Assistance; Small Business Assistance; Aid to Tourism or Impacted Industries; Other Economic Support; Re-hiring Public Sector Staff 3 Services to Disproportionately Impacted Communities
Education Assistance; Healthy Childhood Environments; Housing Support (Affordable & Unhoused), Other Social Services 4 Premium Pay
Premium Pay for Essential Workers
6 US Treasury Expenditure Categories
EC #
Eligible Use Category
Examples of Allowable Uses
5 Infrastructure-Sewer, Water & Broadband
Infrastructure Projects in accordance to Clean Water State Revolving Fund & Drinking Water State Revolving Fund.
Broadband Infrastructure to improve accessibility and greater access of information and tele-communications. 6 Revenue Replacement
Provision of Government Services: Can include ANY general government services; Streets & Roads Infrastructure; IT Infrastructure improvements (non-broadband); and miscellaneous additional support for City initiatives and/or programs. 7 Administrative
Salaries/Benefits of staff administering ARPA funds; administrative overhead expenses; and/or consultants to provide ARPA oversight and/or reporting compliance. 7 Proposed Unobligated ARPA Spending Plan$16.5M
8 Proposed Unobligated ARPA Spending Plan$16.5M
9 Recommendations
10 Obligate and appropriate the remaining $16.5 million of unobligated ARPA funds to program / project areas in accordance to US Treasury guidelines and formally approve and adopt the ARPA Spending Plan of $32.7 million in final form (using the Attachment 2 template).
Authorize the City Manager or designee to execute and administer agreements and issue purchase and change orders per City Council approved ARPA Spending Plan in final form and within project and program budgets.
Ratify obligation and appropriation of $2 million of the $11.6 million of ARPA allocation for Revenue Replacement within City Manager authority towards non-budgeted Water Main Replacements.