CITY OF MENIFEE
SUBJECT: American Rescue Plan Funds Update
MEETING DATE: November 20, 2024
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Receive summary update on American Rescue Plan Act (ARPA) funds expended and remaining funds to be expended; and
2. Approve a budget transfer in the amount of $809,080.55 (Grant Fund), reprogramming ARPA funds from CIP 20-13: Paloma Wash Pedestrian Bridge and CIP 23-13: ARP-Cherry Hills Facility Improvements Project to CIP 19-15: Central Park Amphitheater; and
3. Approve a budget transfer in the amount of $809,080.55 (General Fund), reprogramming from CIP 19-15: Central Park Amphitheater to CIP 20-13: Paloma Wash Pedestrian Bridge and CIP 23-13: ARP-Cherry Hills Facility Improvements Project.
DISCUSSION
On March 11, 2021, Congress and the executive branch passed the $1.9 trillion ARPA economic stimulus plan intended to address the ongoing impacts of the unprecedented COVID-19 pandemic.
All local governments, including the City of Menifee received direct funding to help bridge budget shortfalls and mitigate the impacts of COVID-19. The ARPA provides that the funds can be used for COVID-19 related expenses incurred between March 3, 2021, and December 31, 2024.
The City of Menifee has received just over $13.2 million in direct federal assistance as part of the ARPA program. As part of the federal program requirements, all ARPA funds must be encumbered by December 31, 2024, and fully expended by December 31, 2026. As the City navigated the impacts of COVID-19, short- and long-term, the City’s plan and strategy for the use of these funds has been a phased-in approach/plan to maximize the use of the funding that truly meets the needs of the community. Since the receipt of these funds, the City has reviewed ARPA funding uses as part of its regular budget development and reviews. Most recently, during the fiscal year (FY) 2024/2025 Mid-Cycle Budget review process, the distribution of the City’s ARPA funds was
City of Menifee Staff Report
American Rescue Plan (ARPA) Funds Update
November 20, 2024
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reviewed and included reprogramming of funds towards high priority projects that could be completed within the required period.
Table 1 below provides a summary of all ARPA funding allocations through November 1, 2024, and remaining balances:
TABLE 1: ARPA FUNDING SUMMARY TABLE
CATEGORY PROJECT DESCRIPTION PROJECT
STATUS
AMOUNT
ALLOCATED ($)
REMAINING
BALANCE ($)
AS OF
11/1/2024
Support Public Health
Response
Menifee PD: Micro-Robots Completed $9,999.00 $0
Replace Public Sector
Revenue Loss
(Government Services)
FY 21/22 Salaries (Personnel
Costs) Completed 3,616,644.00 0
Replace Public Sector
Revenue Loss
(Government Services)
Human Resources: Neo-Gov
Training Module Completed 61,513.00 0
Replace Public Sector
Revenue Loss
(Government Services)
Information Technology: Smart
Cities & Broadband Master Plan Completed 157,050.00 0
Support Public Health
Response
Mass Notification System - Would
provide a dedicated
system/solution to communicate
with the public regarding public
health updates (e.g. COVID-19)
and other emergency alerts.
Completed 119,505.00 0
Water & Sewer
Infrastructure
Holland Road Sewer & Recycled
Water Improvements - Adding
recycled water/sewer components
for existing properties.
Completed 500,000.00 0
Replace Public Sector
Revenue Loss
(Government Services)
M.E.N.U Grant Program -
Provides direct economic support
to start-up businesses
Completed 30,000.00 0
Support Public Health
Response
City Hall/PD HQ Enhanced
Cleaning services, PPE, masks,
COVID-19 testing etc.
Completed 37,652.00 0
Replace Public Sector
Revenue Loss
(Government Services)
FY 21/22 Salaries (Personnel
Costs) & Home Repair Program
($250k)
Completed 2,010,210.00 0
Replace Public Sector
Revenue Loss
(Government Services)
Fire Station #68 Tenant
Improvements Project Completed 329,259.00 0
Replace Public Sector
Revenue Loss
(Government Services)
New Fire Station #5 Construction
Completed 1,000,000.00 0
Replace Public Sector
Revenue Loss
(Government Services)
Purchase & Tenant Improvements
of Cherry Hills Property (Police
Substation) (CIP 23-13)- Provides
an opportunity to use funding as
one-time use to help
address/alleviate spacing needs.
Underway 2,215,000.00 277,711.55*
City of Menifee Staff Report
American Rescue Plan (ARPA) Funds Update
November 20, 2024
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CATEGORY PROJECT DESCRIPTION PROJECT
STATUS
AMOUNT
ALLOCATED ($)
REMAINING
BALANCE ($)
AS OF
11/1/2024
Replace Public Sector
Revenue Loss
(Government Services)
JOBS Program (Economic
Development) Underway 158,334.00 79,168.51
Replace Public Sector
Revenue Loss
(Government Services)
CIP Program: Paloma Pedestrian
Bridge (CIP 20-13) Underway 531,369.00 531,369.00*
Replace Public Sector
Revenue Loss
(Government Services)
CIP Program: Central Park
Amphitheater (CIP 19-15) Underway 1,841,667.00 832,930.06 Replace Public Sector
Revenue Loss
(Government Services)
CIP Program: Kay Ceniceros
Display Sign (CIP 25-10)
Underway
(Proposed
Reprogrammin
g of balance to
CIP 24-22
11/20/2024
Agenda Item)
50,000.00 7,034.92
Replace Public Sector
Revenue Loss
(Government Services)
CIP Program: Sun City Boulevard
Street Medians Project (CIP 24-
22)
Underway
(Proposed
Agreement
11/20/2024
Agenda Item)
100,000.00 100,000.00
Replace Public Sector
Revenue Loss
(Government Services)
Menifee PD Patrol Vehicles
Purchase
Underway
(Proposed PO
11/20/2024
Agenda Item)
445,472.00 445,472.00
TOTAL $13,213,674.00 $2,273,686.04
*Recommended reprogramming funds to CIP 19-15: Central Park Amphitheater Project.
Efforts for CIP 20-13: Paloma Wash Pedestrian Bridge and CIP 23-13 ARP-Cherry Hills Facility Improvements Project are underway. However, based on the current project schedules, the contract/encumbrances would not be able to be issued prior to the December 31, 2024, timeline.
Therefore, staff is recommending these remaining funds within the Grant Fund of $277,711.55 and $561,369.00, for a total of $809,080.55, be reprogrammed towards CIP 19-15: Central Park Amphitheater Project. This will not increase the funding total of CIP 19-15: Central Park Amphitheater Project. A transfer of $809,080.55 out of the CIP 19-15: Central Park Amphitheater Project within the General Fund would be completed to maintain the project’s budget.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
The fiscal impact of the recommended action(s) does not increase overall approved budget appropriations, but instead transfers $809,080.55 of previously allocated ARPA funds from the Paloma Pedestrian Bridge (CIP 20-13) and Cherry Hills Property (CIP 23-13) to the Central Park Amphitheater (CIP 19-15), and transfers $809,080.55 from the Central Park Amphitheater (General Fund) to the two projects. This ensures all ARPA funds are encumbered and expended City of Menifee Staff Report
American Rescue Plan (ARPA) Funds Update
November 20, 2024
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within the federal guidelines and maintains previously approved funding for the Paloma Wash Pedestrian Bridge and Cherry Hills Property projects.
TABLE 2 – ARPA REPROGRAMMING TRANSFER TABLE
Project Fund Anticipated Transfer
In/(Out)
CIP 23-13: Cherry Hills Property Improvements 2301 $(277,711.55) CIP 20-13: Paloma Wash Pedestrian Bridge 2301 $(531,369.00) CIP 19-15: Central Park Amphitheater Project 2301 $809,080.55 Total 2301 Grant Fund $0.00
CIP 23-13: Cherry Hills Property Improvements 1100 $277,711.55 CIP 20-13: Paloma Wash Pedestrian Bridge 1100 $531,369.00 CIP 19-15: Central Park Amphitheater Project 1100 $(809,080.55) Total 1100 General Fund $0.00
Total Overall Budget Impact $0.00
ATTACHMENTS
None.