October 6, 2026
Finance Department
DATE: October 6, 2026
TO: Mayor Martinez and Members of the City Council
FROM: Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Avinesh Nadan, Finance Manger II
Subject: Reallocation of American Rescue Plan Act (ARPA) Budget
FINANCIAL IMPACT: The proposed reallocation of $199,776.15 is included within the approved American Rescue Plan Act (ARPA)
allocation. This action increases the Street Paving
project’s ARPA budget from $2,144,834.00 to
$2,344,610.15 and decreases the North Richmond Pump
Station project’s ARPA budget from $1,068,152.15 to
$868,376.00. All funds remain within the City’s existing ARPA award and comply with federal guidelines for
reclassifying obligated but unexpended funds. There is
no impact on the General Fund.
PREVIOUS COUNCIL
ACTION:
October 15, 2024
STATEMENT OF THE
ISSUE:
The North Richmond Pump Station project was
completed under budget, leaving $199,776.15 in
unexpended American Rescue Plan Act (ARPA) State
and Local Fiscal Recovery Funds. City staff propose to
reallocate the remaining funds to the City’s Street Paving project, which had an eligible obligation in place before the December 31, 2024, federal obligation deadline and
has eligible project costs exceeding its current ARPA
allocation. Approval of the reallocation will allow the City to apply the remaining funds toward eligible street paving AGENDA
REPORT
October 6, 2026
costs and support full expenditure of ARPA funds by the December 31, 2026, federal deadline.
RECOMMENDED ACTION: ADOPT a resolution to APPROVE the reallocation of $199,776.15 in unspent American Rescue Plan Act
(ARPA) funds from the North Richmond Pump Station
project to the Street Paving project, increasing the Street Paving ARPA budget to $2,344,610.15, and decreasing
the North Richmond Pump Station ARPA budget to
$868,376.00 – Finance Department (Mubeen Qadar 510-
412-2077/Avinesh Nadan 510-621-1610).
DISCUSSION:
The American Rescue Plan Act (ARPA) established the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program to provide fiscal assistance to state and local governments. Under U.S. Department of the Treasury requirements, recipients were required to obligate SLFRF funds for eligible uses by December 31, 2024. For most eligible uses, obligated funds must be expended by December 31, 2026.
Treasury guidance allows recipients to reclassify SLFRF funds after December 31, 2024, obligation deadline when funds previously obligated to one activity are no longer needed for that activity. To qualify for reclassification, the receiving project must be an eligible use of SLFRF funds, and the recipient must have incurred an obligation for that project by December 31, 2024. Treasury defines an obligation to include an order placed for property or services, entry into a contract, or a similar transaction requiring payment.
The North Richmond Pump Station project has been completed under budget, resulting in an available ARPA balance of $199,776.15. City staff propose reallocating this balance to the City’s Street Paving project.
The Street Paving project had existing obligations in place prior to December 31, 2024, deadline. The City executed a contract with Martin Marietta Materials, Inc. in July 2023 and issued a purchase order on September 12, 2024. Eligible project costs exceed the amount of ARPA funding currently allocated to the project. The project remains active and has not been closed out.
Analysis
The proposed reallocation is consistent with U.S. Department of the Treasury guidance governing SLFRF funds. The North Richmond Pump Station project has been completed with unexpended ARPA funds, while the Street Paving project had an eligible
October 6, 2026
obligation in place before the December 31, 2024, obligation deadline and continues to incur eligible project costs.
The City has documentation supporting the obligation and proposed reclassification, including the executed contract, purchase order, and applicable project budget records.
Upon approval, the City will increase the Street Paving purchase order to support the purchase of asphalt materials associated with the existing project.
Reallocating the remaining $199,776.15 from the completed North Richmond Pump Station project to the Street Paving project will allow the City to apply previously obligated ARPA funding toward eligible costs while complying with applicable federal expenditure requirements.
Conclusion
The proposed reallocation of $199,776.15 in ARPA SLFRF funds from the completed North Richmond Pump Station project to the Street Paving project is consistent with U.S. Department of the Treasury guidance permitting the reclassification of obligated but unexpended funds to another eligible project for which an obligation was incurred by December 31, 2024. The reallocation will support eligible Street Paving project costs and assist the City in fully expending its remaining SLFRF funds by the applicable federal deadline.
DOCUMENTS ATTACHED:
Attachment 1 - ARPA Reallocation Guidance Memo from Witt O’Brien’s Attachment 2 – Resolution Approving Reallocation of ARPA Funds