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1 RiversideCA.gov1
RiversideCA.govAmerican Rescue Plan Act (ARPA) Reallocations Finance DepartmentCity CouncilDecember 10, 2024
RiversideCA.gov2
•American Rescue Plan Act (ARPA), created in 2021, provided $350 billion in nationwide assistance to eligible state, local, territorial, and tribal governments to assist in the economic and health recovery by providing resources to address impacts resulting from the Covid-19 pandemic. •ARPA was a critical funding source for the City to lessen the financial impacts to municipal services during a critical time, and to assist community partners. BackgroundCity Allocation$ 36,767,594202136,767,5942022$ 73,535,188Total1 2 11/25/2024
2 RiversideCA.gov3
•All funds must be obligated by December 31, 2024•Specific statutory categories•City’s ARPA Expenditure Plan founded in transparent use of funds, with the majority of allocations to specific projects.•Other agencies chose obligate their funding to qualifying public safety expenditures to reduce the pressure of the obligation deadline and risk of funding loss.Funding Obligation Requirement RiversideCA.gov4
City Allocation StatusTotal UnexpendedUnobligatedObligatedExpendedAllocationCategory$ 698,071.75$ 139,821.73$ 558,250.02$ 1,251,385.41$ 1,949,457.161. Public Health13,416,924.941,084,115.6412,332,809.3013,413,879.7126,830,804.652. Negative Economic Impacts---400,000.00400,000.003. Services to Disproportionally Impacted Communities---10,000.0010,000.005. Infrastructure13,118,168.185,811,123.457,307,044.7330,926,758.0144,044,926.196. Revenue Replacement237,297.15237,297.15-62,702.85300,000.007. Administrative$27,470,462.02$ 7,272,357.97$20,198,104.05$46,064,725.98$73,535,188.00Total3 4 11/25/2024
3 RiversideCA.gov5
•Consultant review of City’s ARPA status to date–Goal: Minimize risk of funding loss by reviewing activity through October 31, 2024, and provide guidance for unexpended funds. •Consultant recommends reallocation to the Provision of Government Services under Revenue Replacement, utilizing public safety expenditures as the qualifying costfor:–All unexpended funds – obligated and unobligated ($27,470,462)–FY 2024/25 capital expenditures ($2,716,841)–Cancelled Parkway Community Gardens Project ($10,000)Consultant Review RiversideCA.gov6
Proposed ReallocationFinal AllocationProposed ReallocationUnexpendedExpendedAllocationCategory$ 1,251,385.41$ (698,071.75)$ 698,071.75$ 1,251,385.41$ 1,949,457.161. Public Health13,413,879.71(13,416,924.94)13,416,924.9413,413,879.7126,830,804.652. Negative Economic Impacts400,000.00--400,000.00400,000.003. Services to Disproportionally Impacted Communities-(10,000.00)-10,000.0010,000.005. Infrastructure10,885,282.46(15,835,009.40)13,118,168.1813,602,123.6826,720,291.866. Revenue Replacement47,521,937.5730,197,303.24-17,324,634.3317,324,634.33Provision of Government Services62,702.85(237,297.15)237,297.1562,702.85300,0007. Administrative$73,535,188.00$ -$27,470,462.02$46,064,725.98$73,535,188.00Total 5 6
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4 RiversideCA.gov7
•Prior Period Revenue Replacement–$17,324,634 approved to date–Report public safety expenditures as the qualifying cost under Revenue Replacement - Provision of Government Services•U.S. Dept of Treasury Meeting–December 5, 2024–Review actions in this report, previous allocations, Treasury reporting to date–Recommendations for Council approval to delegate authority to CFO and City Manager to take actions necessary to safeguard ARPA funds.Other Matters RiversideCA.gov8
The ARPA Expenditure Plan is interwoven throughout the entire 2025 Envision Riverside Strategic Plan.Cross-Cutting Threads STRATEGIC PLAN ALIGNMENT7
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That the City Council:1. Receive an update on the ARPA Expenditure Plan;2. With at least five affirmative votes, authorize the Chief FinancialOfficer, or designee, to record the final obligation of ARPA fundingto include:a. A reallocation of $27,470,462.02, or actual amount, of unexpendedfunds from various ARPA projects of the ARPA Expenditure Plan to theRevenue Replacement - Provision of Government Services program,including approximately $20,198,104.05 of obligated funds and$7,272,357.97 of unobligated funds;Recommendations RiversideCA.gov10
b. A reallocation of $2,726,841.22, or actual amount, representing thereclassification of expenditures and the related appropriation from theNorthside Heritage Infrastructure project, Citywide Park Improvementproject, and Parkway Community Gardens project of the ARPAExpenditure Plan to the Revenue Replacement - Provision of GovernmentServices program;c. A supplemental appropriation and interfund transfer of $30,197,303.24, oractual ARPA funds amount, from the Grants and Restricted ProgramsFund, Revenue Replacement - Provision of Government Services programto the General Fund, representing the obligation of qualifying ARPAexpenditures;d. An appropriation of $22,914,945.27, or actual amount of obligated fundsand reclassified capital expenditures, in General Fund departmentalbudgets and applicable project accounts;Recommendations9 10 11/25/2024
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3. With at least five affirmative votes, authorize the Chief FinancialOfficer, or designee, to make the necessary accountingadjustments to effectuate the intent of the recommendedsupplemental appropriations and transfers described in this report,including interfund and interdepartmental appropriations andtransfers of ARPA funding with a net zero impact to the citywidebudget, thereby allowing for mechanical adjustments as needed toensure full compliance with ARPA expenditure guidelines; and4. Authorize the City Manager, or designee, to negotiate and executeany and all agreements, contracts and documents related to theapproved reallocations in the Expenditure Plan for the AmericanRescue Plan Act funding, including making minor non-substantivechanges.Recommendations11