CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: October 21, 2026
To: Honorable Mayor and City Council Members
From: Eric Levitt, City Manager
Department: City Manager’s Office
Subject: American Rescue Plan Update and Adoption of a Resolution to Reallocate Funding (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Receive and file this report providing an update on American Rescue Plan Act (ARPA)- funded expenditures as of September 30, 2026; and
2. Adopt Resolution 2026-171 authorizing reallocations to the Navigation Center Construction in the amount of $631,935 and Seccombe Lake Park Project in the amount of $102,668.
City Manager’s Comments
The City Manager recommends approval of the Resolution authorizing reallocations.
Executive Summary
The City of San Bernardino was awarded $77,656,407 in American Rescue Plan Act (ARPA) funds, distributed in two tranches—half received in May 2021 and the remaining half in May 2022. This staff report provides an update on projects funded through ARPA funds and expenditure details totaling $69,854,847 as of September 30, 2026. The report also presents requests to reallocate ARPA funds to two (2) critical projects with identified budget shortfalls.
Background
The U.S. Department of the Treasury required ARPA funds to be obligated by December 31, 2024, and fully expended by December 31, 2026. The Mayor and City Council obligated the full $77,656,407 in ARPA funds prior to the obligation deadline. ARPA-funded projects comply with the Treasury’s final rules governing allowable investments under the Enumerated Use Categories and eligible expenditures under the Revenue Loss (Standard Allowance) category.
Discussion
To date, the City has expended $69,854,847 of its ARPA allocation, leaving a remaining balance of $7,801,560. With the federal expenditure deadline of December 31, 2026, approximately three (3) months away, timely action is necessary to ensure the full utilization of the remaining funds. Any ARPA funds not expended by the deadline may be subject to recapture by the U.S. Department of the Treasury, placing the City at risk of forfeiting a portion of its allocated funding.
The Mayor and City Council obligated ARPA funds to twenty-six (26) projects prior to obligation deadline of December 31, 2024, in accordance with Treasury rules. Currently, eleven (11) projects are completed and funds fully exhausted totaling $24,532,050 in expenses. The list of completed projects are as follows:
Project Amount Expensed
1. Economic Development Software* $129,948
2. Emergency Nuisance Abatement $500,000
3. Entrepreneurial Resource Center $2,073,700
4. Hero Pay $5,145,000
5. Lytle Creek Soccer Fields $600,000
6. Mobile Shower & Laundry Services $150,000
7. Nicholson Park $7,080,602
8. Palm Field Purchase $2,650,000
9. Small Business Non-Profit Assistance $3,126,300
10. Temporary Housing for ASU Tenants $76,500
11. Water Infrastructure Lead Connectors $3,000,000
Total Completed Projects: $24,532,050
*Revenue Loss Category
The remaining fifteen (15) projects are either at various stages of completion or completed with remaining balance, totaling $53,124,357 in ARPA obligations. Two (2) projects are completed with a remaining balance, nine (9) projects are projected to be on track to meet the December 31, 2026 deadline while four (4) are recommended for reallocation. The City is still within the timeframe to reclassify ARPA funding after December 31, 2024.
The Treasury FAQ 17.19 - Reclassification of Obligated Funds addresses reclassification/ reallocation of excess ARPA funds and provides guidance on projects that have excess funds and were obligated by December 31, 2024, but will not ultimately be expended on the original eligible activity. The funds may be reclassified to another eligible ARPA project, provided the receiving project also had an obligation incurred by December 31, 2024.
The following provides a snapshot of the remaining fifteen (15) projects, including a brief summary update:
Project Current
Allocation
Expended
to Date
Remaining
12. Enterprise Resource Planning (ERP) System $6,670,052 $6,432,719 $237,333
13. Façade Improvement/Paintbrush Program $600,000 $237,449 $362,551
14. Graffiti Abatement $1,000,000 $437,709 $562,291
15. Guadalupe Field (Sal Saavedra Park) $863,851 $830,569 $33,282
16. Homeless Street Outreach $1,500,000 $1,293,793 $206,207
17. Land Management System (LMS) $3,200,000 $2,712,559 $487,441
18. Library Animaker Space $1,797,174 $903,013 $894,161
19. Lutheran Social Services / Homekey $5,000,000 $3,532,969 $1,467,031
20. Motel Voucher Program $973,500 $375,806 $597,694
21. Navigation Center Construction $11,544,785 $9,712,178 $1,832,607
22. Real Time Information Center $2,497,500 $2,393,333 $104,167
23. Roosevelt Bowl $600,000 $330,356 $269,644
24. Seccombe Lake $12,792,332 $12,136,783 $655,549
25. Street Improvements $3,335,163 $3,265,777 $69,386
26. Violence Intervention Program $750,000 $727,784 $22,216 Totals: $53,124,357 $45,322,797 $7,801,560
• Enterprise Resource Planning (ERP) System & Land Management System (LMS) Status: On-Track
ARPA funding for the ERP and LMS systems is obligated under the Standard Allowance category that provides broad flexibility for uses such as revenue replacement, ongoing operational expenses and other administrative costs. However, these funds may not be used for debt service, rainy-day funds, pension obligations, or legal settlements. For the ERP project, Council approved $6,000,000 in ARPA funding for implementation, associated licenses and software, and an additional $670,000 for internal staffing to support the migration process.
The remaining funds of $237,333 are recommended to be used for internal staff time during the migration process. Staff are currently dedicating about 60% of their time to the ERP migration project. ERP System is anticipated to have a go-live date of January 1, 2027, with all eligible expenditures paid prior to the deadline. ARPA funds will be fully exhausted before the expenditure deadline.
For the LMS system, Council approved $3,200,000 for implementation support and associated licenses and software. The Land Management System Implementation Project is the complete replacement of the City's existing permitting and business licensing system, which is used by multiple Departments and Divisions, including Business Registration, Building and Safety, Planning, and Public Works. The project replaces a cumbersome permitting and licensing database with a modern system that incorporates workflow management, built-in automation, and an online public portal. An item for Council approval on October 7, 2026, approved change orders due to the complexity of the implementation, adding an eighteen (18)-month Managed Services subscription to provide post-implementation technical assistance, allowing staff to refine and optimize the system's workflows and automations after go-live. Also added was an integration of the City's existing credit card processor into the system and extended support for Business Registration along with additional resources to configure an online interface that will assist customers with permit applications. The modernization is intended to improve efficiency, transparency, and service delivery by enhancing how the City manages land-related activities and making relevant information more accessible to City officials and the public. • Façade Improvements (Paintbrush Program)
Status: On Track
The Façade Improvement “Paintbrush” Program was originally allocated $1M in ARPA funding. Economic Development staff went before Council on July 15, 2026 to request reallocation of funds in the amount of $200,000 to the ERC project and the City Manager subsequently went before Council on August 5, 2026 to request a reallocation of $200,000 from the Façade Program. Of the $600,000, the program has $362,551.12 remaining in ARPA funds. The project is actively being implemented, with grant awards having been made to eligible businesses and façade improvement projects being completed and/or progressing through the City's approval, construction, reimbursement, and closeout processes. The remaining funds are associated with grant commitments and/or eligible program expenditures that must be completed and expended by December 31, 2026.
Project completion should not be measured by the percentage of ARPA funds spent.
Based on the current status, the program is substantially underway, but it is not yet physically/service complete, because remaining funded façade projects and associated grant expenditures still need to be completed and closed out. • Graffiti Abatement
Status: Reallocation Recommended
This project currently has a balance of $562,291 in unexpended ARPA funds. $100,000 is allocated to staff salaries and benefits for abatement services that will continue through the project term and are expected to be completely exhausted by the deadline. The remaining $462,291 is recommended for reallocation to the Navigation Center due to the risk of not having the two (2) graffiti abatement trucks delivered prior to the expenditure deadline of December 31, 2026.
• Guadalupe Field (Sal Saavedra Park)
Status: Reallocation Recommended
This project is completed and has a remaining balance of $33,282 which is recommended to be reallocated to Seccombe Lake Park to address the immediate budget shortfall. • Homeless Street Outreach
Status: On Track
This project has a balance of approximately $206,207 and is projected to be fully expensed prior to the December 31st deadline. The project will continue in the new year with funding from other sources as a bridge to services while the Navigation Center construction is in progress to completion.
• Library Animaker Space
Status: On Track
The amount remaining represents $275,800 in a contract with Estate Design & Construction for modifications to the Cosand Room where the Animaker Space will be held. The remainder of funds is slated for programming use to be expended on salaries and benefits with additional staff in process of being hired, and additional curriculum purchases from Garner Holt. The Animaker Space Program is anticipated to be open and operating in late November and ARPA funds fully exhausted prior to the December 31, 2026, deadline.
• Lutheran Social Services (Homekey – Wellness Center)
Status: On Track
The Wellness Center opened in July 2026 for a comprehensive interim housing and support campus to help men transition out of homelessness. Operating costs are averaging about $250,000 a month now that the center is actively serving the community.
ARPA funds are being used as a match against the HomeKey Grant, and funds are anticipated to be fully exhausted by the expenditure deadline. • Motel Voucher Program
Status: On Track
This program operates as a core element to the City’s homeless emergency response strategy. With additional beds secured exclusively for the City in February 2026, there is an increase in utilization of hotel placements, with estimated monthly invoices averaging $60-$70K in costs. Payments that are in process and those that are forthcoming over the next three months, funds are anticipated to be fully exhausted by the end of the ARPA expenditure deadline.
• Navigation Center Construction
Status: On Track; Budget Shortfall
The project remains on track to meet key milestones, with overall completion anticipated by December 2026; however, it continues to face a funding gap due to increased project costs. Although a balance of funds remains available, approximately $1.2 million in change orders and vendor payments are pending and are expected to quickly deplete the remaining funds. Contracts with Mandeville Modular and CREDE are tied to the completion of project milestones. The goal is to fully expend ARPA allocations by the December 31, 2026, deadline, while utilizing other funding sources, including CDBG and private funds, to cover costs incurred beyond that date. • Real Time Information Center
Status: On Track
This project is almost complete, with the unspent balance of $104,167 representing the final payment for software licensing due in October 2026. • Roosevelt Bowl
Status: Reallocation Recommended
This project currently has a balance of $269,644 with approximately $100,000 encumbered for design services. Although a bid for construction is forthcoming, the expenditure deadline will not be met to utilize toward construction costs. The remaining $169,644 is recommended for reallocation to the Navigation Center. • Seccombe Lake Park Project
Status: On Track; Budget Shortfall
This project is on track to meeting expenditure ARPA deadlines with the project planned via a phased approach and braided funding. Landscape Support Services ($446,990), RHA Landscape ($392,580) and CSG ($47,321) and $420,349 in contingencies, these funds are fully committed and expected to be fully exhausted by December 2026. Due to additional needs and increased costs, this project has a budget shortfall, and staff is recommending reallocation of funds from Guadalupe Field and the Street Improvement project.
• Street Improvements
Status: Reallocation Recommended
The streets identified for this project were completed leaving a balance of $69,386 in unexpended ARPA funds. Surface transportation projects have additional requirements and a different expenditure deadline of September 30, 2026, as outlined in Treasury’s 2023 Interim Final Rule (also known as ARPA Flex). The total balance is recommended for reallocation to Seccombe Lake Park.
• Violence Intervention Program
Status: On Track
The Cal VIP Cohort 4 program is in the closeout phase with final payments to CBOs in progress as well as expenditures for a program audit and evaluation report to meet all requirements of the grant award. ARPA funds are used to satisfy the 1:1 match and are on track to be fully exhausted by December 31, 2026, in alignment with the BSCC deadline.
Following a review of unexpended funds, activity completed and in progress, and reassessed project needs, staff recommends reallocating $734,603 from four (4) projects. Two (2) critical projects have been identified with budget shortfalls, with the recommended reallocations as follows:
Navigation Center is recommended to receive a reallocation of $631,935 • Graffiti Abatement ($462,291)
• Roosevelt Bowl Renovation ($169,644)
Seccombe Lake Park is recommended to receive a reallocation of $102,668 • Street Improvements ($69,386)
• Guadalupe Fields ($33,282)
ARPA fund expenditures as of September 30, 2026, total $69M, approximately 89% of the total award of $77.6M. Additional details and listing by project are provided in Attachment 1.
ARPA Closeout – Next Steps
Following the December 31, 2026, ARPA expenditure deadline, staff will complete the remaining project activities, reconcile expenditures and obligations, and finalize all required reporting to the U.S. Department of the Treasury. Staff will continue to monitor project closeout requirements and ensure that all remaining ARPA funds are properly accounted for and reported in accordance with Treasury requirements. Upon completion of the required reporting and closeout process, staff will return to City Council, as appropriate, with a final summary of ARPA expenditures, project outcomes, and any remaining closeout actions. Below is a table outlining important deadlines and anticipated reporting steps in the upcoming months.
Date Deadline/Action Details
Dec 31, 2024 Obligation deadline
All ARPA finds must have been properly
obligated by this date.
Sept 30, 2026
Surface transportation
& Title I expenditure
deadline
Funds designated for surface transportation
and Title I projects must be fully expended —3
months earlier than the general deadline
Dec 31, 2026
End of period of
performance — primary
expenditure deadline
All incurred costs must be fully spent and
liquidated. No non-administrative expenditures
permitted after this date.
Early-Mid 2027
Treasury closeout
invitations resume
Treasury expected to expand early closeout
access on a rolling basis. Monitor
[email protected]. Keep SAM.gov
registration active.
Apr 30, 2027
Final P&E reporting &
administrative
liquidation deadline
120 days after end of performance period. Last
P&E reports due for most recipients. Only
administrative closeout costs may be
liquidated after Dec 31, 2026.
Ongoing
P&E reporting —
annual or quarterly
Project & Expenditure reports must continue
until Treasury formally completes closeout for
your award.
Ongoing
SAM.gov registration —
keep active
Active SAM.gov registration is a condition
precedent to receiving a closeout invitation.
Registrations expire annually — verify and
renew proactively.
Date Deadline/Action Details
5 yrs post-closeout
Records retention
requirement
Retain all contracts, agreements, reports, and
documentation for five years after closeout per
2 CFR §200.334.
2021-2025 Strategic Targets and Goals
Investments in the community using the American Rescue Plan funds support Key Strategic Goal 2. Focused, Aligned Leadership and Unified Community, b. Evaluate operations and performance, investment in resources, technology, and tools to continually improve organizational efficiency and effectiveness; and Goal 3. Improved Quality of Life.
Fiscal Impact
Approval of this action will reallocate $734,603 of existing ARPA appropriations among previously approved ARPA projects and will not increase the City’s total $77,656,407 ARPA allocation. The total to be reallocated is $734,603, $631,935 will be reallocated to the Navigation Center Construction project and $102,668 to the Seccombe Lake Park project. No General Fund appropriation is required.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Receive and file this report providing an update on American Rescue Plan Act (ARPA)- funded expenditures as of September 30, 2026; and
2. Adopt Resolution 2026-171 authorizing reallocations to the Navigation Center Construction in the amount of $631,935 and Seccombe Lake Park Project in the amount of $102,668.
Attachments
Attachment 1 American Rescue Plan (ARPA) Allocation and Expenditure Update Attachment 2 Resolution 2026-171
Ward:
All Wards
Synopsis of Previous Council Actions:
January 21, 2026 Mayor and City Council received and filed an ARPA Allocation and Expenditure Update.
October 3, 2025 Mayor and City Council received and filed an ARPA Allocation and Expenditure Update.
May 21, 2025 Mayor and City Council received and filed an ARPA Allocation and Expenditure Update.
January 18, 2025 Mayor and City Council received and filed an ARPA Allocation and Expenditure Update.
December 18, 2024 Mayor and City Council received an update on ARPA funding and approved the final allocation of $129,948 in additional ARPA funds to the Asphalt Maintenance and Street Segment Repair Project.
December 4, 2024 Mayor and City Council approved staff’s recommendation to reallocate $2,955,215 for the Asphalt Maintenance and Street Segment Repair Project and $2,650,000 towards the purchase of Palm Field.
October 2, 2024 Mayor and City Council received an update on ARPA funding and projects and approved staff recommendations for unallocated or project surplus and staff direction on reallocation of funds. New Projects presented for approval were the Police Real Time Information Center in the amount of $2,497,500. Economic Development Software Program in the amount of $ 129,948, and the Library Animaker Space in the amount of $1,797,174.
September 18, 2024 Mayor and City Council received an update on ARPA funding and projects and provided staff direction on any unassigned ARPA funds.
June 5, 2024 Mayor and City Council approved $863,851 in ARPA funds for the Guadalupe Field at Sal Saavedra Park Revitalization Project.
April 17, 2024 Mayor and City Council approved $655,000 in ARPA funds for the Encanto Community Center.
September 6, 2023 Mayor and City Council approved $5,145,000 in ARPA funds for “Hero Pay” to city and water department employees.
August 16, 2023 Mayor and City Council approved $500,000 in ARPA funds related to various nuisance and property abatement costs.
July 19, 2023 Mayor and City Council received and filed an update on ARPA funds and adopted Resolution No. 2023-107 assigning $10,000,000 in American Rescue Plan Act funds for the replacement of the City’s Enterprise Resource Planning System and amending the FY 2022/23-2024/24 Biennial Budget by $10,000,000.
May 17, 2023 Mayor and City Council reallocated unspent funding from the ASU Temporary Housing and the full allocation from the San Bernardino Valley College for a total of $973,500 for interim housing during development of the SB Hope Campus.
December 7, 2022 Mayor and City Council Adopted Resolution No. 2022- 26 Amending the FY 2021/22 Operating and Capital Budget allocating $24,650,000 in ARPA funds.
February 2, 2022 Mayor and City Council Adopted Resolution No. 2022- 26 Amending the FY 2021/22 Operating and Capital Budget allocating $24,050,000 in ARPA funds
October 20, 2021 Mayor and City Council Adopted Resolution No. 2021- 247 Amending the FY 2021/22 Operating and Capital Budget allocating $8,160,000 in ARPA funds.
August 4, 2021 Mayor and City Council received a report and discussed the categories for spending the City’s American Rescue Plan Allocation.
March 17, 2021 Mayor and City Council received a presentation on the American Rescue Plan from Congressman Pete Aguilar.