November 19, 2024
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Report - Use of ARPA Funds CY 24 Q3
RECOMMENDATION:
Staff recommends that the City Council receive and file the report of the ARPA funds.
DISCUSSION:
The American Rescue Plan Act (ARPA) was signed into law by the President on March 11, 2021. The Fiscal Recovery Funds are intended to provide support to State, local, and Tribal governments in responding to the impact of COVID-19 and in the efforts to contain COVID-19 in communities, residents, and businesses. One of the most notable amendments that the Secretary of the Treasury has adopted as the final rule (published May 17, 2021) enables recipients to claim a standard allowance for revenue loss of up to $10 million dollars. The provisions in this final rule are effective April 1, 2022.
On July 13, 2021, the City received its first of two installments of the $11,773,274 in ARPA funds allocated to the City. The second installment was received on July 21, 2022.
On August 17, 2021, the City Council approved an initial project list for the use of ARPA funds.
The initial projects were designed to meet specific categories in the final rule to maximize community benefit while prioritizing community desires (as documented by Measure V Community Survey results).
On January 16, 2024, the City Council approved the final project list, which ultimately consisted of 15 projects. The ARPA funding has been spent down on all but one remaining project, the Bath Well Treatment Plant. The construction contract for the Bath Well Treatment Plant was awarded in January 2024. Construction began in April and is anticipated to be complete in June of 2025. SLFRF funding will be spent down rapidly during this timeframe.
During the reporting period of July 1, 2024, through September 30, 2024, ARPA expenditures totaled $843,626.81. Total ARPA expenditures increased from 48.03% in the previous reporting period to 55.20% in the current period. This increase is primarily due to payments made for construction management services and treatment plant construction.
ARPA funds must be obligated by December 31, 2024, and expended by December 31, 2026.
There is only one ARPA project with funding remaining, the Bath Well Treatment Plant. All contracts for equipping the well and construction have already been awarded. The funds will be obligated and spent in accordance with the required deadlines.
FISCAL IMPACT:
There is no fiscal impact related to reporting the use of ARPA funds.
ATTACHMENTS:
ARPA Summary Report - 09-30-24