May 5, 2026
TO: City Council
REQUESTED BY: Kimberly Ganimian, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Report - Use of ARPA Funds CY 26 Q1
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 COVID19 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 2024 and has been completed. It is in the final testing phase as of March 31, 2026.
During the reporting period of January 1, 2026, through March 31, 2026, ARPA expenditures totaled $328,503.10. Total ARPA expenditures increased from 96.37% in the previous reporting period to 99.16% in the current period. This increase is primarily due to payments made for construction management services and treatment plant construction.
ARPA funds have been fully obligated by the December 31, 2024, deadline. The final remaining project is on course to have all ARPA funds expended by the December 31, 2026, deadline.
FISCAL IMPACT:
There is no fiscal impact related to reporting the use of ARPA funds.
ATTACHMENTS:
ARPA Summary Report - 3-31-26