Title
Adopt a Resolution to Reallocate and Obligate $1,609,031.621,558,231.85 of ARPA Funds
Staffreport
COUNCIL PRIORITY
• Infrastructure
• COVID Recovery (ARPA Spending Plan)
• Fiscal Sustainability and Transparency
• Community & Business Development
SUMMARY
American Rescue Plan Act (ARPA) funding must be fully obligated, as defined by the US Treasury, by December 31, 2024. City staff continue to review funds that may not be obligated by the deadline and are recommending reallocation of those funds.
RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution to reallocate $1,558,231.851,609,031.62 in the American Rescue Plan Act (ARPA) Budget to ensure obligation prior to December 31, 2024.
BACKGROUND
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). This $1.9 trillion COVID-19 stimulus package provided significant resources to state, local, territorial, and tribal governments to support urgent COVID-19 response efforts. Within ARPA, the Coronavirus State and Local Fiscal Recovery Fund provided $130.2 billion for local governments split evenly between municipalities and counties.
The funding allocation to the City of San Leandro is $18.6 million, which the City has received in full.
ARPA Funds must be spent or obligated by December 31, 2024. If obligated, generally defined by the US Treasury as under contract, by December 31, 2024, agencies have until December 31, 2026, to incur the costs. Funds that are not obligated by December 31, 2024 and subsequently spent by December 31, 2026 need to be returned to the US Treasury.
Analysis
The City has several projects funded by ARPA that are currently under way but may not meet the December 31, 2024 obligation deadline. To ensure funds are not at risk of being returned to the US Treasury, staff recommend adjusting funding to either contracts already fully executed for the same or similar projects, or to staffing that will be associated with the same or similar projects. Any funding moved from one project to another will be replaced by whatever funding source ARPA is replacing.
As of December 1, 2024, the following amounts were not obligated, or the project overspent:
|
Unappropriated ARPA Amount |
8,997.04 |
|
COVID Oversight |
(664.70) |
|
City Park/Open Space Major Maintenance |
28,897.39 |
|
Digital Divide and Broadband Infrastructure Enhancements (PW) |
766,468.89756,468.89 |
|
Lake Chabot Road Stabilization |
747,571.00714,321 |
|
Commercial Relief Grants |
28,897.39 |
|
Soft Story Retrofit |
1,780.00 |
|
Volunteer SL |
81,753.92 |
|
Investment in Youth Programs |
1,289.58 |
|
Enhanced Street Cleanliness |
(55,975.8963,525.66) |
|
Small Business Technical Assistance |
17.00 |
|
Total |
$1,609,031.621,558,231.85 |
Attachment A identifies the projects and contracts funds will be moving to in order to satisfy the Treasury definition of obligation. The above projects with smaller amounts listed that have no corresponding project to be allocated to are reallocating ARPA funds left over after the project was completed.
Financial Impacts
While reappropriations are being requested, all funding is either swapping a funding source, or replacing general fund appropriations (salaries or capital projects). For example, adjusting the Lake Chabot Road Stabilization allocation to the Annual Street Overlay/Rehab project will free up other General Fund monies to be used for Lake Chabot Road projects.
ATTACHMENT
Attachment A: ARPA Appropriations Table
Attachment B: Resolution 2024-XX To Reallocate and Obligate $1,558,231.85 1,609,031.62 of American Rescue Plan Act (ARPA) Funds
PREPARED BY: Heather Rowden, Interim Finance Director, Finance Department