Title
Staff Report for Discussion Regarding the American Rescue Plan Act (ARPA), Including Reallocation of $464,598 for Human Services Projects Previously Approved
Staffreport
COUNCIL PRIORITY
* Public Safety
* Fiscal Sustainability and Transparency
* Community Engagement and Outreach
SUMMARY
American Rescue Plan Act (ARPA) funding must be fully obligated, as defined by the US Treasury, by December 31, 2024. City staff have completed a review of funds that may not be obligated by the deadline and are recommending reallocation of those funds.
RECOMMENDATIONS
Staff recommends that the City Council Finance Committee review and recommend to the City Council the reallocation of $464,598 in the American Rescue Plan Act (ARPA) Budget from various Human Services projects to the Alternative Response Unit (ARU).
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
Staff have completed a review of all previously approved ARPA projects to ensure funding will be appropriately obligated by December 31, 2024. During this review it was noted that several Human Services projects may not be under contract by the deadline. Staff are sugg...
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