Title
Requesting reallocation of ARPA appropriations to ensure obligation by the US Treasury deadline
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 Finance Committee review and recommend to the City Council the reallocation of approximately $1.7M 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 t...
Click here for full text