The COVID-19 pandemic brought unprecedented challenges to communities across the United States. In response, the federal government implemented the American Rescue Plan Act (ARPA), providing crucial financial support to local governments. Our city received a total of $21,972,844 in State & Local Fiscal Recovery Funds, split equally between July 2021 and July 2022. This blog post outlines how our city has utilized these funds and the plans for remaining allocations.
ARPA Fund Overview
The primary purpose of ARPA funds was to aid local businesses, families, and individuals in recovering from the pandemic’s economic impacts. Eligible uses included:
- Assisting businesses and residents
- Investing in water, sewer, and broadband infrastructure
- Recovering revenue loss due to the pandemic
Our city elected to take the standard allocation of $10 million for lost revenue, as permitted by the US Treasury’s final ruling on January 11, 2022.
Current Status of ARPA Funds
As we approach the end of Fiscal Year 2024, most of our ARPA funding has been spent or obligated through subrecipient agreements. However, two allocations remain unobligated:
- Stormwater Mitigation: $760,000 unobligated out of $1.4 million allocated
- Meals on Wheels: $800,000 allocated, fully unobligated
The City Manager is actively working to finalize arrangements for the Meals on Wheels allocation.
Looking Ahead: FY2025 and Beyond
With the US Treasury’s December 31, 2024 deadline for obligating remaining ARPA funds approaching, our city is taking proactive steps to ensure full utilization of these resources. Key points to note:
- The obligation deadline requires that contracts or similar transactions be executed by December 31, 2024, although funds can be spent until December 31, 2026.
- The City Manager and Finance Director recommend allocating the remaining Lost Revenue Recovery funding ($1,108,773) and any unobligated ARPA funds to employees’ salaries and benefits. This strategy aims to eliminate potential obligation issues.
- A formal recommendation will be presented to the City Council on September 3, along with a proposed budget amendment.
Transparency and Flexibility
It’s important to note that throughout this process, our city has maintained flexibility in fund allocation. In fiscal years 2022 and 2023, several reallocations were made between ARPA-funded and Lost Revenue Recovery-funded projects to ensure compliance with US Treasury rules.
Conclusion
As we navigate the final stages of ARPA fund allocation, our city remains committed to maximizing the impact of these resources for our community’s benefit. We continue to prioritize transparency and adaptability in our approach, ensuring that these funds contribute significantly to our city’s economic recovery and long-term resilience.
Stay tuned for updates following the September 3 City Council meeting, where final allocations will be discussed and approved.







