Title
Discuss the American Rescue Plan Act (ARPA) Grant Fund Reallocation for FY 2023 - 2024.
Body
BACKGROUND:
The American Rescue Plan Act (ARPA) of 2021 provided emergency grants to governments to support the response and recovery from the COVID-19 public health emergency. The City of Farmers Branch was awarded $11,956,459. The previous City Council approved ARPA budget allocations in September 2021.
DISCUSSION:
The City of Farmers Branch allocated $11,920,000 to eight projects for items related to Negative Economic Impact, Administrative Costs, and Public Health (supporting public safety or promoting healthier living and socialization to mitigate the spread of COVID-19). Four projects have not yet been completed as of December 2023: the Justice Center, Branch Connection, Joya Park, and Mercer Park. All but Mercer Park are anticipated to be completed by the grant deadlines.
Per the U.S. Department of Treasury, ARPA grant recipients may only use funds to cover costs incurred (contracted) by December 31, 2024. All obligations must be liquidated no later than December 31, 2026. Based on delays with development at Mercer Crossing, staff does not believe Mercer Park construction costs will be contracted and completed by the December 2024 and 2026 deadlines. Staff proposes reallocating funding to eligible for the Justice Center renovation.
The budget allocation for Mercer Park is $1,000,000, with design costs of $27,500 already incurred. The proposed reallocation of funds would place $1 million into the existing Justice Center renovation project, and the $27,500 has already been spent in an administrative category.
The Justice Center renovation project currently has ARPA-allocated funds of $2.5M, plus an additional $1.3M contribution from the General Fund in the fiscal year (FY) 23-24 budget. The Justice Center renovation project will be completed within the grant timeline, making a budget swap easier. The Justice Center Capital Improvement Project (CIP) budget would shift its $1M General Fund transfer to Mercer Park CIP.
The reallocated funds of $27,500 already expended for Mercer Park design would be added to the Administrative category. Staff also recommends adding $8,959 to the Administrative funding allocation for $36,459. This will fully allocate all the money received from ARPA of $11,956,459 versus what was previously allocated by the City Council of $11,920,000. The administrative category is for costs of implementing program objectives, such as contract support, audit and legal expenses, and materials and supplies for a project.
The reallocation of ARPA spending would still be centered around improving public health, strengthening the community, and preparing for the future.
FISCAL IMPACT:
Mercer Park's $1,000,000 budget remains in CIP. Funding would come from the General Fund, and ARPA funding would be allocated to the Justice Center renovation budget instead. Reallocation of $27,500 for Mercer Park design and additional allocation of $8,959 to go to Administrative costs to fully allocate all ARPA funds received.
DISTRICT:
All districts.
RECOMMENDATION:
City Administration recommends that the City Council provide feedback on the draft resolution for reallocating ARPA grant budgets.
ATTACHMENT(S):
1. Draft Resolution
2. Staff Presentation