Title
Discuss the American Rescue Plan Act (ARPA) Grant Fund Reallocation for FY 2023 - 2024.
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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) bu...
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