FROM:
Finance
SUBJECT:
Title
American Rescue Plan Act Expenditure Plan Quarterly Report
End
RECOMMENDATION:
Recommendation
Receive and file the American Rescue Plan Act (ARPA) Expenditure Plan quarterly report.
End
COUNCIL GOALS:
• Operate in a businesslike manner by improving services through the effective use of technology.
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by living within our means while investing in the future.
• Practice sound fiscal management by emphasizing capital formation.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.
DISCUSSION:
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021, providing additional relief to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses. ARPA funding of $1.9 trillion provided for $362 billion in flexible fiscal aid to state and local governments in America under the State & Local Fiscal Recovery Funds (SLFRF). The City of Fontana was allocated $50.3 million in ARPA SLFRF funds. The U.S. Department of the Treasury issued an Interim Final Rule in May 2021, and the Final Rule in January 2022, to implement the Coronavirus State and Local Fiscal Recovery Funds established under ARPA.
On March 8, 2022, the City Council approved the original ARPA Expenditure Plan (Plan). On September 13, 2022, the City Council subsequently approved a revised Plan which properly categorized existing projects per the Final Rule and eliminated projects that were determined to be ineligible. As all projects were determined eligible in concept for ARPA funding, staff has worked diligently with the City Attorney’s office and HdL ECONSolutions ensuring that all project details met ARPA Final Rule requirements. Currently, all projects have received a final legal determination as to their eligibility.
Current Plan
The current Plan reflects expenditures in four primary Federal Eligible Use Categories. and the table below reflects the current budget by category per the Treasury reporting requirements.
There are no proposed plan revisions for the current reporting period. All projects have been fully obligated meaning committed by contract, purchase order, or interagency agreement as required by Treasury Guidelines as of December 31, 2024. The city must expend all SLFRF funds by December 31, 2026.
Leveraged Projects
The original Plan approved by Council included $18.0 million in projects under the Revenue Loss category. However, per the Final Rule, only $10.0 million in funding was available under the standard allowance, leaving $8.0 million in projects unfunded. To address this shortfall, the City identified ARPA-eligible projects that had initially been funded by the General Fund and reprogrammed them to be funded by ARPA instead. This reallocation freed up or leveraged General Fund resources, which were then used to cover the previously unfunded projects. The leveraged projects include a Police Department helicopter ($3.0 million) and various pavement rehabilitation projects ($5.0 million).
Plan Update
As of September 30, 2025, $45.4 million has been expended. Since all projects have been obligated as of December 31,2024, no changes are expected at this time. Attachment B provides a brief update on each project.
FISCAL IMPACT:
There is no fiscal impact associated with the approval of this item.
MOTION:
Receive and file.