REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Oliver Chi, City Manager
Subject:
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American Rescue Plan Act (ARPA) Spending Plan Review and Allocation
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Statement of Issue:
In March 2021, the American Rescue Plan Act (ARPA) of 2021 was signed into law. That particular piece of Federal legislation included state and local coronavirus recovery dollars, which will provide Huntington Beach with $29.6 million in stimulus funding to offset fiscal impacts experienced from the COVID-19 pandemic.
Based on ARPA funding guidelines, the City will have broad latitude in determining how to expend these Federal funds, and to help determine how to prioritize those expenditures, the City Council established an ARPA Fund Ad-hoc Subcommittee on June 1, 2021. That committee, consisting of Mayor Carr, Mayor Pro Tem Delgleize, and Council Member Moser, has met on several occasions to review and discuss possible uses of ARPA dollars, in an effort to establish a recommended preliminary prioritization of how recovery dollars could be expended.
Of note, ARPA requires that the City develop this general, nonbinding prioritization of expenditures to be incurred with Federal stimulus dollars. Further, pursuant to the ARPA guidelines, the $29.6 million in funding must be used on eligible costs and encumbered no later than December 31, 2024.
Financial Impact:
There is no financial impact associated with approving a preliminary prioritization of possible expenditures utilizing ARPA funds. The City Council's ultimate decision regarding the use of the $29.6 million must be made by December 31, 2024, and will be appropriated as various projects are brought forward for formal consideration. If approved, the proposed ARPA funding recommendations are nonbinding, and can be adjusted and modified to meet evolving community needs by the City Council.
Recommended Action:
recommendation
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