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Flagstaff outlines ARPA spending: $13.2 million received, hundreds of grants and programs funded
Summary
City staff summarized the city’s use of $13.2 million in American Rescue Plan Act funds, describing federal/non‑federal accounting, $10M treated as standard allowance for governmental services, remaining federal funds used for community programs and grants to dozens of local nonprofits and small businesses.
City grants staff on Feb. 25 briefed the council on the status of American Rescue Plan Act (ARPA) local recovery funds awarded to Flagstaff, describing funding breakdowns, programmatic uses and remaining spending timelines.
Why it matters: ARPA funds have been central to the city’s pandemic recovery efforts — supporting small businesses, nonprofit services, housing assistance and infrastructure — and the presentation outlined how those funds were allocated and the remaining obligations through federal deadlines.
Grants and contracts manager Stacee (presenter identified in the meeting) and her team reviewed the funding history: Flagstaff received $13.2 million on Sept. 7, 2021. Under Treasury guidance, the city elected the $10 million standard allowance (treated as governmental services and subject to fewer federal procurement rules) and kept approximately $3.2 million as remaining federal ARPA funds (subject to Treasury grant rules). The Treasury guidance required obligations (signed contracts) to be in place by Dec. 31, 2024; expenditures may continue through Dec. 31, 2026, in most categories.
Staff reviewed program categories and spending: federally‑restricted ARPA funds were allocated to targeted categories including congregate care, housing assistance (eviction prevention and affordable housing construction), job training and nonprofit victim services; education/early‑learning grants were administered with a United Way pass‑through to expedite distribution. The city also used ARPA funding to support local events, target tourism and hospitality recovery grants and implement premium pay in public safety. Several programs were carried out as pass‑throughs via United Way or Creative Flagstaff to accelerate distribution to nonprofits.
On the non‑federal side, the $10 million standard allowance was allocated to a range of governmental uses and one large reserved match for broadband/IT projects (City IT matched federal/state infrastructure grants with a $1.5 million set aside). Staff reported approximately a hundred local businesses and nonprofit agencies have received ARPA awards (small‑business grants, nonprofit arts/food/ social services), and highlighted aid to tourism, direct small business assistance and nonprofit food support as notable impacts. Staff estimated that the city paid roughly $590,000 per month on average in housing assistance payments (HAP) from ARPA‑funded programs during 2024 (money flowed to landlords in the community via HAP arrangements), and noted several programs remain in active disbursement phases (some at roughly 50% completion) with time to obligate and spend through 2026.
Council members thanked staff for quickly disbursing funds during the recovery period and noted the large community impact even from modest awards. Staff emphasized continued oversight and audit readiness for both federal and non‑federal portions of the allocation.
What’s next: staff said they will continue to manage remaining disbursements and return with periodic closeout reports and lists of award recipients. The presentation included a staff list of recipients and the city’s internal teams responsible for administering grants.
