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Council accepts ARPA final obligations, will return $167,246 that missed federal deadline
Summary
City staff reported $30,232,505 in final obligations of $30,399,751 ARPA funds (99.45% obligated); council authorized staff to return $167,246 that could not be obligated by the federal deadline and to adjust appropriations.
The El Cajon City Council on May 13 accepted staff's final accounting of American Rescue Plan Act (ARPA) funds and authorized the city manager to return any amounts required by federal rules.
City senior management analyst Ryan Villegas told the council that the city received $30,399,751 in ARPA funds in May 2021 and that final obligations now total $30,232,505, or 99.45% of the award. That leaves $167,246 that federal rules require to be returned because it was not legally obligated by the obligation deadline.
Nut graf: The action formally closes out the city's ARPA obligation accounting and authorizes the city to make the administrative appropriations and de-appropriations necessary to reconcile project budgets and return unspent funds to the federal government.
What staff presented
Ryan Villegas described 26 ARPA-funded projects: 13 were complete at the time of the report and others are nearing completion. Completed projects include business grants, vaccine outreach, street camera systems, park restroom repairs and ARPA administration audits. Projects nearing completion include recreation center HVAC upgrades, citywide street beautification, public safety and public works vehicles (43 of 51 received as of the report), and a new aerial platform fire truck ordered for delivery in spring next year.
Villegas said some projects came in under budget (for example a fire engine procurement), which allowed staff to shift funds into other eligible projects before the deadline. A small set of contract contingencies that were not obligated by the federal deadline accounts for the $167,246 the city must return.
Council questions and staff responses
Council members asked about the size and timing of the return and whether money could be shifted to complete other projects. Villegas and Assistant City Manager Vince DiMaggio said federal ARPA rules limited the city's flexibility after the obligation deadline; staff had attempted to identify eligible projects to absorb remaining funds but could not legally obligate additional sums before the deadline. Villegas said some project contingencies were deliberately left available and that engineering projects with contingencies are generally confident of meeting budgeted obligations.
Action taken
Council authorized the appropriations/de-appropriations and gave the city manager authority to return funds as required by ARPA. The motion passed unanimously.
Context
Villegas noted that of the city's $30.4 million ARPA allocation, $30,232,505 is now obligated across 26 projects. Staff expects remaining work on capital projects to continue into next year and will return with progress reports as appropriate.
