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Porterville reallocates ARPA money to fund Navigation Center expansion and community‑park project

2174145 · January 1, 2025

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Summary

The council authorized an interagency agreement and reallocated $400,000 in ARPA funds—$305,994 for the Navigation Center expansion and $94,006 for a community‑center/park project—so obligated funds meet federal deadlines; council vote was 4-0.

The Porterville City Council authorized staff to execute an interagency agreement and reallocate remaining American Rescue Plan Act (ARPA) funds to finish projects including an expansion of the Porterville Navigation Center.

City staff said the city received $19,984,717 in ARPA allocations, disbursed in two tranches, and that ARPA funds must be obligated by Dec. 31, 2024 and fully expended by Dec. 31, 2026 under Treasury guidance. Staff recommended reallocating $305,994 in ARPA funds to fully fund a prefabricated dining and sanitation expansion at the Navigation Center and reallocating $94,006 to the Community Center and Park project; the total redirect equals $400,000 staff said was available in the operating budget.

Staff reviewed the procurement history: the city previously allocated $2.5 million for a prefabricated dining facility and awarded a contract for $2,459,994; staff added a $346,000 contingency, bringing the construction total to $2,805,994. The city also reallocated $293,840 in Permanent Local Housing Allocation (PLHA) funds to this project in an earlier amendment; staff said that amendment included contingency language allowing PLHA funds to return to prior uses if other funding sources were secured.

Council authorized the mayor and finance director to execute the draft interagency agreement and directed finance staff to redirect any unspent 2024–25 ARPA budget funds toward ARPA‑identified projects, prioritizing the Navigation Center expansion. The council voted 4-0 in favor of the staff recommendation.

Staff stressed that obligated but unspent ARPA funds can be reallocated among eligible projects under Treasury guidance and that the interagency agreement helps ensure funds are formally obligated before the federal deadline.