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San Marcos council backs routing leftover ARPA funds to rental and utility assistance, extends consultant work
Summary
The council directed staff to prepare a resolution reallocating small leftover American Rescue Plan Act funds to a BR3T-administered rental and utility assistance program and to extend the city's ARPA compliance contract with Booth Consulting.
San Marcos City Council on Feb. 18 instructed staff to reallocate modest unspent American Rescue Plan Act (ARPA) funds to the city27s rental and utility assistance program administered by BR3T and to extend the city27s consultant contract for ARPA compliance documentation.
City staff said the city received ARPA tranches in 2021 and 2022, has allocated the $18 million-plus package across 78 projects and has obligated nearly all funds before the federal obligation deadline. Staff proposed zeroing out several line items that came in under budget (about $28,500) and directing most of those available dollars to the rental and utility assistance program approved in December 2024.
Director of Administrative Services Hayden Meagle told council that BR3T had distributed over $70,000 to more than 20 local households in the program27s first six weeks and recommended amending BR3T27s agreement to a not-to-exceed amount so staff can route additional small reallocations to that program without returning repeatedly to council for each incremental adjustment.
Council27s direction Council members indicated unanimous support to proceed with the proposed reallocation and asked staff to return a formal resolution and an amended BR3T contract with not-to-exceed language. Council also supported an extension of the city27s contract with Booth Consulting to continue ARPA compliance documentation through project closeouts.
What staff will return Staff will bring a resolution formally reallocating the highlighted ARPA line items, an amended BR3T agreement with a not-to-exceed amount, and a contract extension for Booth Consulting to ensure continued compliance and documentation through the ARPA spending and reporting period. Staff noted the larger ARPA-spend deadline for outlays is Dec. 31, 2026, and credited city staff and consultants for meeting prior documentation deadlines.
Details and context Staff presented summary tables showing projects that came in under budget and the projects recommended to receive those funds. The city has categorized ARPA-funded activities across housing, economic stability and public services; staff proposed that the remaining, modest ARPA balances be used where immediate community needs continue and BR3T can quickly deploy assistance.
Ending Council asked that staff return the contract amendments and resolution at the next meeting and confirmed support for flexible, not-to-exceed contract language to expedite the distribution of small unspent ARPA balances.
