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Board reallocates $807,390 in ARPA funds to cover construction shortfall and admin costs, approves staff authority for reallocations
Summary
To meet a Dec. 31 obligation deadline, the board approved reallocating $807,389.84 of ARPA funds into an active construction project and administrative overhead; vote was 4‑0.
The Board of Supervisors approved a staff recommendation to reallocate $807,389.84 in American Rescue Plan Act (ARPA) funds to meet federal obligation deadlines and to authorize the county administrative officer or designee to make limited reallocations after Dec. 17, 2024 if necessary.
Joel Begay, County Administrative Office, told the board staff proposed shifting $807,389.84 from four categories that could not be obligated before Dec. 31, 2024: $300,000 from an essential services reserve intended to offset general fund shortfalls; $100,000 remaining in the disadvantaged communities category; $25,455 reconciled from broadband project estimates; and $381,934.84 from homelessness projects. Begay said staff recommends redirecting those funds into two items they can obligate immediately: additional funding for the MD‑10A construction project and $285,106.22 to the ARPA administrative overhead line to cover administration and reporting costs.
Begay noted federal rules allow up to 10% of ARPA funds for administrative overhead; Madera County had claimed 2.9% year‑to‑date and the proposed transfer would raise it to about 3.9%. He said staff intentionally remained conservative on administrative claims to avoid potential returns of funds if personnel time billed does not match allocations.
Supervisors asked about the calculation and whether hospital time and other staff time were included in the overhead estimate; staff said time studies and future audits constrain how much overhead can realistically be claimed. Begay also said interest that accrues to ARPA allocations will remain available for later allocation but staff recommended delaying any decisions on interest until after the first federal audit and project closeout, currently planned for 2026.
The board voted 4‑0 to reallocate the $807,389.84 and to authorize the county administrative officer to reallocate funds between categories after Dec. 17, 2024 if necessary to meet the obligation deadline. Roll call recorded Supervisor Gonzales, Supervisor Warmho, Supervisor Rogers and Chairman Poitras voting yes; one supervisor was absent.
Staff characterized the reallocation as a bridging move to prevent the county from having to borrow to finish the MD‑10A project and to ensure full utilization of awarded ARPA funds.
