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Mesa reports $105M in ARPA receipts; $92M spent and $13M remains, staff using interest for project costs
Summary
Mesa finance staff told council they received $105 million in ARPA funds, obligated the full amount by Dec. 31, 2024 and have spent about $92 million through Sept. 30, leaving roughly $13 million to expend before the treasury's Dec. 31, 2026 deadline.
Irma Ashworth, Mesa's finance director, updated council Nov. 6 on the city's use of American Rescue Plan Act (ARPA) funds and related interest. Ashworth said the city received $105 million in ARPA allocations, obligated the full amount by the treasury's obligation deadline of Dec. 31, 2024, and had spent about $92 million as of Sept. 30, leaving roughly $13 million to spend before the spend‑down deadline of Dec. 31, 2026.
Ashworth summarized major ARPA‑funded projects and programs: technology for the police department's real‑time crime center, a 911 mental‑health response program, energy commodity support, United Food Bank assistance, the Mesa Business Builder (restaurant incubator) purchase and renovations, broadband/mobile Wi‑Fi work downtown, SCADA investments for water infrastructure, the Windermere hotel and related center for off‑the‑streets sheltering, funding for New Leaf men's center expansion and operational support, and premium pay for eligible workers.
Interest and timing: staff noted ARPA funds were received in two tranches (May 2021 and May 2022) and that unspent deposits earned roughly $4 million in interest to date. Ashworth said the city is applying ARPA interest to payroll on construction contracts (for projects that could not be fully obligated by Dec. 31, 2024), to certain unanticipated infrastructure costs and to FF&E needs tied to projects such as the Sunair property (for which the construction contract was signed after the Dec. 31, 2024 obligation cutoff). If any ARPA interest remains after projects are complete, staff said those dollars would transfer to the general fund as one‑time resources.
Contract and project status: staff displayed a project‑by‑project dashboard showing active ARPA projects and projected remaining budgets; several projects have contracts that run through calendar 2026. Ashworth said she would provide more detailed, per‑project dollar figures after the meeting on request.
Context and council direction: staff emphasized a council priority to keep ARPA‑funded operating impacts within ARPA dollars and avoid adding recurring general‑fund commitments. Council members asked follow‑up questions about whether interest could be used to support ongoing operational needs for completed projects (staff said leftover interest could be applied to one‑time needs but recurring operations should be funded through budget processes). Ashworth also confirmed staff would bring forward recommended uses of any remaining ARPA interest once projects are closed out.
