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Council reallocates remaining ARPA funds: $3M to Salvation Army Ridge Street expansion, remainder to reimburse city payroll
Summary
Council approved reallocating roughly $3.7M of unobligated ARPA funds to obligate federal dollars before the Treasury deadline, including $3.0M earmarked for expansion of the Salvation Army’s Ridge Street Center and the balance to reimburse eligible public safety payroll costs.
The City Council approved a resolution to obligate remaining unobligated American Rescue Plan Act (ARPA) funds before the Treasury’s end‑of‑calendar deadline. City finance staff said the city received about $19.6M in ARPA funds and has appropriated most of them; about $3.7M remained unspent and unobligated under Treasury rules.
Staff proposed reallocating roughly $3.0M to the Salvation Army Center of Hope for expansion and renovation of the Ridge Street facility and using the balance (approximately $759,774, subject to small month‑end adjustments) to reimburse the city for eligible public‑safety payroll expenses the city already incurred. Staff explained that obligating the funds now prevents potential federal clawback and can leverage additional private and philanthropic investment for the Salvation Army campaign.
Council debated implementation details, including whether a memorandum of understanding or MOU would be signed with the Salvation Army and how obligated but unspent funds would be tracked. Finance staff said about $2.4M is already obligated for other projects and that the list of obligated but unspent awards will be executed before the expenditure deadline in 2026.
What happens next: the council vote obligates the ARPA amounts as described; staff will finalize the exact reimbursements and document agreements with Salvation Army before year‑end obligations are completed.
