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City controller outlines nearly $2 million ARPA reallocation, including $500,000 toward Brothers Keepers facility
Summary
City staff told the Ways and Means Committee they propose reallocating $1,958,842.70 in ARPA funds across existing projects — including a $500,000 transfer from down-payment assistance toward the Brothers Keepers facility — and reiterated federal deadlines and transfer rules.
At the Jan. 23 Ways and Means session, the City Controller presented a proposed ordinance (CPO 20 26 27) to amend the city's American Rescue Plan Act (ARPA) spending plan by reallocating $1,958,842.70 among existing projects.
The controller read the proposed transfers aloud: remaining city incentive pay of $256,758.98; $400,000 for a Broadway Area CDC project; $500,000 to be moved from the down-payment assistance program (in combination with other funds) toward construction of a Brothers Keepers facility; and $802,083.72 from the Lake Street Sewer project, for a total reallocation of about $1.96 million.
Explaining the down-payment assistance figures, the controller said the program began with $2,050,000 in 2024; to date the city has placed 80 families using about $1,200,000, and has approximately $327,900 remaining (enough, on average, to serve around 21 more families). The controller said the administration believes the city can still place roughly 20 more families after the transfer and that the transfer is permissible because it reallocates funds among projects that existed before Dec. 31, 2024.
“Since that time, the city has been responding to negative economic impacts ... and whereas an increase and reduction in appropriations are needed to align with ARPA programs and projects that have previously occurred,” the controller read, noting ARPA funds must be obligated by Dec. 31, 2026. Committee members requested an itemized breakdown before the ordinance goes to the full council.
Committee members also asked whether contractors for projects are already hired and whether minority- and locally owned businesses are being considered in bidding. The controller said an RFP for the Brothers Keepers construction was issued and three responses were received; the administration said it will follow the city's DBE/BE processes and prioritize local businesses where feasible.
No final council vote on the ARPA reallocation occurred in the committee. Staff said they will return with additional documentation and a project list before the item proceeds to the council.
