2023-003 ARPA Update January 6, 2023 Report No. 2023-003
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
American Rescue Plan Act(ARPA) State and Local Fiscal Recovery Funds (SLFRF)
EXECUTIVE SUMMARY:
The City of Denton was allocated $23.29 million in federal aid across two years. The first
payment of $11.645 million was received in June 2021 and the second and final payment of
$11.645 million was received in June 2022. City staff continues to administer programs created
under the first tranche and develop projects approved during the FY 22-23 budget adoption for
the second tranche. The reallocation of remaining funds from completed projects and new
allocations from the second tranche will fund and support areas identified as essential for
continued recovery and meeting the objectives outlined by ARPA— SLFRF, as defined below.
DISCUSSION:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law and established
the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund also
known as the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The
purpose of SLFRF is to provide support to state, territorial, local, and tribal governments in
responding to the economic and public health impacts of COVID-19 and in their efforts to
contain impacts on their communities, residents, and businesses.
The City of Denton was allocated $23.29 million in federal aid across two years. The funding is
delivered in two tranches, or payments, no later than 12 months apart. Half of this funding
($11.645 million) was received by the City in June 2021, and the remaining half became
available in June 2022. In the Final Rule, the Treasury Department encourages recipients to
adapt to new developments that arise during the twelve-month period, including changes in the
public health emergency and negative economic impacts.
Programs funded under the first round of funding were developed based on staff
recommendations, City Council prioritization of funding categories, and citizen input. Approved
projects were included in the Fiscal Year 2021-2022 budget adoption. Highlights include:
• Loop 288 Building—A total of$5 million has been used towards the construction of the
Loop 288 building to provide comprehensive services to individuals and families
experiencing homelessness.
• Behavioral Healthcare Services Grant—Four (4) grants totaling $895,000 were awarded
to healthcare service providers aimed at increasing access to services for City of Denton
residents in at least one of three priority areas: youth mental health services, adult mental
health services and substance use treatment services. The focus is to increase access to
services for underinsured and/or uninsured individuals and families.
• Non-profit Capacity Support — Seven (7) grants totaling $550,000 were awarded to non-
profits aimed at providing support to non-profits whose services and programming were
directly impacted by COVID-19. Focus is on long-term sustainment of operations.
January 6, 2023 Report No. 2023-003
• Small Business Rent and Mortgage Relief Grant - Awards to 37 small businesses totaling
$913,700 were made to provide relief to small businesses who demonstrated an economic
loss associated with COVID-19. The focus is on long-term sustainment of operations.
• Street Outreach Expansion — A Caseworker and Paramedic have been added and
dedicated to Street Outreach operations providing direct assistance to individuals
experiencing homelessness. Additionally, a vehicle has been purchased for the Police
Department to be used in responses.
• Facility Modifications—Modifications and improvements to City facilities that promote
public health by mitigating the spread of COVID-19 have been made totaling
approximately $395,500.
• Emergency Management Program Manager— The position within the Fire Department's
Emergency Management Division has been reinstated with expanded duties related to
public health initiatives.
• Administrative Costs — The City has acquired and implemented a grant management
system that is currently being used to manage the three grant programs created using
SURE
In preparation of the second payment, staff assessed the current phase of the pandemic recovery
to determine new and on-going needs. The following areas were identified as essential for
continued recovery and meeting the objectives outlined by ARPA— SURF:
• Temporary Alternative Housing
• Non-profit Capacity Support
• Public Safety Equipment
• Park and Recreation Projects
The reallocation of remaining funds from completed projects, such as the Small Business Relief
Grant program and Public Communication Software and addressed needs like COVID
Vaccination Support will help fund these areas. Additionally, new allocations from the second
tranche will provide support.
An update on ARPA was presented to City Council during budget discussions and projects under
the second tranche were approved with the FY 22-23 budget. All programs and allocated budgets
funded by SURF are outlined in Exhibit 1. All costs must be incurred or obligated by December
31, 2024. The period of performance will run until December 31, 2026, at which time all projects
must be completed.
CONCLUSION:
Staff will continue to administer and monitor SURE programs with updates provided to City
Council quarterly.
ATTACHMENT(S):
Exhibit I SURF Projects
January 6, 2023 Report No. 2023-003
STAFF CONTACT:
Laura Behrens
Assistant Director of Procurement/Warehouse / Grants
Laura.Behrens(&cityofdenton.com
(940) 349-7273
January 6, 2023 Report No. 2023-003
Exhibit 1
Exhibit 1 SLFRF Proiects
Project Expenditure Category 1st Tranche Reallocation 1st Tranche Revised 2nd Tranche I Total Funding
Public Health
Behavioral Healthcare Services-Grant Program $ 895,000.00 $ - $ 895,000.00 $ 895,000.00
Fire-Vaccine Suppot $ 550,000.00 $ (548,000.00) $ 2,000.00 $ 2,000.00
Personnel costs/PPE/Medical Supplies/Communica $ 465,000.00
Fire-Vehilce for Vaccine Support $ 85,000.00 $ 85,000.00 $ 85,000.00 $ 85,000.00
Facilities-COVID Update $ 750,000.00 $ (150,000.00) $ 600,000.00 $ 600,000.00
Police-Vehicle for Street Outreach $ 50,000.00 $ (5,050.25) $ 44,949.75 $ 44,949.75
Parks and Recration Projects $ 400,000.00 $ 400,000.00 $ 3,000,000.00 $ 3,400,000.00
Negative Economic Impacts
Community Service-Loop 288 Building $ 5,000,000.00 $ - $ 5,000,000.00 $ 5,000,000.00
Day Center and Overnight Shelter(Operations) $ 1,295,000.00 $ 1,295,000.00
Temp.Alt.Shelter(Hotel Voucher Program) $ 550,000.00 $ 345,000.00 $ 895,000.00 $ 2,500,000.00 $ 3,395,000.00
Non-Profit Capacity Support-Grant Program $ 550,000.00 $ 553,000.00 $ 1,103,000.00 $ 1,500,000.00 $ 2,603,000.00
Economic Development-Grants Program $ 2,550,000.00 $ (1,086,299.89) $ 1,473,700.11 $ 1,473,700.11
Rent/Mortgage Relief $ 2,000,000.00
Arts/Music/Cultural Business $ 550,000.00 $ 10,000.00
Revenue Replacement(Government Services)
Street Outreach Expansion $ 250,000.00 $ - $ 250,000.00 $ 250,000.00 $ 500,000.00
Fire-Street Outreach(Paramedic) $ 160,000.00
Police-Street Outreach(Clinician/Caseworker) $ 90,000.00
Fire-Emergency Mgmt $ 170,000.00 $ (75,000.00) $ 95,000.00 $ 100,000.00 $ 195,000.00
Personnel Costs(Emergency Mngt.Coordinator) $ 95,000.00
Public Communication Software $ 75,000.00
Public Saftey Equipment $ 596,350.14 $ 596,350.14 $ 3,000,000.00 $ 3,596,350.14
Administration
Administrative Costs(Grant Management System) $ 330,000.00 1 $ (125,000.00)1 $ 205,000.00 1 1 $ 205,000.00
Total $ 11,645,000.00 r$ (0.00)1 $ 11,645,000.00 1 $ 11,645,000.00 1 $ 23,290,000.00