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AMERICAN RESCUE PLAN ACT - Administrative Services Director Tom Provine
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Requested Action(s)
recommendation
a) Discussion and direction to staff regarding reporting of American Rescue Plan Act funds and allocating the unspent portion of funds to previous salary expenses prior to the December 31, 2024 deadline in order to preserve funds for Tehama County
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Financial Impact:
Failure to allocate remaining funds prior to the December 31, 2024 deadline would forfeit those funds back to the US Treasury, eliminating Tehama County’s ability to utilize these funds for already-approved projects.
Background Information:
The County of Tehama was awarded approximately $12.6 million under the American Rescue Plan Act (ARPA). Funds have gone through a process of recommendation by the ARPA Ad Hoc committee and then been brought forward to the Board for approval for specific projects for the long-term benefit of Tehama County.
These funds have a deadline for contractual obligation of December 31, 2025 under the Federal ARPA guidelines. Due to unforeseen circumstances involved with the Corning Veterans Memorial Hall Remodel project, that deadline is no longer possible to be met for a portion of the funds. As discussed by the Ad Hoc and previously stated to the Board, the option remains to allocate the remainder of funds to cover previous County salary expenses, as allowed by ARPA guidelines and reporting to Treasury. This is an allowable function under ARPA guidelines, which permits the County to allocate funds without a contract in place.
If the Board elects to pursue this direction, all ARPA funds will remain in a separate account, only to be moved for expenditure after Board-approved transfers. All funding and all projects have previously been directed by the Board, and this action will not change that direction, but it will allow for necessary accounting steps to prevent the County’s forfeiture of the funds.