American Rescue Plan Act (ARPA)

Welcome to the City of Citrus Heights' landing page for information related to the American Rescue Plan Act (ARPA). Use the buttons below to learn more about the City's one-time federal funding for COVID-19 economic relief and recovery. The City has closed its ARPA Community Needs Survey, click the button below to view the results.

Button - Survey Results So Far Opens in new window Button - ARPA Phase 1 Interview Opens in new window Button - Latest Council Update Opens in new window Button - ARPA News Update Opens in new window Button-ARPA Small Business Grant Program Webinar Opens in new windowCopy of Button-ARPA Small Business Grant Program Opens in new window


Background:

Citrus Heights staff applied for ARPA funds as soon as applications opened and the City was one of the first in the region to receive its funding. Citrus Heights is slated to receive a total of $15,676,972 from the Federal Government for COVID-19 relief and economic recovery. The first half of the funds ($7,838,486) was received on May 19, 2021, with the second payment anticipated in May 2022.


Allocation:

As with all outside funds, ARPA dollars must be spent on specific projects as outlined by the U.S. Treasury. The final ARPA guidelines outline the following main categories for eligible spending: 

  • Support public health
  • Address COVID-19 economic impacts
  • Replace lost public sector revenue, to be spent on any service traditionally provided by the government.*
  • Provide premium pay for essential workers
  • Invest in water, sewer, and broadband infrastructure for underserved communities

*A key change between the Treasury's interim rules and the final guidelines (published Jan. 6, 2022) is the implementation of a "standard allowance" for the Replacing Lost Revenue category, allowing public sector entities the option to use a revenue loss calculation OR the standard amount of $10 million (which is significantly higher than the calculation amount for Citrus Heights). This means that a larger portion of the City's ARPA funding can be put toward funding traditional government services, without a direct nexus to COVID-19 recovery.

All funds are still restricted from being applied to the following ineligible uses:

  • Offset Reduction in Net Tax Revenue
  • Deposit into Pension Fund
  • Contribution to Reserves
  • Satisfaction of Settlements and Judgments
  • Debt Service

Phased Approach

Given the complexities of the ARPA guidelines and the importance of making the most out of this unprecedented, one-time outside funding, City staff have recommended a phased approach to ARPA spending in Citrus Heights:

  1. [COMPLETED] Phase 1: Under the direction of Interim City Manager Chris Boyd, staff proposed an amendment to the Police Department budget, to utilize one-time ARPA funds to restore 22 positions for Fiscal Years 21/22 and 22/23.
    • On June 24, City Council unanimously approved the budget amendment, utilizing $5.3 million of the City's ARPA funding to re-instate 22 positions within the Police Department, bringing staffing levels back to a pre-pandemic level.
  2. [UNDERWAY] Phase 2: City staff are currently working on a Business COVID Recovery Grant program, based on Council feedback from the Nov. 10, 2021 workshop, and recent City Council meetings, and incoming survey feedback from local businesses. Click here to learn about the City's ARPA COVID-19 Recovery Small Business Grant Program.

  3. Next Phase(s): After the ARPA COVID-19 Recovery Small Business Grant Program closes, staff will present data to Council, along with new recommendations under the Treasury's final rules, for outlining next steps to apply federal recovery funds to the Citrus Heights community.