DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend Obligated American Rescue Plan Act Funding To Reclassify Obligated Costs Between Projects
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PURPOSE/ACTION REQUESTED
Authorize amendments to obligated American Rescue Plan (ARP) Act funding to reclassify obligated costs between projects.
SUMMARY
On March 11, 2021, the American Rescue Plan (ARP) Act was signed into law in response to the unprecedented impacts of the COVID-19 health emergency on the economy, public health, state and local governments, individuals, and businesses. ARP provided various new funding sources for the County’s relief and response efforts related to COVID-19.
Dakota County received State and Local Fiscal Recovery Fund (SLFRF) funds in the amount of $83,332,300. To date, the County Board has obligated the entire award of $83,332,300 to 20 eligible programs and projects.
On December 31, 2024, the County was required to obligate any unspent ARP funds to be used from January 1, 2025, through December 31, 2026. Current rules would require the County to return to the Treasury any ARP funds that have not been obligated by the deadline of December 31, 2024. The County would also be required to return any ARP funds not expended by December 31, 2026.
On December 3, 2024, the Finance Director presented a plan for obligation of all remaining funds at the Dakota County General Government and Policy Committee meeting.
On December 17, 2024, the Board approved the obligation of the remaining ARP Funding and authorized the related budgets.
During 2025, certain projects reported as a lump sum under revenue replacement in the quarterly Project and Expenditure (P&E) Reports were completed and did not fully expend the approved obligated amounts, while several projects exceed their approved obligated amount. The guidance for the SLFRF program indicates that recipients may reclassify SLFRF funds from the original activity to another project that would be eligible under SLFRF program rules.
RECOMMENDATION
recommendation
Staff recommend the Dakota County Board of Commissioners approve the amendment of obligations to reclassify $22,461 of unspent obligations from Attorney Staffing/Criminal Case Backlog to Emergency Shelter and $25,690 of unspent obligations from Time Limited FASII Positions (EEA) to Mendota Youth Shelter, with the remaining $61,477 of unspent obligations from Time Limited FASII Positions (EEA) going to the Emergency Shelter.
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EXPLANATION OF FISCAL/FTE IMPACTS
There are no additional costs to the County because of this action. The amendments ensure the County fully expends funds on prior obligated projects so that unexpended federal ARP funds do not need to be returned to the Treasury after December 31, 2026.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, certain projects were completed and did not fully expend the approved obligated amounts, and other projects exceeded their approved obligated amount; and
WHEREAS, the guidance for the American Rescue Plan (ARP) Act State and Local Fiscal Recovery Funds (SLFRF) indicates that recipients may reclassify SLFRF funds from the original activity to another project that would be eligible under SLFRF program rules; and
WHEREAS, the budgets for these projects have been adjusted as follows to reflect projected spending based on existing contracts and personnel costs using the American Rescue Plan (ARP) Act State and Local Fiscal Recovery Fund (SLFRF):
Reduce:
Attorney Staffing/Criminal Case Backlog $22,461
Time Limited FASII Positions $87,167
Increase:
Emergency Shelter $83,938
Mendota Youth Shelter $25,690
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby amends the prior obligated amounts to the following revised obligated amounts:
Attorney Staffing/Criminal Case Backlog $360,886
Emergency Shelter $1,115,244
Mendota Youth Shelter $2,285,620
Time Limited FASII Positions $902,550
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PREVIOUS BOARD ACTION
21-038; 1/19/21
21-272; 5/18/21
24-619; 12/17/24
ATTACHMENTS
Attachment: ARP Budget to Actuals 10.31.2025
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☒ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Will Wallo
Author: Lucas Chase