City Council Memo - SLFRF (ARPA)

City Manager’s Office 
10000 North El Mirage Rd., El Mirage 85335 
623-972-8116; TDD 623-933-3258 
www.elmirageaz.gov 
 
MEMORANDUM 
TO:  
 
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 
FROM:  
CITY MANAGER J. CRYSTAL DYCHES 
SUBJECT: 
RESOLUTION R24-02-03: STATING USES AND INTENDED USES OF STATE AND 
LOCAL FISCAL RECOVERY FUNDS (SLFRF) 
DATE:  
FEBRUARY 6, 2024 
 
BACKGROUND OF THE  CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS 
 
Nearly three years ago, the United States Congress passed an economic stimulus bill, the American 
Rescue Plan Act (ARPA), which aims to accelerate the country's recovery from the adverse financial 
and health impacts of the COVID-19 pandemic. This bill, amounting to $1.9 trillion, was signed into 
law by President Biden on March 11, 2021. One notable aspect of this stimulus bill was the creation of 
the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, which provides $350 billion 
to state, local, and Tribal governments to support their response and recovery from the COVID-19 
public health emergency.  
 
For the initial period of the State and Local Fiscal Recovery Fund grant program, which was 
implemented under the American Rescue Plan Act, local government grantees operated under an 
"interim final rule." This interim rule provided sufficient clarity on eligible expenditures to address the 
immediate emergency needs arising from the COVID-19 crisis. As a result, many cities and towns, 
including El Mirage, utilized their first grant funds to meet these urgent requirements. 
 
On January 6, 2022, the U.S. Department of Treasury released the Final Rule for the Coronavirus SLFRF, 
replacing the interim rule. The new rule offered a more comprehensive framework, with most of the 
additional content aimed at providing enhanced clarity, direction, and examples for existing rules 
already in effect under the interim rule.  Notably, the final rule presented a highly flexible spending 
category known as "Replacement of Lost Revenue" for government services.  According to the final 
rule, this category encompasses "any service traditionally provided by local governments."  To avail 
funds under this spending category, the interim rule mandated all grantees, irrespective of their size, 
to undertake a complex calculation to determine the extent of revenue loss a locality could claim.  
However, the final rule introduced a simplified alternative, allowing local governments to opt for a

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"standard allowance" of $10 million for lost revenue for government services while benefiting from 
streamlined reporting requirements.  
 
In the case of the City of El Mirage, we received a total of $11,940,792 in State and Local Fiscal 
Recovery Funds from the American Rescue Plan Act. The City Council adopted a spending framework 
for these funds in September 2021, subsequently updating it in April 2022 and May 2023. Apart from 
the $10 million standard allowance for revenue loss, staff has identified various qualifying projects to 
utilize the remaining $1,940,792. These projects include Homeless Outreach, Police Neighborhood 
Enforcement Team, Senior Meals, Transit, Utility, Rent and Mortgage Assistance, and Senior Bus 
services.  
 
On August 10, 2023, the US Department of Treasury issued an Interim Final Rule for ARPA Flex. This 
provision allows for spending in three new expenditure categories, including spending to provide 
emergency relief from natural disasters, transportation infrastructure, and any program, project, or 
service that would also be eligible under HUD’s Community Development Block Grant program.  
 
UPDATE 
 
Resolution R24-02-03 adds affordable housing development to the stated intended uses of SLFRF.  
The other uses identified for funding within this memo have adjusted their allocations to reflect actual 
spending through December 31, 2023.  Staff anticipates that all these projects will be completed and 
the funds will be entirely spent by December 31, 2026.  Please note that there may be some 
fluctuation in the expenditures as projects are near completion.  
 
TABLE 1: SUMMARY OF STATED USE AND INTENDED USES  
  
  
INFRASTRUCTURE & EQUIPMENT 
Northern Parkway Corridor 
$5,974,600 
Library Expansion for Workforce Development 
$428,192 
Hohokam Multi-use Trail 
$207,097 
Emergency Operations Center  
$41,848 
Message Board Purchase 
$40,188 
City Council Chamber Technology Upgrade 
$29,981 
  
  
CITY OPERATIONS 
  
Police Neighborhood Enforcement Team (NET)* 
$1,315,687 
Police Officer Attrition 
$1,137,211 
Community Services Wages 
$417,525

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Paramedic/Firefighter 
$223,358 
  
  
COMMUNITY INITIATIVES  
  
Transit*  
$353,268 
Senior Bus* 
$86,042  
Senior Meals* 
$118,414  
Phoenix Rescue Mission* 
$39,933 
Utility, Rent and Mortgage Assistance*  
$27,449 
Affordable Housing Development - Maricopa County  
$1,000,000 
Affordable Housing Redevelopment - Housing Authority of Maricopa County 
$500,000 
 
Total  
$11,940,792  
     *Non-Revenue Replacement 
 
INFRASTRUCTURE & EQUIPMENT 
 
Northern Parkway. ($5,974,600)  One of the major projects completed through the SLFRF funds is 
the Northern Parkway Corridor. This project, which spans 12.5 miles between Loop 303 and US 60 in 
northwestern Maricopa County, is a partnership between Maricopa County, the Cities of El Mirage, 
Glendale, and Peoria, ADOT, and the Maricopa Association of Governments (MAG).  A high-capacity, 
limited-access roadway with overpasses at major intersections from Loop 303 past El Mirage Road, 
was successfully constructed, demonstrating our commitment to overall growth and prosperity.   
 
Library Expansion for Workforce Development. ($428,192)  The El Mirage Library has also been a 
beneficiary of the SLFRF funds, particularly in expanding its services for workforce development. An 
eleven-hundred-square-foot addition to the library has been dedicated to providing broadband and 
computer access, specifically targeting those who lost their jobs due to the pandemic. This 
employment-focused space addresses the needs of individuals without access to internet services and 
home computers.   
 
Hohokam Multi-Use Trail. ($207,097) Another notable project that the City has embarked on is the 
development of the Hohokam (Dysart-Cactus) Trail.  The City secured funding from the Maricopa 
County Community Development Block Grant-Coronavirus (CDBG-CV) program to bring this project 
to fruition.  One of the key benefits of the wide design of the trail is that it will ensure ample space for 
individuals. This will instill a sense of security among trail users and enable them to engage in physical 
exercise and outdoor activities while adhering to social distancing guidelines.  As the trail traverses 
through the drainage channel owned and maintained by the City, it provides a convenient and

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accessible location for individuals to engage in recreational activities. The expenditure of these funds 
showcases the City’s commitment to prioritize the well-being of its residents.   
 
Increased Communication. ($112,016)  To meet the growing need for communication, the City has 
utilized SLFRF funds to upgrade technology in the City Council Chambers and the Fire Station 
Community Room.   
 
Remote meetings were not considered in the original design. Therefore, updating the technology to 
accommodate the Council's request to video record and livestream City Council Meetings became 
essential. This upgrade enhances sound quality and makes the room usable for other types of 
meetings that do not require the traditional dais setting. This improvement in communication 
infrastructure ensures that essential information reaches the community efficiently and effectively, 
further enhancing public participation and engagement.  
 
In addition to the Council Chambers upgrade, the City recognized the importance of a reliable and 
efficient Emergency Operations Center (EOC) in responding to specific pandemic-related public health 
needs. Funds have been used to change the audiovisual components in the Fire Station community 
room, which also serves as the City's EOC.  This project was a one-time expense and ensures that the 
City is well-equipped to handle emergencies and effectively communicate vital information to the 
public.   
 
The City has also directed funds to purchase two message boards in response to the increased need 
for direct communication with the public.  The City has more opportunities to relay important 
information to residents along roadways. The flexibility of multiple programming options ensures that 
the boards can be effectively utilized in various applications during a public health emergency.  
 
CITY OPERATIONS 
 
Community Services Staffing. ($417,525)  The Community Services team has been at the forefront 
of responding to the ongoing pandemic and public health crisis. With the support of the SLFRF funds, 
they have provided essential services for people experiencing homelessness, managed grants, 
developed new programs, and supported the El Mirage Senior Center and special events. The SLFRF 
funds have been utilized to cover the wages of essential positions within this division, including the 
Division Manager, Grant Writer, Special Events Coordinator, and part-time Program Assistants.  
 
Community Safety – Police and Fire Staffing. ($2,676,256)  The City has allocated funds to 
implement several public safety initiatives to create a safer and healthier environment for its residents.

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These initiatives include establishing the Police Neighborhood Enforcement Team (NET), maintaining 
staffing levels at the El Mirage Police Department, and recruiting additional paramedics/firefighters. 
These measures are crucial in responding to the challenges posed by the pandemic and ensuring the 
community's well-being.  
 
The creation of the Police NET team is a direct response to the gun violence emergency that has 
arisen as a result of the pandemic. This specialized community policing team consists of one Police 
Sergeant and three Police Officers dedicated to addressing this issue and building a safer community 
in El Mirage. Additionally, the team has four police vehicles and the necessary equipment to carry out 
their duties effectively.    
 
Funds have also been utilized to address the issue of police officer attrition. The pandemic and the 
increase in gun violence have resulted in retirements among the police force. To maintain staffing 
levels and ensure the community's safety, the City has allocated funds for a Police Lieutenant position 
and three additional Police Officer positions. These positions fill the gaps created by retirements and 
contribute to El Mirage's overall security.   
 
In addition to addressing public safety, the City of El Mirage has recognized the importance of 
combating the public health emergency caused by the pandemic. Two Firefighters/ Paramedics have 
been hired to assist in managing the health crisis.  
 
COMMUNITY INITIATIVES  
 
Transit Services. ($439,309)  Transit services are another area where the SLFRF funds have made a 
significant difference. Paratransit and dial-a-ride programs have experienced increased usage as 
residents return to their pre-pandemic lifestyles. The additional funds allocated towards these services 
have provided transportation for disabled and elderly residents. The services have been utilized for 
accessing groceries, work, and medical appointments.  The funds have also allowed the purchasing of 
a new bus to provide senior transportation.   
 
Community Assistance. ($185,796)  Through strategically allocating these funds, the City has 
provided vital assistance in multiple areas, including utility, rent, and mortgage support, homeless 
outreach and support services, and senior meals.   
 
One of the critical areas of need during the pandemic has been housing. The economic repercussions 
of the pandemic have intensified the already existing housing crisis. The SLFRF funds have been used 
to address this issue to provide emergency residential rental, mortgage, and utility assistance. This

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assistance targets those who may not qualify for the Emergency Rental Assistance Program (ERAP), 
ensuring that more individuals and families can receive the support they need. The Surprise 
Community Action Program (CAP) Office administers this program. The funding, which included a 
half-time staff position, was invaluable in handling the increased demand for assistance and 
managing the application process.  
 
Another significant issue that the pandemic has exacerbated is homelessness. The City of El Mirage 
has partnered with the Phoenix Rescue Mission to address the housing and health needs of people 
experiencing homelessness. Through this collaboration, homeless outreach, navigation, and wrap-
around support services are provided to individuals, including veterans and those with PTSD. This 
program has been instrumental in helping the Police Department and Community Services staff 
address the needs of the homeless population.    
 
Affordable Housing. ($1,500,000) Affordable housing is a crucial issue in many communities, 
including El Mirage. Beginning in FY23, the City’s five-year CIP included $300,000 in annual funding 
for land acquisition for an affordable housing program.  The Interim Final Rule for ARPA Flex has 
provided new guidance encouraging governments to dedicate funding to meet housing needs and 
lower housing-related costs.  In response, staff has taken proactive steps to address affordable 
housing needs. 
 
One of the key initiatives in El Mirage's affordable housing strategy is a partnership with the Housing 
Authority of Maricopa County (HAMC). HAMC provides affordable housing rental units and plans to 
replace an existing 30-unit community in El Mirage with the construction of approximately 60 high-
quality, affordable housing units. This project, estimated at $25 million, will be primarily financed with 
low-income housing tax credit (LIHTC) equity. In Arizona, LIHTC is awarded by the Arizona 
Department of Housing (ADOH). The City of El Mirage intends to commit a grant match contribution 
of $500,000 to increase the likelihood of the ADOH awarding the project. This partnership will 
significantly improve the availability of affordable rental housing in El Mirage, providing stable and 
secure housing for low-income individuals and families. 
 
In addition to increasing the supply of affordable rental housing, El Mirage is also making efforts to 
create homeownership opportunities for low- and moderate-income households. The City intends to 
contribute $1 million to Maricopa County, which will administer a home-buying program in El Mirage 
through the Newtown Community Land Trust. Newtown is a non-profit organization that creates 
permanently affordable housing by purchasing or developing homes and selling them to low- and 
moderate-income households. The Community Land Trust, the largest in Arizona, has already 
provided more than 150 affordable homes in Maricopa County and continues to add more each year.

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Through this partnership, El Mirage is working to deliver affordable homeownership options for its 
residents, ultimately promoting economic stability and upward mobility. 
 
The efforts to increase affordable housing in El Mirage will have far-reaching benefits for the 
community. Stable and affordable housing contributes to residents' sense of security, belonging, and 
well-being. It also supports economic growth by providing individuals and families the stability to 
pursue educational and employment opportunities.  
 
El Mirage's commitment to increasing the supply of affordable housing is a crucial step in addressing 
its residents' housing needs. The partnerships with organizations such as Maricopa County, Newtown, 
and the Housing Authority of Maricopa County Trust demonstrate the City's dedication to creating 
stable and affordable housing options for renters and potential homeowners. Through these efforts, 
El Mirage is working to build a stronger, more sustainable community for its residents. 
 
SUMMARY 
 
The American Rescue Plan Act and the subsequent rules and guidelines released by the U.S. 
Department of Treasury have provided crucial support for local governments like the City of El Mirage 
in addressing the impacts of the COVID-19 pandemic. These funds have allowed for relief efforts, 
community support, and flexibility in addressing ongoing challenges, ultimately contributing to the 
recovery and resilience of local communities across the United States.