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City of Canyon Lake to receive $2.7 million in American Rescue Plan Act funding

The City of Canyon Lake is estimated to receive $2.7 million in American Rescue Plan Act (ARPA) funding. The city received the first disbursement of half the allocated funding on July 9, 2021. The second half of the funds will be released under the second disbursement one year after the first disbursement.

City staff and HdL Consulting Services developed an ARPA Work Program outlining the expenditures for the $2,696,416 of allocated funds, which the city council approved on March 2.

The Work Program includes the following:

Capital Improvement Projects

  • City Hall Renovation Project – $1,300,000 to build out a new City Council Chambers in the space formerly occupied by the Canyon Lake Library, and to make changes and upgrades to the layout and functionality of the offices and public areas of City Hall.
  • Fire Station Upgrades and Equipment – $300,000 to further upgrade the fire station and to purchase equipment requested by the fire department.
  • Repairs to 31542 Railroad Canyon Rd. – $210,000 to perform needed repairs to this property.
  • City Enforcement Boat Dock – $80,000 to construct a covered boat dock with lifts and lockable gate on the main lake for city boats.

Vehicle Acquisition

  • Replacement for Yukon – $70,000 to replace the 2008 GMC Yukon, including outfitting the new vehicle with emergency lights, sirens, and city graphics so that it may be used while responding to emergencies and as a backup for fire department command vehicles.
  • Replacement for Sierra – $70,000 to replace the 2008 GMC Sierra, including outfitting the new vehicle with emergency lights, sirens, and city graphics so that it may be used while responding to emergencies and as a backup for fire department command vehicles.
  • New Code Enforcement Vehicle – $70,000 to purchase a new jeep vehicle for the Code Enforcement Department, including outfitting the new vehicle with emergency lights, sirens, and city graphics

First Responder Premium Pay

  • $55,000 to provide a one-time lump sum payment in the amount of $5,000 to each safety employee of the fire department who has been on active duty during the COVID-19 pandemic.

Assistance to Small Businesses/Individuals

  • Small Business Emergency Relief Grants – $75,000 toward a grant program that will allow small businesses that can demonstrate economic hardship due to the pandemic to receive grants up to $15,000 that can be used for paying rent, utilities, or other operating expenses.
  • Small Business Assistance Grants – $45,000 toward a grant program that will allow small businesses that can demonstrate economic hardship due to the pandemic to receive grants of $10,000 that can be used for assistance in applying for other COVID-19 relief funds or business marketing assistance, with an emphasis on website upgrades.
  • Community E-Gift Card Program – $15,000 toward a community digital E-Gift Card Program through which the city will offer gift cards to residents that can be redeemed at participating Canyon Lake businesses. Residents who purchase a $25 gift card will receive from the city a bonus gift card of $25.
  • Chamber of Commerce Business Support Programs – $12,000 to the Canyon Lake Chamber of Commerce for assisting the city with administering the two small business grant programs and the community E-Gift Card Program.

Other Government Services

  • Junior Lifeguard Program Bus Rental – $10,000 to provide bus transportation to participants of the new Junior Lifeguard Program. Canyon Lake youth will be traveling to Lake Perris this summer to take part in the program.
  • HdL Consulting Services – $60,000 for the consulting services of HdL in relation to the formulation and execution of the ARPA Work Program. The $60,000 amount reflects the addition of another $27,000 to cover any additional work needed through December 31, 2026, which is the deadline for expending ARPA funds.
  • Law Enforcement Services Contract with Riverside County Sheriff – $326,416 toward the city’s contract with the County of Riverside for law enforcement services provided by the Riverside County Sheriff’s Department.

This Work Program will aim to expand the city’s ARPA grant funding allocation of $2,698,416 prior to the December 31, 2026, deadline.

The ARPA was signed into law by President Biden on March 11, 2021. This established the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) for local governments across the U.S. to receive a funding allocation.

Fiscal Recovery Funds through the SLFRF are intended to provide support to state, local, and tribal governments in responding to the impact of COVID-19 and in their efforts to contain the negative impacts of the COVID-19 pandemic on their communities, residents, and businesses.

The Fiscal Recovery Funds build on and expand the support provided to governments over the last year, including through the Coronavirus Relief Fund.

Fiscal Recovery Funds may be used for the following:

  • To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.
  • To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers.
  • For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency.
  • To make necessary investments in water, sewer, or broadband infrastructure.

After the adoption of the ARPA in March 2021, the U.S. Treasury Department released Interim Final Rules which provided guidance on the implementation of the program. The city used these Interim Rules as guidance in developing its ARPA Work Program.

On January 6, 2022, the U.S. Department of Treasury released the Final Rule on the ARPA guidance. The Final Rule allows for greater flexibility for a city to address its revenue loss.

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