PRESENTER: Presenter
Christopher Greenwell, Grants Coordinator
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SUBJECT: Title
Approval of a resolution authorizing the reallocation of $202,500 in funding from the U.S. Department of the Treasury’s Coronavirus State and Local Fiscal Recovery Funds Program under the American Rescue Plan Act to support existing Public Transportation and Pedestrian Mobility projects, due to a nonprofit grantee’s requested withdrawal, and authorizing the City Manager to act on behalf of the City in all related matters
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
The City of New Braunfels (City) was fortunate to receive an allocation of funds for $10,995,314 from the U.S. Department of the Treasury’s (Treasury) Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan Act (ARPA). The SLFRF-ARPA program provides funds to state, local, and Tribal governments nationwide to support their responses and recoveries from the COVID-19 public health emergency.
Currently, all ARPA funding has been fully allocated as follows:
• Administration (Baker Tilly US, LLP): $335,998
• Utility Assistance (McKenna Foundation): $500,000
• Non-Profit Grant Program (9 awarded grants for 8 non-profit agencies): $7,334,316
o Children’s Advocacy Center of Comal County: $136,626
o Comal County Habitat for Humanity: $207,500
o New Braunfels Youth Collaborative: $1,500,000
o Connections Individual and Family Services, Inc.: $1,000,000
o Crisis Center of Comal County: $1,000,000
o Friends of CHRISTUS Santa Rosa Foundation (Training Center project): $50,000
o Friends of CHRISTUS Santa Rosa Foundation (Outpatient Center project): $140,190
o NB Housing Partners (to include cold weather shelter costs): $2,300,000
o San Antonio Food Bank: $1,000,000
• Public Transportation and Pedestrian Mobility (expanded scope, multiple contracts for varied costs): $2,825,000
On February 12, 2026, Comal County Habitat for Humanity notified City staff that it would be unable to meet the timeline required to complete the ARPA-funded infrastructure associated with the Casa de Esperanza housing project and formally withdrew from the program.
As a result, the remaining unspent funds totaling $202,500 must be reallocated to an existing eligible initiative, such as Utility Assistance, Administrative Expenses, or Public Transportation and Pedestrian Mobility projects.
City staff have identified multiple Public Transportation and Pedestrian Mobility projects that are eligible for ARPA funding and can be implemented efficiently, allowing the reallocated funds to be expended prior to the December 31, 2026 ARPA deadline.
Following staff’s presentation to the Finance and Audit Committee on March 16, 2026, the Committee unanimously approved the reallocation to the Public Transportation and Pedestrian Mobility and recommended that this item be brought forward to City Council for final consideration at the April 13 regular meeting.
ISSUE:
The City’s 2024-2029 Strategic Plan includes a goal related to fiscal sustainability, including the full and timely utilization of ARPA funding as outlined in this agenda item.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
Considering statutory and market-based factors, continue to diversify revenue streams to support the long-term fiscal sustainability of the organization.
FISCAL IMPACT:
The granting agency has provided funding for all recommended costs; there is no City-match requirement. Therefore, sufficient funds are available to support the activities as described above.
Recommendation
RECOMMENDATION:
Staff recommends that the remaining $202,500 in unspent funds originally awarded to Comal County Habitat for Humanity be reallocated to support the City’s Public Transportation and Pedestrian Mobility initiatives by amending the Interagency Agreement with the Transportation & Construction Services Department.