The City of Las Cruces (City) received a direct allocation from the U.S. Treasury under the American Rescue Plan Act (ARPA) for the Coronavirus State and Local Fiscal Recovery Funds, which provided a substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.
The City received the first tranche of funding in the amount of $12,379,913 on May 19, 2021. The second tranche, in the same amount, was received on June 14th, 2022.
The funding is intended to be used for the following funding objectives, as defined in the Act:
To support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control; replace lost public sector revenue to strengthen support for vital public services and help retain jobs; support immediate economic stabilization for households and businesses; and address systemic public health and economic challenges that have contributed to the unequal impact of the pandemic.
Important Links
- Whitehouse.Gov
- Doña Ana County Rent & Utilities Assistance
- State of New Mexico Mortgage Assistance
- ARPA Quarterly Reports
- City Council Resolution 22-021 (August 16, 2021)
- City Council Resolution 22-029 (September 7, 2021)
- City Council Resolution 22-135 (May 2, 2022)
- City Council Resolution 23-027 (September 6, 2022)
- City Council Resolution 23-032 (September 19, 2022)
- City Council Resolution 24-061 (December 4, 2023)
- City Council Resolution 24-104 (May 6, 2024)
- Annual Comprehensive Financial Report
Breakdown of Investment Focus Areas
Support Public Health Response
Summary:
To meet and address emergent public health needs, measures to counter the spread of COVID-19, and address disparities in public health exacerbated by the pandemic.
To determine use: assess effect of COVID-19 on Public Health and how to address identified needs.
Support mitigation/prevention of public health issues and improve the design and execution of public health services.
Public Safety Programs
Mobile Integrated Health (MIH) – 2 Squad Vehicles | $656,667 |
Fire & Police EMT, Paramedic, CPR Training | $368,333 |
MIH, Mobile Crisis Intervention Team (MCIT) Station Design | $365,000 |
PPE & Emergency Response | $210,000 |
Police Smart Technology | $200,000 |
Police Victim, Community Advocate Vehicles | $140,740 |
Communications for Police Officers | $40,000 |
Police First Responder Kits | $19,260 |
Total Public Safety Programs | $2,000,000 |
Replace Public Sector Revenue Loss
Summary:
Allows municipalities to calculate the Revenue Loss due to the negative impacts of the COVID-19 pandemic.
Any reduction of revenue is presumed to have been due to the COVID-19 public health emergency.
Provides broad latitude for providing government services.
The City of Las Cruces is using this category as supplemental funding for capital projects that have increased in cost due to the effects of the pandemic.
Capital Projects – Revenue Loss
GO Bond Projects – Park Improvements, New Animal Shelter | $4,128,725 |
New Transit Maintenance Facility | $2,759,945 |
Total Projects | $6,888,670 |
Address Negative Economic Impacts
Summary:
Provide aid to impacted industries such as tourism, travel, and hospitality that were disproportionately and negatively impacted by the pandemic.
Aid may be considered responsive if it supports businesses, attractions, and business districts.
Projects:
Cooperative Advertising | $500,000 |
Website, Visual Assets | $300,000 |
Event Revitalization | $100,000 |
Key Programs | $90,000 |
Convention Center Assets | $10,000 |
Total Amount | $1,000,000 |
Improve Water & Sewer Infrastructure
Summary:
Make necessary investments to improve access to clean drinking water and invest in water and wastewater infrastructure.
Funding guidance provides a framework to align necessary water and sewer infrastructure projects with projects eligible under the EPA’s Drinking Water and Clean Water State Revolving Funds.
Water & Sewer Infrastructure Projects
Calle del Encanto, Calle del Sol | $2,200,000 |
Sewer Connect Program | $1,300,000 |
Total Projects | $3,500,000 |
Premium Pay for Essential Workers
Summary
May be used for payroll expenditures for essential employees to the extent that their services are devoted to mitigating or responding to the COVID public health emergency.
Eligible workers are defined as workers needed to maintain continuity of operations of critical sectors to protect the health and well-being of the residents.
Management made the determination that all employees were essential during the pandemic and were needed to ensure that essential operations were maintained at pre-pandemic levels and continued services were provided to the residents and visitors of Las Cruces.
Premium Pay
City full-time and part-time regular staff hired prior to July 1, 2021 received premium pay.
There were three tiers for premium pay with payments as follows:
Non-Management Staff | $750 |
Administrators, Supervisors | $500 |
Executive Management | $250 |
Total Premium Pay | $958,500 |
Premium pay was a one time payment in October 2021.
Community Grants
Summary
Provide grants to community organizations to offset the negative economic impact experienced by community members in Las Cruces.
On May 2, 2022, City Council adopted an eligibility process and guide for community organizations to apply for funding. The process was modified from a procurement process, with guidelines to ensure compliance with federal requirements.
A scoring committee comprised of six City of Las Cruces employees scored the applicants, and made funding recommendations to City Council.
Funding also covers the administration and oversight of grant contracts. The amount allocated to administrative costs is $478,003.
Learn more about the nonprofit funding here
List of Nonprofits
The following nonprofits were awarded funds on September 6, 2022:
Mesilla Valley Community of Hope | $300,000 |
Community Foundation of Southern NM (UPDATED BELOW) | $1,000,000 |
Community Action Agency of Southern NM | $1,700,000 |
Jardin de Los Niños | $350,000 |
Catholic Charities of Southern NM | $550,000 |
NM Housing & Community Development Corp | $2,000,000 |
Boys & Girls Club of Las Cruces | $1,388,800 |
Cruces Creatives | $1,000,000 |
Mesilla Valley Public Housing Authority | $305,853 |
Liftfund | $1,000,000 |
Total Funding | $9,594,653 |
The Community Foundation of Southern NM project did not work out as expected. City Council adopted a resolution amending the City’s American Rescue Plan Act (ARPA) funding priorities and allocations at the December 4, 2023 Council meeting. The re-allocated funding went to $60,000 in additional administrative costs and $940,000 for workforce grants that are detailed in the chart below.
Dona Ana Community College – DACC (Transitional Job Training) | $240,000.00 |
Ngage New Mexico (Childcare Provider Program) | $300,000.00 |
New Mexico Department of Workforce Solutions (Pre-Apprenticeship Program) | $100,000.00 |
Southern New Mexico Independent Electrical Contractors – IEC (Apprenticeship Program) | $200,000.00 |
Mesilla Valley Economic Development Alliance (Manufacturing Training) | $100,000.00 |
Total (Reallocated) Funding | $940,000.00 |
Storefront Repair Grants
The Small Business Storefront Repair Program allows small businesses to apply for up to $2,500 in grant funding to help repair storefront property that occurred on or after January 1, 2021. These funds will help cover costs to repair current property damage or reimburse business owners for costs paid out of pocket for past damages. Only one application may be submitted per small business/business owner, unless all funds are not expended by February 1, 2024. $400,000 has been allocated for this program.
Administrative Expenses
The U.S. Treasury’s final rule allows recipients to use funds for administering ARPA programs, including the costs of consultants to support effective management and oversight, and costs associated with satisfying the legal and administrative requirements of the federal funding. Eligible costs include satisfying reporting and compliance requirements, subrecipient monitoring, and Single Audit costs. The City is using $478,003 in the administrative category to cover costs for a subgrant consultant, personnel costs for staff completing reporting and compliance activities, and Single Audit costs.