The Town of Fountain Hills is slated to receive $8.4 million in federal assistance coming from the American Rescue Plan Act (ARPA), divided between the current fiscal year and next fiscal year.

At its regular session last week, the Town Council approved a plan that would use those funds for public safety, primarily the town’s contract with Rural/Metro for fire and emergency medical services.

Staff determined that 80 percent of fire department responses are medical related and proposed that 80 percent of the funding go to the fire and medical services. With approximately $4.2 million each year, $3.1 million goes to the Rural/Metro contract and just over $1 million to the MCSO law enforcement agreement. Staff proposed the 80/20 split was chosen because the ARPA funding has more restrictions than the previous CARES Act when the money was split evenly between fire and law enforcement.

Councilwoman Peggy McMahon questioned whether 80 percent wasn’t a high number since the calls needed to be related to COVID. Councilman Mike Scharnow noted that COVID protocols now relate to nearly all medical responses, and Fountain Hills Rural/Metro Fire Chief Dave Ott confirmed for The Times that COVID protocols now impact virtually all of their medical responses.

The ARPA outlines specific purposes for which the funding may be used and those include public health and safety expenditures, addressing negative economic impacts on communities, businesses and individuals, revenue loss by local government and investments in water, sewer and broadband (areas where the town has no direct financial connection).

To simplify auditing of the funds staff is proposing the money go toward public safety with $3,158,676 to the Rural/Metro contract and $1,049,473 for law enforcement with Maricopa County Sheriff's Office.

Along with approving the specific public safety funding from ARPA, the council also began a conversation regarding how to use the approximately $8 million in savings to the General Fund over two years.

Staff is recommending that this savings only be used for one-time expenditures and not for on-going expenses. It is suggesting $300,000 for local non-profit assistance grants and $100,000 reserved for future pandemic-related expenses such as testing/vaccination sites or programing.

Staff would like the remaining $8 million transferred to the town’s Facilities Reserve Fund, earmarked for renovation projects on Fountain Lake such as the liner and equipment upgrades.

Vice Mayor Alan Magazine said he would prefer to see some of that funding made available for street pavement management projects. He said he believes it would be difficult to possibly ask the public to approve a bond for street finances when the town is sitting on $8 million in funds for facilities upgrades.

Town Manager Grady Miller noted that the town is currently putting together a citizens committee to consider long-term pavement management options and this could be part of that conversation, as well as budget discussion going forward for the next two years.