FIN 2022-11-14 Item 1E - Report - American Rescue Plan Act (ARPA) Fund Expenditures Report: January thru June 2022

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�sz City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Vicky Carlsen, Finance Director BY: Julie Hatley, ARPA Funds Analyst CC: Mayor Ekberg DATE: November 14, 2022 SUBJECT: First Half of 2022 American Rescue Plan Act (ARPA) Fund expenditures and Benefits to our Community ISSUE Staff is reporting First Half of 2022 ARPA-funded expenditures, and information detailing the benefits of the expenditures to the community, per 2021 allocations approved by City Council in November 2021. BACKGROUND On March 10, 2021, a $1.9 trillion relief package, known as the American Rescue Plan Act, was approved and provided funding in several areas including state and local aid, education, rental assistance, and transit. The City was allocated $5.68 million with the first half received in June of 2021 and the second half received in July of 2022. Funds must be spent or contractually committed by December 31, 2024. In January 2022 the US Treasury released their ARPA Final Rule for compliant recordkeeping and reporting with updates provided the following months. In September 2022 Treasury announced that, due to budget cuts and current rules barring them from flexing administrative costs from one program to another, they would close their popular ARPA Call-in Customer Service Center. Treasury staff levels were severely curtailed with only email support remaining, however, they predict significantly delayed response times. The US Treasury continues to refer governments to online reference materials, however, relevant information for smaller municipalities like Tukwila who received less than under $10M is limited. Staff confirms commitment to all state and federal compliance requirements. On March 14, 2022, staff introduced ARPA Funds Analyst to the Finance & Governance committee that included Analyst presenting responsibilities for accurate and federally compliant recordkeeping and reporting. For each Council -approved allocation, Analyst monitors, tracks, and audits each individual ARPA-funded expenditure, collaborates across departments, provides ongoing knowledge support for decision makers, and reconciles expenditures at multiple points during the year. In April 2022 Analyst successfully reported the City's first year of ARPA expenditures and community projects to the US Treasury as required. On May 23, 2022, Analyst prepared and presented to the Finance & Governance committee a report of 2021 ARPA-funded expenditures and benefits to the community. During the subsequent 2021 State Audit, Analyst provided methodology and records to auditors for their detailed assessment. Auditors 37