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HomeMy WebLinkAboutReg 2024-12-16 Item 6C - Motion - Obligation of $1,103,720 in American Rescue Plan Act (ARPA) Funds for Public Safety by 12/31/24COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 12/9/24 Tony ITEM INFORMATION ITEM NO. 6.C. STAFF SPONSOR: TONY CULLERTON ORIGINAL AGENDA DATE: 12/9/24 AGENDA ITEM TITLE ARPA Discussion CATEGORY ® Discussion Mtg Date 12/9/24 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY Review 2024 ARPA expenditures and consensus request REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONsoR/ADMIN. Finance COMMITTEE Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 12/9/24 Forward to 12/16 Regular Meeting MTG. DATE ATTACHMENTS 12/16/24 Obligate Remaining ARPA Funds 83 84 City of Tukwila Thomas McLeod, Mayor Finance Department — Aaron BeMiller, Director TO: FROM: BY: CC: DATE: SUBJECT: Finance and Governance Committee Aaron BeMiller, Finance Director Tony Cullerton, Deputy Finance Director Mayor McLeod December 9th, 2024 Obligate Remaining American Rescue Plan Act (ARPA) Funding ISSUE In accordance with ARPA guidelines, all remaining ARPA funding must be obligated no later than December 31, 2024, and fully expended by December 31, 2026. BACKGROUND On March 10, 2021, the American Rescue Plan Act (ARPA) was enacted, providing a $1.9 trillion relief package. This legislation allocated funds to various sectors including state and local aid, education, rental assistance, and transit. The City was allocated $5.68 million, with the first installment received in June 2021 and the second installment in July 2022. All funds must be expended or contractually committed by December 31, 2024. DISCUSSION The following table details the flow of ARPA funds over three years of council -approved expenditures. The unallocated funds are attributed to expenditures that have not fully utilized their budget allocation. Further recommendations for the allocation of these funds will be provided in due course. Total ARPA Grant (Beginning Balance) 2021 Actual Spent 2022 Actual Spent 2023 Actual Spent 2024Actual Spent Remaining ARPA Funding 5,682,598 817,307 1,894,357 1,217,920 649,294 $1,103,720 In accordance with US Treasury ARPA requirements, cities must contractually obligate all ARPA funds by December 31, 2024, and expend these funds by December 31, 2026. It is anticipated that council -approved allocations will fully utilize ARPA funds by the December 31, 2024, deadline. 85 Current 2024 ARPA is listed below by category: Category Amount Code Enforcement 35,446 Comm Dev Administration 54,165 Community Events & Volunteers 77 Community Service & Engagement 7,040 Finance Department 37,527 Gen Fund Capital Transfers 7,017 Park Maintenance 57,000 Permit Coordination 18,719 Preschool Program 546 Res Str-Admin Capital 3,201 Res Str-Administration 223,482 Res Str-Engineering (155) Res Str-Roadway 28,409 Str Maint-Administration 118,614 Teen Programs 13,797 Traffic 27,300 Wellness & Enrichment 9,125 Youth Programs 7,983 Total 649,294 Available ARPA Funding is $1,103,720. 2024 Beginning Balance 1,753,014 2024 Budget 1,496,418 2024 YTD ARPA Spending 649,294 2024 Available ARPA Funding 1,103,720 ARPA funding is restricted and must fall under the following criteria: • Providing premium pay to essential workers • Investing in infrastructure like water, sewer, and broadband • Replacing lost public sector revenue • Supporting public health initiatives related to COVID-19 • Expanding access to broadband internet • Funding capital expenditures to address the negative economic impacts of the pandemic NEXT STEPS Based on current JL Key-Obj Inquiry ARPA reporting, approximately $649,294 of the 2024 budget has been spent. While future ARPA projects are pending, some formal contracts remain outstanding. To ensure full allocation of available ARPA funding, it is recommended that $1,103,720 be allocated to Public Safety. 2024 Beginning ARPABalance 1,753,014 2024 YID ARPASp ending (649,294) Remaining ARPAFunding 1,103,720 Public Safety (1,103,720) Remaining ARPAFunding 0 RECOMMENDATION Agree to move this forward for approval to the 12/16 Council Regular Meeting for approval. 86