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Home My WebLink AboutCOW 2024-12-09 Item 5F - Discussion - Allocation of Remaining American Rescue Plan Act (ARPA) FundsCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 12/9/24 Tony ITEM INFORMATION ITEM No. 5.F. STAFF SPONSOR: TONY CULLERTON ORIGINAL AGENDA DATE: 12/9/24 AGENDA ITEM TITLE ARPA Discussion CATEGORY 11 Discussion Mtg Date 12/9/24 El Motion Mtg Date E Resolution Mtg Date ❑ Ordinance AN Date ❑ Bid Award Mt_ Date E Public Hearing Mty Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD 11 Finance ❑ Fare ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY Review 2024 ARPA expenditures and consensus request REVIEWED BY Trans&Infrastructure Svcs ❑ LTAC DATE: Community Svcs/Safety [J Finance & Governance [J Planning & Community Dcv. Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONsoR/ADMIN. Finance COMMII'IEE 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 MTG. DATE ATTACHMENTS 12/9/24 Info memo dated 12/9/24 ARPA Funding Discussion PowerPoint 113 114 4.4 Thomas McLeod, Mayor Finance Department —Aaron BeMiller, Director TO: Finance and Governance Committee FROM: Aaron BeMiller, Finance Director BY: Tony Cullerton, Deputy Finance Director CC: Mayor McLeod DATE: December 9th, 2024 SUBJECT: 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) 5,682,598 2021 Actual Spent 817,307 2022 Actual Spent 1,894,357 2023 Actual Spent 1,217,920 2024Actual Spent 649,294 Remaining ARPA Funding $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. 115 Current 2024 ARPA is listed below by category: Category Code Enforcement Comm Dev Administration Community Events & Volunteers Community Service & Engagement Finance Department Gen Fund Capital Transfers Park Maintenance Permit Coordination Preschool Program Res Str-Admin Capital Res Str-Administration Res Str-Engineering Res Str-Roadway Str Maint-Administration Teen Programs Traffic Wellness & Enrichment Youth Programs Total Available ARPA Funding is $1,103,720. Amount 35,446 54,165 77 7,040 37,527 7,017 57,000 18,719 546 3,201 223,482 (155) 28,409 118,614 13,797 27,300 9,125 7,983 649,294 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 2024 YID ARPASp ending Remaining ARPAFunding Public Safety Remaining ARPAFunding 1,753,014 (649,294) 1,103,720 (1,103, 720) 0 RECOMMENDATION Agree to move this forward for approval to the 12/16 Council Regular Meeting for approval. 116 ARPA Funding Discussion December 9th, 2024 Tony Cullerton, Deputy Finance Director ARPA Funding Overview On March 10, 2021, the American Rescue Plan Act (ARPA) was enacted, providing a $1.9 t package. ion relief The City was allocated $5.68 million, with the first installment received in June 2021 and the second in July 2022. Funds must be spent or contractually committed by December 31, 2024. 2 ARPA Historical Spending This table show the follow of ARPA funds after three years of council -approved expenditures. Unallocated funds are due to underspent budget allocations. Further recommendations for unallocated funds will be discussed. Total ARPA Gra nt (Begi n n i ng Balance) 5,682,598 2021Actual Spent 817,307 2022 Actu a l Spent 1,894,357 2023Actual Spent 1,217,920 2024Actual Spent 649,294 Remaining ARPA Funding $1,103,720 O 2024 Allocations 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 Captial 3,201 Res Str-Administration 223,327 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 4 Funding Criteria ARPA funding is restricted and must fall under the following criteria: • Public Safety funding • 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. N 5 Next Steps • Approximately $649,294 of the budgeted 2024 ARPA funding has been spent. • Allocate the remainder ARPA funds to Public Safety. 2024 Beginning ARPA Balance 1,753,014 2024 YTD ARPA Spending (649,294) Remaining ARPA Funding 1,103,720 Public Safety (1,103,720) Remaining ARPA Funding 0 Recommendation Move this forward for consideration at the December 1 6th Council Regular Meeting.