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Home My WebLink About03/26/2024 03. Update on ARPA Funds Allocations 1 s, !% , . ga < :. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3. For Meeting of: March 26, 2024 ITEM TITLE: Update on ARPA Funds Allocations SUBMITTED BY: *Rosylen Oglesby, Interim Director of Finance & Budget SUMMARY EXPLANATION: In 2021 &2022 The City of Yakima received a total of$26.2 million, authorized by the American Rescue Act (ARPA). Expenditures must meet criteria established by the US Department of the Treasury. This is a review of the current allocations and discussion regarding timelines by which funds must be obligated and spent. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: For transparency only. ATTACHMENTS: Description Upload Date Type D ARPA PP slides 3/21/2024 'Y„41 j.. _ yw...a ,, ' NE i / “°-C\�� ob. 2024 American Rescue .9 .4, .. ) /7,r ; . , , ,�� c(4.- Plan Act: T...., '* %��:rOo .A, • CityAllocation & �� .d I'":,---* Pa Disbursement Update : .. ---\\ City Council Study Session March 26, 2024 AGENDA 1 . ARPA Summary Overview 2. Expenses Categories and Limitations 3. Allocations Disbursement History 4. Spending Areas 5. Question and Answers Pg. 2•City Council Study Session •2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 ARPA SUMMARY OVERVIEW • On March 10, 2021 , Congress passed the American Rescue Plan Act, which included $1 .9 trillion in funds to help address the impacts of the COVID-19 pandemic. • Direct funding to State and Local Governments — Total $350 billion. • States and District of Columbia ($195.3 billion) • Counties($65.1 billion) • Metropolitan cities ($45.6 billion) • Tribal governments($20.0 billion) • Territories/Indirect Recipients($4.5 billion) • Non-entitlement units/cities with less than 50K residents($19.5 billion) • Yakima received a total of $26.2 Million. • 2021 — First Disbursement of$13.1 Million. • 2022 — Second Disbursement of $13.1 Million. e Pg.3• City Council Study Session•2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 ) •; FUNDING OBJECTIVES • Support urgent COVID-19 response efforts to continue to decrease the 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. • Address systemic public health and economic challenges that have contributed to the unequal impact of the pandemic. Pg.4•City Council Study Session•2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 SPENDING LIMITATIONS • Generally, only covers eligible costs incurred ON or AFTER March 3, 2021 . • Expectations: • Direct assistance to households, small businesses, and nonprofits (e.g., rent, utility, mortgage assistance) • Retroactive Premium Pay • Yakima must obligate all ARPA funds by December 31 , 2024: • In 2 CFR § 200.71, the Uniform Guidance defines "obligation" as "orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment by the non-Federal entity during the same or a future period." • All ARPA Funds must be spent by December 31 , 2026. —t. Pg.5•City Council Study Session •2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 r REPORTING TIMELINES • Reporting and Compliance Timelines: • Reports must include: • Project description, • Evidence to support eligibility under ARPA, • Award Amount • Project Status, and • In some cases, details about program structure, objectives, approach, and eligibility requirements for funding recipients • Initial reporting started on April 30, 2022. • Annual reports ensue thereafter. • Random audits. Pg.6•City Council Study Session• 2024 American Rescue Plan Act: City Allocation &Disbursement Update• March 26,2024 ; ,-, USES OF ARPA FUNDS Eligible uses of ARPA funds: Ineligible uses of ARPA funds: • Replace lost public sector revenue • Using the money for federal matching funds • Respond to public health and negative economic Premium pay for employees who were able to • telework during the public health emergency impacts • Funding pension accounts • Provide premium pay for essential workers • Paying off outstanding debt • Invest in water, sewer, and broadband infrastructure • Making deposits to reserve accounts or rainy day • Emergency relief from natural disasters funds • Surface transportation projects • Funding debt service, legal settlements or • Title I projects judgments • Depositing funds into any pension fund Pg.7 •City Council Study Session•2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 REVENUE REPLACEMENT CATEGORY (AKA Revenue Loss) • Allows a local government to undertake a wide array of expenditures. • Triggers less Uniform Guidance compliance requirements. • Limits administrative burden . ReportingTT Counterfactual Period Revenue Actual Revenue Revenue Loss Jan 1, 2020 to Dec 31, 2020 $ 151,458,353 $ 135,704,759 $(15,753,594) Jan 1, 2021 to Dec 31, 2021 $ 142,761,407 $ 159,062,381 No Loss Jan 1, 2022 to Dec 31, 2022 $ 167,333,625 $ 153,880,073 $(13,453,552) Total: $(29,207,146) Pg.8•City Council Study Session•2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 ALLOCATION DISTRIBUTION PLAN : ORIGINAL $11.9 million - claimed as revenue loss and $14.3 million is allocated as follows: allocated as follows: • Mill Site Water & Sewer $6,000,000 • 57 Police Patrol Vehicles $4,600,000 • Sewer & Water Investments $1,000,000 • Fire Engines & Other Vehicles $2,800,000 • Women and Family Shelter $2,000,000 • Bank of America Building $2,000,000 • DV Advocate - City $250,000 • Technology & Software $1,000,000 • Yakima Convention Center $800,000 • Space Study of City Properties $300,000 • Community Partnerships $500,000 • To Be Determined $1,200,000 • Mental Health/Homeless $1,500,000 • Affordable Housing $1,000,000 • Yakima Arts Center $1,250,000 Source: City Manager's Memorandum RE:ARPA Recommendations dated September 3, 2021. Pg.9•City Council Study Session•2024 American Rescue Plan Act: City Allocation&Disbursement Update•March 26,2024 fy ALLOCATION DISTRIBUTION PLAN : FIRST REVISION $11.9 million - claimed as revenue loss and $ million is allocated as follows: allocated as follows: • Mill Site Water & Sewer $6,000,000 • Technology & Software $1 ,000,000 • Sewer & Water Investments $1 ,000,000 • 57 Police Patrol Vehicles $4,600,000 • Women and Family Shelter $2,000,000 • Fire Engines & Other Vehicles $2,800,000 • DV Advocate - City $250,000 • Bank of America Building $2,000,000 • Yakima Convention Center $500,000 Space Study of City Properties $300,000 • Community Partnerships $500,000 To Be Determined $1 ,200,000 • Mental Health/Homeless $1 ,500,000 • Aquatic Center @ MLK (capital) $1 ,500,000 • Affordable Housing $1 ,000,000 • Yakima Arts Center $1 ,250,000 $295,479 Not Assigned Green—Complete Red—Revised Source:City Manager's Memorandum RE:ARPA Funds dated July 12,2022. Purple-New Pg.10•City Council Study Session•2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 ALLOCATION DISTRIBUTION PLAN : SECOND REVISION $ million - claimed as revenue loss and $11.2f million is allocated as follows: allocated as follows: • Mill Site Water & Sewer $6,000,000 • Technology & Software $1 ,400,000 • Sewer & Water Investments $1 ,000,000 • 57 Police Patrol Vehicles $4,600,000 • Women and Family Shelter $2,000,000 • Fire Engines & Other Vehicles $2,831 ,446 • DV Advocate - City $250,000 • Bank of America Building $1 ,967,921 • Yakima Convention Center $500,000 • Space Study of City Properties $300,000 • Community Partnerships $99,620 a To Bey- • Mental Health/Homeless $1 ,500,000 • Aquatic Center @ MLK (capital) $1 ,500,000 • Affordable Housing $667,000 • Fire Overtime $1 ,000,000 • Yakima Arts Center $1 ,250,000 • Economic Development $800,000 • Community Projects — TBD $733,380 $846,112 Not Assigned Green—Complete Red— Revised Source:City Manager's Presentation RE:ARPA Update dated August 22, 2023. Purple- New Pg.11 •City Council Study Session•2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 ALLOCATION DISTRIBUTION PLAN : THIRD REVISION $ million - claimed as revenue loss and $11.2! million is allocated as follows: allocated as follows: • Mill Site Water & Sewer $6,000,000 • Technology & Software $1 ,470,612 • Sewer & Water Investments $1 ,000,000 • 57 Police Patrol Vehicles $4,600,000 • Women and Family Shelter $2,000,000 • Fire Engines & Other Vehicles $2,831 ,446 • DV Advocate - City $250,000 • Bank of America Building $1 ,967,921 • Yakima Convention Center $500,000 ▪ Space Study of City Properties $300,000 • Community Partnerships $99,620 • To Be Deter i-ned $1 ,200,000 • Mental Hcalth/Hemcloss $1 ,500,000 • Aquatic Center @ MLK (capital) $1 ,500,000 • Affordable Housing $667,000 • Fire Overtime $1 ,000,000 • Yakima Arts Center $1 ,250,000 • Economic Development $800,000 • Community Projects — TBD $733,380 • YPAC Upgrades $55,776 Green—Complete $775,500 Not Assigned Red— Revised Purple-New Pg.12•City Council Study Session •2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 ALLOCATION DISTRIBUTION PLAN : FOURTH REVISION $ million - claimed as revenue loss and $ million is allocated as follows: allocated as follows: • Mill Site Water & Sewer $6,000,000 • Technology & Software $1 ,470,612 • Sewer & Water Investments $1 ,000,000 • 57 Police Patrol Vehicles $4,600,000 • Women and Family Shelter $2,000,000 • Fire Engines & Other Vehicles $2,831 ,446 • DV Advocate - City $250,000 • Bank of America Building $1 ,967,921 • Yakima Convention Center $500,000 • Space Study of City Properties $300,000 • Community Partnerships $99,620 To Be Determined $1 ,200,000 a Mental Health/Homeless $1 ,500,000 • Aquatic Center @ MLK (capital) $1 ,500,000 • Affordable Housing $667,000 • Fire Overtime $1 ,000,000 • Yakima Arts Center $1 ,250,000 • Economic Development $800,000 • Community Projects — TBD $733,380 • Aquatic Center @ MLK (operating) $719,000 • YPAC Upgrades $55,776 Green—Complete $56,500 Not Assigned Red— Revised Purple- New Pg. 13•City Council Study Session• 2024 American Rescue Plan Act: City Allocation &Disbursement Update •March 26,2024 PENDING ELIGIBLE PROJECTS Activity Amount Category Mill Site* $5,000,000 Infrastructure Sewer & Water $1 ,000,000 Infrastructure Women & Family Shelter $2,000,000 Public HealthNiolence Intervention Community Partnerships $99,620 Household Assistance: Food Program Community Projects — TBD $733,380 TBD Not Assigned $56,500 TBD $8,889,500 *Excluding$1 M as match for LIFT Grant Pg. 14•City Council Study Session•2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 Y b NEXT STEPS • Continue outreach with project owners on the pending eligible project lists. • Revisit — June/July • To discuss the status of the pending eligible projects. • To establish a date by which the City Council determines to defund projects unable to move forward with assurances that the City will be able to meet its deadlines. • Present alternative eligible projects for remaining funds. • Decisions must be made quickly in order to meet deadlines. • Obligate all ARPA funds by December 31 , 2024 • Spend all ARPA funds by December 31 , 2026 Pg. 15• City Council Study Session• 2024 American Rescue Plan Act: City Allocation &Disbursement Update•March 26,2024 ) 411111 i Ak •