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Home My WebLink About06/11/2024 03.F. Update on ARPA Funds Allocation i4 �e+ i,i i __) BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3.F. For Meeting of: June 11, 2024 ITEM TITLE: Update on ARPA Funds Allocation 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: N/A STRATEGIC PRIORITY: Fiscal Sustainability RECOMMENDATION: For transparency only. ATTACHMENTS: ARPA Allocation and Disbursement Update 6-11-24.pdf 68 ., 41111r141k 7.1. r'd'` .•fir Milk pp 'NV ,II•11111111pr fic<• •• v1\ 2024 American Rescue • �� 1,:„, ... / . A � - Plan Act : ' , , A , . \'�r! rr h'• :::: CityAllocation & - s _ t6 Pei,to 0 )� 0 e . . . . Disbursement Ii date ' ,/'//,‘ ..:\ r,/i 1 City Council Study Session June 11 , 2024 69 Overview This presentation's purpose is to follow up with the City Council regarding the use of the remaining ARPA dollars. 70 Pg. 2 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 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 • Projects under the Surface Transportation and Title I eligible use categories must be spent by September 30, 2024. • 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. 71 �;. Pg. 3 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 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 impacts telework during the public health emergency • 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 72, Pg. 4 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 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 . Reporting Counterfactual -, Z evenu ctual Rev.- . - Revenue Los Jan 1 , 2020 to • Yakima received a total of $26.2 Million . Dec31 , 2020 $ 151 ,458,353 $ 135,704,759 $ (15,753,594) Jan 1 , 2021 to • 2021 — First Disbursement of $13.1 Million. Dec 31 , 2021 $ 142,761 ,407 $ 159,062,381 No Loss Jan 1 , 2022 to • 2022 — Second Disbursement of $13.1 Million. Dec 31 , 2022 $ 167,333,625 $ 153,880,073 $ (13,453,552) Jan 1 , 2023 to Dec 31 , 2023 $ 161 ,881 ,837 $ 160,023,174 $ (1 ,858,663) Total $ (31,065,809) 73 ' Pg. 5 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 2024 'a PENDING ELIGIBLE PROJECTS Activity Amount Category Mill Site* $6,000,000 Infrastructure Sewer & Water $1 ,000,000 Infrastructure Women & Family Shelter** $2,000,000 Public HealthNiolence Intervention Community Partnerships Household Assistance: Food Program Community Projects — TBD $733,380 TBD Not Assigned $56,500 TBD Total $9,789,880 *Including $1 M as match for LIFT Grant. **This contract shall terminate on 7/31/2024 if 100% of the remaining funds are not raised by the contractor or at any time with 30 days notice. Pg. 6 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 2024 74 CATEGORY REVISIONS Completed Project Amount Current Category Recommended Category Domestic Violence $250,000 Public Health-Negative Revenue Replacement: Provision Advocate Economic Impact: Public of Government Services Sector Yakima Convention $500,000 Negative Economic Impact: Aid Revenue Replacement: Provision Center Assistance to Tourism Travel or hospitality of Government Services YPAC Equipment $55,776 Public Health-Negative Revenue Replacement: Provision Improvements Economic Impact: Public of Government Services Sector Total $805,776 Pg. 7 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 2024 75 ` Options • Unfund remaining projects ($7,690,260) • Mill Site, Sewer & Water, Community Projects, and Unassigned Funds. • Designate remaining funds as revenue replacement for the General Fund . • Revisit the YWCA Contract after 7/31 /2024 ($2, 000, 000) • Designate remaining funds as revenue replacement for the General Fund . • Designate the three completed projects as revenue replacement ($805,776) Pg. 8 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 2024 76 Next Steps • Bring forward a resolution reassigned and designating the following ARPA funds as revenue replacement for the General Fund : • $7,690,260 (Pending Projects) • $2 , 000, 000 (Women & Family Shelter) • $805, 776 (Reclassified Projects) • Increase revenue replacement from $ 14. 89 million to $25. 39 million • Future meeting : General Fund Projects. Pg. 9 • City Council Study Session • 2024 American Rescue Plan Act: City Allocation & Disbursement Update • June 11, 2024 YI�14` 78