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08/02/2021 09. Ordinance amending the 2021 Budget 1 14-4111\l'A 1—coi• oriV4 rr 11 !Id "i enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 9. For Meeting of:August 2, 2021 ITEM TITLE: Ordinance amending the 2021 Budget for the City of Yakima; and increasing the Convention Center Fund 170 revenue budget with a $500,000 allocation from the American Rescue Plan Act(ARPA) Fiscal Recovery Funds (First Reading) SUBMITTED BY: Jennifer Ferrer Santa Ines, Director of Finance and Budget Kimberly Domine, Finance Division Manager Jennifer Morris, Financial Services Officer SUMMARY EXPLANATION: The Convention Center Fund 170 actual year to date revenues are less than anticipated or projected in the budget. Revenue from Hotel Motel Tax to date total $367,000 and revenue from Yakima Center operations has brought in $96,000. The annual budget for these revenue sources were $682,000 and $875,000, respectively. The Convention Center Fund has a net decrease of $243,000 to date. In order to cover decreased revenues and anticipated expenditures for the year, Staff is recommending the use of American Rescue Plan Act (ARPA) Fiscal Recovery Funds to mitigate COVI D-19 related negative impacts affecting the tourism, travel, and hospitality industry. Per the Interim U.S. Department of Treasury guidelines, this is an eligible use of fiscal recovery funds. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOM M ENDAT ION: First reading of Ordinance. ATTACHMENTS: Description Upload Date Type 0 Ordinance 7/29/2021 Ordinance CI Memo 7/29/2021 Corer Memo 2 3 ORDINANCE NO. 2021- AN ORDINANCE amending the 2021 Budget for the City of Yakima; and increasing the Convention Center Fund 170 revenue budget with a $500,000 allocation from the American Rescue Plan Act (ARPA) Fiscal Recovery Funds. WHEREAS, the ARPA Fiscal Recovery Funds provides for economic impacts for hard hit industries such as tourism, travel, and hospitality; and WHEREAS, at the time of the adoption of the 2021 budget it could not reasonably have been foreseen to anticipate continued and sustained negative economic impacts to the tourism, travel, and hospitality industries, and WHEREAS this transfer of ARPA Fiscal Recovery Funds allocation would mitigate the revenue loss in The Convention Center Fund 170 as a result of the COVID-19 pandemic; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. A revenue transfer allocation totaling $500,000 is hereby made, for Convention Center Fund 170, from ARPA Fiscal Recovery Funds as specified in the Schedule 1 attached hereto and incorporated herein. Section 2. This ordinance is making a transfer of revenue from ARPA Fiscal Recovery Funds to Convention Center Fund 170 and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 17th day of August, 2021. Patricia Byers, Mayor ATTEST: Sonya Clear Tee, City Clerk First Reading: August 2, 2021 Publication Date: Effective Date: 4 •_, :-,) 0 FINANCE TO: Mayor and City Council FROM: Jennifer Ferrer-Santa Ines, Director of Finance and Budget DATE: July 29, 2021 RE: 2021 Budget Amendment Ordinance This budget ordinance affects course corrections based on new information for the 2021 Budget year that was not known at the time of budget adoption. Staff requests approval of adjustments and corrections to the 2021 budget for a need that is now known that was not known at the time of adoption. The Convention Center Fund 170 actual year to date revenues are less than anticipated or projected in the budget. Revenue from Hotel Motel Tax to date total $367,000 and revenue from Yakima Center operations has brought in $96,000. The annual budget for these revenue sources were $682,000 and $875,000, respectively. The Convention Center Fund has a net decrease of$243,000 to date. In order to cover decreased revenues and anticipated expenditures for the year, Staff is recommending the use of American Rescue Plan Act (ARPA) Fiscal Recovery Funds to mitigate COVID-19 related negative impacts affecting the tourism, travel, and hospitality industry. Per the Interim U.S. Department of Treasury guidelines, this is an eligible use of fiscal recovery funds. City of Yakima 2021 Budget Amendment SCHEDULE August 2021 Budget Amendment From Fund To Fund From Dr(Cr) To Dr(Cr) Fund Account# Name Fund Account Name $ $ Increase Revenue Budget General Fund 1 8953119 American Rescue 170 8953119 Convention Center $ 500,000.00 $ (500,000.00) $ 500,000.00 $ (500,000.00)