HomeMy WebLinkAbout 08/17/2021 09. Ordinance to create a fund to account for the American Rescue Plan Act (ARPA) Fund (first reading) 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.
For Meeting of:August 17, 2021
ITEM TITLE: Ordinance to create a fund to account for the American Rescue
Plan Act (ARPA) Fund (first reading)
SUBMITTED BY: Jennifer Ferrer Santa Ines, Director of Finance and Budget
SUMMARY EXPLANATION:
The attached Ordinance authorizes the establishment of an "ARPA Fiscal Recovery Fund" to
account for the award and future expenditure of these funds. This special revenue fund will allow
for separate accountability of these federal funds and will be used to administer fiscal matters
related to the program.
The Ordinance authorizes the City Manager to apply for and accept current and future funds
awarded by the U.S. Department of Treasury through the OFM under the ARPA. It also
authorizes the City Manager or his designee to execute all related contracts, agreements,
amendments, and documents in connection with this program, with the approval as to form by the
City Attorney, without further Council action. This Ordinance further authorizes the City Manager
to accept and deposit ARPA funds into the ARPA Fiscal Recovery Fund.
ITEM BUDGETED: No
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
First reading of Ordinance.
ATTACHMENTS:
Description Upload Date Type
CI Ordinance 8/10/2021 Ordinance
0 Memo 8/10/2021 Corer Memo
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ORDINANCE NO. 2021-
AN ORDINANCE accepting the Coronavirus Local Fiscal Recovery Funds from
the American Rescue Plan Act (ARPA) authorizing the City
Manager to execute all related contracts and documents;
adopting City of Yakima Municipal Code Section 3.124 to
establish the ARPA Fiscal Recovery Fund.
WHEREAS, the American Rescue Plan Act of 2021 ("ARPA")was signed into law
on March 11, 2021; and
WHEREAS the City of Yakima is currently eligible to receive approximately $26
million from the Coronavirus State and Local Fiscal Recovery Funds ("CSLFRF") program
to be utilized to aid in the recovery from the budgetary, economic, and financial impacts
of the COVID-19 pandemic; and
WHEREAS to receive the ARPA funds, the City must enter into a U.S. Treasury
CSLFRF Terms and Conditions agreement; and
WHEREAS the City desires to establish a new special revenue fund entitled
"ARPA Fiscal Recovery Fund" for the purpose of segregating revenues received through
and the expenditures eligible under the American Rescue Plan Act of 2021; and
WHEREAS City Staff has determined that receipt of CSLFRF funds and the
creation of the ARPA Fiscal Recovery Fund is in the best interest of the City of Yakima;
now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The City Council does hereby incorporate the above "whereas"recitals
as findings in support of this ordinance and designates the City Manager or his designee
to represent and act on behalf of the City for the purpose of the Coronavirus Local Fiscal
Recovery Funds (CLFRF) program to accept current and future funds awarded by the U.S.
Department of Treasury under the American Rescue Plan Act (ARPA). The City Manager
is further authorized to execute all related contracts, agreements, amendments, and
documents in connection with the CLFRF program, with the approval as to form of the City
Attorney.
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Section 2. There is hereby added a new City of Yakima Municipal Code Chapter
3.124, ARPA Fiscal Recovery Fund, which establishes the ARPA Fiscal Recovery Fund
(also known as the American Rescue Plan Act Fiscal Recovery Fund) for the purpose of
segregating revenues received through and expenditures eligible under the American
Rescue Plan Act of 2021.
3.124 ARPA Fiscal Recovery Fund.
A. There is created the ARPA Fiscal Recovery Fund.
B. The ARPA Fiscal Recovery Fund shall consist of monies allocated to the
City under the American Rescue Plan Act of 2021 and distributed to the
City in 2021 and 2022. The City shall appropriate and use the ARPA
Fiscal Recovery Fund only for the eligible purposes as permitted by the
ARPA and the U.S. Department of the Treasury.
This ordinance is creating a new Fund 180 and adopting City of Yakima Municipal Code
Chapter 3.124,ARPA Fiscal Recovery Fund,which establishes the ARPA Fiscal Recovery
Fund (also known as the American Rescue Plan Act Fiscal Recovery Fund) 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 2nd day of
September, 2021.
Patricia Byers, Mayor
ATTEST:
Sonya Clear Tee, City Clerk
First Reading: August 17, 2021
Publication Date:
Effective Date:
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s,C''•. .ter
FINANCE
TO: Mayor and City Council
FROM: Jennifer Ferrer-Santa Ines, Director of Finance and Budget
DATE: August 10, 2021
RE: Ordinance Accepting Coronavirus Local Fiscal Recovery Funds from the American
Rescue Plan Act (ARPA) and Creating ARPA Fiscal Recovery Fund
The American Rescue Plan Act of 2021 ("ARPA") was signed into law on March 11, 2021. As
part of this COVID-19 stimulus package, federal funding will be distributed to state and local
governments to aid in the recovery from the budgetary, economic, and financial impacts of the
COVID-19 pandemic. The Washington State Office of Financial Management (OFM) is
responsible for the distribution of ARPA funds to local governments. The City of Yakima is
currently projected to receive approximately $26 million of Coronavirus Local Fiscal Recovery
Funds from ARPA. The first distribution of$13,097,739.50 was received on May 19, 2021, and
the remaining balance will be received in 2022. Funding must be used for eligible costs
incurred during the period March 3, 2021 through December 31, 2024. Funds must be
expended by December 31, 2026.
The attached Ordinance authorizes the establishment of an "ARPA Fiscal Recovery Fund" to
account for the award and future expenditure of these funds. This special revenue fund will
allow for separate accountability of these federal funds and will be used to administer fiscal
matters related to the program.
The Ordinance authorizes the City Manager to apply for and accept current and future funds
awarded by the U.S. Department of Treasury through the OFM under the ARPA. It also
authorizes the City Manager or his designee to execute all related contracts, agreements,
amendments, and documents in connection with this program, with the approval as to form by
the City Attorney, without further Council action. This ordinance further authorizes the City
Manager to accept and deposit ARPA funds into the ARPA Fiscal Recovery Fund.
The U.S. Department of Treasury has issued an Interim Final Rule outlining eligible uses, but
until the federal regulations for how the ARPA funds can be spent are finalized, it is difficult to
solidify a plan for how to utilize the funds. The City is carefully considering all alternatives for
the prudent use of the ARPA funds as allowed under the Interim Final Rule with
recommendations coming forward to Council in the near future. Subsequent budget
amendment ordinances will be presented to authorize appropriation and expenditure of funds
for activities eligible under the ARPA.