Loading...
09/07/2021 06.J. Ordinance to create a fund to account for the American Rescue Plan Act (ARPA) Fund (second reading) 1 14-41111\l'A l' ''Qui• V4 rr 11 !Id "i enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.J. For Meeting of: September 7, 2021 ITEM TITLE: Ordinance to create a fund to account for the American Rescue Plan Act (ARPA) Fund (second 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: Pass Ordinance ATTACHMENTS: Description Upload Date Type CI Ordinance 8/10/2021 Ordinance 0 Memo 8/10/2021 Corer Memo 2 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. 3 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: 4 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.