TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Julie Bondarchuk, Financial Controller
Libby Bretthauer, Financial Services Manager
SUBJECT:Title
Acceptance of American Rescue Plan Act (ARPA) Funds (Finance Director Charelian).
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
The Finance Subcommittee and staff recommend that the City Council accept $8,416,521 of American Rescue Plan Act (ARPA) funds under the "revenue loss" category and apply the funds to government services, with the first half applied to the period of March 3, 2021 through June 30, 2021. The second half of the distribution will be applied to fiscal year 2021-2022.
FISCAL IMPLICATIONS:
The City's allocation of American Rescue Plan Act (ARPA) funds is $8,416,521. The first half ($4,208,261) was received in July 2021, and the second half is expected in July 2022.
When the fiscal year 2021-2022 Budget was adopted in June, the General Fund Financial Policy reserve (20% of operating expenditures) was projected to total $15.5 million at the end of the fiscal year. The City Council has also set aside $4.0 million as an "Economic Uncertainty" reserve. In addition to these designated reserves, the General Fund's unreserved fund balance is estimated to be $3.5 million at the end of fiscal year 2021-2022.
If the recommendation is approved, the ARPA funds received totaling $4.2 million will be allocated to the "revenue loss" category and applied to government services in fiscal year (FY) 2020-2021, resulting in the unreserved fund balance increasing to approximately $7.7 million. Together, these designated and undesignated funds are projected to total $27.2 million. These funds can be used to fund operations, infrastructure or projects.
BACKGROUND:
Signed into law on March 11, 2021, the American Rescue Plan Act provided $350 billion...
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