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Home My WebLink About168-24 RESOLUTIONPage 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 168-24 File Number: 2024-109 ARPA CHILDCARE ASSISTANCE PROGRAM (ADDITIONAL FUNDING): A RESOLUTION TO COMMIT THE REMAINING ARPA FUNDS TO THE CHILDCARE ASSISTANCE PROGRAM AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville was awarded $17.9 million in American Rescue Plan Act funding to assist in responding to the negative effects of the COVID-19 pandemic; and WHEREAS, beginning in 2021, the City established a number of projects to address the effects of the COVID-19 pandemic throughout the City including assistance to nonprofit organizations, vaccine incentives, workforce training, development programs, floodplain conservation, a childcare assistance program, funding to provide new ambulances to the regional ambulance authority, and programs to address housing instability in Fayetteville; and WHEREAS, approximately $185,005.00 in ARPA funding and accrued interest remains uncommitted at this time; and WHEREAS, Staff recommends that City Council commit the current balance of the ARPA award, current interest, and any potential future accrued interest or unspent ARPA funds to the Childcare Assistance Program; and WHEREAS, per the American Rescue Plan Act regulations, the ARPA funds must be formally committed by 12/31/2024 or the uncommitted funds would need to be returned to the U.S. Department of Treasury. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby commits the current balance of the ARPA award, current interest, and any potential future accrued interest to the Childcare Assistance Program. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. PASSED and APPROVED on June 18, 2024 Resolution: 168-24 File Number: 2024-109 Approved: Attest: Page2 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2024-109 MEETING OF JUNE 18, 2024 TO: Mayor Jordan and City Council THRU: Paul Becker, Chief Financial Officer FROM: Steven Dotson, Internal Auditor SUBJECT: Additional funding for ARPA Childcare Assistance Program RECOMMENDATION: Additional funding for ARPA Childcare Assistance Program BACKGROUND: The City of Fayetteville was awarded $17.9 million in American Rescue Plan Act funding to assist in responding to the negative effects of the COVID-19 pandemic. Beginning in 2021, the City established a number of projects to address the effects of the COVID-19 pandemic throughout the City. Some of the major ARPA projects included assistance to nonprofit organizations, vaccine incentives, workforce training development programs, floodplain conservation, funding to provide new ambulances to the regional ambulance authority, programs to address housing instability in Fayetteville. In 2022 and 2023, the City Council approved a total of $2,000,000 to fund a childcare assistance program. This has proven to be one of the most popular ARPA programs that the City has operated, and the program is currently running low on funding. Although City funds generally could not be used for this purpose, the American Rescue Plan Act regulations allow this as a qualified use of funds under the ARPA award. DISCUSSION: Approximately $185,005.00 in ARPA funding and accrued interest remains uncommitted at this time. Staff would like to recommend that Council commit the current balance of the ARPA award, current interest, and any potential future accrued interest or unspent ARPA funds to the Childcare Assistance Program and to approve a budget adjustment. Per the American Rescue Plan Act regulations, the ARPA funds must be formally committed by 12/31/2024. Any uncommitted ARPA funds after 12/31/2024 would need to be returned to the U.S. Department of the Treasury. The Childcare Assistance Program has been one of the most popular ARPA programs run by the City, and there continues to be a great demand for this funding. BUDGET/STAFF IMPACT: The remainder of the ARPA funds will be committed to this project. That includes the current balance of $185,005.00 plus any future interest that will accrue on committed but currently unspent funds. Budget adjustment attached. ATTACHMENTS: SRF (#3), BA (#4) Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2024-109 Additional funding for ARPA Childcare Assistance Program A RESOLUTION TO COMMIT THE REMAINING ARPA FUNDS TO THE CHILDCARE ASSISTANCE PROGRAM AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville was awarded $17.9 million in American Rescue Plan Act funding to assist in responding to the negative effects of the COVID-19 pandemic; and WHEREAS, beginning in 2021, the City established a number of projects to address the effects of the COVID-19 pandemic throughout the City including assistance to nonprofit organizations, vaccine incentives, workforce training, development programs, floodplain conservation, a childcare assistance program, funding to provide new ambulances to the regional ambulance authority, and programs to address housing instability in Fayetteville; and WHEREAS, approximately $185,005.00 in ARPA funding and accrued interest remains uncommitted at this time; and WHEREAS, Staff recommends that City Council commit the current balance of the ARPA award, current interest, and any potential future accrued interest or unspent ARPA funds to the Childcare Assistance Program; and WHEREAS, per the American Rescue Plan Act regulations, the ARPA funds must be formally committed by 12/31/2024 or the uncommitted funds would need to be returned to the U.S. Department of Treasury. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby commits the current balance of the ARPA award, current interest, and any potential future accrued interest to the Childcare Assistance Program. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. Comments: Purchase Order Number: Change Order Number: Previous Ordinance or Resolution # Approval Date: Original Contract Number: 20023.2021 Project Number Budget Impact: ARPA Childcare Assistance Program Fund ARPA 2246.800.9721-5315.00 Account Number Project Title City of Fayetteville Staff Review Form 2024-109 Item ID 6/18/2024 City Council Meeting Date - Agenda Item Only Staff recommends that Council commit the remaining ARPA funds to the City Childcare Assistance Program and approve a budget adjustment. Per the American Rescue Plan Act regulations, all funds must be formally committed by 12/31/2024. At this point, approximately $185,005.00 in ARPA funding remains uncommitted. Staff would like to recommend that Council commit the current balance of the ARPA award, current interest, and any potential future accrued interest or unspent ARPA funds to the Childcare Assistance Program. N/A for Non-Agenda Item Action Recommendation: Submitted By Steven Dotson CHIEF FINANCIAL OFFICER (110) Division / Department 5/31/2024 Submitted Date No 91,612.61$ -$ V20221130 Budgeted Item? Does item have a direct cost? Is a Budget Adjustment attached? Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget 575,222.00$ 483,609.39$ Yes Yes 185,005.00$ 276,617.61$ City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division /Org2 CHIEF FINANCIAL OFFICER (110) Adjustment Number 2024 Requestor:Steven Dotson BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends that Council commit the remaining ARPA funds to the City Childcare Assistance Program and approve a budget adjustment. Per the American Rescue Plan Act regulations, all funds must be formally committed by 12/31/2024. At this point, approximately $185,005.00 in ARPA funding remains uncommitted. Staff would like to recommend that Council commit the current balance of the ARPA award, current interest, and any potential future accrued interest or unspent ARPA funds to the Childcare Assistance Program. COUNCIL DATE:6/18/2024 ITEM ID#:2024-109 Kevin Springer 5/31/2024 3:07 PM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2024522TOTAL145,865 145,865 Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 2246.800.9721-5315.00 185,005 -20023 2021 EX Contract Services 2246.800.9716-5860.02 (39,140)-20023 2021 EX Capital Prof Svcs - Engineering/Architectural 2246.800.9246-4705.00 -125,057 20023 2021 RE Interest on checking - Base 2246.800.9246-4309.01 -20,808 20023 2021 RE Federal Grants - Operational -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1