The URL can be used to link to this page

Home My WebLink About221-25 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 221-25 File Number: 2025-1671 A RESOLUTION TO COMMIT $24,690.00 IN ACCRUED INTEREST FROM AMERICAN RESCUE PLAN ACT 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 (ARPA) 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, on June 18, 2024, the City Council passed Resolution 168-24 that committed the remaining ARPA fund to the Childcare Assistance Program; and WHEREAS, interest will continue to accrue on the remaining unspent balance of ARPA funds until these funds are fully spent by the nonprofit organizations to which they have been committed, so budget adjustments will be brought forward periodically to the City Council to consider committing those funds to the City Childcare Assistance Program. 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 $24,690.00 in accrued interest from American Rescue Plan Act funds 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 October 7, 2025 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2025-1671 MEETING OF OCTOBER 7, 2025 TO: Mayor Rawn and City Council THRU: FROM: Steven Dotson, Chief Financial Officer SUBJECT: Commit ARPA Interest to Childcare Program RECOMMENDATION: Staff recommends that Council commit the accrued interest on the American Rescue Plan Act to the City Childcare Assistance Program and approve a budget adjustment in the amount of $24,690. BACKGROUND: The City of Fayetteville was awarded $17.9M in American Rescue Plan Act funding to assist in responding to the negative effects of the COVID-19 pandemic. The City has established a number of projects to address the effects of the COVID-19 pandemic throughout the City. From 2022 through 2024, City Council passed a number of resolutions to approve a total of $2,205,670 (including allocated interest) to fund a City Childcare Assistance program. Although City funds generally could not be used for this purpose, the American Rescue Plan Act regulations allow this as a qualified used of funds under the ARPA award. DISCUSSION: At the June 18, 2024 City Council meeting (resolution 168-24), staff indicated that interest will continue to accrue on the remaining unspent balance of ARPA funds until these funds are fully spent by the nonprofit organizations they have been committed to. During that meeting, it was agreed that accrued interest would be brought forward periodically to Council to consider for commitment to the City Childcare Assistance program. BUDGET/STAFF IMPACT: Commitment of $24,690 in accrued interest to the City Childcare Assistance program. ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-1671 A RESOLUTION TO COMMIT $24,690.00 IN ACCRUED INTEREST FROM AMERICAN RESCUE PLAN ACT 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 (ARPA) 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, on June 18, 2024, the City Council passed Resolution 168-24 that committed the remaining ARPA fund to the Childcare Assistance Program; and WHEREAS, interest will continue to accrue on the remaining unspent balance of ARPA funds until these funds are fully spent by the nonprofit organizations to which they have been committed, so budget adjustments will be brought forward periodically to the City Council to consider committing those funds to the City Childcare Assistance Program. 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 $24,690.00 in accrued interest from American Rescue Plan Act funds 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. City of Fayetteville Staff Review Form 2025-1671 Item ID 9/16/2025 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Steven Dotson 8/26/2025 CHIEF FINANCIAL OFFICER (110) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends that Council commit the accrued interest on the American Rescue Plan Act to the City Childcare Assistance Program and approve a budget adjustment in the amount of $24,690. Budget Impact: 2246.800.9721-5315.00 ARPA Account Number Fund 20023.2021 ARPA Childcare Assistance Program Project Number Project Title Budgeted Item?Yes Total Amended Budget $185,363.00 Expenses (Actual+Encum)$172,200.00 Available Budget $13,163.00 Does item have a direct cost?No Item Cost $- Is a Budget Adjustment attached?Yes Budget Adjustment $24,690.00 $146.00 Remaining Budget $37,853.00 V20221130 Purchase Order Number:Previous Ordinance or Resolution #284-24 Change Order Number:Approval Date: Original Contract Number: Comments: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division /Org2 CHIEF FINANCIAL OFFICER (110) Adjustment Number 2025 Requestor:Steven Dotson BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends that Council commit the accrued interest on the American Rescue Plan Act to the City Childcare Assistance Program and approve a budget adjustment in the amount of $24,690. COUNCIL DATE:9/16/2025 ITEM ID#:2025-1671 Holly Black 8/26/2025 8:19 AM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2025826TOTAL24,690 24,690 Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 2246.800.9721-5315.00 24,690 -20023 2021 EX Contract Services 2246.800.9246-4705.00 -24,690 20023 2021 RE Interest on checking - Base -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1