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Home My WebLink About89-22 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 89-22 File Number: 2022-0310 AMERICAN RESCUE PLAN ACT FUNDS: A RESOLUTION TO AUTHORIZE THE APPROVAL TO ELECT THE STANDARD ALLOWANCE OF $10,000,000.00 IN REVENUE LOSSES DUE TO THE PUBLIC HEALTH EMERGENCY CREATED BY THE COVID-19 PANDEMIC FROM THE PREVIOUSLY AWARDED AMERICAN RESCUE PLAN ACT FUNDS WHEREAS, the overview of the U.S. Treasury Final Rule of Coronavirus State and Local Fiscal Recovery Funds provided that a "standard allowance" of $10,000,000.00 in awarded funds may be claimed as public revenue loss for a municipality; and WHEREAS, although this does not increase the total amount awarded, it allows more flexibility in the expenditure of American Rescue Plan Act funds received by the City. 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 authorizes the election of the standard allowance of $10,000,000.00 in revenue losses due to the public health emergency created by the Covid- 19 pandemic from the previously awarded American Rescue Plan Act funds. PASSED and APPROVED on 4/19/2022 Page 1 Printed on 4121122 Resolution: 89-22 File Number 2022-0310 Attest: FT-VILLE Kara Paxton, City Clerk Treasurers ` FLUP •��ry��'G' NC Page 2 Printed on 4121122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0310 Agenda Date: 4/19/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: C.6 AMERICAN RESCUE PLAN ACT FUNDS: A RESOLUTION TO AUTHORIZE THE APPROVAL TO ELECT THE STANDARD ALLOWANCE OF $10,000,000.00 IN REVENUE LOSSES DUE TO THE PUBLIC HEALTH EMERGENCY CREATED BY THE COVID-19 PANDEMIC FROM THE PREVIOUSLY AWARDED AMERICAN RESCUE PLAN ACT FUNDS WHEREAS, the overview of the U.S. Treasury Final Rule of Coronavirus State and Local Fiscal Recovery Funds provided that a "standard allowance" of $10,000,000.00 in awarded funds may be claimed as public revenue loss for a municipality; and WHEREAS, although this does not increase the total amount awarded, it allows more flexibility in the expenditure of American Rescue Plan Act funds received by the City. 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 authorizes the election of the standard allowance of $10,000,000.00 in revenue losses due to the public health emergency created by the Covid-19 pandemic from the previously awarded American Rescue Plan Act funds. City of Fayetteville, Arkansas Page 1 Printed on 412012022 Paul Becker Submitted By City of Fayetteville Staff Review Form 2022-0310 Legistar File ID 4/19/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 4/1/2022 Submitted Date Action Recommendation: CHIEF FINANCIAL OFFICER (110) Division / Department Approval to elect the "standard allowance" of $10 million dollars in revenue losses due to the public health emergency created by the COVID-19 pandemic from the perviously awarded American Rescue Plan Act. Account Number Project Number Budgeted Item? No Does item have a cost? No Budget Adjustment Attached? Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget ARPA Fund Project Title V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAY ET T EV ILL E ARKANSAS MEETING OF APRIL 19, 2022 TO: Mayor and City Council FROM: Paul Becker, Chief Financial Officer DATE: April 1, 2022 SUBJECT: ARPA Revenue Loss Funds CITY COUNCIL MEMO RECOMMENDATION: The administration requests the City Council's approval to elect the "standard allowance" of $10 million in revenue losses due to the public health emergency created by the COVID-19 pandemic from the previously awarded American Rescue Plan Act. BACKGROUND I DISCUSSION: The overview of the US. Treasury Final Rule of Coronavirus State & Local Fiscal Recovery Funds provided that a "standard allowance "of $10 million in awarded funds may be claimed as public revenue loss for a municipality. Although this does not increase the total amount awarded, it allows more flexibility in the expenditure of ARPA funds received. The revenue recovery amount cannot be used to reduce debt, be transferred to pension funds or be used to increase reserves or reduce taxes. However, since the funding must be used for general governmental services of the municipality, it would increase the flexibility of the uses allowed by the City by eliminating some of the restrictions placed on the use of ARPA grant funding. This would be especially important if the City wishes to consider infrastructure uses that may not be allowable or would be questionable. Infrastructure programs for parks, public buildings or some work force development training programs would be examples. This decision must be made by April 30, 2022. BUDGET/STAFF IMPACT: This request does not appropriate funds or change the amount of ARPA funds awarded to the City of Fayetteville. Attachments: Staff Review form, Staff Memo Mailing Address: 113 W.Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 CityClerk From: Olson, Leif Sent: Tuesday, April 19, 2022 9:04 AM To: CityClerk Cc: Nierengarten, Peter Subject: FW: EAC statement for 19 April 2022 Council meeting Attachments: City council meeting statement regarding de -coupling ARPA funds 19 April 2022.odt Categories: Saved File Hello, the Environmental Action Committee made a formal recommendation to the City Council regarding the use of the ARPA funds. Can you make sure that this statement gets added to the City Council packets for this evening. Thank you. Leif Olson From: mmbritain@gmail.com <mmbritain@gmail.com> Sent: Monday, April 18, 2022 11:42 PM To: gallaherbannon@gmail.com Cc: Olson, Leif <lolson@fayetteville-ar.gov> Subject: EAC statement for 19 April 2022 Council meeting CAUTION: This email originated from outside of the City of Fayetteville. Do not click links or open attachments unless you recognize the sender and know the content is safe. Received from Leif Olson on behalf of the EAC 04/ 19/22 9:04 AM The Environmental Action Committee learned last night that the City Council would consider tonight—decoupling 10 million dollars of ARPA funding from the existing federal regulations. Since water quality was built into this federal funding from the outset we are concerned that funds for water quality may be at risk if the City decides to decouple from the federal regulations. Thirteen months ago this body pledged in a unanimous vote to clean up Lake Fayetteville to swimmable quality within ten years. An engineering firm, Olson, was chosen to begin that work last June. Unfortunately funds have not yet been allocated by the Council to begin progress toward this pledged intent. Step one is to contract with Olson to do a study outlining what needs to be done at the Lake and in the watershed and what that will cost. The City needs to allocate $202,000 for that study. The Environmental Action Committee wants to remind the Council of the vital importance of water quality to the health of the city's residents and to the importance, economically, of having clean water in our parks and recreation areas. It is crucial to get this first step moving forward. We are already 13 months in to our ten year goal. To that end, the Environmental Action Committee recommends that the Council uses tonight's meeting to thoroughly investigate the pros and cons of ARPA fund decoupling and then returns at a later date perhaps April 27 or 281h to make this crucial decision. We rarely have the kind of opportunity afforded by the ARPA funds to improve the water quality of Lake Fayetteville and it's downstream waterways —including the Illinois River, the Arkansas River, and the Gulf of Mexico. Let's not rush this decision.