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Home My WebLink About36-23 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 36-23 File Number: 2023-363 CHILDCARE ASSISTANCE PROGRAM FUNDING INCREASE: A RESOLUTION TO AUTHORIZE ADDITIONAL FUNDING IN THE AMOUNT OF $1,500,000.00 FOR THE CHILDCARE ASSISTANCE PROGRAM, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on December 2, 2022 the City Council passed Resolution 291-22, authorizing the use of American Rescue Plan Act funds to provide assistance with childcare expenses for low to moderate income families facing financial challenges due to COVID-19; and WHEREAS, this funding increase will provide additional childcare assistance for low to moderate income families that live, work, or go to school in the city of Fayetteville. 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 approves a budget adjustment, a copy of which is attached to this Resolution, in the total amount of $1,500,000.00 and authorizes the use of those American Rescue Plan Act funds for the Childcare Assistance Program. PASSED and APPROVED on February 7, 2023 Page 1 Attest: R K I.��r fi bTy 08 Kara Paxton City Cl rk Treasurer = ' �� YE may; p 1�l1�F E1!N I Nit ,,��`� CITY OF W41iFAYETTEVILLE ARKANSAS MEETING OF FEBRUARY 7, 2023 TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Steven Dotson, Internal Auditor DATE: SUBJECT: Childcare Assistance Program RECOMMENDATION: CITY COUNCIL MEMO 2023-363 Staff recommends approving an additional $1,000,000.00 to the Childcare Assistance Program and approval of a budget adjustment. BACKGROUND: Per Resolution 291-22, a City of Fayetteville Childcare Assistance Program was established in the amount of $500,000.00 at the 12/6/2022 Council meeting, using the American Rescue Plan Act award as the funding source. Due to the large number of Childcare Assistance Program applications received by the City, Staff is recommending an increase to the level of funding for this program of $1,000,000.00, which would provide total program funding in the amount of $1,500,000.00. This program will assist with childcare expenses for low to moderate income families that are facing financial challenges due to Covid-19. Studies conducted at the University of Oregon documented that lower -income families were more uncertain than higher -income families about their ability to return to pre -pandemic child care arrangements as the economy reopens, with almost half of the lower -income households reporting that they either couldn't return or were uncertain they could, compared with only a quarter of higher -income households. The program will be administered by the Community Resources Department staff, who will perform program outreach to the community, process applications, and assess eligibility of program applicants. Community Resources will maintain documentation on program participation and processing of monthly payment of childcare assistance to Fayetteville licensed childcare facilities. Community Resources staff will also perform monitoring procedures to ensure program compliance and perform required reporting. DISCUSSION: This funding increase will provide additional childcare assistance for low to moderate income families that live, work, or go to school in the City of Fayetteville. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: This request will be funded by approval of the attached budget adjustment for $1,000,000.00, which will be appropriated from the American Rescue Plan local recovery grant received by the City. ATTACHMENTS: SRF 2023-363, 2023-363 BA Childcare Assistance addtl Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 - Legislation Text File #: 2023-363 Childcare Assistance Program A RESOLUTION TO AUTHORIZE ADDITIONAL FUNDING IN THE AMOUNT OF $1,500,000.00 FOR THE CHILDCARE ASSISTANCE PROGRAM, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on December 2, 2022 the City Council passed Resolution 291-22, authorizing the use of American Rescue Plan Act funds to provide assistance with childcare expenses for low to moderate income families facing financial challenges due to COVID-19; and WHEREAS, this funding increase will provide additional childcare assistance for low to moderate income families that live, work, or go to school in the city of Fayetteville. 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 approves a budget adjustment, a copy of which is attached to this Resolution, in the total amount of $1,500,000.00 and authorizes the use of those American Rescue Plan Act funds for the Childcare Assistance Program. Page 1 Steve Dotson Submitted By City of Fayetteville Staff Review Form 2023-363 Item ID 2/7/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 1/19/2023 ACCOUNTING & AUDIT (131) Submitted Date Division / Department Action Recommendation: Staff recommends approving an increase of $1,000,000.00 to the Childcare Assistance Program and approval of a budget adjustment. This program uses American Rescue Plan Act funds to provide childcare assistance for low to moderate income families that live, work, or go to school in the City of Fayetteville. With this increase, the total allocated to the Childcare Assistance Program would be $1,500,000.00. 2246.800.9721-5315.00 Account Number 20023.2021 Project Number Budgeted Item? Yes Does item have a direct cost? No Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: 2246-American Rescue Plan Act Fund Childcare Assistance Program Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Project Title $ 500,000.00 500,000.00 $ 1,000,000.00 1,500,000.00 Previous Ordinance or Resolution # Approval Date: V20221130 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number ACCOUNTING &AUDIT (131) /Org2 2023 Requestor: Steven Dotson BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends approving an increase of $1,000,000.00 to the Childcare Assistance Program and approval of a budget adjustment. This program uses American Rescue Plan Act funds to provide childcare assistance for low to moderate income families that live, work, or go to school in the City of Fayetteville. With this increase, the total allocated to the Childcare Assistance Program would be $1,500,000.00. RESOLUTION/ORDINANCE COUNCIL DATE: 2/7/2023 ITEM ID#: 2023-363 Noll y Black 717912023 2:,fS P/YI Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL Account Number 1,000,000 1,000,000 increase/ (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.2023117 Account Name 2246.800.9721-5315.00 1,000,000 - 20023 2021 EX Contract Services 2246.800.9246-4309.01 - 1,000,000 20023 2021 RE Federal Grants - Operational 1 of 1