Submitted By: Peter Brill
presenter
Presentation By: Tammi Haslam
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Department: Finance
STAFF RECOMMENDATION (Motion Ready):
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Adopt Budget Resolution 2023-144 amending the Fiscal Year 2022-2023 budget to appropriate and transfer funds from the American Rescue Plan Act Reserves in the amount of $5,142,323
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed. This act provides for specific funding allocations directly to state, local, and municipal government agencies. The total allocation for the City of Ocala was $12,202,141. The funds were scheduled for disbursement with fifty percent, $6,101,070.50, received on June 1, 2021, and the remaining fifty percent in June 2022. Recovery funds must be obligated (not incurred) by December 31, 2024, and all work and/or services completed by December 31, 2026. The State of Florida also distributed $41,253 to the City in December 2022 and February 2023, which must be appropriated in the budget.
The ARPA provides that funding may be used to:
1) Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff.
2) Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, nonprofits, impacted industries, and the public sector.
3) Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic.
4) Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors.
5) Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet.
FINDINGS AND CONCLUSIONS:
ARPA grant revenue totaling $12,202,141 was received. ARPA funds were previously appropriated by budget resolutions 2021-163 and 2023-100. Additional funds totaling $41,253 were received from the State of Florida. Funds totaling $7,101,071 have already been obligated. The City of Ocala needs to allocate the remaining grant funds for future spending within the FY 2023 budget.
FISCAL IMPACT:
Apply ARPA grant revenue totaling $5,142,323 as detailed below. Staff recommends allocating the funds to support the following projects.
Sources:
001-331-000-000-09-33158 American Rescue Plan Revenue $41,253
001-099-999-999-81-99871 Reserve for ARPA Funds ($5,142,323)
Uses:
001-099-999-999-81-99871 Reserve for ARPA Funds $ 41,253
001-060-332-511-51-82010 Aid to Private Organizations $ 300,000
001-060-332-545-69-65010 Parking Garage $3,242,323
001-060-332-534-69-65010 Downtown Garbage $1,600,000
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
N/A
ALTERNATIVE:
• Adopt with Changes
• Table
• Deny
BUDGET RESOLUTION 2023-144
A RESOLUTION AMENDING THE FISCAL YEAR 2022-2023 BUDGET TO APPROPRIATE AND TRANSFER FUNDS FROM THE AMERICAN RESCUE PLAN ACT RESERVES TOTALING $5,142,323
WHEREAS, on January 20, 2020, the Secretary of Health and Human Services declared a public health emergency under section 319 of the Public Health Service Act (42 U.S.C. 247d); and
WHEREAS, on March 11, 2020, the World Health Organization announced that the COVID-19 outbreak can be characterized as a pandemic; and
WHEREAS, on March 11, 2021, President Joseph R. Biden, Jr. enacted the American Rescue Plan Act; and
WHEREAS, on May 18, 2021, City Council approved a sub-award and grant agreement related to the American Rescue Plan Act; and
WHEREAS, on June 1, 2021, the City of Ocala received the first allocation of the American Rescue Plan Act funding totaling $6,101,071 which was appropriated on Budget Resolution 2021-163 on August 3, 2021; and
WHEREAS, on June 9, 2022, the City of Ocala received a second allocation of the American Rescue Plan Act Funding totaling $6,101,080 which as appropriated on Budget Resolution 2023-100 on October 4, 2022; and
WHEREAS, additional funds totaling $41,253 were received from the State of Florida in December 2022 and February 2023; and
WHEREAS, the City of Ocala is now allocating the remaining unobligated American Rescue Plan Act loss of revenue funding to general fund projects.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, duly assembled in regular session, that the FY2023 budget be amended as outlined below:
Sources:
001-331-000-000-09-33158 American Rescue Plan Revenue $41,253
001-099-999-999-81-99871 Reserve for ARPA Funds ($5,142,323)
Uses:
001-099-999-999-81-99871 Reserve for ARPA Funds $ 41,253
001-060-332-511-51-82010 Aid to Private Organizations $ 300,000
001-060-332-545-69-65010 Parking Garage $3,242,323
001-060-332-534-69-65010 Downtown Garbage $1,600,000
This resolution adopted this ______ day of ______________________, 2023.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs James P. Hilty Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Peter A. Lee
City Manager