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SECOND AND FINAL READING OF AN ORDINANCE AMENDING THE 2023 BUDGET OF THE CITY OF COMMERCE CITY BY RECOGNIZING A PORTION OF THE CITY’S TOTAL $10,505,025 AMERICAN RESCUE PLAN ACT FUNDING ALLOCATION IN THE AMOUNT OF $3,075,000 AND AUTHORIZING THE EXPENDITURE THEREOF
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Summary and Background Information:
President Joseph R. Biden signed the American Rescue Plan Act (ARPA) into law on March 11, 2020, which established the Coronavirus State and Local Fiscal Recovery Fund intended to provide support to local governments in responding to the impact of COVID-19 on their communities, residents, and business. The City of Commerce City received an ARPA allocation of $10,505,025 directly from the U.S. Treasury Department. The first 50% tranche was received in 2021 and the second 50% tranche in 2022. The U.S. Treasury Department has provided regulatory guidance on the allowable uses of ARPA funds, which include: supporting public health response, addressing negative economic impacts, replacing public sector revenue loss, premium pay for essential workers, water and sewer infrastructure, and broadband infrastructure.
City staff has completed and documented a revenue replacement analysis following U.S. Treasury guidance on this matter, calculating a revenue loss amount well in excess of the City’s ARPA funding allocation, approximately $11.8 million for the 2020 fiscal year alone. Given this, the City has claimed its entire $10,505,025 ARPA allocation as revenue replacement. The City is still required, however to report on how these funds are used, via quarterly reports submitted to the U.S. Treasury Department. Revenue replacement funds must be used for government services and must be allocated by December 31, 2024 and fully expended by December 31, 2026.
During the June 12, 2023 regular City Council meeting, City Council directed staff to allocate $3,075,000 worth of the City’s ARPA allocation for the following items:
• $1,500,000 for Emergency Shelter Generators and Equipment/Supplies ($1,300,000 of this is for generators and $200,000 for equipment/supplies)
• $1,000,000 for a 3-Year Grant Writing Program (the unspent portion of this at the end of each fiscal year (2023, 2024, and 2025) will need to be re-appropriated for use in the subsequent fiscal year until fully expended by the end of 2026)
• $75,000 for TrackNGo Equipment
In addition to these items, there is a significant need for additional funding for the City’s Rental Assistance Program. $250,000 was included in the 2023 Adopted Budget for this program and has been fully spent. An additional $500,000 of ARPA funding is recommended for this program as part of Ordinance 2533.
Total Appropriations and Transfers included in Ordinance 2533 to cover the items detailed above equal $3,075,000. This will leave $7,430,025 of the City’s total $10,505,025 ARPA allocation for future use.
Jim Tolbert, Assistant City Manager, and Theresa Wilson, Interim Director of Finance, will be available to answer questions you may have.
Staff Responsible (Department Head): Jim Tolbert, Assistant City Manager
Staff Member Presenting: Jim Tolbert, Assistant City Manager
Financial Impact:
General Fund: $1,700,000
Facility Services Fund: $1,300,000
Fleet Management Fund: $75,000
Funding Source: Federal ARPA funding
Staff Recommendation: Approve Ordinance 2533
Suggested Motion: Motion to introduce by council as seated and approve Ordinance 2533