Title
AN ORDINANCE AMENDING THE 2024 BUDGET OF THE CITY OF COMMERCE CITY BY REVISING MULTIPLE INTERFUND TRANSFERS OF AMERICAN RESCUE PLAN ACT FUNDING AND APPROPRIATING AND AUTHORIZING THE EXPENDITURE THEREOF
Body
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 required to report on how these funds are used, via quarterly reports submitted to the U.S. Treasury Department.
Revenue replacement funds can be used for government services and must be obligated by December 31, 2024 and fully expended by December 31, 2026. City staff worked hard to fully meet the critical obligation deadline of December 31, 2024. In order to meet federal obligation deadline, funds must be obligated via a contract, inter-agency agreement, or other manner approved by the U.S. Treasury, such as obligated to cover the cost of ...
Click here for full text