Submitted by: Patrick Paschall
Submitting Department: Finance
Agenda Section: Action
Item Title:
title
Final Adjustment to American Rescue Plan Act Fund Allocation and Obligations
end
Suggested Action:
recommendation
I move that the Mayor and Council approve the reallocation of American Rescue Plan Act Funds to the projects and amounts listed in Exhibit A, which reflects final adjustments to 20 project budgets and moves $1,360,058 from previously planned projects to FY25 General Fund Salaries. I further move that the Mayor and Council earmark the projects and amounts listed in Exhibit B to the General Fund Capital Budget and General Fund Operating Budget as the Treasurer determines appropriate for each project.
end
Summary Background:
The City of Hyattsville received $17,967,910 in federal American Resue Plan Act (ARPA) funds. All ARPA funds must be obligated by December 31, 2024, and spent by December 31, 2026.
The City is unable to meet the December 2024 obligation under the Revenue Replacement Category 6.1 in some projects due to staff capacity, planning, and implementation requirements. The City’s ARPA consultant briefed an alternative to the City Council to move projects to the Capital Budget and use available ARPA funds to pay salaries. This is an alternative being used by other communities facing the same capacity and implementation deadline challenges. The Council approved a similar measure at the August 5, 2024 meeting where $2,476,446 was designated to pay FY25 General Fund Salaries.
This request is to pay FY25 General Fund Salaries with ARPA funds in an amount not to exceed $3,806,504 (previously approved $2,476,446 plus an additional $1,330,058).
This will create savings of the same amount in the General Operating Fund that will be earmarked to pay for the previously planned ARPA projects and new projects listed in Exhibit B. The delayed projects will be moved to, and tracked in, the FY25 General Fund Capital and Operating Budgets.
The staff will update the Council quarterly on the status of the previously ARPA funded projects. This will allow the Council to have visibility of previously approved projects.
Next Steps:
Finance Department to charge FY25 General Fund Salaries to ARPA in the amount of $3,806,504 before December 31, 2024.
Fiscal Impact:
$1,360,058 in expense adjustments, as listed in Exhibits A and B.
City Administrator Comments:
Recommends support.
Community Engagement:
Community input was sought to determine ARPA spending priorities.
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
N/A