Submitted by: Ron Brooks
Submitting Department: Finance
Agenda Section: Action
Item Title:
title
FY25 ARPA Budget: Adjusting FY25 ARPA Funds for Salaries
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Suggested Action:
recommendation
I move the Mayor and Council approve the American Rescue Plan Act budget adjustments listed in Exhibit A, reflecting adjustments to 23 projects. I further move that the Mayor and Council approve the reallocation of $2,476,446 of American Rescue Plan Act Funds, reflecting the total amount of project savings from the budget adjustments listed in Exhibit A, to the ARPA Fund salary budget line to pay for FY25 General Fund Operating staff salaries. I 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.
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Summary Background:
The City of Hyattsville received $17,968,001 in American Resue Plan Act 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. This request is to pay FY25 Salaries in an amount not to exceed $2,476,446. This will create savings of the same amount in the General Operating Fund that will be used to pay for previously approved 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 approved ARPA projects. This will allow the Council to have visibility of previously approved projects.
Next Steps:
Post the approved $2.4 million in ARPA funds to the salaries account line. Add ARPA projects to the Capital Budget for ongoing tracking.
Fiscal Impact:
The FY25 Special Revenues Fund Budget expenditures will increase by $8.6 million in available ARPA funds.
City Administrator Comments:
Recommend approval.
Community Engagement:
The Community has provided input on ARPA spending plan priorities.
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
N/A