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HomeMy WebLinkAboutCC RESO 2022-17RESOLUTION NO. 2022 - 17 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, ALLOCATING $4,000,000.00 OF THE AMERICAN RESCUE PLAN ACT FUNDING FOR GENERAL FUND BUDGET OFFSETS IN FISCAL YEAR 2022-2023 AND FISCAL YEAR 2023-2024 WHEREAS, in March 2021, a $1.9 trillion economic stimulus bill titled the American Rescue Plan Act of 2021 ("ARPA") was enacted by the federal government; and WHEREAS, of the $1.9 trillion, $350 billion was allocated for state, local, territorial, and Tribal governments to respond to the COV1D-1 9 emergency and promote economic growth; and WHEREAS, of the $350 billion, the City of National City ("City") is receiving $18,010,907.00; and N WHEREAS, the City has received half of the funding, $9,005,453.50, and will receive the other half around June 2022; and WHEREAS, the City is required to submit quarterly expenditure reports to U.S. Department of Treasury ("U.S. Treasury") and annual revenue loss reports and all expenditures need to be incurred by December 31, 2024 and paid by December 31, 2026; and WHEREAS, the U.S. Treasury issued an Interim Final Rule with guidance on eligible uses for the funds in May of 2021 and in January 2022, the U.S. Treasury released a Final Rule, which incorporated some of the feedback the Department received from public agencies; and WHEREAS, the adjustments made in the Final Rule expand National City's ability to spend the funds and reduce the amount of work staff will spend tracking and reporting on the funds;and WHEREAS, during previous City Council meetings related to ARPA, City staff recommended allocating $6,000,000.00 of the funding to General Fund offsets at approximately $2,000,000.00 per year between Fiscal Year ("FY") 2021-2022 and FY 2023- 2024; and WHEREAS, the offsets are projects, programs, and staffing that were already planned and budgeted, but are eligible to be paid with ARPA funds; and WHEREAS, by allocating an additional $4,000,000.00 of ARPA funds, the new spending plan will total $9,850,000 with a remaining balance to allocate of $8,160,907; and WHEREAS, the $6,000,000.00 of General Fund offsets can be counted as part of City's $10,000,000.00 revenue loss allowance and can be reported to the U.S. Treasury as offsetting any expenditure for general governmental services; and Resolution No. 2022 - 17 Page Two WHEREAS, City staff is recommending City Council to authorize allocating $4,000,000.00 of the American Rescue Plan Act funding for General Fund Budget Offsets in Fiscal Year 2022-2023 and Fiscal Year 2023-2024. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: Authorize allocating $4,000,000.00 of the American Rescue Plan Act funding for General Fund Budget Offsets in Fiscal Year 2022-2023 and Fiscal Year 2023- 2024. Section 2: The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolution. PASSED and ADOPTED this jst day of February, 2022. ATTEST: oh Luz Molina,/City Clerk APPROVED AS TO FORM: Charles E. Bell Jr., City At Alejandra Sotelo Solis, Mayor Passed and adopted by the City Council of the City of National City, California, on February 1, 2022, by the following vote, to -wit: Ayes: Sotelo-Solis, Bush, Morrison, Rios, Rodriguez Nays: None. Absent: None. Abstain: None, AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS BY: Mayor,of the City of National City, California Luz Molina City Clerk of the City of National City, California Shelley Chapel, M Deputy Ci Clerk