HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 7/6/2021 - SECOND READING OF ORDINANCE NO. 079, 2021, MAKING Agenda Item 2
Item # 2 Page 1
AGENDA ITEM SUMMARY July 6, 2021
City Council
STAFF
Blaine Dunn, Accounting Director
SeonAh Kendall, Recovery Manager/Sr. Economic Health Manager
Travis Storin, Chief Finance Officer
Ryan Malarky, Legal
SUBJECT
Second Reading of Ordinance No. 079, 2021, Making Supplemental Appropriations of a Portion of the City's
American Rescue Plan Act Funding for Local Fiscal Recovery Related to Response to and Recovery From the
COVID-19 Pandemic.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 15, 2021, appropriates $4,217,846 (equivalent
to fifteen percent) of the funds the City will receive from the American Rescue Plan Act’s Coronavirus State
and Local Fiscal Recovery Fund (“ARPA”). The appropriated amount w ill be used to address immediate and
short-term needs in response to the COVID-19 public health emergency and its negative impact to our
community’s health, social well-being and economy.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, June 15, 2021 (w/o attachments) (PDF)
2. Ordinance No. 079, 2021 (PDF)
Agenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY June 15, 2021
City Council
STAFF
Blaine Dunn, Accounting Director
SeonAh Kendall, Recovery Manager/Sr. Economic Health Manager
Travis Storin, Chief Finance Officer
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 079, 2021, Making Supplemental Appropriations of a Portion of the City's
American Rescue Plan Act Funding for Local Fiscal Recovery Related to Response to and Recovery From the
COVID-19 Pandemic.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $4,217,846 (equivalent to fifteen percent) of the funds the City will
receive from the American Rescue Plan Act’s Coronavirus State and Local Fiscal Recovery Fund (“ARPA”). The
appropriated amount will be used to address immediate and short-term needs in response to the COVID-19
public health emergency and its negative impact to our community’s health, social wellbeing and economy.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act of 2021 to support the
U.S. recovery from the economic and health effects of the COVID-19 pandemic. ARPA builds upon many of the
measures in the CARES Act of March 2020 and the Consolidated Appropriations Act, 2021.
On May 10, 2021, the U.S. Department of the Treasury (“Treasury”) announced the launch of the Coronavirus
State and Local Fiscal Recovery Fund (“ARPA”), established by the American Rescue Plan Act of 2021, to
provide emergency funding for state, local, territorial, and Tribal governments. On May 17, 2021, Treasury issued
an interim final rule (“Rule”) establishing a framework for determining the types of programs and services that
are eligible for funding under ARPA along with examples of uses that local governments may consider. It should
be noted that Treasury is seeking public comment on all aspects of the Rule until July 16, 2021. Staff will monitor
for any changes to the Rule as well as any additional regulations or official guidance.
ARPA funds provide more flexibility to meet local needs than the CARES Act Coronavirus Relief Fund (“CVRF”)
money the City received in 2020. The Rule’s allowable use of ARPA funds include (Attachment 1):
Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses,
behavioral healthcare, and certain public health and safety staff;
Address negative economic impacts caused by the public health emergency, including economic
harms to workers, households, small businesses, impacted industries, and the public sector;
ATTACHMENT 1
Agenda Item 4
Item # 4 Page 2
Replace lost public sector revenue, using this funding to provide government services to the extent of the
reduction in revenue experienced due to the pandemic;
Provide premium pay for essential workers, by offering additional support to those who have borne and
will bear the greatest health risks because of their service in critical infrastructure sectors; and
Invest in water, sewer, and broadband infrastructure, by making necessary investments to improve
access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand
access to broadband internet.
The City will receive an allocation of ARPA funds totaling $28,118,971. The City received fifty percent of that
allocation ($14,059,486) on May 19, 2021. Staff anticipates the remaining fifty percent will be received in May
2022.
On May 25, 2021 at a Council work session, staff discussed with Council the timeline of the City’s recovery plan
and ARPA. At the work session, staff recommended that fifteen percent of the total allocated amount of ARPA
funds be made available to meet current and short-term needs arising from the pandemic impacts.
Councilmembers expressed a willingness to move forward with the recommended 15/85 allocation of ARPA to
address current needs while staff continues developing the recovery plan. Adoption of the ordinance will
appropriate the fifteen percent of the total ARPA allocation.
City staff has identified some current needs for use of the 15% allocation to include, but not be limited to,
workforce development business support for disadvantaged businesses, business navigation programs,
supportive assistance to those experiencing homelessness, utility, mortgage, and rental assistance for those
that do not meet the income qualification requirement for assistance from Neighbor to Neighbor. The pandemic’s
impacts have been uneven and uncertain, so the ability to be nimble with the use of the 15% allocation as short-
term funds is key. City staff have also identified other needs for the use of the 85% allocation as long-term
recovery ARPA funds, including but not limited to, water/sewer infrastructure improvements in low-income areas,
affordable housing and childcare, mental health assistance, connectivity (such as sidewalks) in low-income
areas and other financial support and expenditures for continued response and recovery from COVID. Council
will be able to direct these long-term funds through the Fort Collins Recovery Plan that staff is developing.
Consistent with the Council discussion at the May 25th work session, staff will strive to avoid utilizing ARPA
funding for budget shortfalls from the 2020 budget cuts and use of reserves. There are several "watch list" Funds
for which revenue is particularly strained, including Recreation, Parking, and Self-insurance. It is possible that
the 2022 City Manager's Recommended Budget will propose utilizing ARPA funding to address budget shortfalls
on a targeted basis, but this will be clearly identified for Council’s consideration.
Process for Social and Economic Recovery Grants
As subrecipients of the City, eligible organizations and entities will need to apply to the City for awards and meet
the same eligibility and intent requirements of ARPA and applicable federal regulations and guidance. Staff is
currently awaiting Treasury guidance on requirements for procurement and subrecipient awards. Staff is also
currently developing Frequently Asked Questions (FAQs) (Attachment 2) and grant criteria for public release.
A Recovery Core Team has been created that will prioritize and provide direction and oversight of the awards
and report to Council on grantees and awards.
Rental and Utility Assistance
As requested by Mayor Pro Tem Gorgol at the May 25th work session, information is provided here regarding
other entities’ programs to address housing and utility assistance.
Larimer County was awarded an estimated $10,000,000 from the federal Consolidated Appropriations Act (2021)
passed on December 2020, which the County intends to use for its Emergency Rental and Utility Assistance
Program (“ERAP”). The ERAP is being administered by Neighbor to Neighbor and is currently supporting those
households at or below 80% of the area median income. An overview of the ERAP is included with this AIS
Agenda Item 4
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(Attachment 4). Assistance for homeowners and higher income renters is temporarily paused. In addition, the
State of Colorado is due to receive an estimated $175,000,000 from the Treasury to support the Homeowner
Assistance Fund and an estimated $385,000,000 to support the Emergency Rental Assistance Program. The
State is awaiting guidance on the distribution of those funds.
Additionally, the City will be receiving approximately $2,600,000 in ARPA funds allocated through the federal
HOME Investment Partnerships Program to address some long-term tenant-based rent assistance, development
of affordable housing, and other supportive services to serve populations that have greatest risk of housing
instability. Staff is awaiting additional guidance specific to the ARPA HOME funds.
CITY FINANCIAL IMPACTS
Staff will continue to evaluate Treasury guidance as it evolves to determine the best use of the funds. The City
will seek to use the funds appropriated here for immediate needs as described above, including for the
reimbursement of expenses the City has not yet incurred. Staff plans to use these funds to address immediate
and short-term needs in response to the COVID-19 public health emergency.
Once the City has finalized a recovery plan, staff will bring an additional appropriation forward for Council’s
consideration for the remainder of the ARPA allocation.
Of the $28,118,971 in ARPA funds the City has been allocated, the City is appropriating $4,217,846, or fifteen
percent, to the General Fund for immediate and short-term needs to address the COVID-19 pandemic impacts.
ATTACHMENTS
1. FACT SHEET: The Coronavirus State and Local Recovery Fund (PDF)
2. Frequently Asked Questions: Coronavirus State and Local Fiscal Recovery Fund (PDF)
3. Financial Assistance Agreement (PDF)
4. Larimer County Emergency Rent Assistance Program Overview (PDF)
5. Work Session Summary - City Recovery Plan (PDF)
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ORDINANCE NO. 079, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING A SUPPLEMENTAL APPROPRIATION OF A PORTION OF THE CITY’S
AMERICAN RESCUE PLAN ACT FUNDING FOR LOCAL FISCAL RECOVERY
RELATED TO RESPONSE TO AND RECOVERY FROM THE COVID-19 PANDEMIC
WHEREAS, in response to the public health emergency resulting from the spread of the
Novel Coronavirus 2019 (“COVID-19”), the City Manager proclaimed a local emergency on
March 13, 2020, and City Council extended such proclamation with its adoption of Resolution
2020-030; and
WHEREAS, on March 11, 2020, President Joseph R. Biden signed the American Rescue
Plan Act into law (“ARPA”), which established the Coronavirus Local Fiscal Recovery Fund
intended to provide support to local governments in responding to the impact of COVID-19 on
their communities, residents, and businesses; and
WHEREAS, the U.S. Treasury Department has provided regulatory guidance on how
ARPA funds may be used, which includes: supporting public health expenditures; addressing
negative economic impacts; replacing lost public sector revenue; providing premium pay for
essential workers; and investing in water, sewer and broadband infrastructure; and
WHEREAS, the City will be allocated a total amount of $28,118,971, of which the City
has received fifty percent or $14,059,485.50, with the remaining fifty percent anticipated to be
available in May 2022; and
WHEREAS, City staff presented background information about the proposed use of these
funds to City Council at a work session on May 25, 2021, including the appropriation of
$4,217,846, which is fifteen percent of the total amount allocated to the City, to address current
needs of the community consistent with the requirements of ARPA and applicable federal
regulations and to support public health expenditures; address negative economic impacts; replace
lost public sector revenue; provide premium pay for essential workers; and invest in water, sewer
and broadband infrastructure; and
WHEREAS, City staff has identified some current needs consistent with U.S. Treasury
guidance to include financial support and expenditures for workforce development; business
support for disadvantaged businesses; business navigation programs; supportive assistance to
those experiencing homelessness; utility, mortgage and rental assistance to those who do not meet
the income qualification requirements for assistance from Neighbor to Neighbor or other available
programs, and response and recovery expenses of the City and others in the Fort Collins
community; and
WHEREAS, this appropriation benefits the public health, safety and welfare of the citizens
of Fort Collins and serves the public purpose of responding to the immediate and short-term
community health, social wellbeing, and economic needs arising from the negative impacts of the
COVID-19 public health emergency; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council, upon
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recommendation of the City Manager, to make supplemental appropriations by ordinance at any
time during the fiscal year, provided that the total amount of such supplemental appropriations, in
combination with all previous appropriations for that fiscal year, does not exceed the current
estimate of actual and anticipated revenues and all other funds to be received during the fiscal year;
and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the General
Fund and will not cause the total amount appropriated in the General Fund to exceed the current
estimate of actual and anticipated revenues and all other funds to be received in that fund during
this fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from unanticipated grant revenue in the
General Fund the sum of FOUR MILLION TWO HUNDRED SEVENTEEN THOUSAND
EIGHT HUNDRED FORTY-SIX DOLLARS ($4,217,846) for expenditure from the General
Fund for supporting public health expenditures, addressing negative economic impacts, replace
lost public sector revenue, provide premium pay for essential workers and invest in water, sewer
and broadband infrastructure related to response to and recovery from the COVID-19 pandemic,
as described in this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 15th day of
June, A.D. 2021, and to be presented for final passage on the 6th day of July, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 6th day of July, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk