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HomeMy WebLinkAboutRES2023-057 Clarifying ARPA Fund Uses CITY OF SEWARD,ALASKA Sponsored by: Bower RESOLUTION 2023-057 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CLARIFYING INTENDED USES FOR THE ARPA LOCAL GOVERNMENT LOST REVENUE RELIEF PROGRAM(LGLRRP)FROM THE ALASKA DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT TO OFFSET SIGNIFICANT REVENUE LOSS DUE TO THE COVID-19 PUBLIC HEALTH EMERGENCY WHEREAS,the State of Alaska appropriated $50 million from the State's American Rescue Plan Act (ARPA) COVID State and Local Recovery funds toward a Local Government Relief Grant Program; and WHEREAS, the City of Seward is eligible to receive a portion of these funds based on 2020 revenue loss greater than the required 10%; and WHEREAS, the City of Seward had previous approved resolution 2021-141 identifying the need for investment in water and sewer infrastructure as the most appropriate use of these funds; and WHEREAS, the City has verified that these funds can be used for general infrastructure projects as well as water and sewer infrastructure; and WHEREAS, the City of Seward has identified general infrastructure and utility projects as an additional immediate need of these funds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1.The City of Seward clarified the intended use for LGLRRP funds to be used for the investment utility and related infrastructure in the City. Section 2. The City of Seward confirms the revenue and fund receipt totals discussed herein, and can confirm with supporting documentation. Section 3.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of May, 2023. CITY OF SEWARD, ALASKA RESOLUTION 2023-057 THE CITY OF SEWARD, ALASKA e Sue McClure, Mayor AYES: Calhoon, Barnwell, DeMoss, Osenga, Wells, Finch, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: Brenda J. Ball , MMC City �ku,,, .•`%‘OF SELV•••••. • SEAL ! ' • ...- '1•,Q1 OF Pk- ma's City Council Agenda Statement a Meeting Date: May 8, 2023 t! To: City Council Through: Janette Bower, City Manager From: MC Pehle, Carmen Jackson CPA Sully Jusino, Deputy Finance Director Subject: Resolution 2023-057: Clarifying Intended Uses for the ARPA Local Government Lost Revenue Relief Program ("LGLRRP') from the Alaska Department of Commerce, Community and Economic Development to Offset Significant Revenue Loss Due to the COVID-19 Public Health Emergency Background and justification: The Alaska legislature appropriated $50 million from the State's American Rescue Plan Act(ARPA) COVID State and Local Fiscal Recovery funds toward a local government relief grant program to promote economic recovery and continuity of government services to local governments that experienced revenue loss due to COVID-19, to be administered by the State of Alaska Department of Commerce, Community and Economic Development, Division of Community and Regional Affairs. Seward has demonstrated a loss of revenue of $3,491,342 or 26.1% in 2020, and was awarded $1,806,416 in awards. Seward has previously approved resolution 2021-141 allocating these funds for water and sewer infrastructure projects. However, since that time the ability to use these funds on general utility and infrastructure projects of the city has been clarified. Projects that fall outside the category of water and sewer infrastructure have been identified as important to the City and have costs eligible under this grant. The City needs to report regularly on these grants, and in order to communicate effectively with the granting agency it is important to clarify Res. 2021-141 and identify additional uses of these grant funds moving forward. The approval of resolution 2023-XXX would clarify the City's intentions and allow for the City to spend and claim these grant funds on a shorter timeline. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.4 Continue to upgrade and expand utilities to meet existing needs and encourage future development Strategic Plan: Page 9 - Promote Residential and Commercial Development Inside the City Other: Certification of Funds Total amount of funds listed in this legislation: $ 1,806,416 This legislation (✓): ❑ Creates revenue in the amount of: $ 171 Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool x Other ARPA Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ n/a Available Unrestricted Cash Balance: $ n/a Finance Director Signature: Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation x Approve Res. Other: 172