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Sponsored by: Bower
CITY OF SEWARD, ALASKA
RESOLUTION 2021-070
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING CORONAVIRUS STATE AND LOCAL FISCAL
RECOVERY FUNDS AS PART OF THE AMERICAN RESCUE PLAN ACT
OF 2021
WHEREAS, on March 11, 2021, President Biden signed the American Rescue Plan Act
of 2021; and
WHEREAS, $350 billion was appropriated for state, local, territorial, and tribal
governments to respond to the COVID-19 emergency; and
WHEREAS, the US Treasury is allowing these relief funds to replace lost public sector
revenue to strengthen support for vital public services and help retain jobs; and
WHEREAS, the City saw a loss in sales tax revenue in 2020 of over $1.6 million; and
WHEREAS, the State of Alaska Division of Community and Regional Affairs (DCRA)
' informed Administration that the City must pass a resolution accepting the funds before requesting
payment; and
WHEREAS, the award amount will remain unknown until such time we submit payment
request to the State and the State budget allocation has been finalized.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to accept grant funds from the American
Rescue Plan Act of 2021 for the purpose of replacing lost revenue.
Section 2. Grant funding will be accepted and recorded in the General Fund as federal grant
revenue account no. 01000-0000-4251-0080.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28ih
day of June, 2021.
1
CITY OF SEWARD, ALASKA
RESOLUTION 2021-070
CITY OF SEWARD, ALASKA
..,.:
AYES:
DeMoss, McClure, Casagranda, Seese, Osenga, Baclaan
NOES:
None
ABSENT:
Terry
ABSTAIN:
None
(City
• SEAL 1 •
OF
Meeting Date:
To:
From:
Agenda Item:
Council Agenda Statement
June 28, 2021
City Council
Janette Bower, City Manager
Accepting Coronavirus State and Local Fiscal Recovery Funds as Part of
the American Rescue Plan Act of 2021
BACKGROUND & JUSTIFICATION:
As the COVID-19 pandemic continues, state and Iocal governments are seeing a large decrease in
revenue needed to sustain government services. In many communities, jobs and services have been
cut in order to survive. As a result, the federal government included a State and Local Fiscal
Recovery Fund within the American Rescue Plan Act of 2021.These funds are intended to support
response efforts to continue to decrease the spread of the virus, replace lost public sector revenue
to strengthen support for vital public services and help retain jobs, support immediate economic
stabilization for households and businesses, and address systemic public health and economic
challenges that the pandemic has created.
To date, the City has distributed over $5 million in COVD-19 relief funds to businesses, non-
profits, and residents of Seward. The City saw a loss of over $1.6 million in sales tax revenue alone
in 2020 due to the virus. With the uncertainty of how the economy will bounce back and for the
sake of jobs and services within the community, administration recommends accepting the federal
funds as a replacement of lost revenue within the General Fund. Grant funds are based on the
population of the community as a percentage of the total allocation. The exact amount awarded to
Seward has not yet been determined, but is estimated to be between $504,263 and $606,148.
INTENT:
The intent of this resolution is to accept the American Rescue Plan Act of 2021 State and Local
Fiscal Recovery Funds.
CONSISTENCY CHECKLIST:
Yes
No
N/A
1.
Comprehensive Plan (document source here):
X
2.
Strategic Plan (document source here):
X
3.
Other (fist):.
X
FISCAL NOTE:
Funds will be accepted and placed in the General Fund under grant revenue account no. 01000-
0000-4251-0080.
Approved by Finance Department:
ATTORNEY REVIEW: Yes
No
ICiH
RECOMMENDATION•
Seward City Council approve Resolution 2021- to accept state and local fiscal recovery funds
as part of the American Rescue PIan Act of 2021 for the purpose of replacing lost revenue due to
the Coronavirus.
IN