City of Madison, Wisconsin | Legislative Information Center
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File #: 65935    Version: Name: ARPA 2021 Acceptance & Allocation
Type: Resolution Status: Passed
File created: 6/9/2021 In control: COMMON COUNCIL
On agenda: 7/6/2021 Final action: 7/6/2021
Enactment date: 7/12/2021 Enactment #: RES-21-00487
Title: SUBSTITUTE: BY TITLE ONLY Accepting and allocating American Rescue Plan Act of 2021 (ARPA) aid Local Fiscal Recovery Funds for the City of Madison and Aamending the 2021 Adopted Operating and Capital Budgets to appropriate $4,995,000 of ARPA aid to the operating budget and $3,265,000 to the capital budget for the Acceptance of these Funds.
Sponsors: Satya V. Rhodes-Conway, Yannette Figueroa Cole, Syed Abbas, Keith Furman, Charles Myadze, Sheri Carter
Attachments: 1. V1 ARPA By Title Only.pdf, 2. ARPA Funding Priorities -- Presentation for 6-21-2021 FC Meeting.pdf, 3. 070621_Abbas Amendment.pdf, 4. 070621_OCAAmendment.pdf, 5. 2107096_Common Council Registrants Report.pdf
Date Ver.Action ByActionResultAction DetailsMeeting DetailsWatch
7/6/20212 COMMON COUNCIL Adopt the following Amendment(s) to the SubstitutePass Action details Meeting details Not available
7/6/20213 COMMON COUNCIL Adopt Substitute As AmendedPass Action details Meeting details Not available
6/21/20212 FINANCE COMMITTEE RECOMMEND TO COUNCIL TO ADOPT (15 VOTES REQUIRED) - REPORT OF OFFICERPass Action details Meeting details Not available
6/15/20211 COMMON COUNCIL Referred  Action details Meeting details Not available
6/10/20211 Finance Department Referred for Introduction  Action details Meeting details Not available

Fiscal Note

This resolution describes the allocation of the $47.2 million of local government aid the city will receive under the American Rescue Plan Act (ARPA).  Of the $47.2 million, $22.8 million will be allocated toward community investments as described in the resolution.  The remaining $24.4 million will be appropriated in subsequent legislation in 2021, as well as the 2022 budget, to maintain government services in response to revenue losses experienced due to the economic effects of the pandemic.

 

The resolution amends the 2021 adopted operating and capital budgets to appropriate a total of $8,260,000 for immediate community needs.  The remaining approximately $14.3 million will be appropriated in the 2022 budget.

 

Local government aid under the American Rescue Plan Act can be used for COVID-19 response costs, including responding to the negative economic effects in the community, premium pay to essential workers, maintaining government services up to the amount of revenue losses from the pandemic, and for water, sewer and broadband infrastructure.  Under the US Department of Treasury interim final rule, the city’s revenue losses total over $44 million in 2020, with further losses expected in 2021 through 2024.  The ARPA local government funding is primarily for costs incurred after March 3, 2021, through December 31, 2024.

Title

SUBSTITUTE: BY TITLE ONLY Accepting and allocating American Rescue Plan Act of 2021 (ARPA) aid Local Fiscal Recovery Funds for the City of Madison and Aamending the 2021 Adopted Operating and Capital Budgets to appropriate $4,995,000 of ARPA aid to the operating budget and $3,265,000 to the capital budget for the Acceptance of these Funds.

Body

WHEREAS, the American Rescue Plan Act of 2021 (ARPA) was passed by the U.S. Congress to support economic stimulus to the nation in light of the impacts of the COVID-19 pandemic, and

 

WHEREAS, ARPA included $362 billion in State and Local Fiscal Recovery Funds to be provided to state, local, territorial, and Tribal governments as a one-time investment over multiple years to respond to the pandemic, address the associated economic fallout, and provide for an equitable recovery from the pandemic, and

 

WHEREAS, the U.S. Department of the Treasury Interim Final Rule outlines categories in which the funding can be spent, and

 

WHEREAS, these categories include public health response costs, addressing the negative economic impact of COVID-19, providing premium pay for essential workers, maintaining government services, and infrastructure investments, and

 

WHEREAS, costs must generally be incurred between March 3, 2021 and  December 31, 2024 to be eligible for this funding, and the City will be required to provide quarterly expenditure reports and annual recovery plan performance reports, and

 

WHEREAS, the City received the first half of the funding in May 2021 and the second half in May 2022, with total funding of $47.2 million, and

 

WHEREAS, the Interim Final Rule provides specific guidance for cities to allow the use of ARPA funds to replace lost revenue in order to continue providing government services, and 

 

WHEREAS, based on the City’s calculations, using the formula prescribed in the Interim Final Rule, the City has lost over $44 million in revenue through 2020 and is expected to be eligible to use the full allocation of ARPA for government services and revenue replacement, and

 

WHEREAS, in light of the economic impact of COVID-19, $22.8 million of the City’s ARPA allocation is proposed to be focused on community investments intended to address immediate, one-time costs, with the remaining $24.4 million focused on maintaining government services including balancing the city’s general fund budget and stabilizing Monona Terrace finances and programs funded from Room Tax funds, and

 

WHEREAS, the City is recommending expending about $16.7 million of the first half of funding and $6.1 million of the second half of funding on responding to the economic impacts, addressing inequities exacerbated by COVID-19, and building back better, and the remaining funding on government services (revenue replacement), and

 

WHEREAS, forthcoming legislation and the 2022 budget will appropriate ARPA funds for the remaining community investments not appropriated in this resolution, as well as to maintain government services and stabilize the general fund, Monona Terrace and Room Tax-funded programs during 2021 and 2022, and

 

WHEREAS, five major priorities have been identified for use of the community investment funds, including violence prevention and youth employment, homelessness, affordable housing, neighborhood and small business revitalization, and emerging needs, and

 

WHEREAS, the City is outlining these broad categories as a means to target investments towards critical needs while ensuring that all investments are incurred in alignment with both the regulatory guidance and intent of ARPA, and

 

WHEREAS, the City has outlined the following strategy for investing the City’s allocation across these five categories in the programs listed below up to the specified amounts, and

 

Violence Prevention & Youth Engagement                     2,585,000

PHMDC Violence Prevention Initiatives*                     1,200,000

Summer Youth Employment - Summer 2022                     650,000

Summer Youth Employment - Summer 2021/ Fall Expansion*                     465,000

Crisis Response Team (CARES) Support and Evaluation*                     150,000

Summer Youth Employment - Summer 2021 Youth Reengagement*                     120,000

Homelessness                     8,650,000

Salvation Army Darbo Site                     2,500,000

Unsheltered Homeless Support*                      2,000,000

Purpose-Built Men's Shelter*                     2,000,000

Endowment for Homelessness Operating Funds                     2,000,000

Occupy Madison (OM) Solar Project*                     150,000

Affordable Housing                     6,650,000

Hotels Converted to Housing                     2,500,000

Youth Centered Housing Project                      2,000,000

Tenant Damage Fund                     1,000,000

Homeownership Support/Rehabilitation Program (Consumer Lending)                     500,000

Emergency Rental Assistance program operations*                     400,000

Naturally Occurring Affordable Housing (NOAH) Energy Efficiency Program             250,000

Emerging Needs                     1,000,000

Services to Residents who are Undocumented*                     700,000

Connection to Basic Needs*                     150,000

PFAS Education, Outreach and Coordination*                     100,000

Healthy Aging Education and Engagement                     50,000

Economic Development                     3,915,000

Small Business Equity & Recovery (SBER) Program Expansion*                     2,615,000

Retail Building Improvement Grant Program*                     500,000

Public Market Foundation Operating Support*                     400,000

Neighborhood Business District Support*                     300,000

Downtown Vacant Storefront Art Program*                     100,000

Grand Total                     22,800,000

 

*Indicates this resolution appropriates funding for this program.

 

WHEREAS, the City will develop performance measures for each program funded through this source to evaluate its success in addressing the economic impacts of COVID-19, any disparities exacerbated by COVID-19, and its success in building back better, and

 

WHEREAS, the City will report out on these metrics as a part of its quarterly and annual federal reporting to evaluate the success of these investments, and

 

NOW THEREFORE BE IT RESOLVED, the Common Council authorizes the Mayor and City Clerk to accept $47.2 million of American Rescue Plan Act (ARPA) Local Fiscal Recovery Funds from the U.S. Department of the Treasury, and

BE IT FURTHER RESOLVED, prior to the obligation or expenditure of any funds appropriated in the 2021 operating and capital budgets under this resolution, a report shall be submitted to the Common Council. The report shall be prepared by the Finance Director in consultation with affected agencies and shall describe the criteria and processes that will be used to allocate the funding appropriated in the 2021 budget under this resolution, including request for proposal processes. The report is due to the Common Council for review at its July 20, 2021, meeting.

BE IT FURTHER RESOLVED, the 2021 Adopted Operating Budget be amended by a total of $4,995,000 to support operating costs associated with immediate needs in the community outlined in the following table:

 

Program                     Agency                     Amount                        Major

PHMDC Violence Prevention Initiatives*                     Public Health    $160,000    Purchased Services

 

Summer Youth Employment - Summer 2021/                      CDD             $465,000        Purchased Services

Fall Expansion*

 

Crisis Response Team (CARES)                      Public Health    $150,000     Purchased Services

Support and Evaluation*                     

 

Summer Youth Employment -                      CDD      $120,000          Purchased Services

Summer 2021 Youth Reengagement*                     

                     

Unsheltered Homeless Support*                     CDD   $2,000,000       Purchased Services

 

Emergency Rental Assistance program operations*  CDD                     $400,000           Personnel

 

Services to Residents who are Undocumented*                     CDD       $700,000     Purchased Services

 

Connection to Basic Needs*                     CDD       $150,000     Purchased Services

 

PFAS Education, Outreach and Coordination*                     Public Health                     $50,000     Purchased Services

 

Public Market Foundation Operating Support*                     EDD                     $400,000   Purchased Services

 

Neighborhood Business District Support*                     EDD                     $300,000   Purchased Services

 

Downtown Vacant Storefront Art Program*                        Planning                              $100,000       Purchased Services

BE IT FURTHER RESOLVED that the Mayor and City Clerk,  Finance Director or designee,  or other City staff that may be deemed appropriate by the City Attorney are authorized to sign contracts or amend existing contracts with providers of the Summer Youth Employment - Summer 2021 Fall Expansion and Connection to Basic Needs programs identified above, in amounts that does not exceed the amounts listed above, with providers to be selected by CDD from among those who already participated in an RFP process that satisfies federal procurement requirements, on a form approved by the City Attorney; and

 

BE IT FINALLY RESOLVED, the 2021 Adopted Capital Budget be amended by a total of $3,265,000 to support capital costs associated with immediate needs in the community outlined in the following table:

 

Program                                                                                                                                                               Agency                            Amount                 MUNIS Project

Purpose-Built Men's Shelter*                        CDD          $2,000,000                         13346

Occupy Madison Solar Project*                       CDD          $150,000                        NEW

Small Business Equity & Recovery (SBER)

    Program Expansion*                      EDD          $615,000                                             13072

Retail Building Improvement Grant Program                     EDD          $500,000                                             NEW