Title
Recommended Uses for American Rescue Plan Funds
Action
Action:
A. Approve the use of $25,401,110.01 from the Coronavirus State and Local Fiscal Recovery Fund for government services to offset revenue lost as a result of the COVID-19 public health emergency, and
B. Adopt a budget ordinance appropriating $25,401,110.01 from the General Operating Fund to the American Rescue Plan Act Fund.
Body
Staff Resource(s):
Shawn Heath, City Manager's Office
Explanation
* This Request for Council Action will enable the city to fully obligate funds received from the federal government as a result of the American Rescue Plan Act of 2021 (ARPA).
* As of November 15, 2024, of the original $141.6 million allocation, the city had expended $92.1 million and encumbered (i.e., obligated) $23.6 million; $25.9 million remains unobligated (unspent and unencumbered).
* The deadline to obligate the city's ARPA allocation is December 31, 2024, with a final deadline to expend the funds by December 31, 2026.
* Of the $25.9 million that is currently unobligated, staff intend to obligate $520,000 by December 31, 2024, leaving $25,401,110.01.
* To ensure that the city can invest this remaining $25.4 million in Charlotte and not return the funds to the federal government, staff have recommended expending these funds on government services to replace lost revenue. The $23.6 million that is currently encumbered will still be subject to the December 31 deadlines in 2024 and 2026.
* By authorizing these actions, the city will satisfy the federal requirement that all $141.6 million in ARPA funds allocated to the City of Charlotte be obligated for eligible uses by December 31, 2024.
* By authorizing ARPA to pay for government services typically paid for within the General Operating Fund, the General Operating Fund will realize $25.4 million in one-time expenditure savings.
* A transfer in the amount of $25.4 million will be made from the General Operating Fund to the American Rescue Plan A...
Click here for full text