Subject:
Title
10:45 p.m. - 11:00 p.m. - Reallocate AARPA and CIP
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
Nine council meetings and seven work sessions. List attached.
EXPLANATION AND SUMMARY:
The federal government appropriated funds for COVID-19 pandemic recovery under the American Rescue Plan Act (ARPA) in spring 2021. The Town of Vienna has received $17.1 million to be used for various purposes up to $10 million under the revenue recapture provisions and for infrastructure that supports certain COVID-19 pandemic recovery purposes.
As noted above, Council has discussed the use of ARPA funds several times to ensure the Town is using the funds for authorized purposes, can utilize the full $17.1 million and have it encumbered - on a contract - by Dec. 31, 2024.
Due to the complexity of some of the projects and current Town needs, Finance meets frequently with departments to ensure projects funded by ARPA can be on an awarded contract by the deadline, or if not, transferred to a qualified use of funds that is “shovel-ready”.
The main purpose for this re-allocation request is to move ARPA funding for three parks and recreation projects to Capital Project funding (referred to as CIP) funded by bonds, for later funding. This will enable ARPA funding to be used for five projects that need to be funded now and are a qualified use of ARPA funding. Re-imagining the Maple Avenue Streetscape fencing/projection has freed up funds for resolving building issues at the Nutley property yard and allocating more for infrastructure paving, brick sidewalks and a budget package.
Currently, the Town has spent or encumbered 50% of the total ARPA allocation. This is a great effort, but there is still a lot of work to be done in the next 8 months.
The projects moved out of ARPA funding will be funded with existing or future CIP funds.
There is also a CIP reallocation proposed in this request from funds not used for parks and recreation and finance projects. Reallocation of those funds will pay for the projects moved out of ARPA.
The Nutley Street median project funded for $100,000 (ARPA) and the Town-wide asset study for $150,000 (2022 CIP) will be moved to future bond issues.
Finally, there are other key unfunded capital needs that are listed at the bottom of the schedule. They will be addressed in September in the next CIP discussion.
Staff recommends Council approve the reallocation to ensure spending of ARPA funds within the strict deadline.
Departmental Recommendation: Recommend approval of reallocation.
Finance Recommendation: Recommend approval of reallocation.
Purchasing Recommendation: Recommend approval.
Town Attorney Recommendation: The Town Council may approve the proposed reallocation of CIP and ARPA funds in its discretion.
Town Manager's Recommendation: I recommend the Town Council approve the reallocation of CIP and ARPA funds, as presented.
Cost and Financing: no new costs - current funding reallocation
Account Number: N/A
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA. CIP and ARPA
Decision Needed by This date: March 18, 2024
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to approve the reallocation of CIP and ARPA funds as presented.”
Or
Other action deemed necessary by Council.