Subject:
Title
Council Acceptance of American Recovery Plan (ARPA) Funds
Body
EXPLANATION AND SUMMARY:
On March 11, 2021, the U.S. Congress passed the American Rescue Plan Act (ARPA), authorizing “relief funds to support State, local and Tribal governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 on their communities, residents, and businesses” (Interim Final Rule, U.S. Treasury Department, 5/24/2021).
On June 9, 2021 the Town received confirmation from Virginia’s Secretary of Finance that Vienna would receive $17.1 million in Federal American Rescue Plan (ARPA) dollars distributed by the State. The Town will receive ARPA funds through the State as it is classified as a Non-Entitlement Unit (NEU), by virtue of size (population under 50,000) and organization - the Town does not receive federal housing block grants. These are indicators established by the federal legislation.
The funds will be distributed by the State in two equal installments. The first one is to be distributed by June 28, 2021 and the second a year after the first installment.
The Town was required to certify conditions laid out in the letter from Virginia Secretary of Finance (attached) and attest that the award was not in excess of 75% of the Town’s annual budget.
We ask Council to accept the first installment of ARPA funds in the amount of $8,551,731.
Strategic Plan Initiative: Vienna is a fiscally responsible community.
Board of Commission of Interest: All
Departmental Recommendation: Recommend Council accept first installment ARPA award.
Finance Recommendation: Recommend Council accept first installment ARPA award.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town Council may approve the acceptance of federal ARPA funds in its discretion. A budget modification and public hearing will be necessary and will occur prior to the expenditure of any funds.
Town Manager's Recommendation: I recommend the Town Council accept the award of the American Rescue Plan Act (ARPA) funds, as presented.
Cost and Financing: $8,551,731
Account Number: new fund 130, various accounts
Decision Needed by This date: July 12, 2021
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to accept the award of American Rescue Plan Act (ARPA) funds distributed by the Commonwealth of Virginia in the amount of $8,551,731,"
Or
Other action deemed necessary by Council.