HomeMy WebLinkAboutAGENDA REPORT 2021 0721 CCSA REG ITEM 10NCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of July 21, 2021
ACTION ADOPTED RESOLUTION NO.
2021-4033. (ROLL CALL VOTE:
UNANIMOUS).
BY B. Garza.
N. Consider Resolution Creating a New Fund for the American Rescue Plan Act (ARPA)
Coronavirus Local Fiscal Recovery Funds (CLFR) (2800) and Resolution
Authorizing Opening a New Interest-Bearing Checking Account and Transferring and
Depositing ARPA Funds into this Segregated Bank Account. Staff
Recommendation: Adopt Resolution No. 2021-4033 approving the creation of
American Rescue Plan Act (ARPA) Coronavirus Local Fiscal Recovery Funds
(CLFR) Fund (2800), opening a new interest-bearing checking account and
transferring and depositing ARPA Fund into this segregated bank account. (ROLL
CALL VOTE REQUIRED) (Staff: Kambiz Borhani, Finance Director)
Item: 10.N.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Kambiz Borhani, Finance Director
DATE: 07/21/2021 Regular Meeting
SUBJECT: Consider Resolution Creating a New Fund for the American Rescue
Plan Act (ARPA) Coronavirus Local Fiscal Recovery Funds (CLFR)
(2800) and Resolution Authorizing Opening a New Interest-Bearing
Checking Account and Transferring and Depositing ARPA Funds into
this Segregated Bank Account
SUMMARY
With the enactment of the President’s American Rescue Plan Act (ARPA) of 2021 on
March 11, 2021, $19.53 billion was provided in direct aid to non-entitlement units of
local government, which typically serve a population under 50,000 under the ARPA’s
Coronavirus Local Fiscal Recovery Funds (CLFR). The City is projected to receive
$8,701,674 in two tranches, with 50% provided on July 13, 2021, and the balance
delivered approximately 12 months later.
DISCUSSION
As the COVID-19 public health and economic crisis continues throughout the nation, the
federal government enacted the ARPA of 2021 on March 11, 2021. This plan is
intended to combat the COVID-19 pandemic, including public health and economic
impacts. Included in the $1.9 trillion economic relief package was $130.2 billion for
CLFR funding split equally between counties and cities, with $65.1 billion allocated
directly to counties. The ARPA also allocates hundreds of billions of dollars for public
health and vaccines, assistance for vulnerable populations, education and housing
stabilization, transit and transportation funding, economic recovery assistance and
direct assistance for families and individuals.
The Department of Treasury has not yet finalized its Interim-Final Rule and will be
reviewing comments and questions received from all agencies and stakeholders that
submitted their inquiries by the deadline on July 16, 2021. In the meantime, the City is
gathering information on what is important to residents or business owners through a
community survey focused on the ARPA. By providing information to residents and
Item: 10.N.
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Honorable City Council
07/21/2021 Regular Meeting
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seeking their input on prioritizing spending, we aim to provide City Council with
meaningful data on constituent sentiment at the upcoming ARPA Spending Workshop
scheduled on July 28, 2021.
Considering the City has already received the first half of the payment, staff
recommends opening, transferring, and depositing the funds in a segregated interest-
bearing checking account while City Council is considering initial proposals and ideas
on how best to spend these funds.
Also, to comply with requirements and ease of recordation and accounting, staff
recommends the creation of fund ARPA-CLFR (2800) to reflect the financial position
and activities related to this funding. This fund will be designated as a Special Revenue
fund where sources and the use of its money are restricted.
FISCAL IMPACT
The City will receive $8,701,674 in CLFR funding in two tranches. On July 13, 2021, the
City received its initial installment for $4,350,837. This money will remain in City’s main
checking account until the new bank account is opened, at which time the money will be
transferred to the new account.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED)
Adopt Resolution No. 2021-____ approving the creation of American Rescue Plan Act
(ARPA) Coronavirus Local Fiscal Recovery Funds (CLFR) Fund (2800), opening a new
interest-bearing checking account and transferring and depositing ARPA Fund into this
segregated bank account.
Attachment: Draft Resolution No. 2021-____
227
ATTACHMENT
RESOLUTION NO. 2021-______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, CONSIDERING CREATING A
NEW FUND FOR THE AMERICAN RESCUE PLAN ACT
(ARPA) CORONAVIRUS LOCAL FISCAL RECOVERY
FUNDS (CLFR) (2800) AND AUTHORIZING OPENING A
NEW INTEREST-BEARING CHECKING ACCOUNT AND
TRANSFERRING AND DEPOSITING ARPA FUNDS INTO
THIS SEGREGATED BANK ACCOUNT
WHEREAS, on March 11, 2021 the President of the United States signed into
law the American Rescue Plan Act (ARPA) to provide continued relief from the impact
of the COVID-19 pandemic; and
WHEREAS, approximately $19.53 billion of The ARPA funding was allotted to
assist non-entitlement units of local government which are typically serving a population
of 50,000 in responding to the coronavirus pandemic; and
WHEREAS, Sections 602(b) and 603(b) of the Social Security Act as added by
section 9901 of the American Rescue Plan Act, Pub. L No. 117-2 (March 11, 2021)
authorized the Department of the Treasury to make payments to certain recipients from
the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery
Fund, and
WHEREAS, such funds are to be used in accordance with the award terms and
conditions established by U.S. Department of Treasury as summarized below:
Timing – The period of performance for this award ends on December 31, 2026.
The funds to cover eligible costs incurred during the period that begins March 3,
2021, and ends on December 31, 2024.
Use of Funds – the city may use the funds on the following resources to meet
pandemic response needs and rebuild a stronger, and more equitable economy
as the city recovers:
(a) Support public health expenditures, by, for example, funding COVID-19
mitigation efforts, medical expenses, behavioral healthcare, and certain public
health and safety staff;
(b) Address negative economic impacts caused by the public health
emergency, including economic harms to workers, households, small
businesses, impacted industries, and the public sector;
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Resolution No. 2021-_____
Page 2
(c) Replace lost public sector revenue, using this funding to provide
government services to the extent of the reduction in revenue experienced due to
the pandemic;
(d) Provide premium pay for essential workers, offering additional support to
those who have and will bear the greatest health risks because of their service in
critical infrastructure sectors;
(e) Invest in water, sewer, and broadband infrastructure, making necessary
investments to improve access to clean drinking water, support vital wastewater
and stormwater infrastructure, and to expand access to broadband internet, and
WHEREAS, the City of Moorpark is expected to receive $8,701,674 in
funding; such funding to be received in two tranches, approximately one half on July 13,
2021, and the remaining funding approximately 12 months later, and
WHEREAS, the City of Moorpark has received an initial funding in the amount of
$4,350,837 identified as funding allocation of the First Tranche.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. the Moorpark City Council does hereby authorize a new interest-
bearing checking account be opened for the purpose of transferring and depositing the
ARPA funding into this segregated account.
SECTION 2. the Moorpark City Council does hereby accept the allocation of
funds in the amount of $8,701,674 from the Federal Government through the American
Rescue Plan Act; and such funds will be placed in a newly created special revenue fund
(2800) for the sole purpose of tracking all approved transactional activities.
SECTION 3. that the City of Moorpark will adhere to the existing, additional, and
amended guidelines as set forth by the federal government in the allocation or
distribution of said funds, the welfare of the City and its Citizens requiring it.
PASSED AND ADOPTED this 21st day of July 2021.
_______________________________
Janice S. Parvin, Mayor
ATTEST:
________________________________
Ky Spangler, City Clerk
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