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Home My WebLink AboutOrdinance 24953-06-2021 ORDINANCE NO. 24953-06-2021 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS OPERATING FEDERAL FUND,SUBJECT TO RECEIPT OF THE GRANT, IN THE AMOUNT OF $86,872,545.00, FOR THE PURPOSE OF FUNDING THE AMERICAN RESCUE PLAN ACT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2020-2021 in the Budget of the City Manager,there shall also be increased receipts and appropriations in the Grants Operating Federal Fund,subject to the receipt of the grant,in the amount of$86,872,545.00, for the purpose of funding the American Rescue Plan Act. SECTION 2. That should any portion,section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction,such decision,opinion or judgment shall in no way impair the remaining portions,sections,or parts of sections of this ordinance,which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 24446-09-2020 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY Assistant City Attorney Mary J. Kayser OF F.0 ADOPTED AND EFFECTIVE: June 22,2021 C.): :O * =i 4XAS. 6/17/.?i.l! 1. t ' t ' American Rescue Plan Act Council Work Session 6/8/2011 t ' t ' Current Local Allocations ➢City of Fort Worth Direct Allocation: $173,745,090 • First half tranche received May 19,2021: $86,872,545 • All funds committed by December 31,2024 • All funds spent by December 31,2026 (Emergency Rental Assistance Direct Allocation: $29,071,786 • First 40%tranche received May 24,2021: $11,628,714 • Additional direct allocation to Tarrant County: $26,407,662 ➢Homelessness Direct Allocation: $10,537,030 • Additional direct allocation to Tarrant County: $5,281,656 rTarrant County Direct Allocation: $408,388,891 ➢Fort Worth ISD Allocation: $261,555,722 ➢Trinity Metro Allocation: $39,155,646 1 6/17/2021. 1 ' 1 ' COFW Direct Allocation ➢Broad definitions provided for use In four major categories: A. Respond to the public health emergency and related economic impacts B. Respond to workers performing essential work during the public health emergency C. For the provision of government services to the extent of the reduction of revenue due to the public health emergency(revenue recovery) D. To make necessary investments in water,sewer,or broadband Infrastructure ➢Incorporates a complex formula for revenue recovery: Compares adjusted Calendar Year 2020 revenue(with exclusions)to Fiscal Year 2019 actual revenue adjusted by either an average actual three-year growth rate or 4.1%(whichever is higher) ➢Currently only guidance is the U.S.Treasury's Interim Final Rule. • Additional guidance,as well as the establishment of Q&As will likely change the calculation method and the resulting estimates. • Revenue recovery amount for second tranche of funding will not be known until calculation is finalized in March 2022 after the FY2021 Annual Financial Report is issued FORT WORTH, Uses of ARPA Non-Revenue Recovery Funds ➢Respond to the Public Health Emergency: • Mitigation and Prevention,Medical Expenses,Behavioral Health Care • Public Health and Safety Staff,Improvements in Health and Public Health Program Design • Address Disparities in Public Health Outcomes ➢Negative Economic Impacts: • Assistance to households,small business and non-profits • Aid to Impacted industries such as tourism,travel,and hospitality • Investment in housing and neighborhoods ➢Essential Workers with duties in Response to Health Emergency ➢Necessary Investments in Water,Sewer,or Broadband Infrastructure 2 6/17/2021 Use of Funds Generated by Revenue Recovery Provision ➢Broad latitude to use funds for the provision of government services, including, but not limited to: • Infrastructure maintenance • Infrastructure Pay-go construction,including roads • Modernization of cyber-security,including hardware,software and protection of critical infrastructure • Health services • School or educational services • Environmental remediation • Police,Fire,and other public safety services • Any water infrastructure projects in compliance with the Drinking Water and Clean Water State Revolving Funds • Not restricted by the source of the revenue loss 1 ' 1 ' Unallowable Use of Revenue Recovery Funds ➢Expenses associated with obligations under instruments evidencing financial indebtedness for borrowed money, such as: • Interest or principal on any outstanding debt instrument • Issuance cost associated with new debt • Match for other federal programs • Pension deposits • Settlement agreements • Replenishing financial reserves ➢Or expenses associated with: •Judgements • Consent decrees • Debt restructuring 3 6/17/2021 N"W Guiding Principles for Use of Funds ➢One time uses that do not increase ongoing operating costs ➢Target projects that will have a strong Return on Investment(ROI), especially in economic areas hardest hit by pandemic ➢Use for expenses directly tied to mitigating or lessening COVID-19 ➢Target projects delayed or postponed because of impact from pandemic ➢Projects in Majority Minority Areas(MMAs) ➢Projects that fall within specific qualifying activities as outlined in ARPA guidance FORTWORTH. Initial Recommended Spending Plan Categories 4 6/17/2021 ' FORIWORTH, Non-Revenue Recovery Funds ➢Pandemic Recovery Activities • Emergency Operations Center • Vaccination Operations ➢Minority Business Enterprise (MBE)capacity building program ➢Tourism Industry Recovery • Convention Center Expansion Project Restart • Grant to Visit Fort Worth for revenue shortfall • Sports Tourism Soccer Complex Project Phase I ➢Evans-Rosedale Projectw/Affordable Housing component ➢Stormwater Projects ➢Water/Wastewater Infrastructure Projects ➢Cybersecurity/Technology/Broadband Projects in City Buildings ➢Permanent Supportive Housing Projects ➢Matching Funds for eligible joint projects with other agencies ,FORTWORTH. Revenue Recovery Funds ➢Projects Delayed/Postponed because of Pandemic: • Commerce St. Realignment • Public Events Department Projects at Convention Center and Will Rogers ➢Will Rogers Interpretive Plaques for Existing Murals ➢Majority Minority Area (MMA) Infrastructure projects • Neighborhood Streets •Streetlights • Sidewalks • Park Development 5 6/17/2021 mid FFoR_T WORTH, Next Steps ➢ Staff to begin working on plans/program development to bring individual items back for council approval in categories outlined below: • Pandemic Recovery Activities • Minority Business Enterprise(MBE)capacity building program • Tourism Industry Recovery(Convention Center/VFW Funding/Sports Tourism) • Evans-Rosedale Project w/Affordable Housing component • Stormwater Projects • Water/Wastewater Infrastructure Projects • Cybersecurity/Technology/Broadband Projects in City Buildings • Permanent Supportive Housing Projects • Matching Funds for eligible joint projects with other agencies • Projects Delayed/Postponed because of Pandemic(Commerce St./Public Events) • Will Rogers Interpretive Plaques for Existing Murals • Majority Minority Area(MMA)Infrastructure projects (streets/streetlights/sidewalks/park improvements) 1 ' 1 ' Question? 6 City of Fort Worth,Texas Mayor and Council Communication DATE: 06/22/21 M&C FILE NUMBER: M&C 21-0445 LOG NAME: 362021 AMERICAN RESCUE PLAN SUBJECT (ALL)Adopt Attached Ordinance to Increase Estimated Receipts and Appropriations in the Grants Operating Federal Fund in the Amount of $86,872,545.00 for Allowable Expenses Related to the American Rescue Plan Act RECOMMENDATION: It is recommended that the City Council adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund in the amount of$86,872,545.00 for allowable expenses related to the American Rescue Plan Act. DISCUSSION: In March 2021,the President signed the American Rescue Plan Act(ARPA),providing aid and relief to various sectors of the United States(U.S.) economy. The City of Fort Worth's allocation from these funds totals$173,745,090.00,of which a first tranche(50%),in the amount of $86,872,545.00 has been received. The second half of these funds will be received on or after May 19,2022, in accordance with U.S.Treasury guidelines. All funds must be fully obligated by December 31,2024,and fully expended by December 31,2026. The purpose of this Mayor and Council Communication(M&C)is to appropriate funds to allow expenditure of the funds received from the U.S.Treasury. The ARPA specifies certain allowable(and unallowable)uses for these funds,and City Management has determined priorities for ARPA funding,as follows,to assist in the on-going recovery effort to strengthen the physical and economic health of the community: • Projects Delayed/Postponed because of Pandemic: Commerce St. Realignment o Public Events Department Projects at Convention Center and Will Rogers • Will Rogers Interpretive Mural Plaques • Majority Minority Area(MMA)Infrastructure projects o Neighborhood Streets • Streetlights o Sidewalks • Park Development • Pandemic Recovery • EOC o Vaccination Operations • Minority Business Enterprise(MBE)capacity building • Tourism Industry Recovery • Convention Center Expansion Project Restart • Grant to Visit Fort Worth for revenue shortfall • Sports Tourism Soccer Complex project Phase I • Evans-Rosedale Project w/Affordable Housing component • Stormwater projects • WaterM/astewater Infrastructure Projects • Cybersecurity/Technology/B road band projects • Permanent Supportive Housing project • Matching Funds for eligible joint projects with other agencies The figures referenced in this M&C are limited to funds received under Section 9901 of ARPA. Other federal awards related to the Act will be addressed in other M&Cs. ALL COUNCIL DISTRICTS are affected and included. A Form 1295 is not required because:This contract will be with a governmental entity,state agency or public institution of higher education:US Department of Treasury FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and the attached appropriation ordinance,funds will be available in the budget,as appropriated,of the Grants Operating Federal Fund.This is an advance grant. The Emergency Operations Center and Financial Management Services will be responsible for identifying and approving eligible expenditures. All City Departments will be responsible for ensuring that only expenditures allowable under the American Recovery Plan Act,with appropriate documentation,are charged to this funding source. Submitted for City Manager's Office by: Valerie Washington 6199 Originating_Business Unit Head: Jim Davis 6801 Additional Information Contact: Mark Rauscher 6803 Expedited