Title
Resolution to Amend the Council Approved Fiscal Year 2022 Budget to Accept and Appropriate the City's Local Allocation of Funds Awarded Through the American Rescue Plan Act of 2021
Purpose
PURPOSE/BACKGROUND:
The United States Congress and the President of the United States recently signed the American Rescue Plan Act of 2021 ("ARPA"). A primary component of ARPA is the disbursement of $350 billion in assistance to state, local, territorial, and tribal governments, known as Coronavirus State and Local Recovery Funds ("CLFRF"). Allocations will be sent directly to local governments. The current action is to accept and appropriate those funds that were awarded to the City of Hampton.
Discussion:
For the purposes of ARPA, independent cities are classified in the same manner as counties, resulting in the City receiving a portion of the CLFRF funds allocated for both Counties and Metropolitan Cities, as defined by ARPA. Based on that allocation formula, Hampton is scheduled to receive an allocation of $26,126,991 as County CLFRF funds and $22,533,427 as Metropolitan City CLFRF funds, for a combined total amount of $48,660,418.
The funds to be received may be used solely for certain qualifying expenses, including: 1) revenue replacement for the provision of government services to the extent of the reduction in revenue caused by the COVID-19 public health emergency, relative to revenues collected in the most recent fiscal year prior to that emergency; 2) expenses related to COVID-19 expenditures or negative economic impacts of COVID-19, including recovery and assistance to small businesses, households, and hard-hit industries and economic recovery; 3) premium pay for essential workers; and 4) investments in water, sewer, and broadband infrastructure. Localities may be required to return funds to the federal government if it is determined funds were spent for purposes that don't qualify.
The allocation of $48,660,418 is more than one percent (1...
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