HomeMy WebLinkAbout4063 Resolution - American Rescue Plan Act 2021 FundingRESOLUTION NO. 4063
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
ACCEPTING CITY OF PASCO'S ALLOCATION FROM THE AMERICAN
RESCUE PLAN ACT OF 2021 FUNDING FOR CORONAVIRUS RELIEF
FUNDS FOR LOCAL GOVERNMENT AND AUTHORIZING THE CITY
MANAGER, OR HIS DESIGNEE, AUTHORITY TO LEGALLY BIND THE
CITY OF PASCO, WASHINGTON FOR THE SOLE PURPOSE OF
REQUESTING FEDERAL REIMBURSEMENT.
WHEREAS, the United States Senate had passed the American Rescue Plan Act of 2021
(ARPA, HR 1319) on March 6, 2021. On March 10, 2021, the House passed the Senate
amendments to the bill; and
WHEREAS, the United States Congress -passed legislation was passed by President Biden
on March 12, 2021; and
WHEREAS, the Act provides over $350 billion to States, Counties, Tribal Governments,
Territories, and Cities; and
WHEREAS, the City of Pasco will receive $17,464,312 in two installments during the
calendar years 2021 and 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
Section 1. That the City Council does authorize and direct the City Manager, or his
designee, authority to legally bind the City of Pasco, Washington for the sole purpose of requesting
federal reimbursement through the American Rescue Plan Act funding.
PASSED by the City Council of the City of Pasco, Washington, this 17th of May, 2021.
4,--e �!�
Saul Martinez
Mayor
ATTEST:
Debra Barham, CMC
City Clerk
Resolution No. ARPA Grant Funding - 1
APPROVED AS TO FORM:
La
FACT SHEET: The Coronavirus State and Local Fiscal Recovery Funds Will Deliver
$350 Billion for State, Local, Territorial, and Tribal Governments to Respond to the
COVID-19 Emergency and Bring Back Jobs
May 10, 2021
Aid to state, local, territorial, and Tribal governments will help turn the tide on the pandemic, address its
economic fallout, and lay the foundation for a strong and equitable recovery
Today, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local
Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in
emergency funding for eligible state, local, territorial, and Tribal governments. Treasury also released
details on how these funds can be used to respond to acute pandemic response needs, fill revenue
shortfalls among these governments, and support the communities and populations hardest-hit by the
COVID-19 crisis. With the launch of the Coronavirus State and Local Fiscal Recovery Funds, eligible
jurisdictions will be able to access this funding in the coming days to address these needs.
State, local, territorial, and Tribal governments have been on the frontlines of responding to the
immense public health and economic needs created by this crisis – from standing up vaccination sites to
supporting small businesses – even as these governments confronted revenue shortfalls during the
downturn. As a result, these governments have endured unprecedented strains, forcing many to make
untenable choices between laying off educators, firefighters, and other frontline workers or failing to
provide other services that communities rely on. Faced with these challenges, state and local
governments have cut over 1 million jobs since the beginning of the crisis. The experience of prior
economic downturns has shown that budget pressures like these often result in prolonged fiscal
austerity that can slow an economic recovery.
To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and
equitable recovery, the American Rescue Plan Act of 2021 established the Coronavirus State and Local
Fiscal Recovery Funds, designed to deliver $350 billion to state, local, territorial, and Tribal governments
to bolster their response to the COVID-19 emergency and its economic impacts. Today, Treasury is
launching this much-needed relief to:
• Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring
the pandemic under control;
• Replace lost public sector revenue to strengthen support for vital public services and help retain
jobs;
• Support immediate economic stabilization for households and businesses; and,
• Address systemic public health and economic challenges that have contributed to the inequal
impact of the pandemic on certain populations.
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction
to meet local needs—including support for households, small businesses, impacted industries, essential
workers, and the communities hardest-hit by the crisis. These funds also deliver resources that
recipients can invest in building, maintaining, or upgrading their water, sewer, and broadband
infrastructure.
Starting today, eligible state, territorial, metropolitan city, county, and Tribal governments may request
Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal. Concurrent
with this program launch, Treasury has published an Interim Final Rule that implements the provisions
of this program.
FUNDING AMOUNTS
The American Rescue Plan provides a total of $350 billion in Coronavirus State and Local Fiscal Recovery
Funds to help eligible state, local, territorial, and Tribal governments meet their present needs and build
the foundation for a strong recovery. Congress has allocated this funding to tens of thousands of
jurisdictions. These allocations include:
Type
Amount
($ billions)
States & District of Columbia $195.3
Counties
$65.1
Metropolitan Cites $45.6
Tribal Governments $20.0
Territories
$4.5
Non -Entitlement Units of $19.5
Local Government
Treasury expects to distribute these funds directly to each state, territorial, metropolitan city, county,
and Tribal government. Local governments that are classified as non -entitlement units will receive this
funding through their applicable state government. Treasury expects to provide further guidance on
distributions to non -entitlement units next week.
Local governments should expect to receive funds in two tranches, with 50% provided beginning in May
2021 and the balance delivered 12 months later. States that have experienced a net increase in the
unemployment rate of more than 2 percentage points from February 2020 to the latest available data as
of the date of certification will receive their full allocation of funds in a single payment; other states will
receive funds in two equal tranches. Governments of U.S. territories will receive a single payment.
Tribal governments will receive two payments, with the first payment available in May and the second
payment, based on employment data, to be delivered in June 2021.
USES OF FUNDING
Coronavirus State and Local Fiscal Recovery Funds provide eligible state, local, territorial, and Tribal
governments with a substantial infusion of resources to meet pandemic response needs and rebuild a
stronger, more equitable economy as the country recovers. Within the categories of eligible uses,
recipients have broad flexibility to decide how best to use this funding to meet the needs of their
communities. Recipients may use Coronavirus State and Local Fiscal Recovery Funds to:
• Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses,
behavioral healthcare, and certain public health and safety staff;
• Address negative economic impacts caused by the public health emergency, including
economic harms to workers, households, small businesses, impacted industries, and the public
sector;
• 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;
• Provide premium pay for essential workers, offering additional support to those who have
borne and will bear the greatest health risks because of their service in critical infrastructure
sectors; and,
• 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.
Within these overall categories, Treasury's Interim Final Rule provides guidelines and principles for
determining the types of programs and services that this funding can support, together with examples
of allowable uses that recipients may consider. As described below, Treasury has also designed these
provisions to take into consideration the disproportionate impacts of the COVID-19 public health
emergency on those hardest-hit by the pandemic.
1. Supporting the public health response
Mitigating the impact of COVID-19 continues to require an unprecedented public health response from
state, local, territorial, and Tribal governments. Coronavirus State and Local Fiscal Recovery Funds
provide resources to meet these needs through the provision of care for those impacted by the virus
and through services that address disparities in public health that have been exacerbated by the
pandemic. Recipients may use this funding to address a broad range of public health needs across
COVID-19 mitigation, medical expenses, behavioral healthcare, and public health resources. Among
other services, these funds can help support:
• Services and programs to contain and mitigate the spread of COVID-19, including:
✓ Vaccination programs
✓
Enhancement of healthcare capacity,
✓ Medical expenses
including alternative care facilities
✓ Testing
✓
Support for prevention, mitigation, or
✓ Contact tracing
other services in congregate living
✓ Isolation or quarantine
facilities and schools
✓ PPE purchases
✓
Enhancement of public health data
✓ Support for vulnerable populations to
systems
access medical or public health services
✓
Capital investments in public facilities to
✓ Public health surveillance (e.g.,
meet pandemic operational needs
monitoring for variants)
✓
Ventilation improvements in key settings
✓ Enforcement of public health orders
like healthcare facilities
✓ Public communication efforts
3
• Services to address behavioral healthcare needs exacerbated by the pandemic, including:
✓ Mental health treatment
✓ Substance misuse treatment
✓ Other behavioral health services
✓ Hotlines or warmlines
✓ Crisis intervention
✓ Services or outreach to promote access
to health and social services
• Payroll and covered benefits expenses for public health, healthcare, human services, public
safety and similar employees, to the extent that they work on the COVID-19 response. For
public health and safety workers, recipients can use these funds to cover the full payroll and
covered benefits costs for employees or operating units or divisions primarily dedicated to the
COVID-19 response.
2. Addressing the negative economic impacts caused by the public health emergency
The COVID-19 public health emergency resulted in significant economic hardship for many Americans.
As businesses closed, consumers stayed home, schools shifted to remote education, and travel declined
precipitously, over 20 million jobs were lost between February and April 2020. Although many have
since returned to work, as of April 2021, the economy remains more than 8 million jobs below its pre -
pandemic peak, and more than 3 million workers have dropped out of the labor market altogether since
February 2020.
To help alleviate the economic hardships caused by the pandemic, Coronavirus State and Local Fiscal
Recovery Funds enable eligible state, local, territorial, and Tribal governments to provide a wide range
of assistance to individuals and households, small businesses, and impacted industries, in addition to
enabling governments to rehire public sector staff and rebuild capacity. Among these uses include:
• Delivering assistance to workers and families, including aid to unemployed workers and job
training, as well as aid to households facing food, housing, or other financial insecurity. In
addition, these funds can support survivor's benefits for family members of COVID-19 victims.
• Supporting small businesses, helping them to address financial challenges caused by the
pandemic and to make investments in COVID-19 prevention and mitigation tactics, as well as to
provide technical assistance. To achieve these goals, recipients may employ this funding to
execute a broad array of loan, grant, in-kind assistance, and counseling programs to enable
small businesses to rebound from the downturn.
• Speeding the recovery of the tourism, travel, and hospitality sectors, supporting industries that
were particularly hard-hit by the COVID-19 emergency and are just now beginning to mend.
Similarly impacted sectors within a local area are also eligible for support.
• Rebuilding public sector capacity, by rehiring public sector staff and replenishing
unemployment insurance (UI) trust funds, in each case up to pre -pandemic levels. Recipients
may also use this funding to build their internal capacity to successfully implement economic
relief programs, with investments in data analysis, targeted outreach, technology infrastructure,
and impact evaluations.
4
3. Serving the hardest-hit communities and families
While the pandemic has affected communities across the country, it has disproportionately impacted
low-income families and communities of color and has exacerbated systemic health and economic
inequities. Low-income and socially vulnerable communities have experienced the most severe health
impacts. For example, counties with high poverty rates also have the highest rates of infections and
deaths, with 223 deaths per 100,000 compared to the U.S. average of 175 deaths per 100,000.
Coronavirus State and Local Fiscal Recovery Funds allow for a broad range of uses to address the
disproportionate public health and economic impacts of the crisis on the hardest-hit communities,
populations, and households. Eligible services include:
• Addressing health disparities and the social determinants of health, through funding for
community health workers, public benefits navigators, remediation of lead hazards, and
community violence intervention programs;
• Investments in housing and neighborhoods, such as services to address individuals
experiencing homelessness, affordable housing development, housing vouchers, and residential
counseling and housing navigation assistance to facilitate moves to neighborhoods with high
economic opportunity;
• Addressing educational disparities through new or expanded early learning services, providing
additional resources to high -poverty school districts, and offering educational services like
tutoring or afterschool programs as well as services to address social, emotional, and mental
health needs; and,
• Promoting healthy childhood environments, including new or expanded high quality childcare,
home visiting programs for families with young children, and enhanced services for child
welfare -involved families and foster youth.
Governments may use Coronavirus State and Local Fiscal Recovery Funds to support these additional
services if they are provided:
• within a Qualified Census Tract (a low-income area as designated by the Department of Housing
and Urban Development);
• to families living in Qualified Census Tracts;
• by a Tribal government; or,
• to other populations, households, or geographic areas disproportionately impacted by the
pandemic.
4. Replacing lost public sector revenue
State, local, territorial, and Tribal governments that are facing budget shortfalls may use Coronavirus
State and Local Fiscal Recovery Funds to avoid cuts to government services. With these additional
resources, recipients can continue to provide valuable public services and ensure that fiscal austerity
measures do not hamper the broader economic recovery.
Many state, local, territorial, and Tribal governments have experienced significant budget shortfalls,
which can yield a devastating impact on their respective communities. Faced with budget shortfalls and
pandemic -related uncertainty, state and local governments cut staff in all 50 states. These budget
shortfalls and staff cuts are particularly problematic at present, as these entities are on the front lines of
battling the COVID-19 pandemic and helping citizens weather the economic downturn.
Recipients may use these funds to replace lost revenue. Treasury's Interim Final Rule establishes a
methodology that each recipient can use to calculate its reduction in revenue. Specifically, recipients
will compute the extent of their reduction in revenue by comparing their actual revenue to an
alternative representing what could have been expected to occur in the absence of the pandemic.
Analysis of this expected trend begins with the last full fiscal year prior to the public health emergency
and projects forward at either (a) the recipient's average annual revenue growth over the three full
fiscal years prior to the public health emergency or (b) 4.1%, the national average state and local
revenue growth rate from 2015-18 (the latest available data).
For administrative convenience, Treasury's Interim Final Rule allows recipients to presume that any
diminution in actual revenue relative to the expected trend is due to the COVID-19 public health
emergency. Upon receiving Coronavirus State and Local Fiscal Recovery Funds, recipients may
immediately calculate the reduction in revenue that occurred in 2020 and deploy funds to address any
shortfall. Recipients will have the opportunity to re -calculate revenue loss at several points through the
program, supporting those entities that experience a lagged impact of the crisis on revenues.
Importantly, once a shortfall in revenue is identified, recipients will have broad latitude to use this
funding to support government services, up to this amount of lost revenue.
5. Providing premium pay for essential workers
Coronavirus State and Local Fiscal Recovery Funds provide resources for eligible state, local, territorial,
and Tribal governments to recognize the heroic contributions of essential workers. Since the start of the
public health emergency, essential workers have put their physical well-being at risk to meet the daily
needs of their communities and to provide care for others.
Many of these essential workers have not received compensation for the heightened risks they have
faced and continue to face. Recipients may use this funding to provide premium pay directly, or through
grants to private employers, to a broad range of essential workers who must be physically present at
their jobs including, among others:
✓ Staff at nursing homes, hospitals,
and home -care settings
✓ Workers at farms, food production
facilities, grocery stores, and restaurants
✓ Janitors and sanitation workers
✓ Public health and safety staff
✓ Truck drivers, transit staff, and
warehouse workers
✓ Childcare workers, educators, and school
staff
✓ Social service and human services staff
Treasury's Interim Final Rule emphasizes the need for recipients to prioritize premium pay for lower
income workers. Premium pay that would increase a worker's total pay above 150% of the greater of
the state or county average annual wage requires specific justification for how it responds to the needs
of these workers.
2
In addition, employers are both permitted and encouraged to use Coronavirus State and Local Fiscal
Recovery Funds to offer retrospective premium pay, recognizing that many essential workers have not
yet received additional compensation for work performed. Staff working for third -party contractors in
eligible sectors are also eligible for premium pay.
6. Investing in water and sewer infrastructure
Recipients may use Coronavirus State and Local Fiscal Recovery Funds to invest in necessary
improvements to their water and sewer infrastructures, including projects that address the impacts of
climate change.
Recipients may use this funding to invest in an array of drinking water infrastructure projects, such as
building or upgrading facilities and transmission, distribution, and storage systems, including the
replacement of lead service lines.
Recipients may also use this funding to invest in wastewater infrastructure projects, including
constructing publicly -owned treatment infrastructure, managing and treating stormwater or subsurface
drainage water, facilitating water reuse, and securing publicly -owned treatment works.
To help jurisdictions expedite their execution of these essential investments, Treasury's Interim Final
Rule aligns types of eligible projects with the wide range of projects that can be supported by the
Environmental Protection Agency's Clean Water State Revolving Fund and Drinking Water State
Revolving Fund. Recipients retain substantial flexibility to identify those water and sewer infrastructure
investments that are of the highest priority for their own communities.
Treasury's Interim Final Rule also encourages recipients to ensure that water, sewer, and broadband
projects use strong labor standards, including project labor agreements and community benefits
agreements that offer wages at or above the prevailing rate and include local hire provisions.
7. Investing in broadband infrastructure
The pandemic has underscored the importance of access to universal, high-speed, reliable, and
affordable broadband coverage. Over the past year, millions of Americans relied on the internet to
participate in remote school, healthcare, and work.
Yet, by at least one measure, 30 million Americans live in areas where there is no broadband service or
where existing services do not deliver minimally acceptable speeds. For millions of other Americans, the
high cost of broadband access may place it out of reach. The American Rescue Plan aims to help remedy
these shortfalls, providing recipients with flexibility to use Coronavirus State and Local Fiscal Recovery
Funds to invest in broadband infrastructure.
Recognizing the acute need in certain communities, Treasury's Interim Final Rule provides that
investments in broadband be made in areas that are currently unserved or underserved—in other
words, lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps download and 3
Mbps upload. Recipients are also encouraged to prioritize projects that achieve last -mile connections to
households and businesses.
Using these funds, recipients generally should build broadband infrastructure with modern technologies
in mind, specifically those projects that deliver services offering reliable 100 Mbps download and 100
7
Mbps upload speeds, unless impracticable due to topography, geography, or financial cost. In addition,
recipients are encouraged to pursue fiber optic investments.
In view of the wide disparities in broadband access, assistance to households to support internet access
or digital literacy is an eligible use to respond to the public health and negative economic impacts of the
pandemic, as detailed above.
8. Ineligible Uses
Coronavirus State and Local Fiscal Recovery Funds provide substantial resources to help eligible state,
local, territorial, and Tribal governments manage the public health and economic consequences of
COVID-19. Recipients have considerable flexibility to use these funds to address the diverse needs of
their communities.
To ensure that these funds are used for their intended purposes, the American Rescue Plan Act also
specifies two ineligible uses of funds:
States and territories may not use this funding to directly or indirectly offset a reduction in net
tax revenue due to a change in law from March 3, 2021 through the last day of the fiscal year
in which the funds provided have been spent. The American Rescue Plan ensures that funds
needed to provide vital services and support public employees, small businesses, and families
struggling to make it through the pandemic are not used to fund reductions in net tax revenue.
Treasury's Interim Final Rule implements this requirement. If a state or territory cuts taxes, they
must demonstrate how they paid for the tax cuts from sources other than Coronavirus State
Fiscal Recovery Funds—by enacting policies to raise other sources of revenue, by cutting
spending, or through higher revenue due to economic growth. If the funds provided have been
used to offset tax cuts, the amount used for this purpose must be paid back to the Treasury.
No recipient may use this funding to make a deposit to a pension fund. Treasury's Interim
Final Rule defines a "deposit" as an extraordinary contribution to a pension fund for the purpose
of reducing an accrued, unfunded liability. While pension deposits are prohibited, recipients
may use funds for routine payroll contributions for employees whose wages and salaries are an
eligible use of funds.
Treasury's Interim Final Rule identifies several other ineligible uses, including funding debt service, legal
settlements or judgments, and deposits to rainy day funds or financial reserves. Further, general
infrastructure spending is not covered as an eligible use outside of water, sewer, and broadband
investments or above the amount allocated under the revenue loss provision. While the program offers
broad flexibility to recipients to address local conditions, these restrictions will help ensure that funds
are used to augment existing activities and address pressing needs.
N