Number
211939
Version
SUBSTITUTE 3
Reference
210894
Sponsor
ALD. ZAMARRIPA, STAMPER, HAMILTON, BAUMAN, SPIKER AND BORKOWSKI
Title
Substitute resolution relating to the use of the second tranche of American Rescue Plan Act funding for financial sustainability.
Analysis
This substitute resolution:
1. Authorizes the Department of Administration to accept funding from the U.S. Department of Treasury for the American Rescue Plan Act (ARPA) grant in the amount of $197,113,324.50.
2. Allocates $96,900,000 to maintain service levels in the 2023 and 2024 budgets under the revenue loss provision, to fund housing programs, and to fund ARPA administration and compliance staff as follows:
2023 2024
Revenue Loss $75,000,000
Street Lighting $ 5,000,000 $ 5,000,000
Capital Budget - Housing $ 4,700,000 $ 4,700,000
Administrative and Compliance Staff $ 1,250,000 $ 1,250,000
$85,950,000 $10,950,000
Body
Whereas, On October 21, 2021, the Common Council adopted Resolution File Number 210894, relating to the appropriation of the first tranche of ARPA funds; and
Whereas, The City anticipates receiving the second tranche of the ARPA grant award under the Local Fiscal Recovery Fund (LFRF) in the amount of $197,113,324.50 in May 2022, of which the full amount is provided by the grantor, with $0 provided by the City; and
Whereas, The LFRF provides substantial flexibility for the City of Milwaukee to provide the foundation for a strong and equitable recovery from the COVID-19 pandemic; and
Whereas, The LFRF can be used to support COVID-19 and other public health response efforts, replace lost public sector revenue and support local public services, support economic stabilization for households and businesses, make necessary investments in water, sewer and broadband infrastructure, and address public health, economic and educational disparities; and
Whereas, The City faced substantial financial hardship due to the COVID-19 pandemic in the form of revenue loss, housing, employee retirement funding, public safety, and administrative costs; and
Whereas, It is necessary to ensure effective administration of the LFRF and compliance with all ARPA requirements; and
Whereas, It is a priority to maintain current service levels in the 2023 and 2024 budgets; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Administration is authorized to accept an American Rescue Plan Act grant through the Local Fiscal Recovery Fund without further approval unless the terms of the grant change as indicated in s. 304-81 of the Code of Ordinances; and, be it
Further Resolved, That the City Comptroller is authorized to:
1. Commit funds within the project/grant parent of the 2022 Special Revenue Grant and Aid Projects Fund the following amounts for the Local Fiscal Recovery Fund
Project/Grant GR0002200000
Fund 0150
Org 9990
Program 0001
Budget Year 0000
Sub Class R999
Account 000600
Project Grantor Share
Amount $197,113,324.50
2. Create the necessary grant and aid project/grant and project/grant levels, budget against these project grant values the amount required under the grant agreement.
3. Establish the necessary city share project values.
; and, be it
Further Resolved, That $96,900,000 of the LFRF grant funds from the second tranche are allocated for the purposes of maintaining service levels in the 2023 and 2024 budgets under the revenue loss provision, providing funding for housing programs, and funding administrative and compliance staff for ARPA as follows:
2023 2024
Revenue Loss $75,000,000
Street Lighting $ 5,000,000 $ 5,000,000
Capital Budget - Housing $ 4,700,000 $ 4,700,000
Administrative and Compliance Staff $ 1,250,000 $ 1,250,000
$85,950,000 $10,950,000
; and, be it
Further Resolved, That the $10,000,000 allocated to street lighting circuitry replacement shall be prioritized according to the plan attached to this file as Exhibit A; and, be it
Further Resolved, That City Departments whose budgets include a portion of the LFRF grant funds may enter into leases, contracts, subcontracts, and sub-award agreements as may be necessary to effectuate the budgeted purpose of those departments’ LFRF grant funds, provided that those departments continue to follow normal City policies that relate to purchasing contract.
Requestor
Drafter
LRB 177299-8
Tea B. Norfolk
5/9/2022