Issue Statement: The American Rescue Plan Act (ARPA) of 2021 established a $350 billion Coronavirus State & Local Fiscal Recovery Fund (SLFRF).  Monies from this fund are distributed to eligible state, territorial, city, county, tribal, and other governments in accordance with federal law and guidelines. Allowable uses for these funds are limited to categories established by the ARPA and the corresponding rules developed by the U.S. Treasury.

The City of Oakland Park is a non-entitlement unit (NEU) of government. NEU status is largely determined by the population size of the jurisdiction and Oakland Park is below the 50,000 population threshold to be designated an entitlement City.  The funding mechanisms and reporting requirements for NEU governments differ from entitlement units of government. Instead of directly receiving payments from the U.S. Treasury, NEU governments will receive designated funding allocations from the SLFRF from the State of Florida.

To receive funding through this program, the City must execute the required funding agreement that has been prepared by the U.S. Treasury and the Florida Department of Emergency Management (FDEM).    

Recommendation: The City Commission adopt a resolution designating the City Manager as the City's authorized representative and providing authority to execute the American Rescue Plan Act Coronavirus Local Fiscal Recovery Fund Agreement and any such related agreements and documents necessary to receive and administer said funds.

An overview of ARPA prepared by the Florida League of Cities is attached for additional reference.  As outlined, eligible uses are as follows:

• Response to public health concerns raised by the pandemic
• Response to negative economic impacts of the pandemic
• Services to disproportionately impacted communities
• Premium pay to essential workers (private and public)
• Improvements to water, sewer and broadband infrastructure
• Replacement of lost revenue by local governments due to pandemic
• Administrative costs

The above listed are the general eligible uses of funding under the program, but expenditure must comply with the criteria established by the authorizing legislation, U.S. Treasury rules, U.S. Treasury FAQs & Guidance, and other applicable federal requirements as relates to procurement and other elements.  Funds must be used to cover "costs incurred" by the recipient between March 3, 2021 and December 31, 2024.

The State of Florida, through the Florida Division of Emergency Management (FDEM), will disburse State and Local Fiscal Recovery Funds (SLFRF) to non-entitlement units of local government (NEUs), which are local governments typically serving a population under 50,000. ARPA defines the term “non-entitlement unit of local government” to mean a “city” as that term is defined in section 102(a)(5) of the Housing and Community Development Act of 1974 (HCDA) that is not a metropolitan city.

FDEM will make payments to NEUs from the relief fund in two tranches, with the Second Tranche payment to be made no earlier than 12 months after the date on which the First Tranche payment is paid. After the return of funding agreements, FDEM will make the initial disbursement of 50% of each NEU's budget determined allocation during 2021. 

Following initial disbursement of funds, each NEU must submit to the U.S. Treasury a financial report by October 31, 2021 and then annually thereafter.   ARPA funding will also be audited as part of the annual external audit in accordance with the federal Single Audit Act.  In addition to annual auditing and reporting, all records and expenditures are subject to audit by the United States Department of Treasury’s Inspector General, the Florida Division of Emergency Management, and the Florida State Auditor General. The U.S. Treasury will ultimately make all program eligibility determinations.  Failure to adhere to requirements can result in the City being required to return funding in the amount of whatever costs are deemed ineligible and non-compliant.  

The City of Oakland Park will receive $22.6 million in total through the ARPA through two separate payments from the State. ARPA funded costs can only be incurred from March 3, 2021 to December 31, 2024. 

As discussed during earlier Commission meetings and noted in the FY 2022 budget message, there is a preliminary intent to utilize a large portion of the proceeds to assist in the funding the Public Works facility.  A plan will be developed as Treasury’s interim rules are replaced with final rules. Staff will also monitor and report on other federal infrastructure legislation and potential opportunities to receive federal funding to assist the City of Oakland Park.

Funding allocation will be approved by the City Commission through the budget development and budget amendment processes.