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A resolution authorizing the Metropolitan Department of Finance to enter into memorandums of understanding with certain Metropolitan Government departments and agencies concerning prior appropriations of American Rescue Plan Act funds.
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WHEREAS, The Metropolitan Government of Nashville and Davidson County previously received federal Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) authorized pursuant to the American Rescue Plan Act of 2021 (“ARPA”) to aid in the response to, and the impact from, the COVID-19 pandemic (such funds being the “ARPA Funds”); and,
WHEREAS, following recommendations from the COVID-19 Financial Oversight Committee, the Metropolitan Council at various times has appropriated the ARPA Funds to Metropolitan Government departments and agencies; and,
WHEREAS, pursuant to rules of the U.S. Department of the Treasury (the “U.S. Treasury”) who is responsible for overseeing and administering the SLFRF Program, all ARPA Funds must first be obligated by December 31, 2024, and such obligated funds must then be expended by December 31, 2026, or such unqualified funds must be returned to the federal government; and,
WHEREAS, the U.S. Treasury has issued guidance that under the SLFRF rules, the Metropolitan Council resolutions appropriating the ARPA funds to the Metropolitan Government departments and agencies that are unspent as of December 31, 2024, do not alone satisfy the requirements to obligate the ARPA Funds; and,
WHEREAS, as of the date of the filing of this resolution, the Metropolitan Government departments and agencies reflected on the attached Exhibit A to be incorporated herein by reference have previously appropriated ARPA Funds that will not be fully expended prior to December 31, 2024; and,
WHEREAS, the U.S. Treasury has further advised that an interagency agreement, such as a memorandum of understanding, that contains certain conditions regarding the use of ARPA Funds entered into by and between departments and agencies within a governmental entity will satisfy the requirement to obligate the funds; and,
WHEREAS, the Metropolitan Department of Finance will enter into memorandums of understanding (the “Interagency Agreement(s) for SLFRF”), attached as Exhibits B through U, with the respective Metropolitan Government departments and agencies identified on Exhibit A, for the purposes of satisfying the requirement to obligate the remaining ARPA Funds by December 31, 2024; and,
WHEREAS, it is in the best interests of the Metropolitan Government that the memorandums of understanding be approved and executed so that the Metropolitan Government is not required to return unobligated ARPA funds to the federal government.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the memorandums of understanding (the Interagency Agreements for SLFRF) by and between the Metropolitan Department of Finance and the respective Metropolitan Government departments and agencies attached as Exhibits B through U are hereby approved, and the Metropolitan Director of Finance and the respective department or agency head (or the individual acting in such capacity) are authorized to execute the same.
Section 2. That the parties to each memorandum of understanding are authorized to make such reasonable changes, amendments, corrections, insertions, deletions, or variations thereto as necessary to comply with the U.S. Treasury requirements for interagency agreements and to effectuate the intent and purposes of this resolution.
Section 3. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution authorizes the Metropolitan Department of Finance to enter into memorandums of understanding with certain Metropolitan Government departments and agencies concerning prior appropriations of American Rescue Plan Act (“ARPA”) funds.
The Metropolitan Government previously received federal Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) authorized by ARPA to aid in the response to and impact from the COVID-19 pandemic. The Metropolitan Council established the COVID-19 Financial Oversight Committee to assist in the appropriation of ARPA funds to Metropolitan Government departments and agencies.
The U.S. Department of the Treasury implemented rules that require all ARPA funds to be obligated by December 31, 2024, and that all obligated funds be expended by December 31, 2026. Otherwise, the funds must be returned to the federal government. The U.S. Department of the Treasury has issued recent guidance that, under the SLFRF rules, means that the Metropolitan Council resolutions appropriating ARPA funds to Metropolitan Government departments and agencies that are unspent as of December 31, 2024, would not alone satisfy the requirements to obligate the ARPA funds.
The resolution under consideration approves memorandums of understanding for the purpose of satisfying the requirement to obligate ARPA funds by December 31, 2024.
The memorandums of understanding, attached to the resolution as Exhibits B through U, relate to funding that has previously been approved by the Council. Detailed information about the memorandums of understanding and the corresponding Council legislation can be found listed on Exhibit A to the resolution.
Fiscal Note: The total ARPA Funds obligated through the interagency agreements with the various Metro departments is $73,227,879.95. These agreements will satisfy the requirement to obligate the ARPA Funds by December 31, 2024, and must be spent by December 31, 2026.