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A resolution approving mayoral conditional approval and acceptance of a local government Coronavirus State and Local Fiscal Recovery Funds established by the American Recovery Plan Act of 2021 from the U.S. Department of the Treasury to The Metropolitan Government of Nashville and Davidson County, acting by and through the Metropolitan Nashville Finance Department, and allocating certain funds to aid in Nashville’s recovery from the Coronavirus pandemic.
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WHEREAS, as authorized in the American Recovery Plan Act the U.S. Department of the Treasury has awarded a grant in an amount not to exceed $259,810,600 (the “ARP Funds”) with no cash match required to The Metropolitan Government of Nashville and Davidson County, acting by and through the Metropolitan Nashville Finance Department to respond to acute pandemic response needs, fill revenue shortfalls, and support the communities and populations affected by the COVID-19 crisis; and,
WHEREAS, the Finance Department anticipates receipt of the one-half of the ARP Funds no later than June 1, 2021 and the remainder no later than July 1, 2022; and,
WHEREAS, the ARP Funds shall be deposited into an American Rescue Plan Fund No. 30216; and,
WHEREAS, a Financial Oversight Committee shall be convened to make recommendations within the disbursement plan for the ARP Funds in accordance with the U.S. Department of the Treasury guidelines and regulations; and,
WHEREAS, the Metropolitan Council desires the ARP Funds appropriated by this resolution to be part of the disbursement plan, and,
WHEREAS, the Metropolitan Council desires to appropriate to certain accounts for the benefit of
various Metropolitan Nashville entities Two Million, Nine Hundred Twelve Thousand, Six Hundred Sixteen Dollars ($2,912,616), the ARP Funds received from the U.S. Department of the Treasury and deposited into the American Rescue Plan Fund maintained by the Department of Finance; and,
WHEREAS, the COVID-19 pandemic has caused an increase in behavioral health service demands related to overdoses and EMS psychiatric transport incidents; and,
WHEREAS, a portion of the appropriation is intended to support the Metropolitan Nashville Health Department’s Behavioral Health Pilot with the North and Hermitage Police Precincts which will require an amendment to the grant contract by and between the Metropolitan Government and Mental Health Cooperative dated September 1, 2020; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this grant be accepted, a plan for expenditure be developed, and certain funds allocated to aid in Nashville’s recovery from the Coronavirus pandemic.
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the resolution approving mayoral conditional approval and acceptance of a local government Coronavirus relief fund grant by and between the U.S. Department of the Treasury to The Metropolitan Government of Nashville and Davidson County, acting by and through the Metropolitan Nashville Finance Department, in an amount not to exceed $259,810,600 to respond to the public health emergency caused by the Coronavirus pandemic, a copy of which is attached hereto and incorporated herein, is hereby approved.
Section 2. That the amount of this grant is to be appropriated to the Metropolitan Department of Finance based on the revenues estimated to be received.
Section 3. The grant funds accepted by this resolution shall not be expended until a plan for disbursement of the funds is approved by a resolution adopted by the Metropolitan Council.
Section 4. There is hereby created a Financial Oversight Committee which shall be comprised of nine members. Six members of the Committee shall be appointed by the Mayor which appointments shall not be subject to confirmation by the Council. The remaining three members shall be Members of the Metropolitan Council appointed by the Vice Mayor. The Committee members shall be appointed not later than July 1, 2021. The purpose of the Committee is to provide financial oversight of the Coronavirus Local Fiscal Recovery Funds of the American Rescue Plan of 2021. It will issue reports upon and review the use of funds as it deems appropriate. Further, it will collect, consider, and recommend appropriate uses of the ARP Funds as designated by the Metropolitan Council disbursement plan. The Committee will submit its reports and recommendations to the Mayor, the Director of Finance, and the Metropolitan Council not later than June 30, 2025. All meetings of the Financial Oversight Committee shall be publicly noticed, shall be open to the public, and shall be broadcast live on one of the Metro Nashville Network channels when feasible. If a meeting cannot be broadcast live, it shall be recorded and aired on one of the Metro Nashville Network channels within 48 hours of the meeting.
Section 5. That the following amounts from the ARP Fund revenues in the American Rescue Plan Fund are hereby appropriated to reimburse expenditures incurred by enterprise fund operations impacted by COVID and to aid in recovery:
|
PRIMARY EXPENDITURE ACCOUNT # 01602025 |
ACCOUNT DESCRIPTION |
AMOUNT |
|
|
Farmers Market |
$500,000 |
|
|
Municipal Auditorium |
$1,323,100 |
|
|
Nashville Fairgrounds |
$288,700 |
|
|
TOTAL |
$2,111,800 |
Section 6. That the appropriations in Section 5 are funded from the following revenue:
|
PRIMARY REVENUE ACCOUNT # |
ACCOUNT DESCRIPTION |
AMOUNT |
|
01602020.406100 |
Revenue - Federal Direct |
($2,111,800) |
|
|
TOTAL |
($2,111,800) |
Section 7. That the following amounts from the ARP Fund revenues in the American Rescue Plan Fund are hereby appropriated to State Trial Courts to provides funding for an increase in jury trials resulting from the postponement of jury trials due to the COVID pandemic:
|
PRIMARY EXPENDITURE ACCOUNT # 01602025 |
ACCOUNT DESCRIPTION |
AMOUNT |
|
|
State Trial Courts |
$55,000 |
|
|
TOTAL |
$55,000 |
Section 8. That the appropriations in Section 7 are funded from the following revenue:
|
PRIMARY REVENUE ACCOUNT # |
ACCOUNT DESCRIPTION |
AMOUNT |
|
01602020.406100 |
Revenue - Federal Direct |
($55,000) |
|
|
TOTAL |
($55,000) |
Section 9. That the following amounts from the ARP Fund revenues in the American Rescue Plan Fund are hereby appropriated to Metropolitan Nashville Health Department to provide funding for its Behavioral Health Pilot program with the North and Hermitage Police Precincts:
|
PRIMARY EXPENDITURE ACCOUNT # 01602025 |
ACCOUNT DESCRIPTION |
AMOUNT |
|
|
Metropolitan Nashville Health Department - Behavioral Health Pilot |
$561,816 |
|
|
TOTAL |
$561,816 |
Section 10. That the appropriations in Section 9 are funded from the following revenue:
|
PRIMARY REVENUE ACCOUNT # |
ACCOUNT DESCRIPTION |
AMOUNT |
|
01602020.406100 |
Revenue - Federal Direct |
($561,816) |
|
|
TOTAL |
($561,816) |
Section 11. That the following amounts from the ARP Fund revenues in the American Rescue Plan Fund are hereby appropriated to Metropolitan Nashville Health Department to provide funding for its Electronic Health Records system:
|
PRIMARY EXPENDITURE ACCOUNT # 01602025 |
ACCOUNT DESCRIPTION |
AMOUNT |
|
|
Metropolitan Nashville Health Department - Public Health Electronic Health Records One-time Costs |
$184,000 |
|
|
TOTAL |
$184,000 |
Section 12. That the appropriations in Section 11 are funded from the following revenue:
|
PRIMARY REVENUE ACCOUNT # |
ACCOUNT DESCRIPTION |
AMOUNT |
|
01602020.406100 |
Revenue - Federal Direct |
($184,000) |
|
|
TOTAL |
($184,000) |
Section 13. That all appropriations hereinabove shall be incorporated and made part of the plan of disbursement of ARP Funds.
Section 14. 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
In accordance with the federal American Recovery Plan Act, the U.S. Department of the Treasury has awarded a grant to Metro in an amount not to exceed $259,810,600 (the “ARP Funds”) with no cash match required. The Finance Department anticipates receipt of one-half of the ARP Funds no later than June 1, 2021 and the remainder no later than July 1, 2022. This resolution approves the acceptance of the grant funds and appropriates $2,912,616 of the funds for various departments and programs impacted by COVID-19, as follows:
• $500,000 for the Farmers Market
• $1,323,100 for Municipal Auditorium
• $288,700 for Fairgrounds Nashville
• $55,000 for the State Trial Courts for an increase in jury trials
• $561,816 to the Health Department for a behavioral health pilot program with the North and Hermitage police precincts
• $184,000 to the Health Department for its electronic health records system
The remaining grant funds cannot be distributed until the Council approves a plan for disbursement of the funds by resolution.
According to guidance provided by the U.S. Department of Treasury on May 10, 2021, local government ARP Funds can be used for the following purposes:
• Supporting public health expenditures
• Addressing negative economic impacts caused by the pandemic
• Replacing lost public sector revenue, to the extent the local government experienced a net reduction in revenue due to the pandemic
• Providing premium pay for essential workers
• Investing in water, sewer, and broadband infrastructure
This resolution also establishes a Financial Oversight Committee similar to the committee created by the Fiscal Year 2021 substitute operating budget ordinance to oversee the expenditure of CARES Act funds. The Committee will be comprised of nine members. Six members of the Committee shall be appointed by the Mayor, which appointments are not subject to confirmation by the Council. The remaining three members shall be Members of the Metropolitan Council appointed by the Vice Mayor. The Committee members shall be appointed not later than July 1, 2021. The Committee will collect, consider, and recommend appropriate uses of the ARP Funds as designated by the Metropolitan Council disbursement plan. The Committee will submit its reports and recommendations to the Mayor, the Director of Finance, and the Metropolitan Council not later than June 30, 2025.