TO: Mayor and Members of City Council
THRU: Doug Hewett, ICMA-CM, City Manager
FROM: Jeffery Yates, Assistant City Manager
Brook Redding, MPA, PMP, Special Projects Manager
Kimberly Leonard, CLBGO, CLGFO, CPA, MPA, Budget & Evaluation Director
DATE: December 9, 2024
RE:
Title
Adoption of Budget Ordinance Amendment and Special Revenue Fund Ordinance Amendment to Appropriate American Rescue Plan Act funds for Safety Salaries, and to Appropriate General Fund Funds for Capital Projects
end
COUNCIL DISTRICT(S):
Council District(s)
ALL
b
Relationship To Strategic Plan:
ALL
Executive Summary:
The City of Fayetteville has the opportunity to allocate the remaining $1,811,096 of American Rescue Plan Act (ARPA) funds in a manner that maximizes their strategic impact while ensuring full compliance with federal regulations, by reimbursing eligible public safety salaries with the remaining ARPA funds. Therefore, Special Revenue Ordinance Amendment (SROA) 2025-2 transfers the remaining $1,811,096 from the ARPA fund to the General Revenue Fund and Budget Ordinance Amendment (BOA) 2025-9 appropriates these funds for public safety salaries.
The General Ledger Revenues originally appropriated $1,811,096 for safety salaries which can now be utilized for other projects. Accordingly, the following Capital Project Ordinances (CPO) appropriate the general fund revenues: CPO 2025-36 appropriates $200,000 for American Disability Act (ADA) Compliance, CPO 2025-37 appropriates $600,000 for the Day Resource Center operations, CPO 2025-38 appropriates $110,000 for the Impact Reduction Program, and CPO 2025-39 appropriates $901,096 for the creation of a Capital Improvement Plan Contingency Project account, which will allow the City Council flexibility to prioritize spending in the next budget cycle. Council is asked to approve the adoption of Special Revenue Ordinance Amendment 2025-2, Budget Ordinance Amendment 2025-9 and Capital Project Ordinances 2025-36, 2025-37, 2025-38 and 2025-39 to facilitate these appropriations and ensure proper alignment with federal guidelines and City goals.
Background:
The federal government has provided the City of Fayetteville with $40.4 million in ARPA funding to address the impacts of COVID-19 and support long-term community recovery. The funds have been allocated across multiple projects focusing on infrastructure, public safety, housing, and economic development.
To date, the City has made significant progress in utilizing ARPA funds, with the majority obligated or encumbered. However, a portion of unallocated funds remains, primarily from contingency reserves. To ensure full compliance with ARPA’s obligation deadline of December 31, 2024, and to maximize the strategic use of these funds, the City proposes reimbursing itself for eligible public safety salaries. This will allow the general funds which are then released from the salary commitment to be invested in the ADA Compliance project, ongoing operations for the Day Resource Center, the Impact Reduction Program and the creation of a Capital Improvement Plan Contingency project account, giving the City Council flexibility in the next fiscal year’s budget decisions.
Issues/Analysis:
To meet the federal deadline of December 31, 2024, for obligating ARPA funds, the City proposes allocating the remaining unobligated funds by reimbursing public safety salaries. This allows the corresponding general revenue funds to be directed at high-priority projects, including:
• ADA Compliance Project: To enhance accessibility across City facilities.
• Day Resource Center Operations: To ensure continued support for homelessness services.
• Impact Reduction Program: To ensure continued support for unsheltered homelessness services.
• Capital Improvement Plan Contingency Project Account: Remaining contingency funds to be allocated for future Council-directed priorities.
Approval of these actions ensures the City meets ARPA deadlines while addressing community needs and advancing key Council priorities.
Budget Impact:
There is no impact on the General Fund fund balance.
Options:
1. Adopt BOA 2025-9, SROA 2025-2 and CPOs 2025-36, 2025-37, 2025-38, and 2025-39 as presented.
2. Do not adopt BOA 2025-9, SROA 2025-2 and CPOs 2025-36, 2025-37, 2025-38, and 2025-39 and provide further direction to staff.
Recommended Action:
Staff recommend that City Council adopt the ordinances as presented to facilitate ARPA compliance.
Attachments:
BOA 2025-9
SROA 2025-2
CPOs 2025-36-39