Title
Adoption of Resolution Amending the Fiscal Year 2024-25 American Rescue Plan Act Fund (Fund 223) Operating Budget Appropriating $87,113 from Available Earned Interest to Project C99300 (American Rescue Plan 2021) Guaranteed Basic Income Pilot Program and Reducing the Appropriation of ARPA Funds by $87,113. (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) received a total of approximately $28.7 million in American Rescue Plan Act of 2021 (ARPA) funding. These funds must be obligated by December 31, 2024, and spent by December 31, 2026, to avoid forfeiting them.
One project funded by ARPA, the Guaranteed Basic Income Pilot Program (GBIPP), will have unobligated funds by December 31, 2024 which cannot be encumbered through a purchase order (PO) or contract. However, these funds are essential for the program's success and should remain available. Staff recommends using ARPA earned interest resources to cover these expenditures and reduce the ARPA appropriation to the GBIPP project by the same amount.
BACKGROUND
The City received $28,679,908 in ARPA funding from the United States Department of the Treasury (Treasury). Upon City Council's direction, these funds were appropriated throughout several eligible uses, or projects, including but not limited to, the GBIPP. A recent audit of APRA appropriations revealed that a total of $28,877,283 was appropriated to ARPA allowable projects, resulting in an over appropriation of $197,375. Additionally, the City was allowed to earn interest on the ARPA funds while they were unspent. The interest earned does not include the same spending restrictions as ARPA funds and represents a small amount of available, unrestricted funds to cover this small over appropriation if necessary.
Guaranteed Basic Income Pilot Program
The GBIPP provides $1,000 per month to approximately 150 households over a two-year perio...
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