Title
Dept/ Agency: Administration/Office of the Business Administrator
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Acceptance of Grant Funds
Purpose: Acceptance of American Rescue Plan Act of 2021 stimulus funds to respond to the economic crisis brought on by the ongoing Covid-19 pandemic.
Entity Name: United States Department of Treasury
Entity Address: 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220
Grant Amount: $176,667,606.00
Total Project Cost: $0.00
City Contribution: $0.00
Other Funding Source/Amount: $0.00
Grant Period: March 10, 2021 through December 31, 2024
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale (X ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
body
WHEREAS, on March 10, 2021, the 117th Congress of the United States and President Joseph R. Biden officially enacted a $1.9 trillion stimulus package, the American Rescue Plan Act of 2021, in response to the economic crisis brought on by the ongoing Covid-19 pandemic; and
WHEREAS, the American Rescue Plan Act of 2021, is a unique opportunity for the City of Newark (the “City”) to plan for its future and make significant investments in programs and policies that set the City of Newark on a new trajectory to grow family-sustaining jobs at a faster rate, reduce and combat entrenched systemic poverty, and develop new and innovative methods for performing city services; and
WHEREAS, the federal dollars provided in the American Rescue Plan Act will arrive to the City incrementally with the first half being dispersed before the end the City’s fiscal year 2021 and the second half arriving over the course of the next four (4) years. Careful planning will be needed to make the most of this influx; and
WHEREAS, working within the parameters determined at the federal level, the City of Newark’s leaders will need to plan for measuring the performance of programs funded, department operations, use of overtime, and any increases in spending during this precarious time so that a windfall of federal dollars is used in the most efficient and impactful manner; and
WHEREAS, the American Rescue Plan Act has created space for bold new thinking in City government. Now is the time to consider broadly impactful policy changes to encourage small business growth, and attraction of new businesses to the City of Newark and be part of the post-pandemic revitalization, which will benefit all Newarkers; and
WHEREAS, the City has a unique opportunity to move the needle on its most pressing problem - an extremely high rate of poverty. Planning around the American Rescue Plan Act, which engages all City leadership and partners in the non-profit and private sectors is needed to make sure work in the anti-poverty space continues to be supported and meaningfully expanded; and
WHEREAS, on or about May 19, 2021, the City submitted an electronic portal application to United States Department of Treasury for the American Rescue Plan Act of 2021 - Treasury’s Coronavirus State and Local Fiscal Recovery Funds, to respond to the economic crisis brought on by the ongoing Covid-19 pandemic; and
WHEREAS, on or about May 19, 2021, the City was notified to receive a total award in the amount of $176,667,606.00, in two (2) separate allocations, over a period of four (4) years, as part of the American Rescue Plan Act of 2021, which will help the City recover from the economic downturn experienced in fiscal year 2021 and mitigate the financial impact over the next four (4) years; and
WHEREAS, on or about May 19, 2021 the United States Department of Treasury issued the first of the two (2) allocations to the City on May 19, 2021 in the amount of $88,333,803.00, from American Rescue Plan Act of 2021 - Treasury’s Coronavirus State and Local Fiscal Recovery Funds, to respond to the economic crisis brought on by the ongoing Covid-19 pandemic, which was directly wired into the City’s financial institution account on May 19, 2021 (see Transaction Summary attached hereto and made a part hereof); and
WHEREAS, the City wishes to accept the total the American Rescue Plan Act of 2021 - Treasury’s Coronavirus State and Local Fiscal Recovery Funds award in the amount of $176,667,606.00; and
WHEREAS, no agreement is required in order to accept the American Rescue Plan Act of 2021 - Treasury’s Coronavirus State and Local Fiscal Recovery Funds; and
WHEREAS, no matching municipal funds are required in order to accept the American Rescue Plan Act of 2021 - Treasury’s Coronavirus State and Local Fiscal Recovery Funds.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or the Business Administrator, are hereby authorized to submit an electronic application via the Treasury Submission Portal for Coronavirus State and Local Fiscal Recovery Funds, on behalf of the City of Newark, requesting stimulus funding from the American Rescue Plan Act of 2021, to respond to the economic crisis brought on by the ongoing Covid-19 pandemic (a copy of the submission confirmation is attached hereto and made a part hereof)
2. The Municipal Council hereby ratifies its authorization of the application from the date of application submission to the date of adoption of this authorizing resolution.
3. Upon notification of the receipt of funds in connection with the application, the stimulus funds are hereby accepted in the amount applied for and/or any increase or decrease thereto.
4. No municipal funds are required for receipt of acceptance of this grant award.
5. The Mayor and/or the Business Administrator shall file a copy of the Transaction Summary from the United States Department of Treasury in the Office of the City Clerk.
STATEMENT
This resolution ratifies and authorizes: (1) the actions taken by the City of Newark to submit an application to United States Department of Treasury for the American Rescue Plan Act of 2021 stimulus funds; and (2) the City of Newark to accept the American Rescue Plan Act of 2021 stimulus funds in the amount of $176,667,606.00 from the United States Department of Treasury to respond to the economic crisis brought on by the ongoing Covid-19 pandemic. No municipal funds are required for acceptance of this award. .