HomeMy WebLinkAboutOrdinance No. 3167-2020KENAI
CITY OF KENAI
ORDINANCE NO. 3167-2020
Sponsored by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE CARES ACT RECOVERY SPECIAL
REVENUE FUND.
WHEREAS, the City of Kenai has been awarded $10,376,356.66 in United States Treasury
Coronavirus Relief and Economic Security (CARES) Act grant funds, including $7,700,831.72
passed through the State of Alaska and $2,675,524.94 passed through the Kenai Peninsula
Borough; and,
WHEREAS, unlike most federal grants which are reimbursable, the City received the CARES Act
grant funds in advance; and,
WHEREAS, federal regulations require any interest earning received on advanced federal funds
to be spent as if an increase to the grant award amount; and,
WHEREAS, through October 30, 2020, the City has received $286.26 in investment earnings on
advanced CARES Act grant funds, including $200.37 received in FY2020, which now resides in
the CARES Act Recovery Special Revenue Fund's Fund Balance; and,
WHEREAS, additional investment earnings of up to $213.74 are expected prior to disbursement
of the remaining grant funds; and,
WHEREAS, appropriation of the investment earnings in compliance with federal regulations and
use of the earnings for expenses related to the City's COVID-19 response is in the best interest
of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the estimated revenues and appropriations be increased by the actual
amount of investment earnings received on CARES Act grant funds prior to their disbursement
but not to exceed $500.00:
CARES Act Recovery Special Revenue Fund:
Increase Estimated Revenues —
Appropriation of Fund Balance $200.37
Investment Earnings 299.63
$500.00
Ordinance No. 3167-2020
Page 2 of 2
Increase Appropriations —
First Responder and Incident Management
Team Payroll - Contingency $500.00
Section 2. That the City Manager is authorized to expend the funds in compliance with United
States Treasury Guidance and this Ordinance.
Section 3. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 161 day of December,
2020.
ATTEST: — N" A�K
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Approved by Finance:
SR., MAYOR
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./ Introduced: December 2, 2020
Enacted: December 16, 2020
Effective: December 16, 2020
New Text Underlined; [DELETED TEXT BRACKETED]
KENAI
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MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: November 5, 2020
SUBJECT: Ordinance 3167-2020 Appropriating Investment Earnings on United
States Treasury Coronavirus Relief and Economic Security (CARES)
Act Grant Funds
The purpose of this memo is to recommend the adoption of Ordinance 3167-2020 that will
appropriate investment earning the City has received on United States Treasury Coronavirus
Relief and Economic Security (CARES) Act grant funds advanced to the City.
The City has been awarded $10,376,356.66 in CARES Act grant funds, including $7,700,831.72
passed through the State of Alaska and $2,675,524.94 passed through the Kenai Peninsula
Borough. Grant funds passed through the State of Alaska were advanced to the City in three
tranches, $4,140,355.22 received on June 9, 2020, $1,780,238.25 received on July 20, 2020, and
$1,780,238.25 received on October 7, 2020. Grant funds passed through the Kenai Peninsula
Borough were received on $2,675,524.94.
To date, the City has expended $8,192,189.80 of these funds and received investment earnings
of $286.26 on undistributed funds, of which $200.37 was received in FY20 and now resides in
CARES Act Recovery Special Revenue Fund, fund balance. It is anticipated the City could
receive an additional $213.74 in investment earnings prior to distributing all grant funds.
Federal regulation requires investment earning on advance grant funds to be expended within the
program as if an increase to the grant award amount. Enactment of Ordinance 3167-2020 will
appropriate the actual investment earnings received, up to a maximum of $500, for use in the
City's response to the COVID-19 public health emergency. An amount of up to $500 is being
used as actual earnings will not be known until all funds are disbursed. Once known, the actual
amount of investment earnings will be authorized for expenditure. An appropriation of up to an
amount is a bit unusual but necessary when grant funds are advanced, which is not the norm for
federal grants.
Your support for enactment is respectfully requested