| AGENDA ITEM #: 1. DATE: 07/19/2021 AI #:162 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | AMERICAN RESCUE PLAN ACT DISCUSSION |
| STAFF PRESENTER(S): | Julie Karins, City Manager |
OTHER PRESENTER(S):
Lori Gary, Economic Development Director; Darah Mann, Economic Development Project Manager; Judge Mayra Galindo, Presiding Judge; Gina Godbehere, City Prosecutor; Jenna Goad, Assistant to the City Manager; Christina Panaitescu, Grants and Neighborhood Services Supervisor; Lyman Lockett, Human Resource Director; and Jared Askelson, Deputy Finance Director
SUMMARY
This is an opportunity for Council discussion regarding the use of Goodyear’s allocation of federal funding from the American Rescue Plan (ARP) Act passed in March 2021 and proposed additional COVID response activities.
Recommendation
Staff will seek input and direction on Council’s investment priorities related to Goodyear’s response to the COVID-19 pandemic. Staff recommends that Goodyear’s ARPA allocation be utilized to accelerate eligible infrastructure projects and for small business assistance, and that additional investments be made in resident support, city COVID-19 expenses, and a specialty court pilot program. Staff also recommends the creation of a COVID leave bank for eligible city employees. (Julie Karins, City Manager)
FISCAL IMPACT
The FY2022 Budget includes anticipated American Rescue Plan Act (ARPA) funding. As discussed during the budget process, these funds are included in the budget as contingencies as the specific use for them had yet to be determined. In order to implement the programs discussed during the work session, the capital projects to be accelerated and all other elements associated with the implementation of the city's COVID response and the expenditure of our ARPA allocation funds will need to be transferred to provide the appropriate budget authority.
There is no local match required for expending ARPA funds. These are one-time funds which must be obligated by December 31, 2024.
There is no local match required for expending ARPA funds. These are one-time funds which must be obligated by December 31, 2024.
BACKGROUND AND PREVIOUS ACTIONS
The ARPA was signed into law on March 11, 2021. It is the fourth coronavirus relief package passed by Congress since the start of the pandemic. Totaling $1.9T, the package includes $350B for direct payments to eligible state, local, territorial, and tribal governments to respond to the COVID-19 emergency and bring back jobs. The state of Arizona will receive $4.8B and total funding to entities across the state through various programs is at least $12.3B.
Initial Congressional estimates indicated that Goodyear would receive $20.7M in Coronavirus State and Local Fiscal Recovery Funds from the ARPA. Guidance subsequently issued by the Treasury Department now indicates that Goodyear’s allocation will be significantly less, approximately $10.35M. This amount will be received in two equal payments, the first was received on June 28, 2021 and the second will be received in June, 2022.
Initial Congressional estimates indicated that Goodyear would receive $20.7M in Coronavirus State and Local Fiscal Recovery Funds from the ARPA. Guidance subsequently issued by the Treasury Department now indicates that Goodyear’s allocation will be significantly less, approximately $10.35M. This amount will be received in two equal payments, the first was received on June 28, 2021 and the second will be received in June, 2022.
STAFF ANALYSIS
The stated objectives of the Coronavirus State and Local Fiscal Recovery Funds are to:
Based on previous feedback from Council and an analysis of the allowable uses and community needs, staff recommends that the city’s ARPA funds be used to accelerate eligible infrastructure projects already planned in the CIP and for small business support. General Fund dollars can then be leveraged for additional investments in the following recommended priorities, reducing the administrative burden of complying with federal requirements and providing additional flexibility.
Resident Support - $4.55M
Community Navigator Program - $150,000
Emergency Resident Assistance - $500,000
Future Community Needs - $3.9M
Small Business Assistance - $3.0M
Goodyear Relief Grant Program - $2.0M
Goodyear Technical Assistance Program - $1.0M
Stormwater Infrastructure Project - $2.0M
Bullard Wash Stormwater Capacity Project (McDowell Rd to MC85) - $2.0M
COVID Expenses - $500,000
Specialty Court Three-Year Pilot Program- $300,000
Employee COVID Leave Bank
Following the work session, an action item is included on the agenda authorizing the appropriate budget transfers to implement Council’s direction.
- Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control,
- Replace lost revenue for eligible state, local, territorial, and tribal governments to strengthen support for vital public services and help retain jobs,
- Support immediate economic stabilization for households and businesses, and
- Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic.
Based on previous feedback from Council and an analysis of the allowable uses and community needs, staff recommends that the city’s ARPA funds be used to accelerate eligible infrastructure projects already planned in the CIP and for small business support. General Fund dollars can then be leveraged for additional investments in the following recommended priorities, reducing the administrative burden of complying with federal requirements and providing additional flexibility.
Resident Support - $4.55M
Community Navigator Program - $150,000
Emergency Resident Assistance - $500,000
Future Community Needs - $3.9M
Small Business Assistance - $3.0M
Goodyear Relief Grant Program - $2.0M
Goodyear Technical Assistance Program - $1.0M
Stormwater Infrastructure Project - $2.0M
Bullard Wash Stormwater Capacity Project (McDowell Rd to MC85) - $2.0M
COVID Expenses - $500,000
Funding for city expenses related to COVID-19 such as employee vaccinations and other related healthcare costs, as well as program administration and oversight to ensure compliance with federal requirements.
Specialty Court Three-Year Pilot Program- $300,000
Alternative treatment and sentencing options to reduce recidivism by developing a Problem-Solving/Community Court program within the Goodyear Municipal Court, in collaboration with the Goodyear Prosecutor’s Office and public social and health agencies. Target community will be homeless, veteran and mental health defendants with active cases in the Goodyear Municipal Court. New processes will incorporate best-practices from Courts both state and nation-wide. Funding will provide for additional Pro Tem coverage, courtroom support staff, Court-Appointed Counsel and Public Health Service case manager costs.
Employee COVID Leave Bank
Establish a COVID leave bank for eligible employees. Eligible full-time employees will receive 40 hours and essential employees will receive additional hours. Employees on alternative schedules will receive a commensurate number of hours.
Following the work session, an action item is included on the agenda authorizing the appropriate budget transfers to implement Council’s direction.