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ITEM 14 |
City Council Memorandum Management Services Memo No. 22-019
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Date: |
October 14, 2021 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Dawn Lang, Deputy City Manager / CFO |
From: |
Matthew Dunbar, Budget and Policy Assistant Director |
Subject: |
Resolution No. 5527, Approving Reallocations for the Use of the American Rescue Plan Act (ARPA) Grant and Remaining AZCares Grant Contingencies, as well as Allocation of General Fund From Items Now Funded With ARPA, to be Reallocated Based on Exhibit A, Beginning October 15, 2021 |
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Proposed Motion: |
Move City Council approve Resolution No. 5527, approving reallocations for the use of the American Rescue Plan Act (ARPA) Grant and remaining AZCares Grant Contingencies (217.1290.5911) in the amount of $43,123,751, as well as $7,652,044 of General Fund from items now funded with ARPA, to be reallocated as outlined in Exhibit A in the following City Council Strategic Framework Focus Areas and Goals: Economic Vitality, Innovation and Technology, Quality of Life, Neighborhoods, and Good Governance, beginning October 15, 2021. |
Background: |
The City was notified on March 11, 2021, that it will be receiving $34,560,795 from the American Rescue Plan Act (ARPA) that must be expended by December 31, 2024. To date, the City has received half of these funds ($17,280,397). The total ARPA funding, along with the remaining AZCares monies previously received and not yet allocated in the amount of $8,562,956, results in a total of $43,123,751 in the Grant Fund Contingency. When the ARPA notification was received, an effort was undertaken to compile a list of the highest priorities for recommended use of these contingency funds consistent with City Council's direction. This spending plan was approved by City Council Resolution No. 5481 on May 13, 2021, prior to receiving additional detailed guidance on the allowable use of ARPA funds, which was later released by the U.S. Department of the Treasury. The prior evaluated programs and projects list has now been reevaluated based on this additional guidance to ensure the City complies with the intent of the legislation. The updated ARPA/AZCares Grant Funded capital and operating recommendations are summarized in Exhibit A of Resolution No. 5527. They are identified by City Council Strategic Goal/Focus Areas and are in compliance with the grant requirements. The individual projects on the updated list will be brought before the City Council for consideration consistent with the City's procurement rules and ARPA guidelines. |
Discussion: |
The effort to cross-check the original ARPA Summary of Projects against the U.S. Department of the Treasury guidelines allowed for those projects that did not fit in the ARPA guidelines to be funded with either General Fund or AZCares dollars, which does not have the same spending restrictions as ARPA funding. Staff was able to free up some General Fund items by assigning ARPA funds to certain allowable expenditures. This action allowed the City to meet the priority projects that did not qualify for spending under the Treasury guidelines, some of which generate ongoing savings. In addition to the original ARPA and AZCares funding allocations, there have been additional projects identified that both do and do not meet the ARPA guidelines for spending, but which are nonetheless important to the overall goals of the Council (noted with a NEW on Exhibit A). All projects on the May 13 summary, except for Mobility projects ($4,000,000) and Economic Vitality ($3,978,751), were able to be funded, allowing these projects to be completed in the future. |
Financial Implications: |
Approval of Resolution No. 5527 will allow the City Manager, or his designee, to shift $34,560,795 from the American Rescue Plan Act (ARPA) Grant Contingency and $8,562,956 from AZCares Grant Contingency to projects shown in Exhibit A within the Grant Fund. It will also authorize City Manager or designee to transfer $7,652,044 of appropriation between Departments within the General Fund and the Grant Fund to properly record budgeted and actual expenditures in accordance with Exhibit A. |
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