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ITEM 5 |
City Council Memorandum City Manager's Office Memo No.
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Date: |
May 13, 2021 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, Acting City Manager |
From: |
Steven Turner, Sustainability & Performance Officer |
Subject: |
Resolution No. 5481, Approving Allocations of the Anticipated American Rescue Plan Act (ARPA) Grant and Remaining AZCares Grant Contingencies Beginning July 1, 2021 |
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Proposed Motion: |
Move City Council approve Resolution No. 5481, allocating spending of ARPA/AZCares Grant Fund Contingency (217.1290.5911) in the amount of $43,123,751, based on capital and operating needs discussed at the April 21, 2021, City Council Strategic Micro-Retreat, by the City Council Focus Areas of Economic Vitality of $4,178,751, Innovation and Technology of $18,275,000, Mobility of $4,000,000, Quality of Life of $12,820,000, and Neighborhoods of $3,850,000, beginning July 1, 2021. |
Background: |
The City was notified on March 11, 2021, that it will be receiving $35,993,990 from the American Rescue Plan Act (ARPA) that must be expended by December 31, 2024. To date, the City has not received these funds, but earlier this week received an updated total anticipated of $34,560,795. That ARPA total, along with the remaining AZCares monies previously received and not yet allocated in the amount of $8,562,956, results in an anticipated total of $43,123,751 in the Grant Fund Contingency. Since the ARPA notification, an effort was undertaken to compile a list of the highest priorities for recommended use of these contingency funds consistent with City Council direction. One area of focus has been to identify where one-time investments could have the ability to directly reduce ongoing costs, thereby freeing up ongoing dollars for higher priorities. ARPA/AZCares Grant Funded capital and operating recommendations were summarized by City Council Focus Area and discussed at the City Council Micro-Retreat on April 21, 2021. The Micro-Retreat was held prior to receiving additional detailed guidance on the allowable use of ARPA funds, which was also released by the U.S. Department of the Treasury this week. The attached list of proposed projects will be evaluated based on this additional guidance prior to individual projects coming back for Council approval. The FY 2021-22 Proposed Budget has the original estimate of $35,993,990 in ARPA funds appropriated in the Grant Fund Contingency (217.1290.5911), along with the remaining AZCares Grant that has yet to be allocated. These grant dollars will be allocated as a general framework for targeted investment based on the City Council Strategic Framework focus areas; individual projects will be brought before the City Council for consideration consistent with the City's procurement rules and ARPA guidelines. |
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