FIN 2021-06-14 Item 1A - Discussion - Continued Discussion on Prioritizing Restoration of Service Levels

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INFORMATIONAL MEMO Page 2 Phase 2 Funding - Using American Rescue Plan Act (ARPA) Funds The earlier memo included a partial list of possible projects that could be funded with ARPA money including: • Upgrading equipment in the Council chambers to allow for both in-person as well as virtual participation in city Council meetings and workshops. • Adding internet access to neighborhoods underserved by existing internet options. • Funding additional human services and/or small business programs and outreach. • Funding to design and possibly purchase property for a youth/senior center. • Economic Development Plan • Other one-time services such as studies, plans or designs. Federal Funding - American Rescue Plan Act On March 10, 2021, a $1.9 trillion relief package, known as the American Rescue Plan Act, was approved and provides funding in several areas including state and local aid, education, rental assistance, and transit. Preliminary estimates show that the City of Tukwila could receive as much as $4.43 million in one-time funds. Staff will confirm the final amount once we receive official notification from the State, which is not expected until at least July. Funds must be obligated by December 31, 2024. From what we know today, the funds can be used in the following ways: - To respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses, and non -profits, or to aid impacted industries such as tourism, travel, and hospitality. - Provide premium pay to eligible workers that are preforming essential work. - Provision of government services to the extent of the reduction in revenue due to the pandemic relative to revenues collected in the most recent full fiscal year. - Make necessary investments in water, sewer, or broadband infrastructure. The funds cannot be used to directly or indirectly offset tax reductions or delay a tax/tax increase. Nor can funds be deposited into any pension fund. Final guidance on approved uses of the funds is expected to be received in July of 2021. Ongoing vs One-time Revenues As a reminder, the Council's adopted financial policies state that one-time revenue will be used for one-time expenditures and ongoing revenue will be used for ongoing expenditures. The projects outlined below are one-time in nature as ARPA funds are a one-time funding source. DISCUSSION Information has been provided on each of the projects identified in the March 16, 2021, info memo and includes additional projects for consideration. Based on the major federal funding categories, the following are possible prioritization areas: 2