HomeMy WebLinkAboutFIN 2021-11-08 Item 1E - Discussion - Continued Discussion on American Rescue Plan Act (ARPA) FundsCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: November 2, 2021
SUBJECT: Identify process and prioritize projects that could utilize remaining
balance of American Rescue Plan Act (ARPA) funds
ISSUE
Staff is seeking Committee input on the process to identify and prioritize projects that
could utilize the remaining balance of uncommitted ARPA funds.
BACKGROUND
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. The City was allocated $5.78 million and
received the first half d in June of 2021. The second half will be received in June of 2022.
Funds must be spent or contractually committed by December 31, 2024.
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.
Funds used under this category may only be used to restore services or projects
that were reduced or eliminated due to revenue lost due to COVID. In other words,
there must be a
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.
On March 22, 2021, staff began a discussion with the Finance & Governance committee
to seek input into a process for how to prioritize service level restoration if and when
ongoing revenues exceed revenues adopted in the 2021-2022 biennial budget as well as
restored revenues from sales tax mitigation payments. Included in the info memo was a
section discussing federal funding through the American Rescue Plan Act.
49
50
INFORMATIONAL MEMO
Page 2
Since mid-June, the Finance & Governance Committee conducted detailed analysis of
this information over the course of multiple meetings, asking questions and requesting
additional presentations on programs including business assistance, rent/utility
assistance, afterschool programming, SCORE, Neighborhood Traffic Calming, and
Community Connectors. Following the September 13, 2021, discussion the Committee
agreed to forward the proposal to the Committee of the Whole for full Council discussion.
The table below shows the Council Direction from the October 18, 2021, regular meeting
on the use of these funds. These have been incorporated into the 2021-2022 Budget
Amendment process which was discussed and unanimously approved by the Finance
Committee on October 25, 2021 and will be before the Committee of the Whole on
November 8, 2021 with final action proposed for the November 15, 2021 Regular Meeting.
2021 2022 Total
ARPA Funding Category
1 Parks Staff
2 Street Staff
3 DCD Staff
4 Rec Program (Summer Camp)
5 DarkTrace - Cyber Security
6 After School Program
7 Business Assistance
8 Utility/Rental Assistance
9 Traffic Calming
10 Upgrade Council Chambers
11 SCORE
12 Fire Minimum Staffing
13 Community Connectors
14 ARPA Financial Analyst
15 SeeClickFix
Total
80,000
167,500
125,000
50,000
25,000
84,000
15,000
100,000
18,000
225,000
15,000
160,000
335,000
300,000
100,000
25,000
170,000
185,000
500,000
400,000
200,000
300,000
25,000
160,000
240,000 Revenue Loss, Government Services
502,500 Revenue Loss, Government Services
425,000 Revenue Loss, Government Services
150,000 Revenue Loss, Government Services
50,000 Revenue Loss, Government Services
254,000 Revenue Loss, Government Services
200,000 Public Health and Negative Economic Impacts
500,000 Assistance to businesses, households
500,000 Revenue Loss, Government Services
218,000 Public Health and negative Economic Impacts
- Revenue Loss, Government Services
525,000 Revenue Loss, Government Services
25,000 Revenue Loss, Government Services
160,000 Public Health and Negative Economic Impacts
15,000 Revenue Loss, Government Services
904,500 2,860,000 3,764,500
Remaining Funds
At the October 18, 2021, regular meeting, Council was also asked to provide input into
potential programs that could utilize the remaining ARPA funds. Proposed projects and
services mentioned by individual Councilmembers for future consideration included the
following, in no particular order:
1. Synthetic turf soccer fields,
2. Green Tukwila,
3. Premium pay for essential workers,
4. Public health,
5. Staffing needs to address certain issues,
6. Traffic calming,
7. Human services and community assistance, and
8. Adding additional funding to projects already included in the ARPA plan.
There were additional discussions on what process the Council should use to allocate
this 2nd round of ARPA funds of $2 million and also whether these proposed projects meet
the ARPA funding guidelines.
INFORMATIONAL MEMO
Page 3
Second Round ARPA Process Discussion
The Council will need to determine the process to allocate the remaining $2 million of
ARPA funds. These will need to be committed before December 31, 2024. A suggested
process could be as follows:
• 4th Quarter 2021 — Confirm process for allocation of remaining funds and identify
major projects
• 1st Quarter 2022 — Conduct community outreach/survey and clarify specific
projects
• 2nd Quarter 2022 — Finalize projects for allocation
• 3rd Quarter 2022 — Allocate funds via budget amendment if the funds would be
spent in 2022 or include the projects in the 2023-2024 Budget
• 4th Quarter 2022 — Finalize Allocation via a budget amendment or as part of 2023-
2024 budget adoption process
A key goal of ARPA funding is to meet the needs of the communities impacted by COVID.
A key process outlined in the federal process is to involve the community in these
decisions. This second round would be an opportunity for the City to engage the
community on their priorities for possible use of this funding.
ARPA Funding Criteria
As asked by the Council and as identified in the suggested process above, each major
project will need to be fully evaluated to see if it meets the ARPA funding criteria. As
seen in our first round process, there may be projects identified that appear to meet APRA
requirements but, once fully scoped, do not meet these criteria. Additional information
will be needed to better understand each project to determine if the final proposal meets
the ARPA funding criteria. Below is the first preliminary estimate on answering these
questions, with specific notes. All proposed projects will be reviewed by legal to ensure
compliance with ARPA rules.
Project
ARPA Eligible
Notes
1. Synthetic turf soccer fields,
Possible, if to specifically
support a community
impacted due to COVID.
A new field is more likely
to meet the eligibility
requirements than
upgrading an existing
field.
Capital investments have
to meet strict criteria.
Federal guidelines provide
clear direction for water,
sewer and broadband, but
will need more clarity on
this proposal.
2. Green Tukwila
Most likely, this is not
eligible. Would need to
demonstrate how this
was impacted by COVID
and/or how increases in
services would mitigate a
COVID impact.
This program was not
reduced during COVID, so
would not qualify in the
revenue reduction
category.
3. Premium pay for essential
workers
Possible, would need to
be bargained with labor
unions.
Capped at $13 an hour
with a lifetime maximum of
51
INFORMATIONAL MEMO
Page 4
RECOMMENDATION
The Council is being asked to provide input on the process to determine this second round
of ARPA funding allocation. In addition, the Council is being asked to provide its input on
the list of major projects that should be considered in this second round of funding.
This discussion is recommended to begin at the Finance Committee and then move to
the Committee of the Whole for direction.
52
$25k per eligible
employee.
4. Public health
Yes
Assuming that this would
be for grants or
partnerships with other
agencies who provide
direct assistance
5. Staffing needs to address
certain issues, e.g., Tenant
Assistance, Permit
Counter,
Possible, if staff needs
were impacted by COVID
- Grants for tenant
assistance would
be allowed,
- permit counter has
already been
increased in 1st
round,
- preschool was not
reduced due to
COVID
6. Traffic calming
Yes
This has already been
identified as ARPA
eligible since it was
eliminated due to COVID
Revenue Loss,
Government Services
7. Human services and
community assistance
Yes, if COVID impacted
8. Adding additional funding
to projects already included
in the ARPA plan.
Yes
All previous projects met
ARPA requirements
Possible to extend years
of support to 2023-2024.
RECOMMENDATION
The Council is being asked to provide input on the process to determine this second round
of ARPA funding allocation. In addition, the Council is being asked to provide its input on
the list of major projects that should be considered in this second round of funding.
This discussion is recommended to begin at the Finance Committee and then move to
the Committee of the Whole for direction.
52