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HomeMy WebLinkAboutCOW 2023-09-25 Item 5B - Update - Consensus on January-June American Rescue Plan Act Proposal (ARPA)COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 9/25/23 Vicky ITEM INFORMATION ITEM No. 5.B. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 9/25/23 AGENDA ITEM TITLE January - June ARPA Report CATEGORY ® Discussion Mtg Date 9/25/23 Motion Alta Date Resolution AN Date ❑ Ordinance Mtg Date Bid Award Mtg Date ❑ Public Hearing ❑ Other Mtg Date Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Nire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY Review January - June ARPA Expenditures and consensus on proposal for remaining unbudgeted ARPA funds REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 9/11/23 COMMITTEE CHAIR: KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 9/25/23 MTG. DATE ATTACHMENTS 9/25/23 Info Memo dated September 11, 2023 Minutes from the September 11, 2023 Finance & Governance Committee meeting 35 36 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Vicky Carlsen, Finance Director BY: Julie Hatley, ARPA Funds Analyst CC: Mayor Ekberg DATE: September 11, 2023 SUBJECT: First Half of 2023 American Rescue Plan Act (ARPA) Fund Expenditures and Benefits to our Community ISSUE Staff is reporting the First Half of 2023 ARPA-funded expenditures, and information detailing the benefits of the expenditures to the community, per 2023 budget allocations approved by City Council through the 2023-2024 biennial budget process. BACKGROUND On March 10, 2021, a $1.9 trillion relief package, known as the American Rescue Plan Act, was approved and provided funding in several areas including state and local aid, education, rental assistance, and transit. The City was allocated $5.68 million with the first half received in June of 2021 and the second half received in July of 2022. Funds must be spent or contractually committed by December 31, 2024. DISCUSSION The tables that follow outline the First Half of 2023 ARPA-funded expenditures from January 1, 2023, to June 30, 2023, per data available through August 15, 2023. Each expenditure meets Treasury compliance requirements and directly or indirectly benefits the visitors, residents, and businesses in our community. Administrative Services: Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary DarkTrace Cyber Security $25,000 $28,239 $0 *Specific details not released to ensure security risk is not created. *Over budget by $3,239 due to inflationary cost increase. 37 INFORMATIONAL MEMO Page 2 Administrative Services: Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary Leadership Initiative $25,000 $0 $25,000 *Renamed Tukwila City Leadership Initiative (TCLI). Formerly Community Connectors. *Program relaunching October 2023. See updated TCLI webpage for objectives and timeline of weekly meetings. *https://www.tukwi lawa.gov/departments/ad mi ni strative- servi ces/tcli/ Community Development: Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary Permit Processing (2 positions) $246,429 $122,754 $123,675 *Permit Center service capacities increased January to June 2023 compared to same period in 2022. See graph. *In January 2023, Permit Center increased public access days from two to three days per week. Permit Processing Increased Service Capacity in First Half 2023 Compared to 2022 4500 4000 3500 3000 2500 2000 1500 1000 500 0 • 2022 • 2023 2022 vs 2023 January - June Inspect ions 3010 4043 Permits 925 1233 Projects 108 87 Walk-ins 174 375 38 INFORMATIONAL MEMO Page 3 Finance Department: Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary ARPA Funds Analyst $141,511 $71,297 $70,215 *Reconcile each individual expenditure for all department allocations (monthly, quarterly, half -yearly, and annually). *Prepared & successfully submitted 2022 ARPA annual report to US Treasury. *Recorded & reported ARPA expenditures for 2022 State Audit. *Researched options to request addtional ARPA funds from WA State (no programs available). Public Works: Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary Residential Street Maintenance (2 positions) (Fund 103) $225,641 $108,773 $116,868 *Snow and ice operations. *Vegetation control, trimming ROW and sight distances. *Dead and dangerous tree removals. *Sweeping and disposals. *Graffiti removed from ROWs. *Maintain street scape weeding, spraying herbicide, irrigation, replacing, trimming and mulching over 175,000 sq feet of plants and trees in ROW areas. *Asphalt repair, using 60 ton of hot asphalt, for potholes and other repairs every week City wide. *Annual pavement striping: white fog and pedestrian pathways, yellow center line and center curbing. *Bridge deck cleaning of sand and vegetation. *Homeless encampment cleanups: 180th under bridge, 146th, SCBLVD, 42nd crossing and WVH pedestrian bridge. *Litter control, bus stop cleaning, and illegal dumping cleanups totaling: Bus Stop Litter = 10,000 lbs. ROW Litter = 12,000 lbs. Encampment Cleanup Material = 10,000 lbs. Benefits of Maintenance: *Public safety. *Resident preference and inviting environment for visitors. *Maintain infrastructure. *MUTCD required maintenance. Department reports "We hold ourselves to a high standard to do the best job we can. However, we need more personnel." 39 INFORMATIONAL MEMO Page 4 Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary Traffic Calming $400,000 $15,469 $384,531 Neighborhood Traffic Calming Program (NTCP) Cascade Elementary School Safety Improvements: -Speed/traffic counts and engineering analysis completed. -Engineer recommendations expected by September 2023. 2023 Overlay Program 119th/42nd Ave. S Pedestrian Crossing: -Work has started. -Completion expected by October 2023. City-wide Traffic Radar Feedback Signs -Cloud-based program support and access to data for radar feedback signs. -Continuous work. *Per Public Works staff, all allocated ARPA funds will be spent. However, due to timing of project completion dates, some remaining 2023 ARPA funds may need to be rolled into 2024. Recreation: Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary YOUTH After School Activities Program & YOUTH Enrichment Classes (ASAP) $141,950 $42,634 $99,316 Benefits *Restores After School programs & frozen staff positions from pandemic. *Enrichment Instructor: Kung Fu. *ASAP: Safe childcare, homework help, STEM & educational activities, high & low energy games, art & crafts, social & emotional learning projects, free play. Field trips. *Important socialization especially after pandemic closed schools and community activities. Participation *First Half 2023 Youth After School participant units 2,444. Down 16% from same timeframe in 2022 due to fees charged beginning January2023 (no longer free program.) *When free, families were reserving ASAP slots and either never used the service or treated the program as random drop - in child care. Fee structure helped streamline participation for labor and material cost levels. *First Half 2023 Youth Enrichment participant units 690. Down 27% from same timeframe in 2022. *Only Kung Fu instructor remained from 2022. Barriers have been cost of business license and insurance. Staff is recruiting others. *Early Bird (Before School) planned to resume Fall 2023. 40 INFORMATIONAL MEMO Page 5 Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary PRESCHOOL Enrichment Program (ASAP) $28,050 $10,384 $17,666 *ARPA funds 10 extra preschool teacher hours per week to add enrichment programming. *Pee Wee Picasso Art (4 to 5 year olds + caregiver), Baby and Me (0 to 1 year olds + caregiver), Miss Cindy's Play & Learn (0 to 5 year olds + caregiver). *Addresses negative impact of pandemic on school readiness for: social, classroom & relationship building skills, motor skills & educational enrichment needed for kindergarten success. *First Half 2023 participant units 220. Up 13% compared to all of 2022. Recreation: Allocation Total 2023 Allocation Q1 & Q2 Expenditures Funds Remaining for Q3 & Q4 Community Benefits Summary Parks Maintenance (2 positions) $155,098 $66,706 $88,392 Trash Pickup *1,600 trash can visits, removing about 1,776 bags of trash, totaling 44,400 Ibs of garbage. *An additional 9,580 Ibs of loose trash was removed (by filling a 5 lb can 1,916 times). Other *Installed 15 garbage can replacements (requiring Tess labor time to maintain). *Pressure washed TCC walkways. *Debris blowing, lawn care and weed control applications ongoing. *54 flower baskets installed along roadways. *Overgrown vegetation cut at Duwamish Garden and Numbered Trails 1 to 7. *Portable water meter and irrigation repairs at Duwamish Hill. *Staff reports that old equipment was replaced (using non- ARPA funds) that will save on labor. *Park shelter rentals below First Half 2022 level due to Duwamish and Tukwila Parks are booked for the Mobile Rec program and also residents are figuring out they can drop in to an unused shelter to avoid paying the fee. 41 INFORMATIONAL MEMO Page 6 First Half 2023 Park Shelter Rental Income on Track to Exceed Pre -Pandemic Level 514,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $o Park Shelter Income 2019 to First Half 2023 All of 2019 2020 All of 2021 All of 2022 First Half of (No Rentals due 2023 to Pandemic) Summary of 2021 to 2023 Allocations and Expenditures Actual spending data for 2021, 2022 and First Half of 2023 compared to allocations in these time periods. Budget allocations for 2023-2024 were approved based on estimates of expected spending from departments before the end 2022. Allocations 2021 Budget 2021 Actuals Traffic Calming $ 100,000 $ 100,000 Before & After School 84,000 41,276 Summer Camp 50,000 50,618 DarkTrace 25,000 21,910 Business Assistance (1) 15,000 10,000 Parks Maintenance (4) 80,000 76,910 Street Maintenance (4) 167,500 45,367 Permit Processing (4) 125,000 112,186 Council Chamber Buildout 18,000 13,283 Fire OT - Minimum Staffing 225,000 330,066 Leadership Initiative - - ARPA Analyst - - Rent/Utility Assistance (2) - - SeeClickFix (3) 15,000 15,689 Total Allocations & Expenditures $ 904,500 $ 817,307 Total Underspent Per Time Period $ 87,193 2022 Budget 2022 Actuals 400,000 $ 317,546 170,000 $ 86,669 100,000 $ 56,371 25,000 $ 25,669 185,000 $ - 160,000 $ 127,637 335,000 $ 215,951 300,000 $ 227,049 200,000 $ 14,493 300,000 $ 462,872 25,000 $ 1,869 160,000 $ 125,448 500,000 $ 232,782 $ 2,860,000 $ 1,894,357 $ 965,643 2023 Budget First Half 2023 Actuals $ 400,000 $ 15,469 170,000 53,018 100,000 - 25,000 28,239 190,000 - 155,098 66,706 225,641 108,773 246,429 122,754 25,000 - 141,511 71,297 135,000 - $ 1,813,679 $ 466,256 (1) Budget not spent in 2022 so carried forward to 2023. Funding protocols not met, so 2023 funds released for 2024 reallocation. (2) Budget not fully spent in 2022, so portion carried forward to 2023. Used non-ARPA funds for assistance, so 2023 funds released for 2024 reallocation. (3) Budgeted orginally for 2022, however, invoiced and paid in 2021. (4) Only labor costs, for two unfrozen positions from pandemic, are funded. 42 INFORMATIONAL MEMO Page 7 Unallocated Funds Available for 2024 as Previously Reported This chart shows the flow of ARPA funds from when the City received them to the amount of unallocated funds remaining at the end of 2022 to allocate for 2024. These unallocated funds are the result of budget allocations made and approved by the council through the 2023-2024 biennial budget process when full knowledge of actual 2022 spending was not yet known. Chart previously presented in 2022 End of Year Report to Finance & Governance Committee on February 13, 2023. Total ARPA Grant (Beginning Balance) $ 5,685,000 2021 Actual Spent 817,307 2021 Ending Balance 4,867,693 2022 Beginning Balance 4,867,693 2022 Actual Spent 1,894,357 2022 Ending Balance 2,973,336 2023 Beginning Balance 2,973,336 2023 Budget Allocation 1,813,679 2024 Budget Allocation 874,893 Unallocated Amount for 2024 $ 284,764 Updated Projected 2023 Spending Plans This chart identifies 2023 funds that are projected to be underspent, or not used and have been released by departments, so are now available to be reallocated as proposed. Allocations Projected Amounts of Under/Overspent 2023 Funds Traffic Calming $ - Before & After School 10,000 Summer Camp - DarkTrace (1) (3,239) Business Assistance 190,000 Parks Maintenance 5,000 Street Maintenance 4,000 Permit Processing - Leadership Initiative - ARPA Analyst (2) (4,000) Rent/Utility Assistance 135,000 Estimated Total Underspent and Overspent 2023 Funds $ 336,761 (1) 2023 invoice cost more than budgeted estimate (2) Travel expenses for NLC Conference. 43 INFORMATIONAL MEMO Page 8 Estimated Total of Underspent 2023 Funds $ 336,761 2023-2024 Unallocated Amount 284,764 Estimated Total Available for New 2024 Allocations $ 621,525 PROPOSED 2024 ALLOCATION SPENDING ARPA is a single funding source which makes it more appropriate, and easier to fully expend, on programs that already have ready -to -roll out plans, budgets, and purpose. Staff is recommending that unallocated ARPA funds be allocated to approved projects funded in 2023 but not in 2024. 2024 Allocations Already Allocated During 2023-2024 Budget Process Proposed New 2024 Budget Allocations Traffic Calming $ 400,000 Before & After School 170,000 Summer Camp 100,000 DarkTrace 25,000 - Parks Maintenance (1) - 149,455 Street Maintenance (1) - 225,641 Permit Processing (1) 246,429 Leadership Initiative 25,000 ARPA Analyst 154,893 Total 2024 Allocations $ 874,893 $ 621,525 (1) No COLA added due to not enough remaining ARPA funds. Totals in this report are based on what we know as of August 31, 2023, and will be updated as the City progresses through the budget amendment process later this year. Per US Treasury ARPA requirements, Cities must contractually obligate all funds by 12/31/2024 and expend funds by 12/31/26. However, budget projections and council -approved allocations have surpassed this timeline. All ARPA funds are expected to be fully expended by 12/31/24. NEXT STEPS Analyst continues to manage and reconcile expenditures per council -approved allocations, coordinate with departments, and will present a 2023 total spending status report to the Finance & Governance committee in early 2024. Staff will also prepare ARPA records in advance of the City's 2023 State Audit and the April 2024 US Treasury ARPA required reporting. RECOMMENDATION Forward to Committee of the Whole on September 25, 2023, for consensus on proposed use of remaining ARPA funds. 44 City of Tukwila City Council Finance & Governance Committee Meeting Minutes September 11, 2023 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Kate Kruller, Chair; Kathy Hougardy, De'Sean Quinn Staff Present: I. BUSINESS AGENDA Vicky Carlsen, Tony Cullerton A. January - June 2023 American Rescue Plan Act (ARPA) Update and Proposal Staff reported out on the first half of 2023 ARPA expenditures and presented a proposal for 2024 that would allocate unallocated ARPA funds to projects funded in 2023 and not 2024. Committee Recommendation Divided recommendation with Councilmembers Hougardy and Quinn in favor of the staff proposal for 2024 ARPA funding and Councilmember Kruller with no recommendation. Forward to September 25, 2023 Committee of the Whole. B. Resolution: Cancellation of Outstanding Claims and Municipal Court Checks Staff is seeking Council approval of the annual resolution cancelling uncollectable accounts receivable in the total amount of $13,826.55. Committee Recommendation Unanimous approval. Forward to September 18, 2023 Regular Consent Agenda. C. Resolution: Cancellation of Past Due Accounts Receivable Staff is seeking Council approval of the annual resolution writing off outstanding and unredeemed accounts payable in the total amount of $70,835.55. Committee Recommendation Unanimous approval. Forward to September 18, 2023 Regular Consent Agenda. MISCELLANEOUS The meeting adjourned at 6:14 p.m. Committee Chair Approval 45