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HomeMy WebLinkAbout16 TUSTIN CARES 2021 AND THE AMERICAN RESCUE PLAN ACT OF 2021 DocuSign Envelope ID:3421 FD3B-DDDB-4722-9165-CA48ED05BE54 � Agenda Item � ®S ` Reviewed: AGENDA REPORT City Manager _ DS Finance Director ga MEETING DATE: JUNE 15, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: JASON AL-IMAM, FINANCE DIRECTOR/CITY TREASURER SUBJECT: TUSTIN CARES 2021 AND THE AMERICAN RESCUE PLAN ACT OF 2021 SUMMARY: As a continuation of the Tustin CARES program launched last year in response to the onset of the global COVID-19 pandemic, $7.4 million from the American Rescue Plan Act of 2021 (ARPA) are expected to be utilized to provide additional rounds of aid and reinvestment into the Tustin community to respond to the public health emergency, address related negative economic impacts, and to invest in water and broadband infrastructure. A portion of ARPA funds are also expected to be utilized to replace lost revenue related to the public health emergency for the provision of government services through December 31, 2024. RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to Accept and Appropriate up to$7,380,784 of American Rescue Plan Act funds to fund the Tustin CARES 2021 program for COVID response, relief and reinvestment, 2. Authorize the City Manager to Accept and Appropriate the remaining allocation of American Rescue Plan Act funds consistent with the spending plan outlined within this report. CORRELATION TO THE STRATEGIC PLAN: The recommendation correlates to the City's strategic plan by implementing Goal C, strategy #3, develop and communicate a comprehensive set of financial policies and their purpose to strengthen financial policies. DISCUSSION: The American Rescue Plan Act of 2021 (ARPA) was established on March 11, 2021, which includes $350 billion in aid for state and local governments. $19,380,784 has been allocated to the City of Tustin, which must be expended by December 31, 2024. DocuSign Envelope ID:3421 FD3B-DDDB-4722-9165-CA48ED05BE54 American Rescue Plan Act of 2021 Page 2 of 3 Generally, ARPA may be used to: • Respond to the public health emergency • Replace lost revenue related to the public health emergency for the provision of government services • Address negative economic impacts caused by the public health emergency • Invest in water, sewer, and broadband infrastructure On May 10, 2021,the U.S. Department of Treasury(the"Treasury") released the"Interim Final Rule", which includes 151 pages of interim guidance on how these funds may be used.Attached is a"Quick Reference Guide", which provides a high-level overview of the funding objectives and example uses of funds. It should be noted that the Treasury is seeking comment on all aspects of the Interim Final Rule and is expected to release additional guidance in August 2021. General Guidelines • Covers eligible costs incurred on March 3, 2021 through December 31, 2024 • ARPA may not be used to "match" other federal programs • Funds cannot be deposited into a pension fund • A general infrastructure project typically would not be considered an eligible use unless the project responded to a specific pandemic public health need or specific negative economic impact Reporting Requirements and Deadlines • Interim Report on activity through July 31, 2021 is due by August 31, 2021.The interim report will include expenditures by category at the summary level from March 3, 2021 through July 31, 2021. • Quarterly Project and Expenditure Reports are required to be submitted to the Treasury, with the first initial Quarterly Project and Expenditure Report due by October 31, 2021. The subsequent quarterly reports must be submitted within 30 days, which will include financial data, information on contracts and subawards over $50,000, types of projects funded, and other information regarding the utilization of award funds. Proposed Spending Plan It is recommended that up to $7,380,784 be allocated to provide additional rounds of aid and reinvestment into the Tustin community to respond to the public health emergency, address related negative economic impacts, and to invest in water and broadband infrastructure. This would double the amount of financial aid provided by the City in 2020 and would be used in accordance with pending funding eligibility requirements for initiatives such as, but not limited to, homeless DocuSign Envelope ID:3421 FD3B-DDDB-4722-9165-CA48ED05BE54 American Rescue Plan Act of 2021 Page 3 of 3 assistance, housing and utility assistance, meal assistance/distribution and facilitation of outdoor assembly, restaurants and retail uses. ARPA Funds may also be allocated to Replace Lost Revenue Related to the Public Health Emergency for the Provision of Government Services through December 31, 2024. Analysis of current ARPA funding guidance indicates approximately $12 million of the City's $19.4 million allocation is projected to be available for this purpose. During the meeting on June 15th, staff plans to seek input from the City Council in order to establish program and funding priorities with the understanding that the spending plan will evolve over time with more federal guidance and evolving priorities. FYZ DocuSigned by: - a1-?". 8 75CC3AFOCB4AE.. Jason A-Imam Finance Director/City Treasurer Attachment: U.S. Department of Treasury"Quick Reference Guide" DocuSign Envelope ID:3421 FD3B-DDDB-4722-9165-CA48ED05BE54 U.S. DEPARTMENT OF THE TREASURY 11111A '["1 i E- Coronavirus State and Local Fiscal Recovery Funds a The American Rescue Plan will deliver $350 billion for state, local, territorial, and Tribal governments to respond to the COVID-19 emergency and bring back jobs. The Coronavirus State and Local Fiscal Recovery Funds provide a Eligible Jurisdictions&Allocations substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout,and lay the foundation for a strong and equitable recovery. Direct Recipients Funding Objectives • States and District of Columbia ($195.3 billion) • Support urgent COVID-19 response efforts to continue to • Counties ($65.1 billion) decrease spread of the virus and bring the pandemic under control • Metropolitan cities ($45.6 billion) • Replace lost public sector revenue to strengthen support for vital public services and help retain jobs Tribal governments($20.0 billion) • Support immediate economic stabilization for households and • Territories($4.5 billion) businesses Indirect Recipients • Address systemic public health and economic challenges that Non-entitlement units ($19.5 billion) have contributed to the inequal impact of the pandemic ® Support Public Health Response dO�? Address Negative Economic Impacts Fund COVID-19 mitigation efforts, medical DPLIL Respond to economic harms to workers,families, expenses, behavioral healthcare,and certain small businesses, impacted industries,and the public health and safety staff public sector Replace Public Sector Revenue Loss Premium Pay for Essential Workers 63 Use funds to provide government services to Offer additional support to those who have and the extent of the reduction in revenue will bear the greatest health risks because of their experienced due to the pandemic service in critical infrastructure sectors Water and Sewer Infrastructure Broadband Infrastructure Make necessary investments to improve access a a a Make necessary investments to provide unserved to clean drinking water and invest in or underserved locations with new or expanded wastewater and stormwater infrastructure broadband access For More Information: Please visit www.treasury.gov/SLFRP For Media Inquiries: Please contact the U.S.Treasury Press Office at(202) 622-2960 For General Inquiries: Please email SLFRP@treasury.govfor additional information DocuSign Envelope ID:3421 FD3B-DDDB-4722-9165-CA48ED05BE54 AdillilhL I& U.S. DEPARTMENT OF THE TREASURY Example Uses of Funds ® Support Public Health Response n Address Negative Economic Impacts • Services to contain and mitigate the spread of Deliver assistance to workers and families,including COVID-19,including vaccination,medical expenses, support for unemployed workers,aid to households, testing,contacttracing,quarantine costs,capacity and survivor's benefits for families of COVID-19 victims enhancements,and many related activities Support small businesses with loans,grants, in-kind • Behavioral healthcare services,including mental assistance,and counseling programs health or substance misuse treatment, crisis Speed the recovery of impacted industries, including intervention, and related services the tourism,travel,and hospitality sectors • Payroll and covered benefits for public health, Rebuild public sector capacity by rehiring staff, healthcare, human services, and public safety staff to replenishing state unemployment insurance funds,and the extent thatthey work on the COVID-19 response implementing economic relief programs Replace Public Sector Revenue Loss Premium Pay for Essential Workers • Ensure continuity of vital government services by Provide premium pay to essential workers, both filling budget shortfalls directly and through grants to third-party employers • Revenue loss is calculated relative to the expected Prioritize low-and moderate-income workers,who trend, beginning with the lastfull fiscal year pre- face the greatest mismatch between employment- pandemic and adjusted annually for growth related health risks and compensation • Recipients may re-calculate revenue loss at multiple Key sectors include healthcare, grocery and food points during the program,supporting those entities services, education,childcare,sanitation,and transit that experience revenue loss with a lag Must be fully additive to a worker's wages Water & Sewer Infrastructure Broadband Infrastructure • Includes improvements to infrastructure, such as Focus on households and businesses without access building or upgrading facilities and transmission, to broadband and those with connections that do distribution,and storage systems not provide minirnal ly acceptable speeds • Eligible uses aligned to Environmental Protection Fund projects that deliver reliable service with Agency project categories for the Clean Water State minimum 100 Mbps download/100 Mbps upload Revolving Fund and Drinking Water State Revolving speeds unless impracticable Fund Complement broadband investments made through the Capital Projects Fund g Equity-Focused Services Ineligible Uses • Additional flexibility for the hardest-hit communities Changes that reduce net tax revenue must not be and families to address health disparities, invest in offset with American Rescue Plan funds housing,address educational disparities,and promote • Extraordinary payments into a pension fund are a healthy childhood environments prohibited use of this funding • Broadly applicable to Qualified Census Tracts,other • Other restrictions apply to eligible uses disproportionately impacted areas,and when provided by Tribal governments The examples listed in this document are non-exhaustive,do not describe all terms and conditions associated with the use of this funding, and do not describe all the restrictions on use that may apply. The U.S. Department of the Treasury provides this document,the State and Local contact channels,and other resources for informational purposes.Although efforts have been made to ensure the accuracy of the information provided,the information is subjectto change or correction.Any Coronavirus State and Local Fiscal Recovery Funds received will be subjectto the terms and conditions of the agreement entered into by Treasury and the respective jurisdiction,which shall incorporate the provisions of the Interim Final Rule and/or Final Rule that implements this program.