CITY OF POMONA
COUNCIL REPORT
August 15, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Andrew Mowbray, Finance Director/City Treasurer SUBJECT: UPDATE ON THE AMERICAN RESCUE PLAN (ARP) AND AMENDMENT OF THE FY 2022-23 OPERATING BUDGET RECOMMENDATION: It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2022-155 (Attachment No. 1) – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING AN UDPATE TO THE CITY OF POMONA’S EXPENDITURE PLAN FOR THE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY AMERICAN RESCUE PLAN (ARP) FUNDS ALLOCATED FROM THE UNITED STATES FEDERAL GOVERNMENT DEPARTMENT OF TREASURY AND Amending the Fiscal year (FY) 2022-2023 City Operating Budget to increase revenue estimates and appropriations in the amount of $4.0M FROM THE AMERICAN RESCUE PLAN (ARP) FUND Receive and file a status update of ARP FY 2022-23 Proposed Budget Appropriations EXECUTIVE SUMMARY: In response to the COVID-19 public health crisis, the U.S. passed the American Rescue Plan (ARP) Act on March 11, 2021. This assistance programs provided needed relief to state, local and Tribal governments to enable them to continue to support the public health response and lay the foundation for a strong and equitable economic recovery. The City was allocated $45.37M in ARP funds. The Mayor and City Council provided direction and proposed a specific plan to allocate the $45.37M of the ARP funds. The Expenditure spending table is included herein and several movements of the plan since last presented on June 6, 2022 are covered. ARP appropriations for FY 2021-22 and FY 2022-23 were $10.4M and $21.1M respectively, for a total of $31.5 appropriations to date. Additional appropriations in this staff report totaling $4M include $1M for Citywide Rental Stabilization startup costs for consultant services, legal aid, and future work done by City staff, with many of the specifics to be determined in the forthcoming months, $1.15M for Health and Wellness for possible uses including but not limited to concerts and community events as coordinated by the Mayor and councilmembers with City staff, primarily in the Neighborhood Services Department, $1.06M for Small Business Grants to fully appropriate funds allocated for this program, $600k for Real Time Crime Center (RTCC) that will include live-feed cameras on Holt Avenue ($300k) and build out of RTCC ($300k), and $200k for ARP Administration including Best, Best & Krieger (BB&K) support services, consultant services for subrecipient monitoring and ARP staffing allocations in the Finance and Neighborhood Services Department for staff time spent. The remaining ARP funds that are not yet appropriated amounting to $9.87M will be brought back to City Council for appropriation when programs are formalized.
As the US Treasury guidelines for the ARP are complicated and detailed (Attachment No. 2 and 3), it is important that City ensures that the ARP funds are spent according to the US Treasury guidelines. This will enable the City to utilize the program as per the US Treasury Guidelines all ARP funds must be allocated by December 2024 and spent by December 2026.
FISCAL IMPACT: The adoption of Resolution No. 2022-155 will amend the FY 2022-23 Operating Budget by increasing revenue estimates and appropriating $4.M in the American Rescue Plan Fund (191-xxxx-xxxxx-00000 and 191-xxxx-40875-00000). Several appropriations in the City Council approved expenditure spending plan will be included in the FY 2022-23 operating budget. To date, $31.5M has been appropriated of the $45.37M. As part of this action totaling $4M the appropriations including $1M for Citywide Rental Stabilization startup costs, $1.15M for Health and Wellness events, $1.06M for Small Business Grants, $600k for Real Time Crime Center (RTCC), and $200k for ARP Administration costs. The remaining ARP funds that are not yet appropriated amounting to $9.87M will be brought back to City Council for appropriation when programs are formalized.
PREVIOUS RELATED ACTION:
On June 7, 2021 as part of the FY 2021-22 adopted budget, $6.8M was budgeted in the General Fund for potential revenue loss and accepted the $45.37M of the ARP funds allocated to the City of Pomona by the US Treasury.
On August 9, 2021 an ARP study session was held, and discussion occurred regarding uses that will be eligible. The Mayor and City council provided direction and suggested a specific plan to allocate the $45.37M of the ARP funds.
On September 20, 2021 the Mayor and City Council approved the $45.37M City of Pomona ARP Expenditure Plan.
On November 15, 2021 as part of the FY 2021-22 1st Quarter, update to the Expenditure Plan was approved and $2.07M of ARP funds were appropriated for one-time payments included in the respective bargaining unit agreements.
On December 6, 2021the City Council approved appropriation of $6.9M of ARP funds for capital improvement projects – Park Restroom Construction Replacement, Mission Blvd Rehabilitation (White Ave to Towne Ave), and Garey Ave Rehabilitation (Aliso Street to Monterey Ave).
On December 20, 2021 an ARP Sub-committee consisting of the Mayor, and two (2) council members to assist with the process to appropriate the ARP funds for the specific programs and projects as set forth in the City Council approved ARP spending plan was formed.
On February 28, 2022 an update to the ARP Spending Plan was approved to transfer $544,901 for City support related to the pandemic.
On April 18, 2022 the City Council approved ARP appropriations of $370k for Buena Vista Avenue Rehabilitation – Mission Blvd to 9th Street and $500k Philadelphia Street Rehabilitation – San Antonio Avenue to East City Limit.
On May 16, 2002 an update to the ARP Spending Plan was approved to transfer $106k District 2 Microgrants and a status update of ARP FY 2021-22 Appropriations and FY 2022-23 Proposed Budget Appropriations was provided.
On June 6, 2022 the City Council approved the Proposed ARPA Policies and Procedures and the Adopted FY 2022-23 budget that included appropriations increase of $500k to be used from ARP funds for Library youth services. An update to the ARP Spending Plan was approved to allow a reduction of $250k from the Health and Wellness Activities category, as well as a reduction of $250k from the Participatory Budget category to fund this increase to the Library.
DISCUSSION:
ARP FY 2022-23 Proposed Budget Appropriations
Additional appropriations in this staff report total $4M and include:
$1M for Citywide Rental Stabilization start up costs for consultant services, legal aid, and future work by City staff. $1.15M for Health and Wellness for possible uses including but not limited to concerts and community events as coordinated by the Mayor and councilmembers with City staff, mainly Neighborhood Services Department. $1.06M for Small Business Grants to fully appropriate funds allocated for this program. The business needs surveys are being finalized to be sent out to businesses in the coming weeks. $600k for Real Time Crime Center (RTCC) which includes live-feed cameras on Holt Avenue ($300k) and build out of RTCC ($300k). $200k for ARP Administration – Best, Best & Krieger support services, consultant services for subrecipient monitoring and ARP staffing services in Finance and Neighborhood Services.
The remaining ARP not yet appropriated amounting to $9.87M will be brought back to City Council for appropriation when programs are formalized.
Update regarding the City of Pomona American Rescue Plan (ARP) Spending plan Of the $45.37M allocated to the City by the US Treasury, the City has received the entire amount to date. The U.S. Treasury issued the Final Rule with guidance on the funding allocation methodology, distribution process, and reporting requirements in January 2022. ARP funds must be obligated by December 31, 2024 and expended no later than December 31, 2026. The City has discretion to use the funds in ways to meet the needs of the community if the use fits into one of the following categories:
Public Health and Economic Impacts
Provide premium pay for essential workers
Replace public sector lost revenue
Invest in water, sewer, or broadband infrastructure
The expenditure plan was last discussed at the June 6, 2022 City Council meeting. With the requested appropriation of $4M of ARP funds for FY 2022-23 and detailed above, staff would like to provide an updated Expenditure spending plan with some brief updates on each line as they relate to the appropriations. The table below captures the programs, projects, and commitments that the Mayor and City Council have approved to date and the proposed adjustments based on recommendations from City staff and redistributed based on feedback from the ARP subcommittee that met on August 2, 2022.
COUNCIL PRIORITIES & GOALS: This item supports the City Council Priorities and Goals - Priority #2 Economic Development: Foster economic prosperity through strategic thoughtful commercial and residential development and support for businesses that aligns with the long-term vision of the City, encourages investment by other public and private entities and create jobs.
ALTERNATIVE(S): None
Prepared by:
Andrew Mowbray
Finance Director/City Treasurer
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2022-155
Attachment No. 2 – US Treasury Final Rule
Attachment No. 3 – US Treasury Compliance and Reporting Guidelines Amendment to American Rescue Plan Operating Budget