May 23, 2023
Finance Department
DATE: May 23, 2022
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community
Services
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
SUBJECT:
Fiscal Year 2022-2023 Quarter 3 Budget Report and
American Rescue Plan Act (ARPA) Update,
FINANCIAL IMPACT: The $15 million appropriation for the Library Upgrade Project will be transferred to the General Capital Fund from the Salary & Benefits savings in the General Fund.
The City received an ARPA allocation of ~$27.74 million which will cover the cost of any City Council-approved
ARPA expenditures. On June 21, 2021, as part of a
larger ARPA allocation, the City Council approved $1
million to support a community beautification project.
Public Works is requesting use of those funds to
complete the construction phase for the 13th Complete
Street project (15491331-400708-29120).
PREVIOUS COUNCIL
ACTION:
June 21, 2022, December 6, 2022, March 28, 2023
AGENDA
REPORT
May 23, 2023
STATEMENT OF THE
ISSUE:
City staff is presenting the Fiscal Year (FY) 2022-2023 Quarter 3 General Fund budget to actuals report, All
Funds budget to actuals report, and the Capital
Improvement budget to actuals report. The purpose of
this report is to monitor revenues and expenditures, as compared to the approved budgeted amounts. In
addition, City staff will request an additional appropriation to support the Richmond Main Library renovation project, and present information regarding ARPA.
RECOMMENDED ACTION:
RECEIVE the Fiscal Year 2022-23 Quarter 3 budget
report for the period of July 1, 2022, through March 31, 2023; ADOPT a resolution to APPROPRIATE $15 million
for the Main Library Upgrade project via a transfer in from the General Fund to the Capital Fund; RECEIVE a report
regarding the City’s American Rescue Plan Act (ARPA)
budget, Community Needs Assessment and Strategic
Investment Plan; and APPROPRIATE $1 million in ARPA
funds to complete the 13th Complete Street project –
Finance Department (Shasa Curl/LaShonda White 510-
620-6828/Nickie Mastay 510-620-6609/Mubeen Qader
510-412-2077). THIS ITEM IS FOR COUNCIL
DELIBERATION ONLY - THE ITEM WAS PRESENTED
AND PUBLIC COMMENT WAS RECEIVED AT THE
MAY 16, 2023, CITY COUNCIL MEETING. THE
COUNCIL VOTED UNANIMOUSLY TO BRING THE
ISSUE OF THE ALLOCATION OF FUNDS BACK TO
THE COUNCIL AFTER THE MAY 22, 2023, RETREAT.
DISCUSSION:
FY 2022-2023 Quarter 3 Budget Report
The purpose of the quarterly budget report is to assist with monitoring revenue and expenditures, as compared to the approved budgeted amounts. The report also provides City staff members, the City Council, and the community at-large with the ability to monitor trends that impact the budget cycle.
This report represents an overview of the Quarter 3 operating revenues and expenditures for FY 2022-23, which covers budget activity from July 1, 2022, through March 31, 2023. The threshold for the first three quarters of the fiscal year is 75 percent, meaning that it is expected to have 75 percent of the adopted budget expended.
Revenues are not necessarily measured against the same standard due to the seasonality of some major revenue sources, such as property taxes, which are received in December, April, and June each year.
May 23, 2023
General Fund
General Fund Revenues
Overall, revenue received totaled $139.2 million (64.73 percent of budget) for Quarter 3 of FY 2022-23. This is below the threshold of 75 percent. The variance is primarily due to the seasonality of some revenue sources. For example, the City’s final Sales Tax payment will not be received until August 2023, at which point it will be accrued and accounted for in the year it was earned. Figures 1 and 2 below summarize the Quarter 3 revenue budget to actuals. See Attachment 1 for the breakdown by department.
Figure 1: General Fund Revenue, FY2022-23, Quarter 3
ACCOUNT DESCRIPTION ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMB. AVAILABLE
BUDGET
% USED
W/O
ENCUMB.
% USED
W.
ENCUMB
30 PROPERTY TAXES 46,056,962$ 48,608,929$ 26,338,464$ -$ 22,270,465$ 54% 31 SALES & USE TAX 55,282,200$ 55,554,137$ 31,428,903$ -$ 24,125,234$ 57% 32 UTILITY USERS TAX 49,963,589$ 50,861,279$ 42,302,382$ -$ 8,558,897$ 83% 33 OTHER TAXES 21,638,449$ 22,452,187$ 8,593,459$ -$ 13,858,728$ 38% 34 LICENSES,PRMITS&FEES 11,129,402$ 11,080,956$ 9,927,244$ -$ 1,153,712$ 90% 35 FINES & FORFEITURES 475,275$ 465,275$ 148,263$ -$ 317,012$ 32% 36 USE OF MONEY&PROPRTY 236,079$ 1,021,047$ 501,329$ -$ 519,718$ 49% 37 CHARGES FOR SERVICES 3,571,292$ 3,568,792$ 1,830,690$ -$ 1,738,102$ 51% 38 OTHER REVENUE 187,500$ 192,545$ 260,714$ -$ (68,169)$ 135% 39 RENTAL INCOME 874,506$ 874,506$ 740,716$ -$ 133,791$ 85% 3A INTERGOV STATE TAXES 125,000$ 125,000$ 118,794$ -$ 6,206$ 95% 3C INTERGOV STATE GRANT 175,000$ 175,000$ 131,430$ -$ 43,570$ 75% 3D INTERGOV OTHER GRANT 253,569$ 263,569$ 289,943$ -$ (26,374)$ 110% 60 PROC FR SLE PROP 100,000$ 100,000$ 715$ -$ 99,285$ 1% 61 LOAN/BOND PROCEEDS -$ 39,400$ 39,400$ -$ -$ 100% 90 OPER XFERS IN 16,563,424$ 19,720,418$ 16,541,728$ -$ 3,178,690$ 84% Total Revenue 206,632,248$ 215,103,041$ 139,194,175$ -$ 75,908,866$ 65%
May 23, 2023
Figure 2: General Fund Revenue, FY 2022-23, Quarter 3
General Fund revenues were adjusted at mid-year based on revenues received through December 2022. From the data points observed thus far in FY 2022-23, most revenues are trending as expected or better.
Property Tax -- For the FY 2022-23 General Fund property taxes, City staff estimated growth of 2.9 percent for Secured Property Taxes and overall growth for this revenue category of 1.8 percent. Contra Costa County (County) released the 2022-2023 Assessment Roll in July 2022, which indicated growth of the Assessed Valuation (AV) at 8.15 percent for Secured Property Taxes. This is the main component in changes to secured property taxes year to year. Other significant impacts include the sale of properties and tax increment allocation.
The Property Taxes budgeted amount was increased by $2.6 million during mid- year. It is expected that this revenue will come in at the budgeted amount or slightly higher.
Sales & Use Tax -- The sales tax revenue stream, post COVID’s shelter–in-place and the associated downturn in the economy, has experienced significant increases over the last two years and the trend is expected to continue through the current fiscal year. The updated forecast from the City’s financial consultants and the internal forecast tie to what is currently budgeted for FY 2022-23.
Utility Users Tax (UUT) --This revenue stream, including the maximum cap amount paid by Chevron, has been received as expected except for the Gas and Electricity Utility Users Tax, which is trending higher.
Other Taxes -- Other revenues of note include the documentary transfer tax which is collected by Contra Costa County on the sale of properties. The City has received a total $8.5 million (38.3 percent of budget) through March 2023. Of the 48,608,929
55,554,137
50,861,279
22,452,187
11,080,956
465,275
1,021,047
3,568,792
192,545
874,506
125,000
175,000
263,569
100,000
39,400
19,720,418
26,338,464
31,428,903
42,302,382
8,593,459
9,927,244
148,263
501,329
1,830,690
260,714
740,716
118,794
131,430
289,943
715
39,400
16,541,728
- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 30 PROPERTY TAXES
31 SALES & USE TAX
32 UTILITY USERS TAX
33 OTHER TAXES
34 LICENSES,PRMITS&FEES
35 FINES & FORFEITURES
36 USE OF MONEY&PROPRTY
37 CHARGES FOR SERVICES
38 OTHER REVENUE
39 RENTAL INCOME
3A INTERGOV STATE TAXES
3C INTERGOV STATE GRANT
3D INTERGOV OTHER GRANT
60 PROC FR SLE PROP
61 LOAN/BOND PROCEEDS
90 OPER XFERS IN
Amounts
Revenue
YTD ACTUAL REVISED BUDGET
May 23, 2023
major revenue streams, this is the most volatile and unpredictable with month-to- month revenue amounts varying significantly. In addition, one or two property sales can have a huge impact on the overall tax amount received. The budgeted amount corresponds to the formula as outlined in the Guiding Fiscal Policies.
This formula is basically the monthly mean (since passage of Measure H in November 2018 and effective January 2019).
Licenses, Permits, and Fees – This revenue stream includes the business tax revenue. Through March 2023, the full revenue is at 105 percent of the budgeted amount. Comparing Quarter 3 of FY 2021-22 with Quarter 3 of FY 2022-23, an increase of nearly $5.7 million is expected. The increase stems from the collection of business tax after the adoption of Measure U.
General Fund Expenditures
Overall, expenditures totaled $72.8 million (62 percent of budget) through Quarter 3 of FY 2022-23. Actuals are trending lower than the approved budgeted amounts mainly due to the significantly higher vacancy rate and several pending encumbrances. With encumbrances, the expenditures are at 66 percent of the budget. Encumbrances are funds earmarked for specific operating expenditures, such as copier leases. Figures 3 and 4 below summarize the expenditure budget to actuals through March 31, 2023. See Attachment 1 for a detailed report by department.
Figure 3: General Fund Expenditures, FY 2022-23, Quarter 3
ACCOUNT DESCRIPTION ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMB. AVAILABLE
BUDGET
% USED
W/O
ENCUMB.
% USED
W.
ENCUMB
40 SALARIES AND WAGES 78,761,868$ 76,709,826$ 51,433,017$ -$ 25,276,809$ 67% 67% 41 PYRLL/FRINGE BENEFIT 66,929,804$ 66,887,828$ 49,053,513$ -$ 17,834,315$ 73% 73% 42 PROF & ADMIN 16,977,138$ 19,841,882$ 7,154,972$ 4,053,446$ 8,633,464$ 36% 56% 43 OTHER OPERATING 7,970,902$ 11,219,048$ 3,847,892$ 1,031,044$ 6,340,113$ 34% 43% 44 UTILITIES 5,399,957$ 5,394,982$ 3,381,924$ 530,620$ 1,482,438$ 63% 73% 45 EQPT & CONTRACT SVCS 2,731,448$ 2,877,188$ 1,540,298$ 382,456$ 954,434$ 54% 67% 46 PROVISN FOR INS LOSS 25,725$ 29,641$ 28,641$ -$ 1,000$ 97% 97% 47 COST POOL 15,277,766$ 15,277,766$ 11,458,322$ -$ 3,819,444$ 75% 75% 48 ASSET/CAPITAL OUTLAY 3,172,136$ 5,820,423$ 513,767$ 2,390,281$ 2,916,374$ 9% 50% 49 DEBT SVC EXPENDITURE 1,037,009$ 1,037,009$ 618,921$ -$ 418,088$ 60% 60% 4A A87 COST PLAN REIMBS (3,531,610)$ (3,531,610)$ (2,631,979)$ -$ (899,631)$ 75% 75% 50 GRANT EXPENDITURES 2,500$ 117,338$ (1,464)$ 8,000$ 110,802$ -1% 6% 91 OPER XFERS OUT 11,877,605$ 13,458,369$ 7,553,337$ -$ 5,905,032$ 56% 56% Total Expenditure 206,632,248$ 215,139,689$ 133,951,159$ 8,395,847$ 72,792,683$ 62% 66%
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Figure 4: General Fund Expenditures, FY 2022-23, Quarter 3
The following provides additional information regarding the major expenditure categories:
Salaries & Wages – This category includes base salaries for full-time and part-time staff, overtime, and other pay types. Actual expenditures total $51.4 million (67 percent of budget). This category is lower than the threshold primarily due to vacant positions that Human Resources has significantly addressed over the current FY through strategic hiring.
Benefits – This includes medical, dental, workers compensation, CalPERS pension costs, Other Post Employment Benefits (OPEB), and other benefits. Actual expenditures total $17.8 million (73 percent of budget) and is also below the threshold due to vacant positions. Total benefits include the $6.1 million payment into the OPEB trust.
Professional & Admin Services – This category includes professional and consulting services, and contractual obligations, such as animal control services. Actual expenditures total $7.2 million (36 percent of budget) and are below the threshold.
Factoring in purchase order encumbrances of $4 million, the total is $11.2 million (56 percent of budget).
Other Operating – This includes copier leases, office supplies, and other items.
Actual expenditures total $3.8 million (34 percent of budget). Factoring in purchase
May 23, 2023
order encumbrances of $1.01 million, the total is $4.81 million (43 percent of budget).
Utilities – This category includes gas, electricity, water, refuse, telephone, and internet services. Actual expenditures total $3.4 million (63 percent of budget).
Factoring in purchase order encumbrances of $531,000, the total is $3.9 million (73 percent of budget).
Equipment & Contract Services - This category includes equipment and maintenance/repair services. Actual expenditures total $1.5 million (54 percent of budget). Factoring in purchase order encumbrances of $382,000, the total is $1.9 million (67 percent of budget).
Cost Pool – This includes vehicle replacement, general liability, and Civic Center debt allocation. Since these charges are distributed through equal monthly journals, the expenditures are at the threshold of 75 percent.
Asset/Capital Outlay – This includes capital purchases and major facility and infrastructure upgrades. The total expenditures, including encumbrances, are at 50 percent of the budgeted amount.
Debt Service – Included in this category are debt payments per the debt service schedule, with total expenditures at 60 percent of the budget.
A87 Cost Plan Reimbursement – This category includes administrative overhead credit from non-General Fund programs through monthly journals. The expenditures are at 75 percent of the budget.
Grant Expenditures – This category includes Office of Neighborhood Safety and Recreation grant expenditures. The expenditures, including encumbrances, are at six percent. Year-to-date actuals have a pending correction to be made.
Transfers Out – This includes transfers out from the General Fund to non-General Funds for operating subsidies and a portion of the debt service. The General Fund Actuals total $1.7 million (14 percent of budget).
Projected General Fund Surplus due to Higher Vacancy Rate
As mentioned above, the salary and benefits are below the budgeted amounts due to the vacancy rate. The current year budget included an assumption of a six percent vacancy rate. However, the estimated vacancy rate was higher through March and, with hiring in the pipeline, will bring the total FTEs to approximately 620. The figure below compares the budgeted vacancy rate with the actual monthly vacancy report.
May 23, 2023
Figure 5: FY 2022-23 Vacancy Rate through March 2023:
Total salaries and benefits in the General Fund revised budget is at $143.6 million, which equates to an average monthly budget of about $11.96 million. However, due to the vacancy rate, the average monthly actual for salaries and benefits has been below the budgeted amount in the current fiscal year. Based on the current vacancy rate and respective actuals, City staff is currently projecting approximately $16.2 million that can be redeployed to address needed updates to the Main Library.
The Main Library upgrade project is anticipated to cost approximately $30 million.
Approximately $10 million has been secured from a state grant and approximately $5 million in matching funds from Library Impact Fees and ARPA funds.
Non-General Funds
Non-General Fund Revenues
Overall, 46 percent of non-general fund revenues have been collected and are trending as expected. The timing of receipts vary amongst the funds based on the source of funding. For instance, grant funds are typically received after expenditures are incurred and reimbursement requests are submitted to grantors. The chart below summarizes the revenue budget to actuals for non-general funds. Please see Attachment 2 for revenue budget to actuals by individual fund. Figures 7 and 8 provide an overview of non-general fund revenues and below are explanations for some of the major categories:
Capital Improvement Funds – The total revenue is 12 percent of the budget. The major variance is due to the grants that are pending for reimbursements in outside-funded budgeted services fund.
Other Operations Funds – The total revenues are 36 percent of the budget.
Major variance is due to the grant funded program revenues, for which the reimbursements are generally received towards the end of the fiscal year.
Special Revenue Funds – Actual revenue is above the budget by a significant amount due to American Rescue Plan (ARPA) unearned revenue.
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Figure 7: Non-General Fund Revenues, FY 2022-23, Quarter 3
Figure 8: Non-General Fund Revenues, FY 2022-23, Quarter 3
Non-General Fund Expenditures
Overall, 48 percent of non-general fund budget appropriations have been expended, including encumbrances. Spending patterns in other funds are like those in the General Fund and trending as expected. Most of the actual expenditures are either at or below the threshold of 75 percent. Amounts over the threshold are primarily due to purchase order encumbrances. Figures 9 and 10 below summarize the expenditure budget to actuals for non-general funds. See Attachment 2 for expenditure budget to actuals by
FUND ORIGINAL
APPROP
TRANFRS
/
ADJSMTS
REVISED
BUDGET YTD EXPENDED AVAILABLE
BUDGET % USED
Total Capital Improvement Fund 31,852,226 36,494,133 68,346,359 8,153,977 60,192,382 12% Total Debt Service Fund 20,629,090 - 20,629,090 6,012,216 14,616,874 29% Total Enterprise Fund 58,991,980 - 58,991,980 22,752,196 36,239,784 39% Total Housing Funds 2,161,415 62,168 2,223,583 1,594,067 629,516 72% Total Housing Authority Funds 4,880,044 15,000 4,895,044 3,157,909 1,737,135 65% Total Internal Service Funds 24,730,653 - 24,730,653 19,906,599 4,824,054 80% Total Other Operations Funds 27,276,353 12,004,536 39,280,890 14,299,142 24,981,748 36% Total Pension Funds 165,305 - 165,305 (1,268,917) 1,434,222 -768% Total Special Revenue Funds 29,253,674 10,714,233 39,967,907 36,818,670 3,149,237 92% Total Trust Funds - 80,000 80,000 8,765,445 (8,685,445) 10957% -
Total All Funds 199,940,740 59,370,071 259,310,811 120,191,303 139,119,508 46%
May 23, 2023
individual fund.
Figure 9: Non-General Fund Expenditures, FY 2022-23 Quarter 3
Figure 10: Non-General Fund Expenditures, FY 2022-23 Quarter 3
Quarter 3 Budget Adjustments:
City staff propose budget adjustments that will appropriate $15 million from the General Fund into the Richmond Main Library Renovation Project, located in General Capital Fund.
Richmond Main Library Renovation Project
The California State Library made the Building Forward Infrastructure Grant Program available in the Fall of 2021 to address life-safety and critical maintenance needs in libraries. The City of Richmond applied for the maximum amount of grant funding ($10,000,000) and a 50 percent reduction in required matching funds. On September 12, 2022, the City was notified of a $9,712,979 grant award to fund infrastructure improvements to revitalize the historic Richmond Main Library, and a required 50
FUND ORIGINAL
APPROP
REVISED
BUDGET
ACTUALS THRU
MARCH 2023 ENCUMB. AVAILABLE
BUDGET
% USED
W/O
ENCUMB.
% USED
W.
ENCUMB.
Total Capital Improvement 37,256,854 83,961,614 10,565,649 14,840,028 73,395,965 13% 30% Total Debt Service 21,612,086 21,612,086 19,658,266 11,050 1,953,820 91% 91% Total Enterprise Fund 70,579,794 109,136,999 33,958,394 13,886,087 75,178,606 31% 44% Total Housing Funds 5,458,047 5,496,861 734,121 482,389 4,762,740 13% 22% Total Housing Authority 4,880,044 4,915,044 2,463,192 190,354 2,451,852 50% 54% Total Internal Service Funds 25,169,925 28,033,672 15,494,201 8,588,148 12,539,471 55% 86% Total Other Operations 27,075,053 44,979,085 14,883,750 7,195,961 30,095,335 33% 49% Total Pension Funds 0 210,463 951,921 0 -741,458 452% 452% Total Special Revenue Funds 39,674,849 58,399,752 23,105,061 3,594,951 35,294,691 40% 46% Total Trust Funds 0 80,000 355,056 6,628 -275,056 444% 452% Total All Funds 231,706,650 356,825,576 122,169,611 48,795,596 234,655,965 34% 48% 83,961,614
21,612,086
109,136,999
5,496,861
4,915,044
28,033,672
44,979,085
210,463
58,399,752
80,000
10,565,649
19,658,266
33,958,394
734,121
2,463,192
15,494,201
14,883,750
951,921
23,105,061
355,056
0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 Total Capital Improvement
Total Debt Service
Total Enterprise Fund
Total Housing Funds
Total Housing Authority
Total Internal Service Funds
Total Other Operations
Total Pension Funds
Total Special Revenue Funds
Total Trust Funds
Amount
Fund Type
YTD EXPENDED REVISED BUDGET
May 23, 2023
percent cash match of $4,856,490 ($3,656,490 from American Rescue Plan Act (ARPA), $500,000 from the Capital Improvement Program budget (ARPA), and $700,000 from Library Impact Fees).
The full renovation and retrofit of the library project is anticipated to go beyond the scope to address life-safety and critical maintenance needs included in the grant application to deliver a modern library that meets the current needs of the Richmond community. The project will enable the review of the current program and space needs of the library in order to develop a floor plan that allows the library to make best use of the available space to maximize operational efficiency, and better serve the community.
All new building systems will be installed including electrical, mechanical, plumbing, data/IT, etc. In addition, all new interior partitions, finishes, photovoltaic, library shelves, racks, furniture, and equipment will be installed. On the exterior, all the doors and glazing system will be replaced along with the roof. The building will also be seismically strengthened including re-anchoring of the brick façade to the structure.
For budgeting purposes, the rough order of magnitude (ROM) estimated construction cost for a full renovation and retrofit project is anticipated to be around $700 - $750 per square foot (sf). Also, for budgeting purposes, it is recommended that the City allow for approximately 25 percent to 30 percent of construction cost ($175 - $225/sf) for project soft costs like design, planning, management, permitting, furniture, fixtures and equipment, testing and inspections, etc. A total ROM budget of $875 - $975/sf is currently anticipated to be the overall project budget. For 31,500 sf, the ROM project budget comes out to be $27,562,500 - $30,712,500.
The additional funds needed, beyond the $15 million grant and match, are anticipated to be expended during the construction phase (2025 – 2026). The total project timeline is expected to be approximately 36 to 48 months from the contract award.
American Rescue Plan Act Update
In response to the COVID-19 pandemic, Congress enacted the American Rescue Plan Act (ARPA) in 2021, providing economic incentives to mitigate its impacts. The City of Richmond has been allocated $27.74 million through ARPA, with a deadline to obligate funds by December 31, 2024, and expend them by December 31, 2026. Since ARPA funding is a one-time source, it is advisable to prioritize investments in projects or programs that do not require ongoing funding. The eligible uses for ARPA funds encompass replacing lost public sector revenue, addressing public health and environmental effects of COVID-19, offering premium pay to essential workers, and investing in water, sewer, and broadband infrastructure.
To date, the Richmond City Council committed approximately $16 million in ARPA funds, leaving approximately $11.7 million remaining to be invested (see Figure 12).
During the FY 2021-22 budget process, the City “held” $4 million in case there was a budget shortfall (listed in Figure 11 as “Recovery of Lost Revenue Applied to Balance of FY 2021-22 GF Budget). However, the FY 2021-22 budget ended with a surplus and these funds were not utilized. Therefore, these funds are available for City Council to
May 23, 2023
allocate for other projects. This will increase the new total unallocated ARPA funds from approximately $11.7 million to $15.7 million. Additional information regarding the allocated ARPA projects are listed below and can be found in Attachment 5.
Figure 11: American Rescue Plan Act Funding
The City Council approved a contract with HR&A (subcontracting with Contigo Communications) on February 15, 2022, to conduct a Community Needs Assessment (CNA) and Strategic Investment Plan (SIP). HR&A and Contigo provided an update on the CNA process during the June 28, 2022, City Council meeting. Additional information regarding ARPA can be located at https://www.ci.richmond.ca.us/4095/American- Rescue-Plan-Act.
ARPA Community Outreach
A demographic analysis was conducted to identify populations in Richmond that were disproportionately impacted by the COVID-19 pandemic. Based on this information, a robust engagement process was conducted that included a community listening tour (focus groups, public meetings, and a public survey) in Richmond to gather insights on the impacts of the COVID-19 pandemic and to identify priorities for allocating funds from ARPA. Outreach efforts included various strategies such as television promotions, door- to-door visits, email blasts, and engagement with community organizations. The survey received 210 responses and highlighted support for investments in neighborhoods, infrastructure, local businesses, and families. The focus groups engaged 126 community members, targeting underrepresented voices. Additionally, two community meetings were held, attracting over 150 attendees, with Spanish translation services
May 23, 2023
available. The meetings provided a platform for participants to share ideas and priorities, fostering robust dialogue among diverse community members.
ARPA Community Needs Assessment (CNA) Findings (Attachment 6)
Through the community listening tour and subsequent analysis, five significant community themes (not in a particular order) were identified in Richmond's recovery priorities:
1. Jobs and Businesses: Economic insecurity has been a prominent issue, with many residents struggling to afford basic necessities such as rent and healthcare. Local small businesses faced challenges in accessing necessary support, including difficulties with obtaining Paycheck Protection Program (PPP) loans.
2. Health: The pandemic has resulted in a higher demand for mental health services, particularly among disconnected youth, overwhelmed parents, and isolated older adults. However, there is a shortage of culturally competent and accessible mental health service providers, hindering access to care.
3. Homes and Neighborhoods: Richmond already had a high rent burden before the pandemic, which worsened as individuals faced income disruptions. Housing insecurity has become an urgent concern, and community members identified tenant assistance and rental assistance programs as their most pressing needs.
4. Families: Accessing information and services has proven challenging for communities with limited connectivity and digital literacy. Broadband internet access, technology resources, and computer literacy were highlighted as critical needs, particularly for youth and older adults.
5. Culture and Community: Churches, neighborhoods, and community organizations play vital roles in connecting and supporting Richmond residents. The return of safe community events and increased support for local nonprofit organizations were identified as essential for preserving community bonds and well-being.
Strategic Investment Plan (SIP) Findings (Attachment 7)
The CNA informed the development of a SIP that can serve as a guide for allocating unexpended ARPA funds. The SIP aims to address the identified priorities and ensure that the recovery efforts are targeted towards meeting the specific needs of the community in a comprehensive and equitable manner.
To address these priorities, specific proposed actions are outlined in the SIP. These actions include providing direct support to businesses, improving accessibility of business services, supporting economic development efforts, reducing community health disparities, expanding mental health services, addressing housing needs, leveraging additional state and federal funding, partnering with schools for family
May 23, 2023
support, expanding childcare services, enhancing cultural and recreational programming, improving public facilities, and expanding broadband access.
Next Steps
As part of the FY 2023-24 budget process, City staff will return to City Council in May/June 2023, with additional information and to receive directions on how to allocate the remaining ARPA funds. To prioritize investments, the City could focus on projects that build upon existing progress, have public support, align with City staff capacity for implementation by ARPA deadlines, help achieve anticipated impacts, correspond with City Council priorities, and align with the City’s fiscal policy (i.e., spending one-time revenues on one-time expenditures). Based on these considerations, potential projects for City Council discussion may include, but is not limited to, the following projects:
Nystrom Housing Project - ~$2 million
Project Home Key - ~$3 million
Housing First and Emergency Rental Assistance - TBD
Small Business Support - TBD
CIP and Infrastructure Projects:
o Fire Training Center - ~$2 million
o Corporation Yard Restrooms - ~$700,000
o Corporation Yard Fence - TBD
o Park-related Projects: Soccer fields, playground equipment, Parks Master Plan Update, etc. - TBD
o Facility-related Projects: Upgrades to various city-owned facilities, Facilities Master Plan development, etc. - TBD
ARPA-Funded Community Beautification Project
On June 21, 2021, as part of a larger ARPA allocation, the City Council approved $1 million to support an unspecified community beautification project. Public Works is requesting use of those funds for FY 2023-24 and FY 2024-25 to help close a funding gap in the construction phase for the 13th Complete Street project.
Per the grant application, the 13th Street Complete Streets project transforms a four- lane arterial street from Harbour Way to Costa Avenue into multi-modal complete streets. Eliminating one vehicular travel lane in each direction and using the space to create continuous directional cycle tracks along the length of the corridor will be a key element of the Complete Streets transformation. Sidewalks will be widened (as feasible) and bus stop and crosswalk improvements will be made throughout the corridor. The project will close a gap between the Active Transportation Program (ATP) funded Rumrill Boulevard Complete Streets project in San Pablo and the ATP funded Yellow Brick Road project in Richmond. This project also connects to previous Safe Routes to School work around Peres Elementary School as part of the 2012 Richmond Health Equity Partnership.
May 23, 2023
The total project budget is currently $5,352,450, with funding sources coming from Measure J ($848,000), Metropolitan Transportation Commission (MTC) Safe & Seamless Mobility Quick Strick One Bay Area Grant 2 ($2,821,000), City matching funds from tax increment financing, developer fees, and gas tax ($183,450), City SB-1 Funds ($500,000), and City ARPA funds ($1,000,000). Figure 12 below provides additional detail.
Figure 12. 13th Street Complete Streets Project
The $1 million in ARPA funds will provide the financial support needed to construct the completed designs. The project is currently at a preliminary 100 percent design phase and working towards E-76 for construction funding obligation. Public Works intends to advertise the contract in Fall 2023, and award in Winter/Spring 2024. With the ARPA funds, the project can continue to deliver a complete streets project that will include trees, median landscaping, irrigation, street lighting, and more uniform median layout throughout the project corridor for a Class IV bike lane. The project limits are displayed below.
Phase
Total
Phase Cost
Measure J -
TLC
MTC Safe &
Seamless
Mobility Quick-
Strike OBAG-2
City Match
Funds (TIF, Dev
Fees, & Gas
Tax)
City
Funds
(SB-1)
City Funds
(ARPA)
Total
Funding
Studies -$ -$
Project Management -$ -$
Environmental Studies/Document 297,150$ 283,000$ -$ 14,150$ 297,150$ Design - Plans, Specifications & Estimate 593,250$ 565,000$ -$ 28,250$ 593,250$ Right of Way & Permitting Included Above -$
Construction 2,962,050$ -$ 2,821,000$ 141,050$ 500,000$ 1,000,000$ 4,462,050$ Post-Construction -$
Total 3,852,450$ 848,000$ 2,821,000$ 183,450$ 500,000$ 1,000,000$ 5,352,450$ Enter Fund Source Names (add columns as necessary)
May 23, 2023
Figure 13: 13th Complete Street project
Next Steps
City staff will continue to closely monitor the revenues and expenditure trends in the current fiscal year and will incorporate City Council direction into the FY 2022-23 budget and FY 2023-24 budget, as appropriate.
DOCUMENTS ATTACHED:
Attachment 1 – General Fund – Quarter 3 Budget Report
Attachment 2 – Non-General Funds – Quarter 3 Budget Report Attachment 3 – Capital Improvement Projects Quarter 3 Report Attachment 4 – Grants Report
Attachment 5 – ARPA Budget and Project Status Update
Attachment 6 – Draft ARPA Community Needs Assessment
Attachment 7 – Draft ARPA Strategic Investment Plan
Attachment 8 – Resolution