LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SUPPLEMENTAL BUDGET RESOLUTION NO. 2021-49 - APPROPRIATING FUNDING IN RELATION TO THE AMERICAN RESCUE PLAN ACT (ARPA) FOR (1) STORMWATER AND SEWER ABATEMENT AND (2) CITIZEN ASSISTANCE
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 2021-36.
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2021; PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
At the May 24, 2021 City Council workshop, a presentation was given by staff regarding a draft expenditure plan for the American Rescue Plan Act (ARPA). The ARPA is a $1.9 trillion economic stimulus bill and within ARPA, the Coronavirus Local Fiscal Recovery Fund provides $350 billion for states, municipalities, counties, tribes, and territories, including $130 billion for local governments. The City of Pensacola is scheduled to receive $19,153,643 from the Coronavirus Local Fiscal Recovery Fund. The draft expenditure plan included six spending categories: (1) the recovery of revenue loss, (2) grant compliance and administration, (3) facility improvements, (4) personnel, (5) stormwater and sewer abatement and (6) citizen assistance.
On June 17, 2021, City Council approved appropriations for the recovery of revenue loss, grant compliance and administration and facility improvements and on July 15, 2021, City Council approved appropriations for premium pay and employee vaccination incentive pay. This budget resolution will allocate funds for stormwater improvements and citizen assistance based on the May 24, 2021 draft expenditure plan.
Stormwater and Sewer Abatement. The ARPA allows the use of funds to cover necessary investments in water and sewer infrastructure, including the management and treatment of stormwater or subsurface drainage water. The Department of Treasury provides governments with wide latitude to identify investments in water and sewer infrastructure by aligning eligible uses of the ARPA funds with the wide range of types or categories of projects that would be eligible to receive financial assistance through the Environmental Protection Agency’s (EPA) Clean Water State Revolving Fund (CWSRF). The types of projects eligible for CWSRF assistance include projects to construct, improve, and repair wastewater treatment plants, control non-point sources of pollution, improve resilience of infrastructure to severe weather events, create green infrastructure, and protect waterbodies from pollution. City staff has identified the following projects as priority for this funding. Estimated project cost is provided but savings from one project may be needed to cover overages in another project once cost are known.
Main Street drainage improvements $1,679,003
Barrancas Avenue drainage improvements 600,000
Cordova Square pond expansion/rehabilitation 350,000
9th Avenue to Pensacola Bay drainage improvements 325,000
Total $2,954,003
Main Street drainage improvements will install necessary stormwater piping to mitigate Main Street’s historic flooding problems. Storm piping will collect water from the roadway via a system of inlets and pipes and route the water out to Pensacola Bay. Barrancas Avenue drainage improvements will reduce localized street flooding. Cordova Square pond expansion/rehabilitation would include pond side sloping and pond expansion for increased pond retention volume to address flooding and pollutant loading issues in this area. 9th Avenue to Pensacola Bay drainage improvements will reduce localized street flooding. All improvements will supplement budgeted capital projects in order to increase conveyance capacity of piping system to better reduce street flooding and create a more robust project.
Citizen Assistance. The ARPA allows the use of funds to respond to the public health mitigation and prevention as well as address the negative economic impacts of COVID-19. Public health efforts for COVID-19 include vaccination programs while economic impacts include services to address homelessness such as supportive housing and improved access to stable, affordable housing among unhoused individuals; housing vouchers, residential counseling, or housing navigation assistance; and affordable housing development to increase supply of affordable and high-quality living units.
Homelessness reduction $3,000,000
Local vaccine program 125,000
Housing assistance/affordable housing 2,000,000
Total $5,125,000
This appropriation will allow staff to move forward with stormwater improvements as well as citizen assistance.
PRIOR ACTION:
June 17, 2021 - City Council appropriated funding in relation to ARPA for the recovery of revenue loss, grant compliance and administration and facility improvements.
July 15, 2021 - City Council appropriated funding in relation to ARPA for premium pay and employee vaccination incentive pay.
FUNDING:
Budget: $ 8,079,003 Coronavirus Local Fiscal Recovery Fund
Actual: $ 2,954,003 Stormwater and Sewer Abatement
5,125,000 Citizen Assistance
$ 8,079,003
FINANCIAL IMPACT:
Adoption of the Supplemental Budget Resolution will appropriate the funds for the grant in the American Rescue Plan Fund.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
7/21/2021
STAFF CONTACT:
Keith Wilkins, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2021-49
2) Supplemental Budget Explanation No. 2021-49
PRESENTATION: No end