LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SUPPLEMENTAL BUDGET RESOLUTION NO. 2021-40 - APPROPRIATING FUNDING IN RELATION TO THE AMERICAN RESCUE PLAN ACT (ARPA) FOR (1) PREMIUM PAY AND (2) EMPLOYEE VACCINATION INCENTIVE PAY
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 2021-40.
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. Appropriations for personnel is being requested at this time while City Council approves a plan to spend the remaining funds.
Personnel. The ARPA allows the use of funds to cover premium pay for essential workers as well as vaccination incentive programs. Premium pay is intended to be provided to those workers who have been relied on to maintain continuity of operations of essential critical infrastructure sectors, including those who are critical to protecting the health and wellbeing of their communities, whose job duties require regular in-person interactions or regular physical handling of items that were also handled by others, whose job requires their physical presence at work every day since the beginning of the Pandemic and whose job put them at an increased risk of contracting COVID. The Department of Treasury encourages premium pay be provided retrospectively for work performed at any time since the start of the COVID-19 public health emergency. As such, premium pay will be considered for those essential workers who are currently employed with the City and have been employed by the City for a period of at least one year on October 1, 2021. In addition, the Department of Treasury emphasizes that premium pay be prioritized towards lower income workers. In order to stay within the intent of the Act, all employees classified as SES II and above will not be eligible to receive premium pay regardless of their job function.
Vaccination incentive pay is intended to provide incentives reasonably expected to increase the number of employees who choose to get vaccinated, or that motivate employees to get vaccinated sooner than they otherwise would have and such costs are reasonably proportional to the expected public health benefit. Unlike the premium pay, any payments made to employees under this program will be forward looking.
This appropriation will recognize those essential workers for their sacrifices over the last year as well as motivate employees to get vaccinated to reduce the spread of COVID-19 in the workplace and ensure the safety of our employees. The remaining $8,079,003 in unappropriated ARPA funding will be appropriated once City Council approves a spending plan.
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.
FUNDING:
Funding
Source: $ 4,400,000 Coronavirus Local Fiscal Recovery Fund
Actual: $ 4,200,000 Premium Pay
200,000 Employee Vaccination Incentive Pay
Total $ 4,400,000
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
6/24/2021
STAFF CONTACT:
Keith Wilkins, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2021-40
2) Supplemental Budget Explanation No. 2021-40
PRESENTATION: No end