Wait Wait Don't Tell Me: The City of Mesa Received $52,757,862 in May 2021 Federal American Rescue Plan Act...How Much Has Been Spent?

Just in case you missed this - and admit it you it - this is most of what happened at last Week's Mesa City Council Study Session on Thursday 08.26.2021 at 07:30 in the morning.

The Power Point Slide Presentation that took up the last half-hour of that 2-hour 'Study Session'

The Local Fiscal Recovery Funds must be obligated by December 31, 2024. A time period covering over three years is designed to provide prolonged support and recovery with the understanding that the recovery from COVID-19 will take years. The proposed options included in this report are based on input from councilmembers during our initial discussion and are designed to fit within the parameters set forth in the federal guidance. Many of these new initiatives will require additional time and resources to fully develop and deploy.  

If Council supports this initial direction, staff will further investigate and develop the listed programs. ▸ Staff will continue to bring these programs as they become more developed to Council for adjustments/adoption. 

Timing of Receipt and Use of Funds  

▸ The City has certified and received $52,757,862 from the Federal government.

 

The remaining 50% is expected to be received in May of 2022. 

▸ Eligible expenditures need to be obligated by December 31, 2024 

▸ Performance (use/payment) through December 31, 2026

American Rescue Plan Act (ARPA) 

▸ The President signed the $1.9T American Rescue Plan Act of 2021 into law in March of 2021 

▸ ARPA included $360B to establish the Coronavirus State and Local Fiscal Recovery Funds “to mitigate the fiscal effects stemming from the public health emergency with respect to the Coronavirus Disease.”

FEMA $50.4B

Homeowners $10B

Airports $8B

Stimulus Checks $424B

Unemployment Insurance $246B

State and Local Fiscal Assistance $360B

Tax Credits and Aid to Families $219B

Public Health $176B E
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Update 

▸ Based on Council feedback staff identified projects and purchases that are consistent with the eligible uses found in the IFR. 

▸ These projects have been grouped by reporting classifications required by the Fiscal Recovery Funds: 

1. Public Health 

2. Negative Economic Impact 

3. Services to Disproportionately Impacted Community 

4. Premium Pay 

 

▸ A detailed summary of the proposed ARPA projects can be found as an attachment at end of the Council report

Public Health - $7.8M 

▸ The ARPA authorizes the use of payments from the Fiscal Recovery Funds to respond to the public health emergency and provides many ways in which the funds can be used to support communities working to reduce and respond to increased violence. 

1. PD Real Time Crime Center - $3,300,000 

2. Behavioral Health - $2,500,000 

3. Ambulance - $1,800,000 

4. PD Body Scanner and Thermal Reader - $159,000

Negative Economic Impact - $49.9M ▸

The COVID-19 pandemic has had a severe impact on households and businesses. 

The Interim Final Rule (IFR) noted, “as businesses closed, consumers stayed home, schools shifted to remote education, and travel declined precipitously, over 20 million jobs were lost in March and April 2020.” 

 

1. Energy Commodity Cost- $20,000,000 

2. Food Distribution Center - $10,000,000

3. Downtown District Revitalization - $10,000,000 

4. Wi-Fi and Mobile Broadband - $6,000,000 

5. Mesa Small Business Learning Lab - $3,800,000 

6. Convention Center Floor Replacement - $145,000

Services to Disproportionately Impacted Communities - $20.7M 

▸ These programs should “alleviate the immediate economic impacts of the COVID-19 pandemic on housing insecurity, while addressing conditions that contributed to poor public health and economic outcomes.” 

1. Homeless Solution - $20,000,000 

2. Recreational Programming for K-6th- $447,000 

3. Education and Enrichment Scholarships- $245,000
DETAIL:

Services to Disproportionately Impacted Community - $20,692,000

1. Homeless Solution - $20,000,000 Local Program: Provide services, infrastructure and programs to address economic impacts to housing-vulnerable, low-moderate income and homeless populations due to pandemic/COVID-19 hardships.

Focus of this investment will be on sustainable, longterm facilities and programs to help strengthen the City’s Housing Path to Recovery, namely emergency and bridge housing projects and also workforce development programs to help ‘skill up’ these same populations. Regional Partnership: Partner with Maricopa Association of Governments member cities, towns, counties and native communities to support the launching of a regionwide, outcome-based, data-driven strategy to build sustainable, regional infrastructure and programs to serve populations of homeless and households at risk of eviction due to the global pandemic. The goal of a regional approach is to share the burden regionally of addressing homelessness and to coordinate limited resources in the region for maximum community benefit for the entire region

Essential City Operations - $12.8M 

▸ “Fiscal Recovery Funds payments may be used by recipients to provide premium pay to eligible workers performing essential work during the COVID-19 public health emergency…. Since the start of the COVID-19 public health emergency in January 2020, essential workers have put their physical well-being at risk to meet the daily needs of their communities and to provide care for others.” 

1. Premium Pay - $12,800,000

Future Allocation 

1. Unallocated Funding - $14,319,724 

Potential Uses: 

• Food Security Initiative 
  
• Restaurant Incubator 
  
• Rental Assistance 
  
• COVID-19 Vaccinations 
  
• Broadband Subsidy Cybersecurity
  

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File #:

21-0869

Type:

Presentation

Status:

Agenda Ready

In control:

City Council Study Session

On agenda:

8/26/2021

Title:

Hear a presentation, discuss, and provide direction on the City's proposed expenditure plan for the Coronavirus State and Local Fiscal Recovery Funds.

Attachments:

1. Presentation, 2. Council Report

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American Rescue Plan Act – Local Fiscal Recovery August 26, 2021

COUNCIL REPORT 11 Pages

Date: August 26, 2021

To: City Council 

Through: Chris Brady, City Manager 

From: 

Michael Kennington, Deputy City Manager/Chief Financial Officer

Irma Ashworth, Finance Director 

Subject: Coronavirus State and Local Fiscal Recovery Funds Discussion 

 

Purpose 

This Council report serves as a follow up to the discussion at the May 20, 2021 City Council meeting regarding the use of the American Rescue Plan Act (ARPA) funds