Title
FISCAL YEAR 2021-2022 BUDGET ADJUSTMENTS AND INITIAL ARPA DESIGNATION
Summary
This agenda item is a continuation of previous City Council efforts to select a budget adjustment scenario for the current FY 2021-22 General Fund budget and to formalize direction to initially obligate American Rescue Plan Act (ARPA) monies as revenue replacement for budgeted government operations.
Recommendation
Recommendation:
1. Adopt Package A including designation of a budget adjustment scenario.
Package A:
A1. Choose one of the budget adjustment directives included in the Agenda Report.
A2. Affirm consensus rank order of Strategic Priorities.
A3. Authorize City Manager to develop and recommend specific budget adjustments pursuant to City Council direction and rank order of Strategic Priorities and return to City Council for approval.
A4. Direct City Manager to agendize an item to receive City Council direction on the use of remaining ARPA monies not obligated for Revenue Replacement within allowable US Treasury categories.
OR
2. Adopt Package B If City Council is unable to reach majority consensus on a budget adjustment option, to formally obligate the use of initial ARPA monies.
Package B:
B1 Approve initial use of ARPA monies as revenue replacement for budgeted government operations thereby allowing for the maintenance of at least a minimum 10% Contingency Reserve level at fiscal year-end for the next five fiscal years.
B2. Direct staff to return to City Council within thirty days for to allocate a portion (up to $8 million) of the remaining ARPA funds for non-budgeted projects / programs.