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File #: 21-1329   
Type: Regular Business Status: Agenda Ready
In control: City Council - Successor Agency - Housing Authority
On agenda: 12/7/2021 Final action:
Title: FISCAL YEAR 2021-2022 BUDGET ADJUSTMENTS AND INITIAL ARPA DESIGNATION
Attachments: 1. 120721 ADM FY 2021-22 Budget Adjustments Agenda Report, 2. 120721 ADM FY 2021-22 Budget Adjustments Presentation, 3. 120721 ADM FY 2021-22 Budget Adjustments Scenarios Summary, 4. 120721 ADM FY 2021-22 Budget Adjustments Updated ARPA Projects List, 5. 120721 ADM FY 2021-22 Budget Adjustments Proposed Reductions

Title

FISCAL YEAR 2021-2022 BUDGET ADJUSTMENTS AND INITIAL ARPA DESIGNATION

Summary

Continuation of City Council efforts to select a budget adjustment scenario for the current FY 2021-22 General Fund budget and 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 (i.e., Public Safety, Infrastructure, Community and Economic Development, Workforce, Parks and Recreation, Library, Arts, Other).

 

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 cannot 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 maintenance of at least a minimum ten percent 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 City Council to allocate a portion (up to $8 million) of the remaining ARPA funds for non-budgeted projects / programs.