Subject:
Title
Approve 2023 ARPA Reallocation Plan
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
The acceptance of ARPA funds and the use of ARPA funds have been discussed several times. Key times decisions were made:
Council meetings: 1/24/22 - Adopt ARPA and Bond funding
7/11/22 - Reallocation of ARPA and CIP
Conference sessions:
12/31/21 - First allocation
5/9/22 - Reallocate ARPA and CIP
9/19/22 - ARPA and CIP plan for 2023
1/23/23 & 3/27/23 - Discuss reallocation of ARPA and CIP projects
EXPLANATION AND SUMMARY:
The federal government appropriated funds for COVID-19 pandemic recovery under the American Rescue Plan Act (ARPA) in the spring of 2021. The Town of Vienna has received $17.1 million to be used for various purposes up to $10 million under the revenue recapture provisions and for infrastructure that supports certain COVID-19 pandemic recovery purposes.
Due to higher interest rates for borrowing and lower meals tax returns resulting from the pandemic-related effect of COVID-19 on local restaurants, projects that were planned for bond funding in 2024 have been moved to ARPA funding or moved to a later date with bond funding.
Council discussed the reallocation of both ARPA and CIP at a conference session on March 27, 2023. Per review of both ARPA and bond-funded CIP, these projects were added or changed on the ARPA list:
1. Reduce Glen Avenue sidewalks including stormwater infrastructure to one side of the street, freeing up $900,000 for additional ARPA projects.
2. Reduce the Town Hall bathroom upgrade program to the main-floor bathrooms only (2 vs. 6 in the original plan).
3. Move Maple Avenue crosswalks from 2026 and 2028 CIP to ARPA funding.
4. Move Town Green bathrooms and stage repair from 2028 CIP to ARPA funding.
5. Add interest estimated to be earned on ARPA cash through FY 2023.
6. Add a $250,000 project for replacing trees along streets.
These changes result in approximately $275 thousand of the total project plus interest unallocated at this time. This unallocated portion can be allocated to projects at a later date according to Council’s direction.
The Finance Department meets frequently with department heads on major projects to ensure the timeline of spending or getting projects under commitment by Dec. 31, 2024 can be achieved. If a project is determined to fall behind that target, staff will return to the Town Council with recommendations for reallocation, if necessary. The Town intends to spend all its ARPA allocation, including interest earned for qualifying projects and within the time deadlines.
Attached is a list of projects, and detailed descriptions for projects started (have been approved by Council for partial or full use of fund) and projects planned but not started. Completed project descriptions are not included in this packet but can be requested on demand.
Staff recommends approving the reallocation so that projects can begin and meet spending deadlines.
Departmental Recommendation: Recommend reallocation of ARPA projects as presented.
Finance Recommendation: Recommend reallocation of ARPA projects as presented.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town Council may approve the allocation/reallocation of ARPA funds for approved projects in its discretion.
Town Manager's Recommendation: I recommend the Town Council approve the reallocation of ARPA projects, as presented.
Cost and Financing: $17.1 million
Account Number: various in fund 130
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA. ARPA funding
Decision Needed by This date: May 1, 2023
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to approve the reallocation of ARPA projects as presented,"
Or
Other action deemed necessary by Council.