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HomeMy WebLinkAbout110122-03.2 STUDY STUDY SESSION MEMORANDUM 3.2 TO: Town Council November 1, 2022 SUBJECT: Re-balancing of appropriated General Purpose and Coronavirus Local Fiscal Recovery Funds for Capital Improvement Projects and Programs BACKGROUND At its October 5, 2021, public meeting, the Town Council adopted Resolution 64-2021, reserving and appropriating Coronavirus Local Fiscal Recovery Funds received under the American Rescue Plan Act of 2021 (“ARPA funds”) to a broad spectrum of programs, partnerships, and capital projects with the intent of speeding up Danville’s recovery from the effects of the Coronavirus pandemic. The Town Council allocated funding to three service areas (senior, mental health, and homeless services), nine partner organizations that serve the community (such as the Danville Area Chamber of Commerce), as well as eight separate capital projects. DISCUSSION Distributing ARPA funds to service programs and community partners within the federal framework requires limited staff administration. However, the probability of delivering all nine ARPA-funded capital projects within the strict federal timeline is lower given the Town’s limited project management resources and project complexities. Consequently, staff has re-evaluated how funding appropriations can be re-balanced using ARPA and General Purpose funds. The objective is to reduce the number of ARPA- funded projects and programs that need to meet the strict federal timeline requirements. In this approach, the total funding amounts for all projects and programs would remain unchanged with the exception of reducing the funding for CIP Project A-330 by $750,000 and increasing the funding for CIP Project A-362 by $750,000 (Attachment A). Specific recommended changes are summarized as follows: A-330 Transfer $750,000 to Project A-362; reduce ARPA funding by $250,000; increase CIP General Purpose funding by$250,000; Total project funding is reduced to $250,000 Re-balancing ARPA Funds 2 November 1, 2022 A-362 Increase funding from $2,500,000 to $3,250,000; increase ARPA funding from $1,500,000 to $3,250,000; Total project funding is increased to $3,250,000 A-492 Reduce ARPA funding by $350,000; increase CIP General Purpose funding by $350,000 A-620 Reduce ARPA funding by $500,000; increase CIP General Purpose funding by $500,000 B-616 Reduce CIP General Purpose Funding by $1,500,000 and increase ARPA funding by $1,500,000 B-626 Reduce CIP General Purpose funding by $1,883,012 and increase ARPA funding by $1,883,012 B-628 Reduce ARPA funding by $2,033,012 and increase CIP General Purpose funding by $2,033,012 B-629 Reduce CIP General Purpose funding by $600,000 and increase ARPA funding by $600,000 C-609 Reduce ARPA funding by $1,000,000 and increase CIP General Purpose funding by $1,000,000 Senior Reduce ARPA funding by $500,000, increase General Fund funding by Services $500,000 Mental Reduce ARPA funding by $350,000, increase General Fund funding by Health $350,000 Re-balancing ARPA Funds 3 November 1, 2022 RECOMMENDATION Upon direction from the Town Council, it is recommended that these changes be incorporated into the 2022/23 mid-year amendments to the Operating Budget and Capital Improvement Program. Prepared by: Tai J. Williams Assistant Town Manager Reviewed by: Joseph A. Calabrigo Town Manager Attachment: Recommended Re-balanced ARPA Funding ARPA/GF ALLOCATIONS for Specified Projects & Programs Goal - Reduce total # of ARPA funded Projects and Programs to be completed by 2025 EXISTING APPROPRIATIONS REVISED APPROPRIATIONS CAPITAL IMPROVEMENT PROGRAM ARPA GF Total ARPA GF Total A-330 Town-wide Storm Drain Management 1,000,000$ 1,000,000$ -$ 250,000$ 250,000$ A-362 Downtown Improvement Project 1,500,000$ 1,000,000$ 2,500,000$ 3,250,000$ 3,250,000$ A-492 Central Irrigation Cap Maint. (UGMO)350,000$ 350,000$ -$ 350,000$ 350,000$ A-620 Fiberoptic Cable Interconnect 500,000$ 500,000$ 1,000,000$ -$ 1,000,000$ 1,000,000$ B-616 Multi-sport Skate Park 1,000,000$ 1,500,000$ 2,500,000$ 2,500,000$ -$ 2,500,000$ B-626 Town Office Relocation 1,474,726$ 17,863,882$ 19,338,608$ 3,357,738$ 15,980,870$ 19,338,608$ B-628 Town Green & Arts District 2,033,012$ 2,000,000$ 4,033,012$ -$ 4,033,012$ 4,033,012$ B-629 Front St. Arts District Maker Space 600,000$ 600,000$ 600,000$ 600,000$ C-609 Town-wide Bicycle Master Plan 1,000,000$ -$ 1,000,000$ -$ 1,000,000$ 1,000,000$ Sub-Total CIP 8,857,738$ 23,463,882$ 32,321,620$ 9,707,738$ 22,613,882$ 32,321,620$ PROGRAMS Senior Services 500,000$ 500,000$ -$ 500,000$ 500,000$ Mental Health 350,000$ 350,000$ -$ 350,000$ 350,000$ Grand Total 9,707,738$ 23,463,882$ 33,171,620$ 9,707,738$ 23,463,882$ 33,171,620$ Existing - Includes ARPA funding for 8 Capital Projects and 2 Programs Revised - Includes ARPA funding for 4 Capital Projects and 0 Programs