HomeMy WebLinkAbout _ 4.10(a)--ARPA project and budget modifications
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution approving and adopting the 89th Amendment to City Budget Resolution No.
2021-078 amending appropriations for American Rescue Plan Act (ARPA) projects to include:
deferred General Fund facility maintenance, Redding Fire and Police Department (RPD) vehicle
purchases, funding of RPD’s Beat 8 and Park Ranger positions through Fiscal Year 2025-26.
Fiscal Impact
There is no fiscal impact to the General Fund by approving staff recommendation. If the budget
resolution is not approved, there will be a fiscal impact or a modification to services
recommended to City Council (Council) for further consideration.
Alternative Action
The Council could provide alternative direction to staff regarding modifications to the ARPA
expenditure plan.
Background/Analysis
On March 11, 2021, President Biden signed into law H.R. 1319 – American Rescue Plan Act of
2021. The City of Redding (City) was allocated $18,693,433, which was slated to be paid in two
tranches. The first tranche was received on May 21, 2021, and approximately a year later the
second tranche was received. Staff brought multiple informational items to the Council regarding
the funding and possible usage, and the first of which was presented June 1, 2021.
On February 17, 2022, staff presented a recommended plan to the Council regarding the
allocation of the ARPA funds. Subsequently, on March 10, 2022, the Council approved the plan
regarding the ARPA expenditures. This included $4 million dollars for a citywide fiber ring to
support broadband infrastructure and $2.5 million for infrastructure improvements at Stillwater
MEETING DATE: May 2, 2023
ITEM NO. 4.10(a)
FROM:
***APPROVED BY***
grobinett@cityofredding.org
btippin@cityofredding.org
SUBJECT: 4.10(a)--American Rescue Plan Act (ARPA) project and budget modifications
Greg Robinett, Director of
Finance/City Treasurer
Report to Redding City Council April 27, 2023
Re: 4.10(a)--ARPA project and budget modifications Page 2
Business Park.
On May 3, 2022, the Council voted to amend the original allocation for the broadband project by
reducing it by $750,000 to $3.25 million in order to fund the Riverfront Specific Plan.
As staff began preparing for the 2023-25 Biennial Budget, it was clear that the major tax
revenues were going to cause difficulties in presenting a balanced budget and 10-year plan. At
the first Biennial Budget Workshop meeting on February 16, 2023, staff recommended that the
Council consider amending the ARPA plan. Specifically, staff believes priorities have changed
regarding broadband and Stillwater Business Park infrastructure expenditures. This was due in
part to the expected difficulties in the budget development process due to the decreased tax
revenues expected, specifically with sales tax revenue. The Council approved redirecting the
remaining $5.75 million dollars that had been allocated to the broadband and Stillwater Business
Park infrastructure projects to General Fund expenditures.
Staff recommends approving to use the $5.75 million in question in the following ways:
• $750,000 to fund deferred General Fund facility maintenance;
• $2 million for Police and Fire ($1 million each) vehicle purchases; and
• $3 million to fund beat 8 and the Park Ranger positions through Fiscal Year 2025-26.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required.
Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable Ten-Year Financial
Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the
public and City employees to enhance knowledge and increase transparency to improve
public trust.”
Attachments
^Resolution
Resolution No. 2023 - ____________
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE
89TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2021-078
APPROPRIATING $0 FOR RE-ALLOCATION OF AMERICAN RESCUE PLAN ACT
(ARPA) CITYWIDE BROADBAND AND STILLWATER INFRASTRUCTURE
PROJECTS TO FUND POLICE VEHICLES, FIRE APPARATUS, POLICE PARK
RANGERS, POLICE 8TH BEAT, AND VARIOUS GENERAL FUND FACILITY
MAINTENANCE AND IMPROVEMENTS FOR FISCAL YEAR 2022-23.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2021-078 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
111
111
111
178
442
462
427
437
Police
Fire
Non-Departmental
General Fund Capital
$4,000,000
1,000,000
$2,500,000
2,500,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Increase (Decrease) Revenues
111-437-6-2650-15 Federal Grant Capital - Gen Govt (2,500,000)$
111-427-6-2650-15 Federal Grant Capital - Gen Govt (2,500,000)
111-442-6-2650-09 Federal Grant Operating - Police 3,000,000
111-462-6-2650-17 Federal Grant Capital - Fire 1,000,000
111-442-6-2650-16 Federal Grant Capital - Police 1,000,000
Increase (Decrease) Expenditures
111-427-4010-92 ARPA - Broadband Infrastructure (3,250,000)
178-437-4010-91 ARPA - Stillwater Infrastructure (2,500,000)
111-427-4010-83 ARPA - General Fund Facilities 750,000
111-442-4010-82 ARPA - Police Vehicles 1,000,000
111-462-4010-84 ARPA - Fire Apparatus 1,000,000
111-442-4010-90 ARPA - Park Rangers 2,000,000
111-442-4010-95 ARPA - Police 8th Beat 1,000,000
Total -$ -$
THAT the purpose is to appropriate $0 for Re-Allocation of American Rescue Plan Act (ARPA)
citywide broadband and Stillwater infrastructure projects to fund police vehicles, fire apparatus,
police park rangers, police 8th beat, and various general fund facility maintenance and
improvements for fiscal year 2022-23.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the
City Council of the City of Redding on the _________ day of ___________, 2023 and was duly
adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVAL:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney