MEMO AMERICAN RESCUE PLAN ACT FUNDS.pdf

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City of Phoenix
To: Mayor and City Council Date: May 12, 2021

From: Ed Zuercher ~~

City Manager
Subject: AMERICAN RESCUE PLAN ACT FUNDS

Earlier this year, the federal government announced American Rescue Plan Act (ARPA)
funds for local governments. Phoenix will receive $396 million in ARPA funding, broken
out in two payments of $198 million each over the next two years.

Based on the successful strategic plan for the Coronavirus Relief Funds (CRF) from
2020 and the City Council discussion from April 27, we have identified multiple options
for transformational investments of ARPA funds to benefit the community and improve
city operations for the long term.

The attached report from Assistant City Manager Jeff Barton details potential programs
that build from the experience of the past year and possible uses of ARPA funds that
that Councilmembers have discussed. As the City Council deliberates on a Strategic
Funding Program that balances the significant needs in the City and community with our
ability to successfully implement these creative ideas, one approach is to use the
Guiding Principles that were used to evaluate CRF options in 2020.

Just over one year ago - on May 5, 2020 - the Council discussed the CRF Strategic
Plan and worked from the following 6 Guiding Principles:

1. Provide a transparent approach that will support a clean audit by the federal
Office of Inspector General

2. Allocate to one-time uses that avoid ongoing General Fund obligations for the
City

3. Use existing processes where possible to expedite deployment and avoid
duplicated administrative burden

4. Preserve City services and the City employees who provide them to avoid
worsening the impact of the recession on the community

5. Fund programs that reduce the economic burden on residents and businesses
from the COVID-19 downturn

6. Identify opportunities for ongoing improvements that will benefit the community
and the organization in a post-Covid economy.

We are at a different point today than we were in 2020 so we can update these Guiding
Principles. As we discuss how to implement the Council’s policy direction on the 2021-
22 allocations of ARPA funds, | suggest the following set of Guiding Principles for
Council consideration:

1.

2.

Provide a transparent approach that will support a clean audit by the federal
Office of Inspector General

Consider one-time capital fund investments that avoid ongoing General Fund
obligations for the City that can’t be fulfilled

Use existing processes where possible to expedite deployment and avoid
duplicated administrative burden

Fund programs that reduce the economic burden on residents and businesses
from the impacts of COVID

Identify opportunities for ongoing improvements that will benefit the community
and the City organization in a post-COVID economy.

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6.

Build on successful experience with CRF Strategic Plan.

7. Avoid duplication of other COVID funds and other government programs

8.

Provide adequate staffing to successfully implement new or expanded programs.

Following a set of Guiding Principles, | am confident that City staff can implement a
Council-adopted Strategic Plan of programs and investments that make Phoenix better.