Page 470 - FY 2021-22 Blue Book Volume 2

American Rescue Plan

In the face of an ongoing pandemic-related revenue slowdown, the 2021-22 Proposed Budget would have
included significant service reductions in the absence of the ARP. The plain language reading of this
legislation suggests that the City will have wide latitude in the use of these funds. Therefore, the 2021-22
Proposed Budget considers the full amount of the second tranche of ARP relief funds as General Fund
revenue. General Fund revenue by its nature is flexible. Nonetheless, in order to illustrate the impacts of
the ARP on the 2021-22 Proposed Budget, this exhibit presents a list of services and appropriations
equivalent to the amount of the second tranche and categorized based on the four eligible expenditure
categories in the legislation.

The U.S. Department of the Treasury is responsible for distributing ARP Fiscal Recovery Funds to cities
and they are currently developing methods and guidance for the allocation and oversight process. If the
Department of Treasury guidance restricts the ARP funds in a way that is inconsistent with the appropriation
examples below, the City will need to reassess the proposed funding and adjust accordingly.

BUDGET HIGHLIGHTS

In 2020-21, the City anticipates to receive $677 million from the first tranche of the City’s ARP allocation.
Pursuant to City Council and Mayor action as part of the 2020-21 Third Financial Status Report, the City
intends to use these funds to replace lost revenues stemming from the COVID-19 emergency allowing the
City to provide government services. A portion of these funds will revert to the Reserve Fund in as much
as lost revenues also occurred in 2019-20.
Provision of Government Services 2020-21
Revised Budget

• Revenue Replacement. Funding required to balance 2020-21 Budget due $ 677,224,158
to lost revenue and restore Reserve Fund levels.

Provision of Government Services Total $ 677,224,158

The 2021-22 ARP funds have enabled the 2021-22 Proposed Budget to fund the following appropriations
and services, consistent with the corresponding eligible categories in the legislation, as follows:

2021-22 Tentative
Proposed Legislative
Budget Eligibility
(Millions) Category
COVID-19 Response and Recovery
• Capital and Technology Investment Expenditure Program $ 2.00 A, C
– Municipal Facilities. Plexiglass and other office
modifications.
• Cultural Affairs. Art center and theater technology 0.50 A
enhancements.

• El Pueblo. Reopening marketing strategy. 0.04 A
• General City Purposes. Restaurant recovery program, 35.75 A, C
business attraction plan, COVID-19 memorial, and marketing
campaign to assist the tourism industry.
• Information Technology. Multilingual 3-1-1 application. 0.10 A, C
• Transportation. Al Fresco dining program enhancements. 1.92 A

• Zoo. Point of sale expansion for safe reopening. 0.04 A

COVID-19 Response and Recovery Total $ 40.35

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