The URL can be used to link to this page

Home My WebLink AboutAgenda - 06-15-2021; 6-c - American Rescue Plan Act Funding Allocations 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 15, 2021 Action Agenda Item No. 6-c SUBJECT: American Rescue Plan Act Funding Allocations DEPARTMENT: County Manager's Office ATTACHMENT(S): INFORMATION CONTACT: 1. Incremental Allocation Option Travis Myren, Deputy County Manager, 2. Accelerated Allocation Option 919-245-2308 PURPOSE: To approve an allocation of American Rescue Plan Act (ABPA)funds that the County is designated to receive over two draw down periods. BACKGROUND: The Federal American Rescue Plan Act (ARPA) provides direct allocations to local governments. Orange County is designated to receive approximately $28.8 million. The first draw down of approximately $14.4 million was approved by the Board of Commissioners through a budget amendment on June 1, 2021. The second draw down will occur in twelve (12) months. ARPA funds must be obligated by December 31, 2024 and must be fully expended by December 31, 2026. The ARPA funds are intended to broadly address the negative impacts of the COVID-19 pandemic on individuals, government agencies, organizations, and small businesses. The Treasury Department has issued interim guidance on the use of ARPA funds for local governments. This guidance establishes five broad categories for potential investments: 1. Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; 2. Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector; 3. Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; 4. Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and, 2 5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet. The interim guidance also indicates that the funds may be used to support education programs aimed at addressing educational disparities and child care programs that promote healthy childhood environments including: 1. Addressing educational disparities through new or expanded early learning services, providing additional resources to high-poverty school districts, and offering educational services like tutoring or afterschool programs as well as services to address social, emotional, and mental health needs; and, 2. Promoting healthy childhood environments, including new or expanded high quality childcare, home visiting programs for families with young children, and enhanced services for child welfare-involved families and foster youth County departments were asked to submit proposals consistent with the interim guidance and the goals established by the Board of Commissioners in prior funding allocations. County departments submitted requests totaling over $44 million. In addition to these proposals, the Board of Commissioners approved budget amendments for FY2021-22 allocating $5,320,000 to support a broadband infrastructure project, an economic assistance program for property tax relief, and staffing for the Small Business Center at the Orange County Campus of Durham Technical Community College. This abstract provides two options for allocating the funds. The first option (Attachment 1) takes an incremental approach to funding decisions. It funds the items approved in the FY2021-22 Budget, including $5.3 million in budget amendments, as well as situations where funding will be required to close FY2020-21 in a positive fund balance positon and initiatives that require funding between the date of adoption and November 1, 2021 . This option contemplates another review of funding allocations in September and October which may result in additional allocations during the FY2021-22 fiscal year. In total, this option allocates $12,366,261 and preserves $16,473,461 for future funding decisions. The second option (Attachment 2) accelerates funding allocations to provide most funding in the first two years of the plan. This option is limited by cash flow availability in the first year as the County has only accepted approximately $14.4 million of its total $28.8 million allocation in FY2021-22. As a result, the broadband infrastructure project is divided over two fiscal years, and funds for emergency housing assistance direct payments are reduced by $750,000 from the total $4 million request in the first year and are spread over a span of three years instead of two years. Over the summer, staff will continue to monitor and review opportunities to use ARPA funding in partnership with other jurisdictions, to leverage outside funding, and to structure other potential funding sources in a way that serves residents with the most appropriate programs while maintaining the County's flexibility to respond and adapt as conditions and needs dictate. For example, some departments are currently aware of potential streams of funding for programs that are also eligible for ARPA expenditures. In an effort to prioritize funding sources and streamline 3 access to those programs, a team of County department directors will be convening bi-weekly to ensure efficient and user friendly processes. The Housing and Community Development Department also requested a total of $4 million annually in direct assistance to households throughout the County. However, during the past year, municipalities have contributed federal funds as well as local funds to help support their residents. This partnership would allow the County to potentially repurpose funds currently designated for emergency housing support. County staff have initiated discussions with Town staff about jointly funding this program, but the Towns may not make final funding recommendations until later in the summer. County staff have also been exploring a cost share framework to support the Street Outreach, Harm Reduction, and Deflection program that would be sustainable in the long run after federal funding is exhausted. Finally, the County's Broadband Task Force is closely monitoring State and Federal programs where the County's ARPA investments may leverage outside funding support. That group will continue to meet over the summer to recommended a design and implementation approach that can be executed swiftly and can leverage those outside funding partnerships. FINANCIAL IMPACT: The County is designated to receive a total of $28,839,722 in American Rescue Plan Act funds. One half of the funds have already been drawn down while the remaining half will be available in twelve months. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends the Board approve an allocation of American Rescue Plan Act funds to be distributed for use upon adoption of this abstract. Options 1 and 2 (attached) offer suggestions for that allocation. Once a final spending plan is adopted, the Manager also recommends that the Board receive quarterly reports on the status and rate of expenditure as well as any new or emerging needs so that the Board may make adjustments to the spending plan in the future. 4 Attachment 1 ARPA Plan for Incremental Spending Preserves$16,473,461 for Future Allocation Community Supports FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Continuation of expanded lunch program FY2021-22 Budget $ Funded in FY2021-22 Budget SOHRAD Funding $ 160,000 $ 160,000 Grant funding ends in October Crisis/Diversion Facility Planning $ - RFP can proceed without funding National Deflection Training Conference $ 11,200 $ 11,200 Discounted summer registration .5 FTE Grants Admin position in the CJRD FY2021-22 Budget $ - Funded in FY2021-22 Budget Community Think Tanks/Food Policy Agenda-Food Council $ Need to confirm partnership Community Food Baseline Assessment-Food Council $ Need to confirm partnership Continuation of Language Access Services FY2021-22 Budget $ - Funded in FY2021-22 Budget WIFI for Library checkout to maintain collection $ 12,000 $ 12,000 Funds four(4)months of service TOTAL $ 183,200 $ $ $ $ 183,200 Employment and Child Care FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Subsidized employment $ - Use FY2021-22 base budget first Computer loan program for employment participants $ Use FY2021-22 base budget first Support for low wage workers $ Use FY2021-22 base budget first Child care support for families:parent fees $ Use FY2021-22 base budget first Child care support for families:50 additional families $ - Use FY2021-22 base budget first Increase youth enhancement fund $ 25,000 $ 25,000 Provide funding for summer activities Stabilization program for former foster youth $ - Use FY2021-22 base budget first TOTAL $ 25,000 $ $ $ $ 25,000 Eviction Diversion and Housing Supports FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Notes Direct EHA Program Expenditures-rental assistance,utility assistance,etc. $ 1,300,000 $ 1,300,000 Four months of full funding Admin(Personnel)-EHA and Housing Helpline Temp Staff FY2021-22 Budget $ - Funded in FY2021-22 Budget Admin(Personnel)-EHA Coordinator FY2021-22 Budget $ Funded in FY2021-22 Budget Replenish funds in locally-funded urgent repair program FY2021-22 Budget $ Funded in FY2021-22 Budget Internet hotspots(10 devices plus service for 12 months)-Partnership $ Need to confirm partnership 5 Homeless Programs Coordinator-Partnership to End Homelessness FY2021-22 Budget $ Funded in FY2021-22 Budget Housing Locator-Partnership to End Homelessness $ 28,810 $ 28,810 43%County Eviction Diversion Program Staffing FY2021-22 Budget $ - Funded in FY2021-22 Budget Eviction Diversion Program Backup Attorney $ - Use pro bono attorney if necessary TOTAL $ 1,328,810 $ $ $ $ 1,328,810 Recovery Supports FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL "Restart the Arts"Grants for cultural organizations $ - May receive State funds Small Business Recovery Grant Program $ Delay for Fall review Recovery cost-share grants for food businesses $ - Delay for Fall review Tourism and Hospitality Recovery FY2021-22 Budget $ Funded in FY2021-22 Budget TOTAL $ - $ $ $ $ - Response and Resilience FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Replace temporary facility modifications with permanent modifications $ 51,136 $ 51,136 Work will commence during summer Powered Air Purifying Respirators(PAPRS)-Emergency Medical Services $ - Delay for Fall review Information Technology Infrastructure and Fiber Connectivity $ 674,629 $ 674,629 Equipment will be purchased over summer Countywide Multi-Factor Authentication Security Initiative $ 150,000 $ 150,000 Software will be purchased over summer TOTAL $ 875,765 $ $ $ $ 875,765 Revenue Replacement FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Arts Commission FY21-22 Budget Deficit $ 16,000 $ 16,000 Revenue Replacement Arts Commission FY22-23 Budget Deficit $ - Delay for Fall review Sportsplex Revenue Replacement for FY2020-21 $ 790,000 $ 790,000 Need to prevent fund deficit in FY2020-21 Visitors Bureau Revenue Replacement for FY2020-21 $ 560,000 $ 560,000 Need to prevent fund deficit in FY2020-21 TOTAL $ 1,366,000 $ $ $ $ 1,366,000 Budget Amendments FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Create a Countywide Economic Assistance Fund $ 250,000 $ 250,000 Full Request Durham Technical Community College for Small Business Center $ 70,000 $ 70,000 Full Request Broadband Infrastructure Design and Implementation $ 5,000,000 $ 5,000,000 Full Request TOTAL $ 5,320,000 $ $ $ $ 5,320,000 6 TOTAL Recommended Requests $ 9,098,775 $ $ $ $ 9,098,775 FY21-22 Recommended Budget ARPA $ 3,267,486 $ 3,267,486 Outside Agencies FY2021-22 Budget $ - GRAND TOTAL $ 12,366,261 $ - $ $ $ 12,366,261 $ 28,839,722 Total ARPA Allocation $ 16,473,461 Balance 7 Attachment 2 ARPA Plan for Accelerated Spending All Funding Allocated Community Supports FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Continuation of expanded lunch program FY2021-22 Budget $ 119,229 $ 119,229 Two Years at Full Request SOHRAD Funding $ 160,000 $ 250,000 $ 410,000 Two Years at Full Request Crisis/Diversion Facility Planning $ 40,000 $ 40,000 One Time National Deflection Training Conference $ 11,200 $ 11,200 One Time .5 FTE Grants Admin position in the CJRD FY2021-22 Budget $ 40,000 $ 40,000 Two Years Community Think Tanks/Food Policy Agenda-Food Council $ 6,880 $ 6,880 One Time-43%County Community Food Baseline Assessment-FoodCouncil $ 2,150 $ 2,150 One Time-43%County Continuation of Language Access Services FY2021-22 Budget $ 15,000 $ 15,000 Two Years at Full Request WIFI for Library checkout to maintain collection $ 35,000 $ 35,000 $ 70,000 Two Years at Full Request TOTAL $ 246,200 $ 468,259 $ - $ - $ 714,459 Employment and Child Care FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Subsidized employment $ 288,000 $ 328,718 $ 616,718 Full Request Accelerated Computer loan program for employment participants $ 25,000 $ 25,000 Full Request Accelerated Support for low wage workers $ 25,000 $ 25,000 $ 50,000 Full Request Accelerated Child care support for families:parentfees $ 600,000 $ 600,000 Full Request Accelerated Child care support for families:50 additional families $ 540,000 $ 450,000 $ 990,000 Full Request Accelerated Increase youth enhancement fund $ 50,000 $ 25,000 $ 75,000 Full Request Accelerated Stabilization program for former foster youth $ 10,000 $ 10,000 $ 20,000 Full Request Accelerated TOTAL $ 1,538,000 $ 838,718 $ - $ - $ 2,376,718 Eviction Diversion and Housing Supports FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Notes Direct EHA Program Expenditures-rental assistance,utility assistance,etc. $ 3,250,000 $ 4,000,000 $ 4,000,000 $ 11,250,000 Two Years at Full Request Admin(Personnel)-EHA and Housing Helpline Temp Staff FY2021-22 Budget $ 295,564 $ 295,564 Two Years at Full Request Admin(Personnel)-EHA Coordinator FY2021-22 Budget $ 71,056 $ 71,056 Two Years at Full Request Replenish funds in locally-funded urgent repair program FY2021-22 Budget $ - One Year at Full Request Internet hotspots(10 devices plus service for 12 months)-Partnership $ 4,400 $ - $ 4,400 One Time-43%County 8 Homeless Programs Coordinator-Partnership to End Homelessness Grant Funded FY2021-22 $ 22,790 $ 22,790 Two Years at Full Request Housing Locator-Partnership to End Homelessness $ 28,810 $ 28,810 $ 57,620 Two Years at Full Request Eviction Diversion Program Staffing FY2021-22 Budget $ 170,000 $ 170,000 Two Years at Full Request Eviction Diversion Program Backup Attorney $ 35,000 $ 35,000 $ 70,000 Two Years at Full Request TOTAL $ 3,318,210 $ 4,623,220 $ 4,000,000 $ - $ 11,941,430 Recovery Supports FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL "Restart the Arts"Grants for cultural organizations $ 100,000 $ 100,000 Full Request Art on the Hill Program $ 50,000 $ 50,000 Full Request Small Business Recovery Grant Program $ 500,000 $ 250,000 $ $ $ 750,000 One Year at Full Request Recovery cost-share grants for food businesses $ 100,000 $ 80,000 $ $ $ 180,000 One Year at Full Request Tourism and Hospitality Recovery FY2021-22 Budget $ - One Year at Full Request TOTAL $ 700,000 $ 380,000 $ $ $ 1,080,000 Response and Resilience FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Replace temporary facility modifications with permanent modifications $ 171,000 $ - $ 171,000 One time expense Powered Air Purifying Respirators(PAPRS)-Emergency Medical Services $ 124,000 $ $ $ $ 124,000 One time expense Information Technology Infrastructure and Fiber Connectivity $ 674,629 $ $ 674,629 One time expense Countywide Multi-Factor Authentication Security Initiative $ 150,000 $ $ $ $ 150,000 One time expense TOTAL $ 11119,629 $ $ $ $ 1,119,629 Revenue Replacement FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Arts Commission FY21-22 Budget Deficit $ 16,000 $ 16,000 Revenue Replacement Arts Commission FY22-23 Budget Deficit $ 54,000 $ 54,000 Revenue Replacement Sportsplex Revenue Replacement for FY2020-21 $ 790,000 $ 790,000 Need to prevent fund deficit in FY2020-21 Visitors Bureau Revenue Replacement for FY2020-21 $ 560,000 $ 560,000 Need to prevent fund deficit in FY2020-21 TOTAL $ 1,366,000 $ 54,000 $ - $ - $ 1,420,000 Budget Amendments FY2021-22 FY2022-23 FY2023-24 FY2024-25 TOTAL Create a Countywide Economic Assistance Fund $ 250,000 $ 250,000 Full Request Durham Technical Community College for Small Business Center $ 70,000 $ 70,000 Full Request Broadband Infrastructure Design and Implementation $ 2,500,000 $ 2,500,000 $ 5,000,000 Full Request TOTAL $ 2,820,000 $ 2,500,000 $ 5,320,000 9 TOTAL Recommended Requests $ 11,108,039 $ 8,864,197 $ 4,000,000 $ $ 23,972,236 FY21-22 Recommended Budget ARPA $ 3,267,486 $ 3,267,486 Outside Agencies FY2021-22 Budget $ 1,600,000 $ 1,600,000 Two Years GRAND TOTAL 14,375,525 10,464,197 4,000,000 S 28,839,722 $ 28,839,722 Total Available $ - Balance