Title
Coronavirus Relief Fund Proposed Strategic Plan
Description
This report provides options (Attachment A) for the City Council to consider in developing a strategic plan for the use of federal Coronavirus Relief funds and requests Council direction and conceptual approval of a strategic plan with priorities for implementation.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
The federal government allocated $293 million to the City of Phoenix in the Coronavirus Relief Fund component of Section 5001 of the CARES Act. The Act allocated $150 billion for states and cities over a population of 500,000.
According to federal guidance issued on April 22, 2020 (Attachment B), the Fund may only be used to cover costs that are necessary expenditures caused by COVID-19 incurred between March 1 and December 30, 2020, and not accounted for in the approved 2019-2020 City budget.
The proposed strategic options are based on input from councilmembers. Some options are new. Others are existing programs that have been approved or implemented as COVID-19 response, such as the Homelessness response plan adopted on April 21, 2020, and the small business grant and loan funds administered through Phoenix Industrial Development Authority (IDA) and Phoenix Community Development Investment Corporation discussed on April 28, 2020.
The proposed strategic plan includes three areas of emphasis: Community Investment, City Operations and Reserve for future need. There are six strategic pillars proposed in the Community Investment and City Operations areas as outlined in Attachment A. Guidance from the federal government continues to evolve and we will need to be nimble to adjust our programs to ensure compliance with federal rules.
A Reserve is proposed to preserve resources in case the federal government changes guidance to allow the funds to replace lost revenue. For example, the Budget & Research Department estimates for this report the City General Fund revenue loss from March through December 2020 due to COVID-19 economic disruption could range from $48 million to $100 million. For all funds (including Convention Center, transit, parks, public safety and sports facilities), the range could be from $102 million to $198 million. If the federal government changes its guidance to allow this revenue to be replaced, the Reserve would be available to avoid deep program cuts at the City. The Reserve would also cover unexpected COVID-19 expenses that could occur later in the year. If neither revenue replacement nor unexpected expenses occur, the City Council can allocate the Reserve to other areas in the strategic plan.
Staff recommends Council discussion and conceptual approval of a strategic plan with priorities for implementation. Based on the Council’s strategic direction, staff will return to a future meeting with recommended allocation of funds for Council discussion, amendment and approval.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and Deputy City Manager Jeff Barton.