PRESENTER: Presenter
Jared Werner, Assistant City Manager
Body
SUBJECT: Title
Approval of a resolution authorizing obligation of funding provided by the U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds Program, a part of the American Rescue Plan Act, and authorizing the City Manager to act on behalf of the City of New Braunfels in all matters related to this funding, including execution of all related and necessary documents.
Header
DEPARTMENT: Finance
Body
COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
The city of New Braunfels (City) was fortunate to receive an allocation of funds in the amount of $10,995,314 from the U.S. Department of the Treasury’s (Treasury) Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan Act (ARPA). The SLFRF-ARPA program provides funds to state, local, and Tribal governments across the country to support their response to, and recovery from, the COVID-19 public health emergency.
In general, the SLFRF-ARPA program was created to ensure that governments have the financial resources needed to:
• Fight the pandemic and support families and businesses struggling with its public health and economic impacts,
• Maintain vital public services, even amid declines in revenue, and
• Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.
In September 2021, an Ad-Hoc committee was established at the direction of the New Braunfels City Council consisting of members of the Finance and Audit Committee (FAAC), to be supported by City staff from multiple departments. Responsibilities of the FAAC and staff include, but are not limited to, evaluating ARPA guidance, reviewing allowable uses and ARPA-eligible investments made by other local governments, and engaging the community to determine best and most impactful use of funds for New Braunfels. All recommendations provided by FAAC must be subsequently considered and approved by City Council during their public meetings.
As of September 2024, ARPA funding had been allocated for the following activities, with an unallocated balance of $535,998:
• Administration (awarded contract with Baker Tilly US, LLP): $300,000
• Utility Assistance (administered by McKenna Foundation): $500,000
• Non-Profit Grant Program (9 awarded grants for 8 non-profit agencies): $7,159,316
o Children’s Advocacy Center of Comal County: $136,626
o Comal County Habitat for Humanity: $207,500
o New Braunfels Youth Collaborative: $1,500,000
o Connections Individual and Family Services, Inc.: $1,000,000
o Crisis Center of Comal County: $1,000,000
o Friends of CHRISTUS Santa Rosa Foundation (Training Center project): $50,000
o Friends of CHRISTUS Santa Rosa Foundation (Outpatient Center project): $140,190
o NB Housing Partners: $2,125,000
o San Antonio Food Bank: $1,000,000
• Public Transportation (multiple contracts for varied costs): $2,500,000
On September 23, 2024, City staff provided updates pertaining to the City’s allocation of ARPA funding to the FAAC, including the upcoming deadline issued by the Treasury to obligate all funds by December 31, 2024, as any funds that are not obligated by that date will be returned to the Treasury. After discussion of eligible uses, members of the FAAC recommended that currently unobligated ARPA funds be used to increase Baker Tilly’s contract by $35,998, and to broaden the scope of Public Transportation activities to include traffic calming measures and pedestrian mobility now also. For the remaining $500,000, FAAC primarily discussed uses such as increasing the current allocations for the Non-Profit Grant Program and Public Transportation, as well as potential new uses such as City-managed housing activities. After their discussion, including consideration of public comments provided during the meeting, FAAC asked that City staff prepare multiple options to be considered by City Council during an upcoming Special Meeting.
On October 21, following a presentation provided by City staff, City Council provided direction that all ARPA funding be fully obligated and dispersed for the following activities (increased amounts are in bolded font):
• Administration (Baker Tilly US, LLP): $335,998
• Utility Assistance (McKenna Foundation): $500,000
• Non-Profit Grant Program (9 awarded grants for 8 non-profit agencies): $7,334,316
o Children’s Advocacy Center of Comal County: $136,626
o Comal County Habitat for Humanity: $207,500
o New Braunfels Youth Collaborative: $1,500,000
o Connections Individual and Family Services, Inc.: $1,000,000
o Crisis Center of Comal County: $1,000,000
o Friends of CHRISTUS Santa Rosa Foundation (Training Center project): $50,000
o Friends of CHRISTUS Santa Rosa Foundation (Outpatient Center project): $140,190
o NB Housing Partners (to include cold weather shelter costs): $2,300,000
o San Antonio Food Bank: $1,000,000
• Public Transportation (expanded scope, multiple contracts for varied costs): $2,825,000
As such, City staff requests City Council approval of contract modifications with Baker Tilly US, LLP for their consulting services, and NB Housing Partners for the creation of a cold weather shelter at their public facility on Loop 337, and an Interagency Agreement between the City’s Finance, and Transportation & Capital Improvements (TCI) departments for costs associated with the planning, development, and implementation of a City-managed micro-transit system, traffic calming measures, and pedestrian mobility.
All contract/agreement periods will end by December 31, 2026, in accordance with the Treasury’s requirement for expenditure of ARPA funds.
ISSUE:
The City’s adopted 2024-2029 Strategic Plan includes an objective pertaining to fiscal sustainability, e.g. obligating and expending the City’s full allocation of ARPA funding as described within this agenda item.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
Considering statutory and market-based factors, continue to diversify revenue streams to support long-term fiscal sustainability of the Organization.
FISCAL IMPACT:
The granting agency has provided funding for all recommended costs; there is no City-match requirement. Therefore, sufficient funds are available to support the activities as described above.
Recommendation
RECOMMENDATION:
Staff recommends approval of a resolution authorizing obligation of funding provided by the U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds Program, a part of the American Rescue Plan Act, and authorizing the City Manager to act on behalf of the City of New Braunfels in all matters related to this funding, including execution of all related and necessary documents.