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9.7.21 ARPA Work Session - Public Input + Initial SpendingAmerican Rescue Plan Act: Initial Expenditure Recommendations City Council Work Session September 7, 2021 CITY OF IOWA CITY Work Session Objectives Brief review of the American Rescue Plan Act Summary of key past and ongoing local relief programs Overview of initial public input efforts Presentation of recommendations City Council discussion and direction What’s in the American Rescue Plan Act? $1.9 trillion federal aid package providing relief to families, governments, businesses, schools, non-profits and others impacted by COVID-19, including but not limited to: •Direct payments to eligible persons •Expanded unemployment insurance •Community and economic development, transportation and infrastructure •Housing, food security, public health and social services •Education support •Childcare support •Small business loans and grants •Vaccine development AND •$350 billion for state and local government relief American Rescue Plan Act Review Local Fiscal Recovery Funds •Local entities allocations: •Johnson County: $29.3 million •Iowa City: $18.3 million •Coralville: $3.3 million •North Liberty: $2.9 million •Funds delivered by the U.S. Treasury in two tranches: •May 2021: Iowa City received $9 million •Anticipated May 2022: Iowa City will receive the remaining $9 million •Spending deadlines •Dec. 31, 2024: All funds obligated •Dec. 31, 2026: All funds spent American Rescue Plan Act Review Eligible Uses American Rescue Plan Act ReviewRespond to pandemic’s public health and economic impacts1 Premium pay for eligible workers performing essential work2 Replace lost revenue and restore government service levels3 Necessary Water, Sewer & Broadband Infrastructure4 Past/Ongoing Local Pandemic Relief Program Allocation Status Emergency Housing Assistance $616,000 Ongoing Non-profit Grants (social services)$536,532 Ongoing Small Business Grants $448,678 Ongoing Security Deposit Assistance Grants $175,000 Ongoing Emergency Shelter Diversion Funds $10,800 Completed Local Eviction Prevention Program $125,000 Ongoing Emergency Essential Needs Assistance $62,500 Completed Courthouse Eviction Prevention Program $41,000 Ongoing Local Relief & Recovery Efforts Local Pandemic Relief Outcomes Local Relief & Recovery Efforts•City has allocated approximately $1.9 million towards new relief programs since the onset of the pandemic: •$1 million+ for housing assistance •$500,000+ for expanded social services providing basic needs •$400,000+ for small businesses •These new local relief programs have assisted: •376 households •8,659 individuals •48 businesses *These numbers continue to grow as many funded initiatives are still ongoing Johnson County General Assistance Expansion •Recently, Johnson County approved expanded benefits & eligibility for General Assistance Program, notably: •No longer request immigration status •Increased income eligibility to 200% Federal Poverty Guidelines •Added eligible expenses: gas vouchers, pet supplies, more medical and health care expenses •Increased duration of assistance to 3 months within 12-month period for all eligible recipients •Eliminated rent cap •Potential for emergency supplemental assistance per Director discretion •The expansion was funded with $2 million in federal CARES Act dollars previously received by the County Local Relief & Recovery Efforts Other State & Federal Programs •Distribution of a significant amount of ARPA funds is still pending decisions from local, state and federal organizations •Examples include: •County -$29.3 million entitlement funds •State of Iowa -$1.3 billion entitlement funds •Example Federal programs: •HOME-ARP allocation to Iowa City -$1.7 million •Low-Income Household Water Assistance Program Local Relief & Recovery Efforts Public Input Overview •Survey •E-mail •Public Listening Session •Diversity Market •Farmer’s Market •Board & Commission Input •Catholic Worker House/ Excluded Worker’s Coalition •Open Heartland Listening Session •Agency Impact Coalition (coalition of social service non-profits) •ICAD, ICDD, Business Partnership, Think Iowa City •Iowa Flood Center •Johnson County Input Sessions •Numerous informal conversations and meetings with various partners/organizations Public Input Summary Survey Results •1,892 responses, including 682 comments (through 8/15)Public Input Summary Business Support •Comprehensive BIPOC business support framework •Small business operating assistance •Permanent BIPOC vendor space with commercial kitchen •Retail incubator for BIPOC/Immigrant/Refugee populations •Pop -up storefront program Public Input Summary –Common Themes Childcare, Early Childhood & Youth •Childcare provider development –financial incentives, training, facility investments •Family childcare assistance/stipends •Expanded before/after school programming •Expanded outdoor recreational opportunities •Teen work program •Support for low-income + ESL students: academic tutoring, language services, & social-emotional support programs •“Fashion House” -youth entrepreneurial & community building projectPublic Input Summary –Common Themes Housing & Essential Needs •Flexible, direct financial assistance •Premium pay for essential workers •Essential needs assistance –utilities, transit, food security •Benefits coordinator / services navigator •Long-term affordable housing •Rent, eviction, foreclosure assistance •Homeless services, permanent supportive housing, etc. •Emergency home repairs •Homebuyer assistance programs Public Input Summary –Common Themes Infrastructure Projects •Broadband •Expanded access, increased affordability •Expanded free public WiFi •Water/Sewer Projects •Water collection, treatment and distribution infrastructure •Lead service line replacement program •Stormwater infrastructure and bank stabilization •Wastewater nutrient reduction projects Public Input Summary –Common Themes Jobs + Workforce •Workforce / skills / trade training programs (BIPOC/Immigrant/refugee/women focused) •Green jobs corps / apprenticeship programs •Small business assistance: rehiring, job creation, job retention Public Input Summary –Common Themes Community Development, Neighborhood Empowerment & Crime Intervention •Targeted, comprehensive neighborhood revitalization program •Permanent Diversity Market space •Community / neighborhood center in South District •Violence intervention programs (bolstered wraparound services) •Increased lighting in residential neighborhoods •Historic preservation investments •Form-based code efforts Public Input Summary –Common Themes Non-Profits & Social Services •Emergency operating assistance •Comprehensive social services needs assessment and capital/facility planning •Social service agency capital investments Public Input Summary –Common Themes Population aged 65+ •Investments to expand remote programming and reach at The Center •Expanded programming opportunities •Financial assistance: household chores and transportation Public Input Summary –Common Themes Public Health •Mental health & crisis intervention •Low-income, uninsured, non-English language speakers, youth/teens •Guidelink Access Center investments •Mobile Crisis Co-Response •COVID -19 mitigation (vaccine incentives, testing, sick time stipends) •Bolster Healthy Homes Program (ventilation, mold mitigation, weatherization, insulation) •Health care access •Medical debt repayment program •Financial assistance for care and medication •Address language barriers for preventative/dental carePublic Input Summary –Common Themes Arts, Culture, Tourism & Recreation •Park & greenspace expansion and added amenities •Expanded outdoor recreation offerings •Programming for adults with disabilities •Community recreation center in underserved areas •Financial assistance to arts-based organizations •Expanded programming and programming incentive •Assistance for bid fees to attract events to Iowa City •Downtown placemaking investments Public Input Summary –Common Themes Resiliency & Climate Action •Flood resilience & hazards assessment •Energy efficiency assistance for households / businesses •Seed resilience hub •Natural disaster & public health emergency planning •Adaptation activities: tree plantings, stormwater projects, etc.Public Input Summary –Common Themes Transportation •Low-income or full free fare on Iowa City Transit •Expanded bus shelters and bus stop amenities •ADA improvements •Expanded service days/hours Public Input Summary –Common Themes Wealth & Asset Catalysts for Underserved Populations •Debt repayment assistance & financial counseling •Credit / equity building program •Seed community land trust •Agrarian reform for BIPOC/Immigrant/refugee populations Public Input Summary –Common Themes Most Common Suggestions •Direct financial assistance (those who did not receive federal stimulus checks or unemployment benefits) •Premium pay for frontline, essential workers •Affordable, high-speed internet •Long-term affordable housing •Mental & behavioral health services •Infrastructure •Business and non-profit financial support •Rent, eviction, foreclosure assistance •Comprehensive non-profit needs assessment •Enhanced public transit Public Input Summary Future Public Input Needs •Initial public input helps develop emergent needs and priority focus areas •Further input will be needed to refine focus areas •Coupled with data-driven decision-making •Collaboration is critical for efficient execution of all expenditures •Johnson County •Community partners •Pending federal / state ARPA-funded programs Public Input Summary Replace Lost Revenue and Restore Government Service Levels •Eligibility under U.S. Treasury Guidance: •Eligible: General fund, tax revenue, fee/program revenue, sales revenue, parking, solid waste, sewer •Not eligible: debt proceeds, water, transit, insurance trusts •Eligible revenue replacement for Iowa City: •$10.3 million eligibility •Eligible amount will grow based on prescribed calculation methodology •Eligible City funds most impacted by pandemic: •Parking •Road Use TaxGovernment Services•Wastewater •Refuse •Landfill Necessary Water, Sewer and Broadband Infrastructure •Water and Sewer infrastructure needs collectively exceed ARPA funding •Capital projects are financed through rates paid by customers •Funding infrastructure projects through ARPA can accelerate completion timeline and lessen direct burden on local rate payers •Top projects for consideration include: •Sewer Digester Complex Rehabilitation ($8 million) •Water Collector Well Rehabilitation ($1 million) •Water Storage Improvements and Expansion ($9 million)Government Services Guiding Principles RecommendationsLeverage outside funding and avoid duplication with other relief programs Restore financial stability to support future governmental operations Retain flexibility to address evolving emergent community needs Seek opportunities to make lasting change in physical and social infrastructure Ensure funding decisions help mitigate racial inequalities Pursue actions that contribute toward the City’s climate action goals Limit operational investments without identified sustainable funding sources Demonstrate compliance and transparency through regular public reporting Two -Pronged Strategy 1.Identify emergent relief needs and begin planning execution •Explore collaboration opportunities with Johnson County, other cities and non-profit organizations •Goal: Launch emergent relief programs by end of 2021 or soon thereafter 2. Determine strategic investment priorities and commence detailed scoping and planning •Develop planning teams with area non-profits and interested local governments •Some plans may require funding for third party assistance from experienced consultants •Develop and review plans as they come together over next 8 months Recommendations Recommendations:Emergent Relief 1.Direct one-time payments to income-eligible adults who did not receive federal stimulus checks and/or unemployment benefits •Largely includes Iowa City’s undocumented population •Total eligible persons is unknown but likely in the hundreds •Ideally coordinated in collaboration with Johnson County General Assistance 2.Supplemental eviction prevention services •Housing challenges will continue to be exacerbated through COVID recovery and a well-resourced support network is needed to keep people housed •Could include a multi-pronged approach with several programs and partnersRecommendations Recommendations:Emergent Relief 3.Emergency housing repair / relocation program •Many expressed concern delaying critical home repairs due to employment interruptions and more critical expenses •Program could include life/safety repair grants or relocation accommodations if housing is not suitable for repairs •Will require a third-party partner to administer 4.Emergency non-profit (social service) operating assistance •Many agencies are still struggling to meet increased demands •Volunteer numbers have not bounced back to pre-pandemic levels Recommendations Recommendations:Emergent Relief Summary Program Estimated Funding Range Direct payments to eligible adults $1M -$1.5M Eviction prevention $1M -$2M Housing repair / relocation $500k -$1.5M Emergency non-profit assistance $500k -$1M Recommendations•All programs are suitable for collaboration with Johnson County and neighboring cities should they identify similar priorities •Programs should be thoughtfully crafted not to dissuade or exclude otherwise eligible persons •Estimated funding ranges should be viewed as needing to be flexible. Estimates will be fluid as program design and implementation begin Total Emergent Needs: $3 Million to $6 Million Recommendations:Strategic Investments 1.BIPOC Business Support Infrastructure •Examples: physical space (retail, market, kitchen), youth entrepreneurial and community center accelerator program, startup and expansion grants, SSMID pilot, project manager / community navigator •BIPOC led and managed with focus on growing opportunities for generational wealth building 2.Social Service Needs Assessment and Capital Planning + Seed Funding •Detailed analysis of current services with eye toward enhancing collaboration and ensuring there is sufficient capacity in the future •Seed funds would be used to help fund top recommendations and also explore a community benefits navigator position •Planning is most effective at a regional levelRecommendations Recommendations:Strategic Investments 3.Affordable Housing Initiatives •Examples: Permanent supportive housing projects, community land trust consortium, strategic acquisition partnerships, first-time down-payment assistance and financial counseling services •Strong partnerships are in place and community need continues to grow 4.Mental Health Services •Bolstered mobile crisis services to improve response time and consistency in service •Supplementing youth services •Enhanced remote programming and communication tools at The Center Recommendations Recommendations:Strategic Investments 5.Workforce Development •Pre -apprenticeship program expansion for underserved populations •Home childcare capacity building •Low-income fare-free transit pilot project 6.Climate Resiliency and Hazard Assessment Planning •Partnership with UI Flood Center to forecast climate impacts on our infrastructure and land use patterns •Could include seed funding for initial improvements Recommendations Recommendations:Strategic Investments 7.Small Business, Arts and Culture and Tourism Investments •Support continued recovery and help maintain strong employment base •Fuel local art efforts that build community and spur economic activity 8.Public Infrastructure and City Revenue Replacement •Infrastructure investments reduce pressure for future rate increases •Revenue recovery can assist with operational and infrastructure needs, as well as recover funding lost through unpaid utility bills. Recommendations Recommendations:Strategic Investments Summary Program Estimated Funding Range BIPOC Business Support Infrastructure $4M -$6M Social Service Needs Assessment and Capital Planning + Seed Funding $3M -$6M Affordable Housing Initiatives $2.5M -$6M Mental Health Services $1.5M -$3M Workforce Development $1.5M -$3M Climate Resiliency and Hazard Assessment Planning $500k -$3M Small Business, Arts and Culture and Tourism Investments $1M -$2M Public Infrastructure and City Revenue Replacement $1M -$3M Recommendations•All programs are suitable for collaboration with Johnson County and neighboring cities should they identify similar priorities •Details of efforts would be collaboratively determined with natural project partners •Estimated funding ranges should be viewed as needing to be flexible. Estimates will be fluid as program design and implementation begins Total Strategic Investments: $15 Million-$32 Million Summary of RecommendationsTotal Emergent Needs: $3 Million to $6 Million Program Estimated Funding Range Direct payments to eligible adults $1M -$1.5M Eviction prevention $1M -$2M Housing repair / relocation $500k -$1.5M Emergency non-profit assistance $500k -$1M Program Estimated Funding Range BIPOC Business Support Infrastructure $4M -$6M Social Service Needs Assessment and Capital Planning + Seed Funding $3M -$6M Affordable Housing Initiatives $2.5M -$6M Mental Health Services $1.5M -$3M Workforce Development $1.5M -$3M Climate Resiliency and Hazard Assessment Planning $500k -$3M Small Business, Arts and Culture and Tourism Investments $1M -$2M Public Infrastructure and City Revenue Replacement $1M -$3M Total Strategic Investments: $15 Million-$32 Million Total Estimated Expenditures: $18 Million -$38 Million Important Reminders •ARPA decisions should be fluid and the City needs to be flexible as… •The public health and economic situation evolve •Other federal programs are announced and other jurisdictions determine priorities •U.S. Treasury guidance is updated •Detailed planning commences on focus areas •This means that initial priority areas may change or may be modified during the planning phase •Considerable effort will be required to coordinate planning, grant reporting and management. Council should expect at least 5% of funds may be needed for new staff or third-party administration. Recommendations City Council Direction •Staff looking for City Council direction on general priority areas and balance of estimated funding allocations •Each item would return to City Council with final program details and cost estimates before implementation •Is Council comfortable with staff commencing planning on some or all of the focus areas? •Prior to staff commencing work, is there a desire to pursue joint meetings with elected officials from the County or other jurisdictions? Summary of RecommendationsTotal Emergent Needs: $3 Million to $6 Million Program Estimated Funding Range Direct payments to eligible adults $1M -$1.5M Eviction prevention $1M -$2M Housing repair / relocation $500k -$1.5M Emergency non-profit assistance $500k -$1M Program Estimated Funding Range BIPOC Business Support Infrastructure $4M -$6M Social Service Needs Assessment and Capital Planning + Seed Funding $3M -$6M Affordable Housing Initiatives $2.5M -$6M Mental Health Services $1.5M -$3M Workforce Development $1.5M -$3M Climate Resiliency and Hazard Assessment Planning $500k -$3M Small Business, Arts and Culture and Tourism Investments $1M -$2M Public Infrastructure and City Revenue Replacement $1M -$3M Total Strategic Investments: $15 Million-$32 Million Total Estimated Expenditures: $18 Million -$38 Million