RECOMMENDATION TO COUNCIL
Staff recommends City Council adopt a resolution approving a Federal Stimulus Reserve Fund policy, effective March 18, 2021.
| BACKGROUND
The Federal American Rescue Plan Act of 2021 is expected to be approved prior to March 14, 2021. Based on preliminary estimates, staff anticipates that the City will receive approximately $16-17 million in federal stimulus funding from this Act. To assist in the oversight and management of this funding, staff recommends the approval of a policy to establish a temporary Federal Stimulus Reserve Fund and spending guidelines.
The policy includes a plan to disburse the federal stimulus funding within twelve months after the end of the pandemic emergency. This temporary fund will be closed once all funding has been distributed.
The policy also specifies that staff will recommend one-time expenditures, or transfers to other City funds, for City Council approval consistent with the federal requirement for the use of the funds to:
(A) respond to or mitigate the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts;
(B) cover otherwise unreimbursed costs incurred as a result of such emergency;
(C) replace revenue that was lost, delayed, or decreased as a result of such emergency; or address the negative economic impacts of such emergency.
Staff will return to City Council at a later date with a recommendation to recognize the federal stimulus funding upon receiving clarity on the exact amount the City will receive and spending options.
| FISCAL IMPACT
Approval of this policy has no fiscal impact. However implementation of the policy is expected to improve the fiscal position and financial health of the City as it recovers from the pandemic.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The approval of financial policies meets the above criteria and is not subject to CEQA. No additional environmental review is required.
| Respectfully Submitted,
Scott Pettingell, Budget Manager
Dennis Kauffman, Assistant City Manager/Chief Financial Officer | | | 
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Dominick Casey, City Manager |
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