Waterfront Working Group

City Manager’s Waterfront Working Group Meeting Agenda VIA Zoom Due to the existence of an emergency or urgent issue, the Waterfront Working Group will conduct this meeting by remote methods/technology at the Zoom link provided below, in accordance with the requirements of 1 M.R.S. section 403-B and the City Council's Remote Participation Policy. 1. Zoom Public Meeting Information Please click the link below to join the webinar: https://us02web.zoom.us/j/82755752065?pwd=Zmt4NXlwbVpSY0x6bEpqbzRhb0Vwdz09 Passcode: 613493 Or One tap mobile : US: +16465588656,,82755752065# or +13017158592,,82755752065# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 646 558 8656 or +1 301 715 8592 or +1 312 626 6799 or +1 669 900 9128 or +1 253 215 8782 or +1 346 248 7799 Webinar ID: 827 5575 2065 International numbers available: https://us02web.zoom.us/u/kcT3ZxwljC 2. Welcome and Introductions: Brendan O’Connell, City Finance Director American Rescue Plan Act (ARPA) Funding Overview: Brendan 3. O’Connell See Attachment: ARPA - Working Waterfront Group Presentation 9/9/21 Comments and feedback from Working Waterfront Group on use of 4. American Rescue Plan Act funds 5. Other Items Page 1 THE AMERICAN RESCUE PLAN ACT PRESENTATION TO WATERFRONT WORKING GROUP - SEPTEMBER 9, 2021 Page 2 1 AMERICAN RESCUE PLAN ACT OF 2021 $1.9 Trillion TOTAL Municipal Portion (called the State and Local Fiscal Recovery Funds or SLFRF) is $130 billion of the $1.9 trillion 45.5 B allocated to Entitlement Communities utilizing a modified formula 19.5 B to smaller jurisdictions under population basis Counties receiving $65B Payments made to local governments in two tranches - first half 60 days after enactment, second half one year later. City completed long US Treasury application and verification process and has received first tranche payment. Page 3 2  FUNDING FOR PORTLAND (AND OTHER ENTITLEMENT UNITS) IN MAINE NOTE: There were minor changes in funding amounts in the final ARPA. South Portland was previously an entitlement community but aligned itself with Cumberland County to provide the full county with entitlement status in 2006. For ARPA payment purposes South Portland appealed their initial treatment as a non-entitlement unit and received an increase in funding in from $2.5 to $10.5M. - Other Towns/Cities (non-entitlement units) in Maine are all receiving smaller allocations. - State Counties (including Cumberland, who will receive $57,300,87) are also receiving allocations. - The State of Maine has also released their initial plans for the $4.5 billion invested by the American Rescue Plan in the State of Maine 3 Page 4 ELIGIBLE EXPENDITURES: GENERAL RULES Unless otherwise noted, covered period is March 3, 2021-December 31, 2024 Costs can be committed by December 31, 2024 but must be expended by December 31, 2026 Cannot spend funds on pension deposits States and territories cannot spend the funds to reduce taxes or delay a tax increase May not be used as non-Federal Match for other Federal Programs Page 5 4 USE OF FUNDS Page 6 5  PUBLIC HEALTH EXPENDITURES Services and programs to contain and mitigate the spread of COVID-19, including: Vaccination programs (Portland is >90% vaccine rate according to latest data released by the State of Maine (see chart to the right) so not considered high need) COVID texting and other related medical expenses Contact Tracing Personal protective equipment purchases Support of vulnerable populations to access medical or public health Capital investments in public facilities to meet pandemic operations needs Public communication efforts Page 7 6  PUBLIC HEALTH EXPENDITURES Services to address behavioral healthcare needs exacerbated by the pandemic, including: Mental health treatment Substance use treatment Other behavioral health services Services or outreach to promote access to health and social services Page 8 7  ADDRESS NEGATIVE ECONOMIC IMPACTS CAUSED BY THE PUBLIC HEALTH EMERGENCY Supporting small businesses Speeding the recovery of the tourism, travel, and hospitality sectors Serving the hardest-hit communities and families Addressing health disparities and the social determinants of health Investments in housing and neighborhoods Addressing educational disparities Promoting healthy childhood environments Delivering assistance to workers and families Page 9 8 REPLACE LOST REVENUE Recipients may use these funds to replace lost revenue Treasury’s Interim Final Rule establishes a methodology that each recipient can use to calculate its reduction in revenue. Ability to calculate this revenue loss for several years (with growth factor 4.1%) Most flexible category of eligible expenses and funds can be used to sustain municipal services, for maintenance and capital needs, cybersecurity, healthcare, police, fire or pubic safety and more. Calculation method is being developed and Treasury is still taking input on Interim Final Rule. Page 10 9 PROVIDE PREMIUM PAY FOR ESSENTIAL WORKERS DURING COVID19 EMERGENCY Employees of the jurisdiction designated by executive as essential Can be provided directly, or through grants to private employers to public health/safety staff and essential workers outside the public sector. Page 11 10  INVEST IN WATER, SEWER, AND BROADBAND INFRASTRUCTURE Necessary investments Uses aligned with Environmental Protection Agency’s Clean Water Revolving Fund and Drinking Water State Revolving Fund to expedite project identification Building/upgrading facilities and transmission, distribution, and storage systems, including the replacement of lead service lines Invest in wastewater infrastructure projects- constructing publicly-owned treatment infrastructure, managing and treating stormwater or subsurface drainage water, facilitating water reuse, and securing publicly-owned treatment works Broadband Infrastructure Build broadband infrastructure with modern technologies in mind, specifically projects that deliver services offering: reliable 100 Mbps download and 100 Mbps upload speeds Page 12 11  REPORTING REQUIREMENTS GUIDING PRINCIPLES - 34 pages of reporting requirements released earlier this week - staff review in progress - Requirements include one initial interim report, quarterly reports, and in some cases annual reports - Guidance addresses four priority areas for ensuring an equitable economic recovery: Page 13 12  ARPA GUIDING PRINCIPLES Temporary Nature of ARPA Funds Care should be taken to avoid creating new programs or add-ons to existing programs that require an ongoing financial commitment. Use of ARPA funds to cover operating deficits caused by COVID-19 should be considered temporary and additional budget restraint may be necessary to achieve/maintain structural balance in future budgets. Investment in critical infrastructure is particularly well suited use of ARPA funds because it is a non-recurring expenditure that can be targeted to strategically important long- term assets that provide benefits over many years. Page 14 13  ARPA GUIDING PRINCIPLES Take Time and Careful Consideration Use other dedicated grants and programs first whenever possible and save ARPA funds for priorities not eligible for other federal and state assistance programs. Whenever possible, expenditures related to the ARPA funding should be spread over the qualifying period (through December 31, 2024) to enhance budgetary and financial stability. Adequate time should be taken to carefully consider all alternatives for the prudent use of ARPA funding prior to committing the resources to ensure the best use of the temporary funding. Page 15 14 AGENDA FOR 7-22-2021 ARPA UPDATES Provide additional details on the State and Local Fiscal Recovery Funds (SLFRF) section of ARPA and new updates that have been released since last Finance Committee meeting. Provide links to key sources of information where more information can be found on the American Rescue Plan, SLFRF and FAQ with more details on eligible expenditures. Provide updates on the public process, City staff process, and introduce the public facing City ARPA website and comment portal Page 16 15 ARPA Updates - June & July 2021 Interim Final Rule (151 page document) public comment period closed on Friday, July 16th. City submitted feedback and question responses (example questions from Interim Final Rule included below). https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf Page 17 16 ARPA Updates - June & July 2021 SLFRF Frequently Asked Questions Document has been released Updates being made multiple times weekly based on questions and feedback received (including updates on July 14th and July 19th). Document provinces key insights into what will likely be contained in the Final Rule https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf Example Q&A on next slide Page 18 17 ARPA June and July Updates - Samples from US Treasury Frequently Asked Questions Document https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf Page 19 18 ARPA June and July Updates - Samples from US Treasury Frequently Asked Questions Documen https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf Page 20 19 ARPA June and July Updates - Samples from US Treasury Frequently Asked Questions Document https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf Page 21 20 LINKS TO KEY ARPA AND SLFRF DOCUMENTS Document Title (# of pages) Description Link American Rescue Plan Act of 2021 State and The general landing page for the ARPA https://home.treasury.gov/policy-issues/coronav Local Fiscal Recovery Funds website State and Local Fiscal Recovery Funds irus/assistance-for-state-local-and-tribal-govern ments/state-and-local-fiscal-recovery-funds Full Text - American Rescue Plan Act of 2021 (242 Full text of the American Rescue Plan Act https://www.congress.gov/117/bills/hr1319/ pages) (State and Local Fiscal Recovery Funds BILLS-117hr1319enr.pdf section is on pages 220 - 233). Interim Final Rule - State and Local Fiscal The US Department of Treasury’s initial https://home.treasury.gov/system/files/136/F Recovery Funds (151 pages) implementation guidance (interim only, not RF-Interim-Final-Rule.pdf expected to be finalized until late summer 2021) containing more details on SLFRF and eligible categories of expenses State and Local Fiscal Recovery Funds - Complete list of frequently asked questions https://home.treasury.gov/system/files/136/ Frequently Asked Questions As of July 19, 2021 and responses from the US Treasury on SLFRPFAQ.pdf (42 pages) implementation. Excellent source of more detailed information, updated frequently. State and Local Fiscal Recovery Funds Contains detailed information on the https://home.treasury.gov/system/files/136/ Compliance and Reporting Guidance (35 pages) reporting requirements for entities which SLFRF-Compliance-and-Reporting-Guidanc receive funding (including subrecipients). e.pdf Page 22 21  NEXT STEPS Public facing website and public comment portal has been released https://portland.civilspace.io/en Public comment portal now opened on the CivilSpace Public health survey has been launched Business community survey has been launched Staff awaiting Final Rule from US Treasury (fall 2021) Public forum scheduled for Monday, September 13th City Manager will compile staff and public comments received via email and portal for release to Council Page 23 22 City ARPA website → https://portland.civilspace.io/ Page 24 23 THE AMERICAN RESCUE PLAN ACT Comments / Feedback Page 25 24