ACTION REQUESTED:
Title
Communication from the City Manager with a Request for the Following:
A. ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET to Recognize GRANT FUNDS Received from the AMERICAN RESCUE PLAN FISCAL RECOVERY FUNDS to be Used to ELIMINATE the BUDGETED WORKING CASH GENERAL OBLIGATION BONDS, in the Amount of $10,000,000.00.
B. ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET to Recognize GRANT FUNDS Received from the AMERICAN RESCUE PLAN FISCAL RECOVERY FUNDS to be Used to REMOVE MANDATORY FURLOUGHS for EXEMPT EMPLOYEES Beginning JUNE 1, 2021, Through DECEMBER 31, 2021, and to REINSTATE Pay For FURLOUGHS Taken from MARCH 3, 2021 Through MAY 31, 2021 in the Total Amount of $301,685.00.
Body
BACKGROUND: In May, the City received its first distribution of the American Rescue Plan Fiscal Recovery Funds in the amount of $23,544,988.00. At the June 1, 2021 Council Policy Meeting, the City Manager provided an overview of the funding objectives and the eligible uses relating to these funds under the interim final rules provided by the Department of the Treasury. One of the areas which qualify as an eligible use is to replace public sector revenue loss. The interim final rules provided a formula to calculate the loss revenues due the COVID-19 pandemic. Based on preliminary 2020 revenues, it is anticipated that our revenue loss is approximately $18.1 million. These funds can be used to ensure the continuity of vital governmental services by filling budget shortfalls.
At the end of the policy session, the City Manager offered a few initial suggested uses of the Fiscal Recovery Funds. At the Council's request, the attached budget amendments are being brought forward to use the Fiscal Recovery funds in the amount of $10 million in lieu of issuing working cash bonds for the General Fund and the removal of mandatory furlough days from June 1, 2021 through December 31, 2021 for exempt employees, as well as,...
Click here for full text