8/17/2021 -ITEM 4 - CONSIDERATION OF CORONAVIRUS STATE & LOCAL FISCAL RECOVERY FUNDS AND FISCAL YEAR 2021-2022 BUDGET AMENDMENTAGENDA ITEM NO. 4
WEST" ft
DATE: August 17, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
SUBJECT: CONSIDERATION OF CORONAVIRUS STATE & LOCAL FISCAL RECOVERY FUNDS
AND FISCAL YEAR 2021-2022 BUDGET AMENDMENT
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Confirm the list of items to be funded by the Coronavirus State & Local Fiscal Recovery Funds, American
Rescue Plan Act of 2021.
2. Adopt the following resolution:
RESOLUTION NO.2021-89 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL
YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 (NEW POSITIONS)
BACKGROUND:
On January 25, 2021, the Finance Department distributed budget instructions for Fiscal Year (FY) 2021-22 with
City of West Covina staff to begin the development of the FY 2021-22 budget. All department budgets were to
be submitted to the Finance Department by March 18, 2021 and reviewed with the City Manager over the course
of the following weeks. The Finance Department is responsible for the development of the preliminary and final
budget preparation.
As part of the FY 2021-22 Operating and Capital Improvement Program (CIP) Budget preparation, the budget
was presented to the City Council on May 18, 2021 and two Community Budget Workshops were held on May
19, 2021 and June 9, 2021.
The FY 2021-22 Proposed Budget was presented as a roll-over budget with minimal increases in expenditures.
The proposed budget included recommendations to use fund balance to close the structural deficit in the amount
of $2.3 million. The proposed budget did not include the West Covina Sportsplex.
During the June 15, 2021 Council meeting, the City Council voted to include 10 Code Enforcement Officers, 10
Police Officers, and 10 Maintenance workers in the FY 2021-22 Budget. Additionally, during that same meeting,
staff initially reviewed the proposed list of items to be included as part of the Coronavirus State & Local Fiscal
Recovery Funds. The purpose of this item is to verify the use of recovery funds with City Council, incorporate
the new employees into the FY 2021-22 Budget and establish a budget for the Sportsplex.
Coronavirus State & Local Fiscal Recovery Funds, American Rescue Plan Act of 2021
The American Rescue Plan Act of 2021 established the Coronavirus State & Local Fiscal Recovery Funds. The
Act includes $350 billion to bolster response to the COVID-19 emergency and its economic impacts. The City of
West Covina is eligible for $19,566,027. The City received the first 50% in May 2021 and will receive the
balance in May 2022. The City must obligate all of these funds by December 31, 2024, and expend it by
December 31, 2026.
The recovery funds may be used under five categories:
1. Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses,
behavioral healthcare, and certain public health and safety staff.
2. Address negative economic impacts caused by the public health emergency, including economic harms to
workers, households, small businesses, impacted industries, and the public sector.
3. Replace lost public sector revenue, using this funding to provide government services to the extent of the
reduction in revenue experienced due to the pandemic.
4. Provide premium pay for essential workers, offering additional support to those who have borne and will
bear the greatest health risks because of their service in critical infrastructure sectors.
5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to
clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to
broadband internet.
Except for the revenue loss reimbursement, all expenses must be associated with the pandemic. Ineligible uses
include:
• Paying interest or principal on outstanding debt
• Replenishing rainy day or other reserve funds
• Paying settlements or judgments
• Depositing into a pension fund
• Non-federal grant matches
DISCUSSION:
Based on the eligible uses, staff identified the needs below proposed to be used for the Recovery Funds. This list
was included in the FY 2021-22 Capital Improvement Program Budget; however, staff would like confirmation
on this list prior to proceeding with projects. The figures below are estimates for budgetary purposes. Updates
and adjustments to the final amounts will be brought to Council as actual bids and proposals are received.
Staff proposes one change from the original list - decreasing the amount for Fire Station Repairs in order to
purchase two new ambulances. The City's ambulances have been out of service intermittently inhibiting the
City's ability to respond to medical emergencies, including response to COVID-19.
Original
Proposed
Use
FY2021-22
Final
FY2021-22
Eligible Category
CIP
CIP
Electrocardiograms (EKG)
265,000
265,0061.
Public Health, 1.6 Medical Expenses
Fire Station Repairs (Vaccine Point
1. Public Health, 1.7 Capital Investments to
of Distribution & Response
5,377,837
4,957,837
Public Facilities that respond to the
Facilities)
OVID-19
1. Public Health, 1.7 Capital Investments to
Ambulances (two)
0
420,000
Public Facilities that respond to the
OVID-19
Police & Fire Communication
3,300,000
3,300,0001.
Public Health, 1.8 Other COVID-19
Equipment
Public Health Expenses
SA for Health Department Services
98,190
98,1901.
Public Health, 1.12 Other Public Health
Services
Subtotal
$9,041,027
$9,041,027
Support Public Health Expenditures
Job training and creation, partnership
with community -based organization
1,000,000
1,000,000
• Address Negative Economic Impacts,
.7 Job Training Assistance
Subtotal
$1,000,000
$1,000,000
Address Negative Economic Impacts
Microwave system infrastructure
(network connectivity) for city
buildings
1,000,000
1,000,000
6. Revenue Replacement, 6.1 Provision of
Services
Electronic financial accounting
software/system
1,500,000
1,500,000
Park pathway lighting
295,000
295,000
Park sports field lighting
930,000
930,000
DA transition plan
1,000,000
1,000,005Government
Remove communication tower
100,000
100,000
Public Safety Equipment:
Self -Contained Breathing
Apparatus (SCBA)
1,200,000
1,200,000
Pumper Fire Truck (two)
1,800,000
1,800,000
Ladder Truck
1,700,000
1,700,005
Subtotal
$9,525,000
$9,525,000
Replace Lost Revenue
TOTAL
$19,566,027
$19,566,027
LEGAL REVIEW:
The City Attorney's Office has reviewed the resolution and approved it as to form.
Fiscal Impact
FISCAL IMPACT:
The initial annual cost for the new positions is $2,590,000. For simplicity, staff recommends appropriating these
funds to the base salary accounts. Below is a breakdown of the amounts for each account.
Full
Total Annual
Position
Annual
Count
Cost
Cost
Police Officer
162,000
10
1,620,000
Code Enforcement Officer
39,000
10
390,000
(PT)
Maintenance Worker
1 58,000
10
580,000
Total
1 $259,0001
30
1 $2,590,000
The annual estimated cost for the Sportsplex
is $1,498,929. Below is a summary of the estimated expenses. Staff proposes establishing a new fund to track
these expenses separate from the General Fund. Revenue generated from fees and rentals will be used to offset
the expenditures. Therefore, no General Fund expenses are being proposed. By appropriating these funds, staff
will be able to initiate operations and establish a baseline for future revenue and expenditure projections.
Category
Estimate
Personnel
817,382
Operations
155,107
Maintenance 526,440
Total $1,498,929
Attachments
Attachment No. 1 — Resolution No. 2021-89 — Budget Adoption Resolution
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL Maintain and Enhance City Facilities and Infrastructure
GOALS & Enhance the City Image and Effectiveness
OBJECTIVES: Protect Public Safety
Respond to the Global COVID-19 Pandemic
ATTACHMENT NO. 1
RESOLUTION NO.2021-89
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING A BUDGET
AMENDMENT FOR THE FISCAL YEAR COMMENCING
JULY 1, 2021 AND ENDING DUNE 30, 2022 (NEW POSITIONS)
WHEREAS, the City Manager, on or about May 18, 2021, submitted to the City Council a
proposed budget for the appropriation and expenditure of funds for the City for West Covina for
Fiscal Year 2021-22; and
WHEREAS, following duly given notice and prior to budget adoption, the City Council
held public meetings, considered and evaluated all comments, and adopted a budget for the fiscal
year commencing July 1, 2021 and ending June 30, 2022; and
WHEREAS, amendments must periodically be made to the budget to conform to changed
circumstances following adoption of the budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves Budget Amendment No. 004, attached
hereto as Exhibit No. 1, for Fiscal Year 2021-22.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter
the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this 17th day of August, 2021.
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
Letty Lopez-Viado
Mayor
ATTEST
Lisa Sherrick
Assistant City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby
certify that the foregoing Resolution No. 2021-89 was duly adopted by the City Council of the City
of West Covina, California, at a regular meeting thereof held on the 17th day of August, 2021, by the
following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
CITY OF WEST COVINA
BUDGET AMENDMENT
Date: 8/17/2021
Requested by: Council
Dept/Div: Finance
EXPENDITURES
BA # 004
Posted By:
Date Posted:
Fiscal Year: 2021-2022
Amount: 4,088,929.40
Description: Allocate New Positions and
Sportsplex Budget
Account Number
Dept/Account Description
Current Budget
Proposed
Amendment
Amended Budget
110.31.3120.5110
Sworn Full Time Salaries
5,177,100
1,620,000
6,797,100
110.31.3120.5110
Part Time Salaries
90,900
390,000
480,900
124.61.4151.5111
Full Time Salaries
139,300
290,000
429 300
189.61.4160.5111
Full Time Salaries
392,300
290,000
682,300
242.61.5167.5111
FULL TIME SALARIES
-
156,000
156,000
242.61.5167.5112
PART TIME SALARIES
-
661,382
661 382
242.61.5167.6120
OTHER CONTRACTUAL SERVICES
-
315 227
315,227
242.61.5167.6142
ELECTRICITY
-
150 000
150,000
242.61.5167.6143
WATER
-
150 000
150,000
242.61.5167.6210
OFFICE SUPPLIES
-
4 000
4,000
242.61.5167.6270
OTHER SUPPLIES / MATERIALS
-
62,320
62,320
5,799,600
4,088,929
9,888,529
REVENUES
Account Number
Account Description
Current Budget
Proposed
Amendment
Amended Budget
REASON/JUSTIFICATION (Please be specific)
Allocate 10 PT Code Enforcement Officers, 10 Police Officers, and 10 Maintenance Workers
Allocate budget for Sportsplex
APPROVALS
City Council Approval Date (if required, attach minutes): ❑ Approval Not Required
Dept Head Approval:
Date:
Finance Director: Date:
Funds Available? ❑ Yes ❑No
City Manager: Date:
(if over $100,000)
❑ Approved ❑ Denied