City Council Minutes 2021 07 20 SP

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City Council Meeting Minutes July 20, 2021 Page 8 of 9 other recovery grant funding sources. We hope to have this position hired and on - boarded by late September, 2021. In the June 15 budget amendment, the revenue budget in the General Fund was increased by $2.6 million. Since the City has not yet decided how it will spend the ARPA distribution, we do not know which of our internal funds should receive the revenue, so staff has created a restricted Special Revenue Fund (restricted revenue) until the funding distribution plan is finalized and the eligible expenditures are incurred. Interfund transfers will be made from this fund to reimburse the other funds. Deputy City Manager Davis stated staff is looking at how best to spend the money that meets the eligibility, accounting, and auditing requirements. Staff is seeking Council input and direction on the expenditure of the ARPA funds. Public Comments - None Mayor Stolzmann asked if staff thinks the City will be eligible and able to get additional funding. Deputy City Manager Davis stated that is really unknown at this time but there are other pots of funding available that may help residents directly. Mayor Pro Tem Maloney stated this is a great opportunity for us and we will need to use it wisely. He stated investments in infrastructure should be the priority over operational costs. Councilmember Brown agreed this one-time money should be spent on infrastructure. Councilmember Dickinson stated he would like to find a way to spend the funds on those in the community who suffered the greatest impact in the pandemic. He would like to emphasize using the funds on items such as affordable housing and utility forgiveness. Mayor Stolzmann stated there are ways to use the money on infrastructure that will save our residents money in the long run, particularly in the utility system. She also noted the heavy impact on staff related to reporting. If there are ways to spend it that is easier for staff to administer, we should consider that. Councilmember Fahey supported spending on broadband access for all residents. Councilmember Lipton stated he would not want to see the money spent on the utility fund as it would be buying down the rates and distort costs for users. He would like to see the funding used for broadband infrastructure and middle mile costs. He would like staff to show how this spending would align with the strategic priorities of the City. He would also support funding for human services needs. Councilmember Leh stated the funds should be used for discreet and important projects; spending should align with our priorities and make a tangible difference in what we do.