General Information Packet phoenix.gov Thursday, May 7, 2020 1 2 3 4 City of Phoenix Coronavirus Relief Fund Strategic Plan Community Budget Questions Summary April 17- May 1, 2020 For Transmittal, Minutes of the Policy Session Meeting on April 2, 2020 For Transmittal, Minutes of the Policy Session Meeting on April 6, 2020 Page 3 Page 7 Page 10 Page 26 Page 1
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General Information Packet Thursday, May 7, 2020 Council...May 07, 2020 · Distance Learning and Wi-Fi Access - $1,000,000 - Broader Wi-Fi access for students’ on-line learning
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General Information Packet
phoenix.govThursday, May 7, 2020
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City of Phoenix Coronavirus Relief Fund Strategic Plan
Community Budget Questions Summary April 17- May 1,
2020
For Transmittal, Minutes of the Policy Session Meeting on
April 2, 2020
For Transmittal, Minutes of the Policy Session Meeting on
April 6, 2020
Page 3
Page 7
Page 10
Page 26
Page 1
Page 2
General Information Packet
City Council Report
Agenda Date: 5/7/2020, Item No. 1
City of Phoenix Coronavirus Relief Fund Strategic Plan
Attached is the updated City of Phoenix Coronavirus Relief Fund (CRF) Strategic Planas adopted by the City Council on May 5, 2020 (Attachment A).
Responsible DepartmentThis item is submitted by City Manager Ed Zuercher.
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Attachment A
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City of Phoenix Coronavirus Relief Fund Strategic Plan Approved May 5, 2020
A. Community Investment - $75,000,000 B. City Expenses - $75,000,000 C. Reserve to Preserve City Services - $143,000,000
Community Investment ($75,000,000): Business and Employee Assistance - $15,100,000
- Small Business assistance (w/IDA) ($5,000,000) - Small Business Guidance ($100,000) - Restaurant Restart program ($1,000,000) - Airport small business assistance ($1,000,000) - Microenterprise ($6,000,000) - Arts & Culture ($2,000,000)
Utility & Rent/Mortgage Assistance - $30,000,000
- City water, sewer & trash, electric and natural gas utility (3 months) and rent/mortgage assistance (1 month) for individuals (up to 10,000 customers) affected by COVID-19 economic disruption ($24,000,000)
- City water & sewer assistance (3 months) for businesses affected by COVID-19 economic disruption ($6,000,000)
Distance Learning and Wi-Fi Access - $1,000,000
- Broader Wi-Fi access for students’ on-line learning o Public Housing Wi-Fi ($1,000,000)
- Community access to on-line city services & remote meeting access
Mitigation and Care for Vulnerable Populations - $10,000,000 - City Homelessness and Affordable Housing Strategy (approved 4/21) - Domestic violence impacts of COVID-19 - Refugee / Asylum seeker assistance
Better Health Outcomes and Community Testing - $5,000,000
- Ensure broad testing, especially in underserved communities - Assist Maricopa County Public Health with contact tracing - Acquire Public Health expertise to inform City decision-making
Unallocated - $8,900,000
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City Expenses ($75,000,000):
Employee Testing for COVID - $6,000,000
PPE and Cleaning/Sanitizing Related to COVID - $20,000,000 - PPE for employees and customers - City facilities - Public Transit - Extra Street cleanups - COVID-19 jail costs or central booking facility expenses
Medical and Public Safety Measures for COVID - $5,000,000
- Emergency Medical Transport - Police / Fire response and enforcement of COVID-19 orders or illness - Parks & Recreation enforcement of park closures/restrictions
Payroll Expense Reimbursement/Management Oversight for COVID - $19,000,000
- COVID-19 Leave for employees - Police / Fire, Emergency Management - Human Services, Parks & Recreation, etc. - Management/accounting/Equity oversight
Telework / E-government Solutions for COVID - $15,000,000
- Telework expenses - Enhanced E-government capabilities (311 Center, video court, teleconferencing, virtual
public meetings, etc.) - 911 Telemedicine development
Public Facility Retrofit for COVID - $10,000,000
- Employee workspace and Public facility retrofit ($6,000,000) - Public Transit retrofit ($4,000,000)
Reserve to Preserve City Services ($143,000,000): To protect the City against program/employee cuts, hold for any change in Federal guidance on revenue replacement. Also available for added expenses from recurrence of COVID later in the year. Funds are available for re-assignment by the City Council to other COVID needs each month beginning in July. Follow up ideas raised by Councilmembers:
- Gated alleys / parks affected by displaced persons - Showers for individuals living near Human Services Campus - Non-profits/Refugee/Asylum seeker assistance - Assistance for city contractor employees – janitorial, airport, bus drivers, security,
landscape, convention workers - Ventilator donation - Health care navigation service - Resource center for displaced workers/ Job retraining for COVID-19 response
May 6, 2020
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General Information Packet
City Council Report
Agenda Date: 5/7/2020, Item No. 2
Community Budget Questions Summary April 17- May 1, 2020
SummaryEach year, staff tracks comments on the City's budget. The City Manager's TrialBudget was scheduled to be presented to the City Council on March 17, 2020, withbudget hearings scheduled to begin April 2, 2020. However, due to current restrictionson public gatherings, the city unfortunately had to cancel normal and customarycommunity budget hearings and the Trial Budget is being revised due to the economicdownturn.
Based on the revised budget adoption schedule discussed at the March 26, 2020 CityCouncil Policy Session, staff returned with additional information on April 2 and April 6to walk the City Council through four different budget scenarios modeling the impact ofCOVID-19 on our General Fund revenues. On April 13, staff presented the 2020-21Revised Trial Budget, focusing on the city's proposed response efforts to the currenteconomic downturn caused by the COVID-19 public health crisis. We very much valuethe feedback and community engagement received in our community budget hearings.Unfortunately, this year it will be necessary to use a different format and a compressedschedule to accomplish this goal. Once those decisions have been made we willupdate the calendar on the website. As always residents can continue to providefeedback by calling 602-262-4800 or email us at [email protected], Budget and Research continues to promote the FundPHX interactivebudget tool, available at phoenix.gov/FundPHX.
Attachment A transmits a summary of the electronic and voice mail commentsregarding the budget for April 17 - May 1, 2020.
Responsible DepartmentThis item is submitted by City Manager Ed Zuercher and the Budget and ResearchDepartment.
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ATTACHMENT A
To: Ed Zuercher
City Manager Date: May 1, 2020
From: Jeff Barton
Deputy City Manager Subject: BUDGET QUESTIONS SUMMARY APRIL 17 – MAY 1, 2020
This report transmits a summary of the electronic and voice mail comments regarding
the budget from April 17 – May 1, 2020. Residents can access additional information at phoenix.gov/Budget.
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SUMMARY MINUTES
VOICEMAIL, ELECTRONIC, AND WRITTEN BUDGET COMMENTS Responded to April 17 – May 1, 2020
1. Ann Bommersbach sent an email inquiring about any proposed cuts to the Capital Improvement budget, specifically those funded by the Highway User Revenue Fund.
2. Jerry Ketelhut sent an email in support of funding the Daring Adventures proposal for inclusive/adaptive recreation.
3. Kyle Foxcroft sent an email in support of funding bicycle infrastructure
improvements that will provide cyclists with a safe path to the Rio Salado Habitat Restoration area.
4. MaryAnn Eldon sent an email in support of funding demonstration projects and All Ages and Abilities Facilities.
5. Danny Wilson sent an email in support of funding pedestrian infrastructure,
and bike infrastructure.
6. Max Clark sent an email in support of funding bicycle infrastructure, demonstration projects and crash reduction projects.
Respectfully Submitted, Khala Stanfield Management Assistant II
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General Information Packet
City Council Report
Agenda Date: 5/7/2020, Item No. 3
For Transmittal, Minutes of the Policy Session Meeting on April 2, 2020
SummaryThis item transmits the Minutes of the Policy Session on April 2, 2020.
The Minutes are attached for review as Attachment A.
Responsible DepartmentThis item is submitted by the City Manager's Office.
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City of Phoenix Meeting Location:
City Council Chambers
200 W. Jefferson St.
Phoenix, Arizona 85003Minutes
City Council Policy Session
1:00 PM phoenix.govThursday, April 2, 2020
CALL TO ORDER
The Phoenix City Council convened in Policy Session on Thursday, April 2,
2020 at 1:09 p.m. in the Council Chambers.
Councilman Sal DiCiccio, Councilmember Carlos Garcia,
Councilman Michael Nowakowski, Councilwoman Laura
Pastor, Councilwoman Debra Stark, Councilman Jim
Waring, Councilwoman Thelda Williams, Vice Mayor
Betty Guardado and Mayor Kate Gallego
Present: 9 -
Note: Councilwoman Pastor joined the meeting at 1:29 p.m.
CALL FOR AN EXECUTIVE SESSION
Vice Mayor Guardado made a motion to meet in Executive Session on April 6, 2020 at
1:00 p.m. and to move the Policy Session on April 6, 2020 to 2:00 p.m. Councilwoman
Stark seconded the motion which passed unanimously, 8-0.
REPORTS AND BUDGET UPDATES BY THE CITY MANAGER
This item is scheduled to allow the City Manager to provide brief informational reports on
topics of interest to the City Council. The City Council may discuss these reports but no
action will be taken.
There was no report for today's meeting.
DISCUSSION AND POSSIBLE ACTION (ITEM 1)
1 COVID-19 Pandemic
A. Briefing By Industry Expert, As Needed
B. Budget Update and Financial Status
Ed Zuercher, City Manager
City of Phoenix Page 1
ATTACHMENT A
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City Council Policy Session Minutes April 2, 2020
Jeff Barton, Deputy City Manager
Denise Olson, Chief Financial Officer
C. Discussion of Potential Restrictions on Use of City Parks and
Trails
Inger Erickson, Parks and Recreation Department Director
D. Update on Planning and Development Department Public
Meetings and Public Hearings
Alan Stephenson, Planning and Development Department Director
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
City Manager Ed Zuercher began the presentation by detailing the
remaining steps in the budget process and describing the guiding
principles used to develop the fiscal year (FY) 2020-21 budget.
Deputy City Manager Jeff Barton explained while sales tax revenues will
not be known until May or June, the impact will be significant. As a result,
staff has reduced spending and revenue estimates. Mr. Barton also
stated there will not be a General Fund surplus, the length of recovery is
unknown and there will be a significant pension impact in FY 2021-22.
Mr. Barton then provided an overview of the contingency fund. He
emphasized the contingency fund is low compared to other peer cities,
should not be used to address an ongoing problem and is required for
maintaining a bond rating.
Mr. Barton provided an overview of the Coronavirus Aid, Relief and
Economic Security (C.A.R.E.S.) act. He shared Arizona cities with a
population of more than 500,000 will receive roughly $1.3 billion.
However, he stated these funds can only be used to cover costs directly
related to COVID-19 that were not included in budgets and cannot be
used to account for revenue shortfalls.
Mr. Barton explained the assumptions used to develop four potential
budget scenarios and shared the scenarios result in deficits for FY
2020-21 ranging from $26 to $128 million. The scenarios were based
upon the economic downturn lasting through July 2020, October 2020,
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City Council Policy Session Minutes April 2, 2020
December 2020 and June 2021.
Councilwoman Pastor joined the meeting.
Mr. Barton discussed other funds impacted by sales tax revenues,
including: convention center, sports facilities, Transportation 2050
(T2050), parks and preserves initiative (PPPI) and public safety specialty
funds.
Mr. Barton concluded by providing staff’s recommendations. He stated
the revised trial budget will be presented on April 6, 2020 and be based
upon scenario one to include $26 million worth of balancing options.
Mr. Zuercher explained departments have been asked to identify 25
percent in budget reductions. Mr. Barton added a full list of potential
reductions will then be created for Council review.
Councilwoman Stark asked how the 25 percent reductions will affect
employees. Mr. Barton shared there are labor contracts in place for next
fiscal year, so service level reductions would occur first. Mr. Zuercher
added any discussions about reductions that effect employees would be
done in cooperation with the labor unions.
Councilmember Garcia asked about the sports facility fund, Federal
funding and how much revenues are expected to decrease. Mr. Barton
shared it is estimated the City will lose roughly $54 million in total
resources with 30 to 40 percent coming from sales tax revenues. He
added the sports facility fund will likely not be a solution and emphasized
Federal funding can only be used for COVID-19 related items that were
previously not budgeted.
Councilman Waring asked if improvements could be delayed at the
arena, so that funding from the sports facility fund can be used to cover
losses. Mr. Zuercher shared staff will conduct an in-depth analysis of the
sports facility fund, but noted there are contractual obligations with the
Phoenix Suns.
Councilman DiCiccio emphasized that all funding sources should be
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City Council Policy Session Minutes April 2, 2020
evaluated as possibilities moving forward.
Councilman Nowakowski expressed support for maintaining the
contractual commitments of the sports facility fund. He also asked that
enterprise departments be supported to ensure layoffs do not occur.
Vice Mayor Guardado asked if the Federal funding will be used for
COVID-19 relief. Mr. Barton responded the funding has to be used for
COVID-19 related efforts, however there is additional funding available
for homelessness and assistance programs. Vice Mayor Guardado
requested a breakdown of how the Federal funding will be spent and
asked that the budget be re-worked to provide employees with
reassurance.
Mayor Gallego emphasized that the Federal funding has a very narrow
use due to the regulations. She requested staff work with national
organizations to communicate to Congress the importance of removing
funding regulations. Mr. Barton responded there is a national movement
to advocate for regulation changes.
Councilwoman Williams asked for clarification on the budget progress.
Mr. Barton clarified the original trial budget released in March 2020 is no
longer relevant as a new trial budget is being built. However, the inventory
of programs is still the same and will be used to identify potential
reductions.
Councilman Nowakowski asked if the City will be reimbursed for costs
related to the Families First Coronavirus Act. Mr. Zuercher responded the
City is expecting to be reimbursed.
Councilman Nowakowski requested information on Federal relief funding
and how it can be used. Mr. Zuercher responded staff will provide
information on funding allocated to the City as a result of COVID-19.
Councilwoman Pastor requested a breakdown of COVID-19 relief
funding, a description of essential and non-essential positions and asked
about the contingency fund. Mr. Barton clarified the contingency fund
would not last long and emphasized it is prudent to not exhaust the fund
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City Council Policy Session Minutes April 2, 2020
as it is one-time money.
Councilwoman Pastor asked how long current services can be sustained
if the downturn continues. Mr. Barton shared the City can sustain services
for the current fiscal year as departments have slowed spending and staff
has identified $15 million in savings. He explained the identified
reductions would be implemented if the downturn continues.
Councilwoman Pastor asked about the landscaping contract passed at
the last formal meeting and if staff could be shifted to fill this role
internally. Mr. Barton shared the contract is to maintain landscaping
throughout the City and requires special skills. Mr. Zuercher emphasized,
if positions are cut, positions will be identified for staff to fill.
Councilwoman Pastor asked if the City could break the contract if the
Council wanted to re-evaluate. Mr. Zuercher stated most contracts have
an emergency clause that allows the City to break them in financial
disasters.
Councilman Waring asked if the new programs that were approved by the
Council, such as the Office of Accountability and Transparency (OAT),
would still move forward. Mr. Zuercher responded the vote on OAT
established the office and to begin work on an ordinance that constructs
roles and responsibilities, but did not allocate funding or create specific
positions. Mr. Zuercher stated it would be up to the Council to decide if
these positions are included in next year’s budget.
Councilman Waring advocated against cutting incumbent programs to
implement new ones. Mr. Zuercher stated staff can develop various
levels of funding for new programs, so the Council can select which
amount they would like to allocate.
Councilwoman Stark suggested giving back the funding that was
provided to each Council Office to address localized issues. Mr.
Zuercher responded giving back the funding would be a Council
decision.
Councilwoman Williams asked if new program implementation could be
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City Council Policy Session Minutes April 2, 2020
delayed a year. Mr. Zuercher shared the timing of implementation lies
with the Council through a budgetary decision.
Councilwoman Pastor asked if scenario four assumes all businesses are
closed through June 2021. Mr. Barton explained sales tax revenue
collections are delayed, so scenario four assumes a negative decline in
revenue collections through June 2020.
Mayor Gallego introduced Parks and Recreation Director Inger Erickson
to present on the steps taken to reduce exposure to COVID-19 at
outdoor parks facilities.
Ms. Erickson provided an overview of the parks and recreation facilities
inventory and discussed the City’s authority to close parks facilities. She
explained the Governor’s Executive Order deems public parks, outdoor
recreation areas, activities and facilities as essential. However, she
stressed temporary closures or restrictions on specific areas and trails
are permitted to protect public health where the enforcement of social
distancing is difficult.
Ms. Erickson stated the following safety measures have been