HomeMy WebLinkAboutPackets - Council Packets (1737)
AGENDA
ORO VALLEY TOWN COUNCIL
REGULAR AND STUDY SESSION
SEPTEMBER 21, 2022
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
The Town has modified its public comment procedures in the newly renovated town council chambers. For more
details, please see the instructions for in person and/or virtual speakers at the end of the agenda.
To watch and/or listen to the public meeting online, please visit
https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas
Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive
Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the
Agenda.
REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
UPCOMING MEETING ANNOUNCEMENTS
MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS
Spotlight on Youth
TOWN MANAGER'S REPORT ON CURRENT EVENTS
ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING
INFORMATIONAL ITEMS
CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council
on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council
Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to
criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters
raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to
discuss when completing the blue speaker card.
PRESENTATIONS
1.Proclamation - Diaper Need Awareness Week
2.Recognition of Golder Ranch Fire Chief Randy Karrer on his induction into the Arizona Fire Service Hall of
Fame
3.Presentation and possible discussion of the Town's FY 21/22 Financial Update through June 2022
CONSENT AGENDA
(Consideration and/or possible action)
A.Minutes - September 7, 2022
B.Resolution No. (R)22-39, approving a loan agreement between the General Fund and Water Fund
C.Approval to ratify the Mayor's reappointment request of a citizen member to the Corrections Officers
Retirement Plan (CORP) Local Board
ADJOURNMENT OF THE REGULAR SESSION
STUDY SESSION
CALL TO ORDER
STUDY SESSION AGENDA
1.PRESENTATION AND POSSIBLE DISCUSSION OF SCOPE OF WORK FOR PLANNED HOUSING
STUDY PER THE TOWN COUNCIL'S FY 21/22 - FY 22/23 STRATEGIC LEADERSHIP PLAN
ADJOURNMENT OF THE STUDY SESSION
RECONVENE THE REGULAR SESSION
EXECUTIVE SESSION 1. Pursuant to A.R.S. §38-431.03(A)(4) for settlement discussions regarding Marsh v. Oro
Valley claim
2. Pursuant to A.R.S. §38-431.03(A)(1) and (A)(3) Personnel matter - Town Manager's annual performance review
RESUME THE REGULAR SESSION
REGULAR AGENDA
1.FOR DIRECTION TO THE TOWN MANAGER AND/OR NECESSARY STAFF AS DISCUSSED IN
EXECUTIVE SESSION,TO APPROVE OR DENY A SETTLEMENT OF MARSH V. ORO VALLEY CLAIM
2.FOR DIRECTION TO THE TOWN ATTORNEY AND/OR NECESSARY STAFF AS DISCUSSED IN
EXECUTIVE SESSION REGARDING THE TOWN MANAGER'S ANNUAL PERFORMANCE REVIEW
FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may
not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)
ADJOURNMENT
The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.
POSTED: 9/14/22 at 5:00 p.m. by dt
POSTED: 9/14/22 at 5:00 p.m. by dt
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior
to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00 p.m.
The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs
any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at
229-4700.
PUBLIC COMMENT ON AGENDA ITEMS
The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual
comment via Zoom. The public may provide comments remotely only on items posted as required Public Hearings,
provided the speaker registers 24 hours prior to the meeting. For all other items, the public may complete a blue
speaker card to be recognized in person by the Mayor, according to all other rules and procedures. Written
comments can also be emailed to Town Clerk Michael Standish at mstandish@orovalleyaz.gov for distribution to the
Town Council prior to the meeting. Further instructions to speakers are noted below.
INSTRUCTIONS TO IN-PERSON SPEAKERS
Members of the public shall be allowed to speak on posted public hearings and during Call to Audience when
attending the meeting in person. The public may be allowed to speak on other posted items on the agenda at the
discretion of the Mayor.
If you wish to address the Town Council on any item(s) on this agenda, please complete a blue speaker card located
on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the blue speaker card
which item number and topic you wish to speak on, or, if you wish to speak during Call to Audience, please specify
what you wish to discuss.
Please step forward to the podium when the Mayor calls on you to address the Council.
1. For the record, please state your name and whether or not you are a Town resident.
2. Speak only on the issue currently being discussed by Council. You will only be allowed to
address the Council one time regarding the topic being discussed.
3. Please limit your comments to 3 minutes.
4. During Call to Audience, you may address the Council on any matter that is not on the agenda.
5. Any member of the public speaking must speak in a courteous and respectful manner to those
present.
INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS
Members of the public may attend the meeting virtually and request to speak virtually on any agenda item that is
listed as a Public Hearing. If you wish to address the Town Council virtually during any listed Public Hearing, please
complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/bluecard at least 24 hours
prior to the start of the meeting. You must provide a valid email address in order to register. Town Staff will email
you a link to the Zoom meeting the day of the meeting. After being recognized by the Mayor, staff will unmute your
microphone access and you will have 3 minutes to address the Council. Further instructions regarding remote
participation will be included in the email.
Thank you for your cooperation.
Town Council Regular Session 1.
Meeting Date:09/21/2022
Proclamation - Diaper Need Awareness Week
Subject
Proclamation - Diaper Need Awareness Week
Summary
Attachments
Proclamation
Town Council Regular Session 2.
Meeting Date:09/21/2022
Recognition of Golder Ranch Fire Chief Randy Karrer
Subject
Recognition of Golder Ranch Fire Chief Randy Karrer on his induction into the Arizona Fire Service Hall of Fame
Summary
Attachments
No file(s) attached.
Town Council Regular Session 3.
Meeting Date:09/21/2022
PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH
JUNE 2022
Subject
Presentation and possible discussion of the Town's FY 21/22 Financial Update through June 2022
Summary
Please reference the attachments for this agenda item.
Attachments
Council Memo - June 2022 Financial Update
Attachment A - General Fund
Attachment B - Highway Fund
Attachment C-1 - Community Center Fund
Attachment C-2 Golf Contractor P&L
Attachment D - Summary All Funds
Attachment E - Gen Fund Local Sales Tax
Attachment F - Gen Fund State Shared Revenues
Staff Presentation
Town Manager’s Office
TOWN COUNCIL REPORT
DATE: September 21, 2022
TO: Mayor and Council
THRU: Mary Jacobs, Town Manager
FROM: David Gephart, Chief Financial Officer
SUBJECT: June 2022 Financial Update
This financial update is intended to provide an overview and status of revenues and expenditures for the
Town’s selected funds for fiscal year 2021/22 (July 2021 – June 2022). Funds included in this financial
update are the General Fund, Highway Fund and Community Center Fund. All amounts are preliminary,
un-audited and subject to change based upon adjusting entries, as necessary.
EXECUTIVE SUMMARY:
Staff is pleased to report that financial performance across all funds has exceeded expectations. In
addition, the Town’s major funds ended the year with expenditure savings. Further details on revenues
and expenditures are as follows.
General Fund
Overall, General Fund revenues and expenditures ended the fiscal year better than originally forecasted
(see attachment A). Revenues total $55.5 million or 117.9% of budget. Combined with expenditures ending
the fiscal year 4.7% below budget at $58.4 million, the General Fund preliminarily ended the fiscal year
with a use of fund balance of $2.9 million.
Highway Fund
Revenues and expenditures for the Highway Fund ended the fiscal year better than originally budgeted
(see attachment B). Revenues totaled approximately $4.0 million or 109.6% of budget, while expenditures
totaled $4.0 million or 98.7% of budget. The Highway Fund preliminarily ended the fiscal year with a use
of fund balance of $40,000.
Community Center Fund
Overall, year-end revenues and expenditures for the Community Center Fund performed better than
budgeted figures (see attachment C-1 & C-2). Revenues totaled $9.5 million or 128.3% of budget, while
expenditures totaled $6.3 million or 81.2% of budget. Due to strong revenues across the board, as well as
a reduced transfer out for debt service, the Community Center Fund preliminarily ended the fiscal year
with a surplus of $3.2 million.
BACKGROUND AND DETAILED INFORMATION:
GENERAL FUND
Attachment A shows General Fund revenues and expenditures through June 30, 2022. The preliminary
year-end amounts for the General Fund are as follows:
Revenues: $55,476,755
Less:
Expenditures: ($58,401,599)
Preliminary Estimated Decrease in Fund Balance: ($2,924,844)*
*Note that the budgeted decrease in fund balance for FY 21/22 is $14.2 million.
General Fund Revenues
• Local sales tax collections in the General Fund totaled $27.8 million or 131.4% of the budgeted
amount of $21.2 million, performing much better than anticipated. Retail collections totaled $8.9
million, which is $950,737 or 11.9% higher than collections from the prior fiscal year. Both
restaurant/bar collections as well as bed tax collections were up 38.6% and 132.9% respectively
compared to collections from the prior fiscal year. Construction sales tax collections totaled $6.9
million, which is $1,935,316 or 39.3% higher than collections from the prior fiscal year. Total local
sales tax revenue in the General Fund came in $6.6 million above budget due to strong
performance across most tax categories. Please see attachment E for detailed information on
General Fund local sales tax collections.
• License and permit revenues totaled $2.4 million or 129.3% of the budget amount of $1.8 million.
Single Family Residential (SFR) permits issued total 198 and are a large portion of this revenue
piece. This revenue category preliminarily came in $541,080 or 29.3% over budget due to
commercial building activity and rebounding residential permit issuances in the latter half of the
year.
• State shared revenues totaled $15.3 million or 111.6% of the budget amount of $13.7 million for
the fiscal year. These revenues sources are comprised of state shared sales taxes, state shared
income taxes, auto-lieu fees, and Smart and Safe shared taxes.
• Charges for services revenues totaled $2.7 million or 111.4% of the budget amount of $2.4 million
for the fiscal year. A large portion of these revenues are associated with Parks & Recreation
program revenues, which showed strong recovery.
General Fund Expenditures and Other Financing Uses
• General Fund outflows ended the fiscal year below budget by about $2.9 million, or 4.7%. This is
due to department savings in both personnel and O&M, capital project carry-over into next fiscal
year and transfers out.
• Transfers out of the General Fund were $1.1 million less than budgeted due to the pension
obligation bonds that were issued in July. The Town budgeted a full debt service payment; however,
only an interest payment is due this year.
Preliminarily, the General Fund ended the fiscal year with a total fund balance of $29.5 million, or 54.7%
of budgeted expenditures.
HIGHWAY FUND
Highway Fund Revenues
• State shared highway user funds totaled about $4.0 million or 110.1% of the budget amount of $3.6
million for the fiscal year. This was anticipated as monthly distributions from the state remained
stronger than original projections. Overall, Highway Fund revenues ended the fiscal year with a
favorable budget variance of $352,000 or 9.6%.
Highway Fund Expenditures
• Highway Fund expenditures ended the fiscal year at $4.0 million or 98.7% of the adopted budget
of $4.1 million due to slight savings in personnel costs.
The Highway Fund preliminarily ended the fiscal year with a fund balance of approximately $1.2 million.
COMMUNITY CENTER FUND
Attachment C-1 shows the consolidated financial status of the Community Center Fund with all revenues
and expenditures from contracted and Town-managed operations.
Attachment C-2 shows the monthly line-item detail for the contractor-managed operations, specifically
revenues and expenditures associated with the golf, food and beverage operations. The totals in the
revenue and expenditure categories in attachment C-2 tie to the contracted operating revenues and
expenditures in attachment C-1.
Community Center Fund Revenues
• Revenues in the Community Center Fund totaled $9.5 million or 128.3% of the budget amount of
$7.4 million.
• Contracted operating revenues totaled about $4.7 million for the fiscal year which is $1.1 million or
30.5% higher than budgeted due to across-the-board outperformance. This is approximately
$755,000 or 19.0% higher than revenues from the time last fiscal year.
• Town operating revenues totaled $1.2 million, a significant increase from the same time period last
year due primarily to a recovery in recreation program revenue and member dues. Town operating
revenues ended the fiscal year with a favorable budget variance of $523,000 or 75.0%.
• Local sales tax revenues totaled $3.5 million, ending the fiscal year with a favorable budget
variance of nearly $603,000 or 20.6%.
Community Center Fund Expenditures and Other Financing Uses
• Outflows in the Community Center Fund totaled $6.3 million or 81.2% of the budgeted amount of
$7.8 million.
• Contracted operating expenditures totaled $4.7 million, or 100.1% of the budgeted amount of $4.7
million. Contracted expenditures ended the year slightly over budget due primarily to higher than
expected golf related revenue, resulting in higher cost of sales.
• Transfers out were $1.6 million less than budget. This is due to the Town having budgeted a full
debt service payment for the newly issued Parks and Recreation bonds whereas only an interest
payment is due this year.
• Preliminarily, the Community Center Fund ended the fiscal year with a surplus of $3.2 million and
a total fund balance of approximately $5.8 million.
The Town is not expecting any year-end sales tax support for golf operations. Contracted golf operations
have a preliminary net gain of $20,461 before HOA contributions of $159,050, and approximately $83,000
in local sales taxes generated from golf related operations.
Please see attachments A and B for additional details on the General Fund and Highway Fund. See
attachments C-1 and C-2 for additional details on the Community Center Fund. See attachment D for a
fiscal year-to-date consolidated summary of all Town Funds. See attachment E and F for a breakdown of
monthly local sales tax collections and state shared revenue collections for the General Fund.
ATTACHMENT A
June YTD Financial Status
General Fund
% Budget Completion through June --- 100%
% Actuals YE % Variance
to Budget to Budget
REVENUES `
LOCAL SALES TAX 27,804,802 21,157,707 131.4% 27,804,802 31.4%
LICENSES & PERMITS 2,390,080 1,849,000 129.3% 2,390,080 29.3%
FEDERAL GRANTS 5,936,500 5,990,290 99.1% 5,936,500 -0.9%
STATE GRANTS 69,413 75,000 92.6% 69,413 -7.4%
STATE/COUNTY SHARED 15,317,760 13,729,923 111.6% 15,317,760 11.6%
OTHER INTERGOVERNMENTAL 1,674,819 1,344,500 124.6% 1,674,819 24.6%
CHARGES FOR SERVICES 2,660,066 2,387,776 111.4% 2,660,066 11.4%
FINES 132,636 125,000 106.1% 132,636 6.1%
INTEREST INCOME (778,663) 150,000 -519.1% (778,663) -619.1%
MISCELLANEOUS 269,342 264,000 102.0%269,342 2.0%
TOTAL REVENUES 55,476,755 47,073,196 117.9% 55,476,755 17.9%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES
CLERK 375,998 383,833 98.0% 375,998 -2.0%
COMMUNITY & ECON. DEV. 2,900,856 3,044,614 95.3% 2,900,856 -4.7%
COUNCIL 192,015 188,720 101.7% 192,015 1.7%
FINANCE 936,561 979,655 95.6% 936,561 -4.4%
GENERAL ADMINISTRATION 13,807,034 14,459,559 95.5% 13,807,034 -4.5%
HUMAN RESOURCES 480,631 535,390 89.8% 480,631 -10.2%
INNOVATION & TECHNOLOGY 4,042,073 4,346,583 93.0% 4,042,073 -7.0%
LEGAL 894,601 902,754 99.1% 894,601 -0.9%
MANAGER 1,074,627 1,115,224 96.4% 1,074,627 -3.6%
PARKS & RECREATION 3,460,952 3,446,361 100.4% 3,460,952 0.4%
POLICE 17,531,660 18,171,000 96.5% 17,531,660 -3.5%
PUBLIC WORKS 5,580,572 5,364,091 104.0% 5,580,572 4.0%
TOWN COURT 861,186 914,796 94.1% 861,186 -5.9%
TRANSFERS OUT 6,262,832 7,408,264 84.5%6,262,832 -15.5%
TOTAL EXPENDITURES 58,401,599 61,260,844 95.3% 58,401,599 -4.7%
CHANGE IN FUND BALANCE (2,924,844) (14,187,648) (2,924,844)
BEGINNING FUND BALANCE 32,408,542
Plus: Surplus / (Use of Fund Balance)(2,924,844)
ENDING FUND BALANCE **29,483,698
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2021/2022
Year End
Estimate *
Budget Year End
Estimate *
Actuals
thru 6/2022
Actuals
thru 6/2022
Budget
ATTACHMENT B
June YTD Financial Status FY 2021/2022
% Budget Completion through June --- 100%
Actuals
thru 6/2022 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
REVENUES -
LICENSES & PERMITS 28,838 25,000 115.4% 28,838 15.4%
STATE/COUNTY SHARED 3,979,751 3,614,922 110.1% 3,979,751 10.1%
INTEREST INCOME (16,304) 6,000 -271.7% (16,304) -371.7%
MISCELLANEOUS 7,261 2,000 363.1%7,261 263.1%
TOTAL REVENUES 3,999,546 3,647,922 109.6% 3,999,546 9.6%
Actuals
thru 6/2022 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
EXPENDITURES
TRANSPORTATION ENGINEERING 3,711,481 3,766,525 98.5% 3,711,481 -1.5%
STREET MAINTENANCE 324,058 324,000 100.0%324,058 0.0%
TOTAL EXPENDITURES 4,035,539 4,090,525 98.7% 4,035,539 -1.3%
CHANGE IN FUND BALANCE (35,993) (442,603) (35,993)
BEGINNING FUND BALANCE 1,242,978
Plus: Surplus / (Use of Fund Balance) (35,993)
ENDING FUND BALANCE ** 1,206,985
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
Highway Fund
ATTACHMENT C-1
June YTD Financial Status
% Budget Completion through June --- 100%
% Actuals YE % Variance
to Budget to Budget
REVENUES
CONTRACTED OPERATING REVENUES
Golf Revenues, Trail and Cart Fees 2,568,114 1,966,245 130.6% 2,568,114 30.6%
Member Dues 1,149,328 957,000 120.1% 1,149,328 20.1%
Food & Beverage 671,479 473,465 141.8% 671,479 41.8%
Merchandise & Other 337,423 225,675 149.5%337,423 49.5%
4,726,343 3,622,385 130.5% 4,726,343 30.5%
TOWN OPERATING REVENUES
Daily Drop-Ins 52,777 30,000 175.9% 52,777 75.9%
Member Dues 672,816 526,480 127.8% 672,816 27.8%
Recreation Programs 410,986 82,500 498.2% 410,986 398.2%
Swim Team/Swim Lessons - 8,000 0.0% - -100.0%
Facility Rental Income 84,069 50,500 166.5%84,069 66.5%
1,220,648 697,480 175.0% 1,220,648 75.0%
OTHER REVENUES
Local Sales Tax 3,535,507 2,932,798 120.6% 3,535,507 20.6%
Real Property Rental Income 19,502 19,502 100.0% 19,502 0.0%
Interest Income (174,959) 1,000 -17495.9% (174,959) -17595.9%
Miscellaneous 167,936 125,100 134.2%167,936 34.2%
3,547,986 3,078,400 115.3% 3,547,986 15.3%
TOTAL REVENUES 9,494,977 7,398,265 128.3% 9,494,977 28.3%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES
CONTRACTED OPERATING EXPENDITURES
Personnel 1,484,718 1,641,903 90.4% 1,484,718 -9.6%
Food & Beverage 630,508 445,441 141.5% 630,508 41.5%
Operations & Maintenance 2,454,978 2,429,634 101.0% 2,454,978 1.0%
Equipment Leases 135,678 184,550 73.5%135,678 -26.5%
4,705,882 4,701,528 100.1% 4,705,882 0.1%
TOWN OPERATING EXPENDITURES
Personnel 891,869 875,291 101.9% 891,869 1.9%
Operations & Maintenance 288,642 211,290 136.6%288,642 36.6%
1,180,511 1,086,581 108.6% 1,180,511 8.6%
CAPITAL OUTLAY 139,003 132,500 104.9% 139,003 4.9%
TRANSFERS OUT 296,346 1,868,519 15.9% 296,346 -84.1%
TOTAL EXPENDITURES 6,321,742 7,789,128 81.2% 6,321,742 -18.8%
CHANGE IN FUND BALANCE 3,173,235 (390,863) 3,173,235
BEGINNING FUND BALANCE 2,676,793
Plus: Surplus / (Use of Fund Balance)3,173,235
ENDING FUND BALANCE **5,850,028
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2021/2022
Actuals
thru 6/2022 Budget Year End
Estimate *
Community Center Fund
Actuals
thru 6/2022 Budget Year End
Estimate *
ATTACHMENT C-2
Budget Last Year Budget Last Year
Actual Budget Variance Last Year Variance Actual Budget Variance Last Year Variance
Rounds
2,587 1,800 787 2,156 431 Rounds ‐ Member 34,943 26,800 8,143 32,835 2,108
301 200 101 310 (9)Rounds ‐ Outing 7,969 3,980 3,989 4,061 3,908
1,908 1,200 708 3,261 (1,353)Rounds ‐ Public 54,199 45,070 9,129 49,810 4,389
====================================================================================================================================================================
4,796 3,200 1,596 5,727 (931)Total Rounds 97,111 75,850 21,261 86,706 10,405
Revenue
59,599 35,000 24,599 88,767 (29,168)Green Fees 2,238,443 1,684,975 553,468 1,916,178 322,265
23,007 19,045 3,962 22,626 381 Cart Fees 285,330 232,270 53,060 258,027 27,303
1,396 2,500 (1,104)3,680 (2,284)Driving Range 44,341 49,000 (4,659)50,432 (6,091)
0 0 0 0 0 Golf Cards/Passes 19,783 0 19,783 0 19,783
10,756 13,000 (2,244)8,797 1,959 Pro Shop Sales 240,598 201,600 38,998 218,420 22,178
22,977 8,100 14,877 21,421 1,556 Food (Food & Soft Drinks) 346,930 242,640 104,290 196,390 150,539
16,981 14,400 2,581 16,749 232 Beverages (Alcohol) 294,023 230,825 63,198 249,667 44,356
646 0 646 (695)1,341 Other Food & Beverage Revenue 30,526 0 30,526 2,725 27,801
1,083 250 833 1,136 (53)Other Golf Revenues (Club Rent, Handica 34,896 13,075 21,821 25,404 9,492
2,363 750 1,613 4,377 (2,013)Clinic / School Revenue 34,123 11,000 23,123 26,839 7,284
103,075 77,500 25,575 89,976 13,099 Dues Income ‐ Monthly Dues 1,149,328 959,500 189,828 1,021,503 127,825
(1,070)0 (1,070) (7,394)6,323 Miscellaneous Income and Discounts 8,023 0 8,023 5,278 2,744
================================================================================= ============================================================= ================
240,812 170,545 70,267 249,442 (8,630)Total Revenue 4,726,343 3,624,885 1,101,458 3,970,865 755,478
Cost of Sales
7,013 9,750 2,737 6,229 (784)COGS ‐ Pro Shop 162,001 148,680 (13,321)152,276 (9,725)
8,200 1,485 (6,715)8,704 504 COGS ‐ Food 100,729 64,330 (36,398)58,724 (42,005)
1,556 1,080 (476)1,256 (300)COGS ‐ Non‐Alcoholic Beverages 17,364 14,310 (3,054)14,935 (2,428)
4,380 4,320 (60)5,069 689 COGS ‐ Alcohol 88,136 69,248 (18,889)73,924 (14,213)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
21,148 16,635 (4,513)21,257 109 Total Cost of Sales 368,230 296,568 (71,662)299,859 (68,371)
================================================================================= ============================================================= ================
219,663 153,910 65,753 228,185 (8,521)GROSS INCOME 4,358,113 3,328,317 1,029,796 3,671,006 687,108
Labor
25,301 21,238 (4,063)28,115 2,814 Golf Operation Labor 358,485 352,399 (6,086)304,492 (53,993)
32,304 10,213 (22,091)25,454 (6,850)General and Administrative 137,769 138,650 881 132,708 (5,060)
64,173 63,624 (549)68,953 4,780 Maintenance and Landscaping 704,456 778,707 74,251 687,148 (17,308)
20,298 14,653 (5,645)18,124 (2,174)F&B 272,355 216,391 (55,964)203,395 (68,960)
5,584 5,171 (413)5,282 (302)Sales and Marketing 76,843 69,555 (7,288)74,297 (2,545)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
147,660 114,899 (32,761)145,927 (1,732)Total Direct Labor 1,549,907 1,555,702 5,795 1,402,041 (147,866)
13,040 10,915 (2,125)12,859 (181)Total Payroll Taxes 125,265 147,792 22,527 126,077 812
9,320 12,500 3,180 8,259 (1,061)Total Medical/Health Benefits 103,944 150,000 46,056 121,276 17,332
2,164 2,055 (109)1,738 (426)Total Workmans Comp 28,116 24,810 (3,306)20,677 (7,439)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
24,524 25,470 946 22,857 (1,668)Total Payroll Burden 257,325 322,602 65,276 268,029 10,704
================================================================================= ============================================================= ================
172,184 140,369 (31,815)168,784 (3,400)Total Labor 1,807,232 1,878,304 71,071 1,670,070 (137,162)
Other Operational Expenses
5,156 3,375 (1,781)7,332 2,176 Golf Ops 94,324 60,230 (34,094)83,747 (10,577)
40,819 7,676 (33,143)55,441 14,622 G&A 180,132 131,101 (49,031)213,509 33,378
64,164 26,150 (38,014)43,993 (20,171)Maintenance 603,605 513,166 (90,439)485,703 (117,902)
67,322 4,235 (63,087)18,510 (48,812)F&B 101,765 61,145 (40,620)47,830 (53,935)
4,725 1,050 (3,675)640 (4,084)Sales and Marketing 23,942 22,875 (1,067)26,902 2,960
2,353 16,333 13,980 13,041 10,688 Golf Cart Leases 135,678 178,954 43,276 152,946 17,268
0 0 0 0 0 Equipment Leases 0 0 0 41,928 41,928
129,626 114,110 (15,516)114,467 (15,159)Utilities ‐ Maintenance 999,752 1,154,710 154,958 993,758 (5,994)
18,655 18,000 (655) (63,416) (82,071)Utilities ‐ G&A 186,987 166,880 (20,107)167,925 (19,062)
10,200 10,200 0 10,000 (200)Management Fees 122,400 122,400 0 120,000 (2,400)
0 0 0 0 0 Taxes ‐ Personal Property 4,599 0 (4,599)0 (4,599)
6,262 3,300 (2,962)3,380 (2,882)Insurance ‐ P&C 48,990 39,600 (9,390)51,418 2,428
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
349,282 204,429 (144,853)203,388 (145,894)Total Other Operational Expenses 2,502,174 2,451,061 (51,113)2,385,668 (116,506)
================================================================================= ============================================================= ================
521,466 344,798 (176,667)372,172 (149,294)Total Expenses 4,309,407 4,329,365 19,958 4,055,739 (253,668)
================================================================================= ============================================================= ================
(301,802)(190,888)(110,914)(143,987)(157,815)EBITDAR 48,706 (1,001,047)1,009,838 (384,733)940,776
================================================================================= ============================================================= ================
(301,802)(190,888)(110,914)(143,987)(157,815)EBITDA 48,706 (1,001,047)1,009,838 (384,733)940,776
Interest Expense/Dep&Amt
0 0 0 144,700 144,700 Other Expense (343)0 343 201,314 201,657
0 0 0 0 0 Capital Improvements/Cap Reserve 28,589 0 (28,589)0 (28,589)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
0 0 0 144,700 144,700 Total Interest Expense 28,246 0 (28,246)201,314 173,068
================================================================================= ============================================================= ================
(301,802)(190,888)(110,914)(288,687)(13,115)Net Income 20,461 (1,001,047)1,038,084 (586,047)767,708
El Conquistador Golf Club
For the Month Ending June 30th, 2022
June YTD
ATTACHMENT DConsolidated Year-to-Date Financial Report through June 2022FY 2021/2022FundFY 21/22Beginning BalanceRevenueOther Fin Sources/Transfers InTotal In Personnel O&M CapitalDebt ServiceOther Fin Uses/ Transfers OutTotal OutFund Balance Through June 2022General Fund 32,408,542 55,476,755 55,476,755 30,011,951 21,515,210 611,606 6,262,832 58,401,599 29,483,698 Highway Fund 1,242,978 3,999,546 3,999,546 1,175,502 604,387 2,255,650 4,035,539 1,206,985 Grants and Contributions Fund - 163,440 100,000 263,440 26,182 64,393 90,575 172,865 Seizure & Forfeiture - Justice/State 266,810 102,014 102,014 123,461 123,461 245,363 Community Center Fund 2,676,793 9,494,977 9,494,977 2,376,587 3,374,128 139,003 432,024 6,321,742 5,850,028 Municipal Debt Service Fund 165,436 136,290 19,357,365 19,493,655 17,981,892 1,517,152 19,499,044 160,047 Oracle Road Debt Service Fund 4,194 104 104 4,298 4,298 - Water Resource System & Dev. Impact Fee Fund 18,744,638 687,900 294,224 982,124 150,000 1,439,606 319,207 1,908,813 17,817,949 Townwide Roadway Dev Impact Fee Fund 1,978,878 185,575 185,575 196,905 196,905 1,967,548 Parks & Recreation Impact Fee Fund 316,645 192,829 192,829 - 509,474 Police Impact Fee Fund 168,764 81,545 81,545 117,750 117,750 132,559 Capital Fund 2,504,029 1,258,214 30,583,500 31,841,714 110,407 368,549 9,573,593 201,067 10,253,616 24,092,127 PAG/RTA Fund 1,248,618 13,614 13,614 458,866 458,866 803,366 Water Utility 13,666,981 18,011,688 201,067 18,212,755 3,365,410 8,285,422 2,040,804 4,215,022 296,626 18,203,284 13,676,452 Stormwater Utility 1,001,740 1,483,587 1,483,587 844,909 313,509 1,158,418 1,326,909 Benefit Self Insurance Fund 2,379,019 3,740,677 3,740,677 3,275,441 3,275,441 2,844,255 Recreation In-Lieu Fee Fund 17,045 (428) (428) - 16,617 Total 78,791,109 95,028,327 50,536,156 145,564,483 37,884,766 56,018,181 16,780,426 6,051,381 7,314,597 124,049,351 100,306,241
ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 441,038 419,552 651,924 906,165 509,231 436,821 829,833 525,234 491,178 601,856 466,142 582,006 6,860,980 Utility Sales Tax 321,489 383,548 329,545 323,173 285,048 238,499 253,620 474,092 115,418 252,114 234,820 261,849 3,473,215 Retail Sales Tax 675,726 647,693 641,711 682,029 727,762 814,794 1,015,258 701,089 686,381 818,648 793,639 718,525 8,923,255 Bed Tax 130,217 117,012 93,538 108,884 392,162 157,378 205,021 181,927 257,471 321,178 247,836 171,705 2,384,329 Restaurant & Bar Sales Tax 172,386 162,947 172,178 195,482 227,724 191,664 226,775 199,622 206,978 233,228 226,654 219,474 2,435,113 All Other Local Sales Tax *181,767 180,252 164,385 191,016 284,083 217,626 274,274 225,090 254,639 285,717 248,743 221,793 2,729,386 TOTAL 1,922,624$ 1,911,004$ 2,053,282$ 2,406,749$ 2,426,009$ 2,056,782$ 2,804,781$ 2,307,054$ 2,012,065$ 2,512,741$ 2,217,835$ 2,175,352$ 26,806,278$ FY 2020/21CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 643,435 471,705 517,101 483,032 384,176 321,621 305,338 241,562 254,568 450,343 409,924 442,859 4,925,664 Utility Sales Tax 267,771 337,260 350,040 360,019 286,715 249,286 245,891 271,681 241,698 227,632 221,458 205,402 3,264,853 Retail Sales Tax 647,068 579,089 560,008 613,570 607,315 709,153 889,306 606,222 620,243 748,368 700,138 692,038 7,972,518 Bed Tax 42,564 33,546 32,879 38,003 170,718 105,673 36,242 40,721 99,686 148,989 144,442 130,433 1,023,896 Restaurant & Bar Sales Tax 127,814 114,578 118,223 130,147 158,913 137,151 142,356 130,977 154,257 183,628 167,142 191,389 1,756,575 All Other Local Sales Tax *117,419 174,520 141,653 120,588 200,416 200,756 183,337 164,894 171,734 218,085 193,522 201,188 2,088,112 TOTAL 1,846,071$ 1,710,698$ 1,719,904$ 1,745,360$ 1,808,253$ 1,723,640$ 1,802,470$ 1,456,056$ 1,542,186$ 1,977,045$ 1,836,626$ 1,863,309$ 21,031,618$ * Note: Does not include cable franchise fees or sales tax audit revenues
ATTACHMENT FGeneral Fund State Shared RevenuesFY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 500,637 500,637 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 6,174,404 State Shared Sales Tax 291,674 534,620 464,795 538,626 428,064 680,044 569,532 458,855 555,746 671,412 521,466 922,244 6,637,078 County Auto Lieu 100,364 178,439 214,084 179,539 176,572 183,593 166,138 185,396 187,906 231,739 168,035 298,521 2,270,326 Smart and Safe- - - - - 113,051 - 59 15 - - 122,828 235,953 TOTAL 892,675$ 1,213,696$ 1,196,192$ 1,235,478$ 1,121,949$ 1,494,001$ 1,252,983$ 1,161,623$ 1,260,980$ 1,420,464$ 1,206,814$ 1,860,906$ 15,317,760$ FY 2020/21CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 548,361 548,361 548,361 548,361 548,361 548,360 548,361 548,361 548,361 548,361 548,361 548,361 6,580,331 State Shared Sales Tax 243,577 413,638 354,744 490,371 357,106 523,608 454,947 376,182 433,435 572,504 533,021 709,210 5,462,343 County Auto Lieu 98,728 256,745 217,528 201,958 162,796 190,665 190,824 175,212 182,116 216,303 197,466 302,323 2,392,664 Smart and Safe- - - - - - - - - - - 47,246 47,246 TOTAL 890,666$ 1,218,744$ 1,120,633$ 1,240,690$ 1,068,263$ 1,262,633$ 1,194,132$ 1,099,755$ 1,163,912$ 1,337,168$ 1,278,848$ 1,607,140$ 14,482,584$
Fiscal Year 2021/22
Financial Update Through June 2022
September 21, 2022
GENERAL FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 6/2022 % of Budget Year -End
Estimate Notes
Local Sales Taxes $ 21,157,707 $ 27,804,802 131.4%$ 27,804,802 Higher than expected growth; recovery in categories
impacted by COVID; inflation
State Shared Revenues 13,729,923 15,317,760 111.6%15,317,760 Higher than expected; new Smart & Safe funds
received this year
Charges for Services 2,387,776 2,660,066 111.4%2,660,066 Higher than expected; strong recreation revenue
Licenses & Permits 1,849,000 2,390,080 129.3%2,390,080 Higher than expected; strong commercial activity and
healthy residential revenue
Grant Revenue 6,065,290 6,005,913 99.0%6,005,913 Includes amount of American Rescue Plan Act (ARPA)
funds recognized this year
All Other 1,883,500 1,298,134 68.9%1,298,134 Includes other intergovernmental revenue, interest
income and miscellaneous revenue
TOTAL GENERAL FUND
REVENUES $ 47,073,196 $ 55,476,755 117.9%$ 55,476,755 Outperformed budget by $8.4M or nearly 18%
GENERAL FUND EXPENDITURES
EXPENDITURE CATEGORY Budget Actuals
Thru 6/2022 % of Budget Year -End
Estimate Notes
Personnel $ 30,775,632 $ 30,011,952 97.5%$ 30,011,952 Slightly below budget due to personnel vacancies
throughout the year
Operations & Maintenance 21,981,773 21,515,210 97.9%21,515,210
Slightly below budget due primarily to building repair
& maintenance, insurance, funding of outside sources
and outside professional services
Capital 1,095,175 611,606 55.8%611,606 Westward Look improvements rolled over to FY 22/23
Transfers Out 7,408,264 6,262,832 84.5%6,262,832
Transfers to debt service and Capital Fund. No
principal payment in FY 21/22 for pension obligation
bonds.
TOTAL GENERAL FUND
EXPENDITURES $ 61,260,844 $ 58,401,599 95.3%$ 58,401,599 Under budget by $2.9M or 4.7%
Budgeted Use of Fund Balance:
($14.2M)
Estimated Use of Fund Balance =
($2.9M)
Estimated Ending Fund
Balance: $29.5M
54.7% of budgeted expenditures
Exceeds Council 25% Policy by
$16.0M
GENERAL FUND
$53.6M
$42.1M
$55.5M
$58.4M
$47.1M
$61.3M
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
Revenues Expenditures
General Fund
FY 21/22 Through June
PY Actual
CY Actual
CY Budget
HIGHWAY FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 6/2022 % of Budget Year -End
Estimate Notes
Licenses & Permits $ 25,000 $ 28,838 115.4%$ 28,838 Higher than expected permit activity
State Shared Revenues 3,614,922 3,979,751 110.1%3,979,751 7% growth over previous fiscal year
All Other 8,000 (9,043)-113.0%(9,043)Due to fair market valuation of investments at year-end
TOTAL HIGHWAY FUND
REVENUES $ 3,647,922 $ 3,999,546 109.6%$ 3,999,546 Outperformed budget by $350K or 9.6%
HIGHWAY FUND EXPENDITURES
EXPENDITURE
CATEGORY Budget Actuals
Thru 6/2022 % of Budget Year -End
Estimate Notes
Personnel $ 1,208,870 $ 1,175,502 97.2%$ 1,175,502 Under budget due to personnel vacancies/refills and
overtime savings
Operations &
Maintenance 616,655 604,387 98.0%604,387 Savings in various Transportation Engineering line-items
Capital 2,265,000 2,255,650 99.6%2,255,650 Actuals as expected
TOTAL HIGHWAY FUND
EXPENDITURES $ 4,090,525 $ 4,035,539 98.7%$ 4,035,539 Under budget by $55K or 1.3%
Budgeted Use of Fund Balance:
($443,000)
Estimated Use of Fund Balance =
($36,000)
Estimated Ending Fund
Balance: $1.2M
HIGHWAY FUND
$3.8M
$3.4M
$4.0M $4.0M
$3.6M
$4.1M
$.0M
$.5M
$1.0M
$1.5M
$2.0M
$2.5M
$3.0M
$3.5M
$4.0M
$4.5M
$5.0M
Revenues Expenditures
Highway Fund
FY 21/22 Through June
PY Actual
CY Actual
CY Budget
COMMUNITY CENTER FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 6/2022 % of Budget Year -End
Estimate Notes
Contracted Operating
Revenues $ 3,622,385 $ 4,726,343 130.5%$ 4,726,343 All revenues sources significantly higher than
expected.
Town Operating Revenues 697,480 1,220,648 175.0%1,220,648 Significant outperformance to budget for recreation
program revenue and member dues
Other Revenues 3,078,400 3,547,986 115.3%3,547,986
Includes 1/2 cent sales tax revenues, HOA
contributions, interest income and other
miscellaneous revenues. Higher than expected local
sales tax.
TOTAL COMM. CENTER
FUND REVENUES $ 7,398,265 $ 9,494,977 128.3%$ 9,494,977 Outperformed budget by $2.1M or 28.3%
COMMUNITY CENTER FUND EXPENDITURES
EXPENDITURE CATEGORY Budget Actuals
Thru 6/2022 % of Budget Year -End
Estimate Notes
Contracted Operating
Expenditures $ 4,701,528 $ 4,705,882 100.1%$ 4,705,882
Actuals as expected. Food & beverage and O&M
costs were over budget by $185,000 and $25,000
respectively due to cost of sales from greater than
expected sales.
Town Operating
Expenditures 1,086,581 1,180,511 108.6%1,180,511 Overage due to contract personnel services and
additional grounds maintenance costs
Capital Outlay 132,500 139,003 104.9%139,003 Slightly over budget due to needs at both the
Community Center and Pusch facility
Transfers Out 1,868,519 296,346 15.9%296,346 Actuals reflect transfers for debt service. Interest
only payment on Parks & Rec bonds for FY 21/22.
TOTAL COMM. CENTER
FUND EXPENDITURES $ 7,789,128 $ 6,321,742 81.2%$ 6,321,742 Under budget by nearly $1.5M or 18.8%
COMMUNITY CENTER FUND
Budgeted Use of Fund Balance:
($0.4M)
Estimated Surplus: $3.2M
Estimated Ending Fund
Balance: $5.9M
$7.6M
$5.8M
$9.5M
$6.3M
$7.4M $7.8M
$M
$1M
$2M
$3M
$4M
$5M
$6M
$7M
$8M
$9M
$10M
Revenues Expenditures
Community Center Fund
FY 21/22 Through June
PY Actual
CY Actual
CY Budget
MONTHLY FINANCIAL UPDATE
QUESTIONS?
Town Council Regular Session A.
Meeting Date:09/21/2022
Submitted By:Michelle Stine, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
Minutes - September 7, 2022
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to approve (approve with the following changes) the September 7, 2022 minutes.
Attachments
9-7-22 Draft Minutes
D R A F T
MINUTES
ORO VALLEY TOWN COUNCIL
REGULAR SESSION
SEPTEMBER 7, 2022
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 5:00 PM
CALL TO ORDER
Mayor Winfield called the meeting to order at 5:01 p.m.
ROLL CALL
Present: Joseph C. Winfield, Mayor
Melanie Barrett, Vice-Mayor
Tim Bohen, Councilmember
Harry Greene, Councilmember
Joyce Jones-Ivey, Councilmember
Josh Nicolson, Councilmember (attended via Zoom)
Steve Solomon, Councilmember
EXECUTIVE SESSION - PURSUANT TO A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) - Town Magistrate
contract discussion
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to go into Executive
Session at 5:03 p.m., pursuant to A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) - Town Magistrate
contract discussion.
Vote: 7 - 0 Carried
Mayor Winfield announced that the following staff would be joining Council in Executive
Session: Magistrate Judge James Hazel, Town Attorney Jonathan Rothschild, Town Clerk Mike
Standish and, if necessary, the Human Resources Director Andy Votava and Town Manager Mary
Jacobs.
RESUME REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
Mayor Winfield resumed the Regular Session at 6:06 p.m.
9-7-22 Minutes, Oro Valley Town Council Regular Session 1
ROLL CALL
Present: Joseph C. Winfield, Mayor
Melanie Barrett, Vice-Mayor
Tim Bohen, Councilmember
Harry Greene, Councilmember
Joyce Jones-Ivey, Councilmember
Josh Nicolson, Councilmember (attended via Zoom)
Steve Solomon, Councilmember
1.FOR DIRECTION TO THE TOWN MANAGER AND/OR NECESSARY STAFF AS DISCUSSED IN
EXECUTIVE SESSION PERTAINING TO THE TOWN MAGISTRATE CONTRACT DISCUSSION
Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett that the Town
Magistrate be allowed to reduce his work schedule to 26.5 hours per week through the staffing agency
Staffing Matters. As an exempt employee, the Town Magistrate would be available 24 hours a day to
respond to the needs of the community. There would be a reduction in compensation to $114,563.58
and there would be an insurance stipend of $10,569.36. This will result in a savings to the Town of
$34,841.80 and that the Town Manager and Town Council will be authorized to enter into a contract with
Staffing Matters with the Town Magistrate as an agent of Staffing Matters.
Vote: 7 - 0 Carried
PLEDGE OF ALLEGIANCE
Members of the Daughters of the American Revolution (DAR) led the audience in the Pledge of
Allegiance.
UPCOMING MEETING ANNOUNCEMENTS
Town Clerk Mike Standish announced the upcoming Town meetings.
MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS
Councilmember Jones-Ivey reported on the upcoming Canyon Del Oro Project Graduation fundraising
events.
Councilmember Greene reported that he had attended the last day of the Oro Valley Community
Center's summer camp. Councilmember Greene thanked the Parks and Recreation staff for providing
such a wonderful camp.
Councilmember Greene reported that there were very few incidents this Moonsoon season, which he
attributed to the Storm Water Utility's proactive approach to residences.
Vice-Mayor Barrett reported that six members of the Council had attended the League of Arizona
Cities and Towns Annual Conference held August 30th through September 2nd in Glendale, AZ.
TOWN MANAGER'S REPORT ON CURRENT EVENTS
Town Manager Mary Jacobs reported the following information:
9-7-22 Minutes, Oro Valley Town Council Regular Session 2
Town Manager Mary Jacobs reported the following information:
Provided an update on the upcoming Oro Valley Community Academy
Congratulated the Planning Department on their recent recognition from the Arizona Chapter of
the American Planning Association
Reported the Oro Valley Parks and Recreation's Fall Recreation Schedule would be provided in
the Northwest Explorer Newspaper the week of September 12, 2022. The schedule would also
be available at playov.com
Invited residents to tune into the monthly "This is Oro Valley" podcasts
ORDER OF BUSINESS
Mayor Winfield reorganized the agenda by moving Regular Agenda item #3 to the end of the agenda.
The remaining items would remain as posted.
INFORMATIONAL ITEMS
There were no informational items.
CALL TO AUDIENCE
Oro Valley resident Tim Tarris voiced his concerns regarding the proposed Oro Valley Church of the
Nazarene rezoning request.
Oro Valley resident Mike Zinkin voiced his concerns regarding the funding of various projects.
Councilmember Solomon requested a future agenda item for a presentation to Council regarding a
detailed budget and costs of all the different improvements being done at Naranja Park, seconded by
Mayor Winfield.
Councilmember Solomon requested a future agenda item for staff to present a report on the status and
proposals for the ADA improvements at the Community Center, seconded by Mayor Winfield.
Mayor Winfield requested that staff review and respond to the email that would be received from Mr.
Zinkin.
PRESENTATIONS
1.Proclamation - Constitution Week
Mayor Winfield proclaimed the week of September 17 through the 23, 2022, as Constitution Week.
Ms. Penny Simon-Nielsen accepted the proclamation and introduced the Kachina Society Children.
2.Proclamation - National Preparedness Month
Mayor Winfield proclaimed the month of September 2022 as Preparedness Month in the Town of Oro
9-7-22 Minutes, Oro Valley Town Council Regular Session 3
Mayor Winfield proclaimed the month of September 2022 as Preparedness Month in the Town of Oro
Valley.
Town of Oro Valley Regional Emergency Response Planner Louie Valenzuela accepted the
proclamation.
3.Proclamation - National I.T. Professionals Day
Mayor Winfield proclaimed September 20, 2022 as National I.T. Professionals Day.
Chief Information Officer Chuck Boyer accepted the proclamation.
CONSENT AGENDA
A.Minutes - July 20 and August 18, 2022
B.Reappointment to the Public Safety Personnel Retirement System (PSPRS) Local Board
C.Approval of appointment(s) to the Historic Preservation Commission
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Steve Solomon to approve
Consent Agenda items (A) - (C).
Vote: 7 - 0 Carried
REGULAR AGENDA
2.DISCUSSION AND POSSIBLE ACTION REGARDING A CONCEPTUAL SITE AND LANDSCAPE
PLAN FOR A PROPOSED 64-LOT SUBDIVISION KNOWN AS NARANJA TRAILS, LOCATED SOUTH
OF THE NARANJA DRIVE AND HIGHLANDS WASH INTERSECTION, APPROXIMATELY 1/4-MILE
WEST OF N. FIRST AVENUE
Planning Manager Bayer Vella, and the Public Works Director and Town Engineer Paul Keesler,
presented item #1 and included the following:
Purpose
Site History and Requirements
Mr. Keesler continued the presentation and included the following:
Drainage and Floodplain
Highlands Wash and the Retention Basin
Retention Basin Spatial Relationships
Where and How Drainage Crosses Naranja Drive
Drainage & Grading
Traffic
Mr. Vella resumed the presentation and included the following:
Public Outreach & Planning and Zoning
Summary and Recommendation
9-7-22 Minutes, Oro Valley Town Council Regular Session 4
Paul Oland, representing the applicant, provided additional information regarding the proposed
Naranja Trails subdivision.
Town Attorney Jonathan Rothschild provided a statement regarding the existing legal constraints
regarding the proposed Naranja Trails subdivision.
The following individuals spoke in opposition to item #2.
Oro Valley resident Sue Renard
Oro Valley resident Aldee Rose
Oro Valley resident Brenda Harris
Oro Valley resident Mary Rambough
Discussion ensued amongst Council and staff regarding item #2.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Harry Greene to approve the
proposed Conceptual Site Plan and Landscape Plan, based on a finding it is in conformance with the
River's Edge Planned Area Development and raise the height limit to 28 feet subject to two stories being
placed according to the Oro Valley zoning code.
Vote: 7 - 0 Carried
Mayor Winfield recessed the meeting at 8:22 p.m.
Mayor Winfield resumed the meeting at 8:35 p.m.
3.DISCUSSION AND POSSIBLE DIRECTION TO STAFF REGARDING POSSIBLE VACATION AND
SHORT-TERM RENTAL REGULATIONS
Councilmember Solomon and Mayor Winfield requested this agenda item.
Councilmember Solomon clarified his request for this agenda item.
Discussion ensued amongst Council and staff regarding item #3.
There was Council consensus to have staff prepare an ordinance to regulate vacations and short-term
rentals.
Town Manager Mary Jacobs stated that staff would return to Council at a future meeting with a
proposal that would support the maximum, legally supportable, regulations that could be implemented
in Oro Valley regarding vacation and short-term rentals.
4.DISCUSSION REGARDING THE PROCESS BY WHICH PUBLIC ART IS SELECTED AND EXECUTED
Councilmember Greene and Councilmember Solomon requested this agenda item.
Councilmember Greene clarified his request for this agenda item.
Discussion ensued amongst Council and staff regarding item #3.
5.DISCUSSION REGARDING PROGRESS OF THE HAWK SIGNAL ON NARANJA DRIVE JUST WEST
OF LA CHOLLA BOULEVARD
9-7-22 Minutes, Oro Valley Town Council Regular Session 5
Councilmember Bohen and Councilmember Nicolson requested this agenda item.
Councilmember Bohen clarified his request for this agenda item.
Public Works Director and Town Engineer, Paul Keesler, provided an update on the status and
completion of the HAWK Signal on Naranja Drive.
Discussion ensued amongst Council and staff regarding item #5.
6.DISCUSSION REGARDING LIGHT POLE PROTOCOLS AT NARANJA PARK
Motion by Councilmember Harry Greene, seconded by Mayor Joseph C. Winfield to go into Executive
Session at 9:09 p.m. pursuant to A.R.S.§38-431.03 (A)(3), to obtain legal advice on this issue.
The following staff would join Council in Executive Session; Town Manager Mary Jacobs, Deputy Town
Manager Chris Cornelison, Town Attorney Jonathan Rothschild, Chief Civil Deputy Attorney Joe
Andrews and Town Clerk Mike Standish.
Vote: 7 - 0 Carried
Mayor Winfield resumed the Regular Session at 10:17 p.m.
FUTURE AGENDA ITEMS
Vice Mayor Barrett requested a future agenda item be added for discussion and possible direction
regarding the design and public participation process for the bond-funded amenities, seconded by
Councilmember Nicolson.
ADJOURNMENT
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to adjourn the
meeting at 10:18 p.m.
Vote: 7 - 0 Carried
____________________________________
Michelle Stine, MMC
Deputy Town Clerk
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the
Town of Oro Valley Council of Oro Valley, Arizona held on the 7th day of September 2022. I further certify that the
meeting was duly called and held and that a quorum was present.
____________________________________________
Michael Standish, CMC
Town Clerk
9-7-22 Minutes, Oro Valley Town Council Regular Session 6
Town Council Regular Session B.
Meeting Date:09/21/2022
Submitted By:David Gephart, Finance
Department:Finance
SUBJECT:
Resolution No. (R)22-39, approving a loan agreement between the General Fund and Water Fund
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
American Rescue Plan Act (ARPA) funds distributed to state and local governments have four allowable uses:
Replace lost public sector revenue
Support the Covid-19 public health and economic response
Premium pay for eligible workers
Invest in water, sewer, and broadband infrastructure
The Town has received a total of $15.38 million from ARPA. With the approval of the FY22/23 budget, the Town
elected to exercise the $10 million standard allowance for replacement of lost public sector revenue and have
applied those funds to the Capital Improvement Fund for one-time projects. The remaining $5.38 million was
included in the adopted FY22/23 budget for water utility infrastructure improvements.
An interfund loan agreement is proposed from the Town General Fund to the Town Water Utility Fund that would
result in an ultimate benefit of both the Town and its Water Utility in the use of the ARPA funds, resulting in a
repayment of Water Funds back to the General Fund over time while also saving the Water Utility planned
borrowing costs. The proposed terms of the loan are the following:
Loan amount: $5.38 million
Interest rate: 1.5%
Term: 180 months
No prepayment penalty
Repayments begin the month after full amount has been drawn by Water Utility
Full amount of loan must be encumbered by December 31, 2024, and spent by December 31, 2026, by Water
Utility
BACKGROUND OR DETAILED INFORMATION:
The Town of Oro Valley received $15.38 million from the federal government as its share of the Coronavirus State
and Local Fiscal Recovery Funds (SLFRF), which is part of the American Rescue Plan Act (ARPA) signed into law
on March 11, 2021. The distributed funds are to economically assist the Town in response to the coronavirus
pandemic. The funds were distributed to the Town in two separate, equal tranches: $7.69 million was received on
June 28, 2021, and another $7.69 million was received on July 13, 2022.
The final rule released by the U.S. Department of the Treasury (Treasury) provides a $10 million standard
allowance election to local governments for "lost revenue" as a result of the pandemic. The Town has chosen to
make that election. As a result, $10 million of the $15.38 million is not subject to the other qualified uses
(restrictions) of the funds, leaving $5.38 million subject to federally-mandated restrictions.
In addition to the $10 million "lost revenue" provision, other qualified uses for the funds include the following:
In addition to the $10 million "lost revenue" provision, other qualified uses for the funds include the following:
Public health and economic impacts
Premium pay
Water, sewer & broadband infrastructure
Town staff recommended, and the Town Council subsequently approved via the FY22/23 budget that the remaining
$5.38 million be utilized in infrastructure upgrades to the Town's water system, which is a clear allowable utilization
of the funds under Treasury final rules. In discussing the possibilities with our auditors, staff is further
recommending these funds be provided to the Water Utility in the form of a loan. The benefits of this structure are
the following:
The Water Utility will forgo the need to request outside financial assistance via a debt offering or loan. This
saves the Water Utility debt issuance costs and professional fees, in addition to paying a "below-market"
interest rate for the funds.
The Water Utility further benefits from only paying interest on amounts drawn until the entire loan balance
has been drawn, giving the Water Utility significant flexibility as to the timing of the draws. Debt issuances
and other outside loans typically provide the entire balance requested up front, requiring the borrower to
begin repayment on the entire loan balance and accruing interest immediately upon
disbursement, irrespective of the timing of when the funds are utilized to fund capital improvements. Under
the proposed structure, the Water Utility has broad discretion when to draw on the loan, as long as amounts
are obligated no later than December 31, 2024 and spent by December 31, 2026, which is also a stipulation
for the use of ARPA funds.
The Town benefits from the structure through satisfaction of the grant restrictions, while also receiving other
funds back from the Water Utility in the amount of the loan over time to be utilized for any purpose the Town
deems appropriate and necessary.
The Town further benefits by being able to invest ARPA monies until they are needed/drawn by the Water
Utility, and provides a guaranteed rate of return in the future for the funds.
The Water Utility is intended to be self-supporting, which is why the structure with a fixed interest rate is being
proposed. The recommended interest rate is 1.5% per annum, which is slightly below the typical 1.9-2.1% the
Town receives in its investments due to statutory limitations on investment vehicles. Monthly repayments are
recommended over a 180-month term, with no early repayment penalty.
FISCAL IMPACT:
$5.38 million in principal + $631,000 in interest, paid over 15 years will be deposited back to the Town's General
Fund for future use.
SUGGESTED MOTION:
I MOVE to approve Resolution No. (R)22-39, authorizing and approving an interfund loan between the Oro Valley
General Fund and Oro Valley Water Fund in the amount of $5,377,781.40.
Attachments
(R)22-39 OV Interfund Loan Resolution
Award Notification
ARPA Final Rule Overview
492956
1
RESOLUTION NO. (R)22-39
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE
TOWN OF ORO VALLEY, ARIZONA AUTHORIZING AN INTERFUND
LOAN TO PROVIDE FINANCING FOR VARIOUS CAPITAL AND
OPERATIONAL NEEDS AND PROVIDING FOR THE LOAN
REPAYMENTS THEREOF
WHEREAS, from time to time the Town of Oro Valley, Arizona (the “Town”) requires
financing to provide resources for capital projects and operational needs; and
WHEREAS, interfund loans are an acceptable form of financing for municipalities for
both long-term financing and short-term liquidity needs; and
WHEREAS, the Town has sufficient funds available to provide interfund loans without
detriment to the Town’s operating needs; and
WHEREAS, the Mayor and Town Council of the Town (the “Town Council”) desires to
authorize certain interfund loans to provide financing for various operating and capital projects;
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of
Oro Valley, Arizona, that:
Section 1. An interfund loan is hereby authorized as follows:
Lending Fund: Water Fund
Borrowing Fund: General Fund
Amount: $5,377,781.40
Interest Rate: 1.50%
Term: 15 years
Effective Date: September 21, 2022
Purpose: Water Infrastructure Improvements
Section 2. The interfund loan shall be repaid on a monthly basis commencing the month
after the entire loan has been drawn, according to the amortization schedule attached as
Attachment A.
Section 3. The interfund loan may be repaid in its entirety at any time without penalty.
492956
2
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley,
Arizona, this 21st day of September 2022.
Joseph C. Winfield, Mayor
ATTEST:
__________________________________
Michael Standish, Town Clerk
APPROVED AS TO FORM:
_________________________________
Tobin Sidles, Legal Services Director
CERTIFICATION
I, Michael Standish, the duly appointed and acting Town Clerk of the Town of Oro Valley,
Arizona, do hereby certify that the above and foregoing Resolution No. (R)22-39 was duly passed
by the Mayor and Town Council of the Town of Oro Valley, Arizona, at a regular meeting held on
September 21, 2022, and that a quorum was present thereat.
Michael Standish, Town Clerk
492956
3
RESOLUTION NO. (R)22-39
ATTACHMENT A
AMORTIZATION SCHEDULE
Oro Valley Water Fund Loan
Enter values
5,377,781.40$
1.50%
15
33,382.20$
180
631,015.08$
6,008,796.48$
Month
Beginning
Balance Payment Principal Interest
Ending
Balance
1 5,377,781.40$ 33,382.20$ 26,659.98$ 6,722.23$ 5,351,121.42$
2 5,351,121.42$ 33,382.20$ 26,693.30$ 6,688.90$ 5,324,428.12$
3 5,324,428.12$ 33,382.20$ 26,726.67$ 6,655.54$ 5,297,701.46$
4 5,297,701.46$ 33,382.20$ 26,760.08$ 6,622.13$ 5,270,941.38$
5 5,270,941.38$ 33,382.20$ 26,793.53$ 6,588.68$ 5,244,147.85$
6 5,244,147.85$ 33,382.20$ 26,827.02$ 6,555.18$ 5,217,320.84$
7 5,217,320.84$ 33,382.20$ 26,860.55$ 6,521.65$ 5,190,460.28$
8 5,190,460.28$ 33,382.20$ 26,894.13$ 6,488.08$ 5,163,566.16$
9 5,163,566.16$ 33,382.20$ 26,927.74$ 6,454.46$ 5,136,638.41$
10 5,136,638.41$ 33,382.20$ 26,961.40$ 6,420.80$ 5,109,677.01$
11 5,109,677.01$ 33,382.20$ 26,995.11$ 6,387.10$ 5,082,681.90$
12 5,082,681.90$ 33,382.20$ 27,028.85$ 6,353.35$ 5,055,653.05$
13 5,055,653.05$ 33,382.20$ 27,062.64$ 6,319.57$ 5,028,590.41$
14 5,028,590.41$ 33,382.20$ 27,096.46$ 6,285.74$ 5,001,493.95$
15 5,001,493.95$ 33,382.20$ 27,130.34$ 6,251.87$ 4,974,363.61$
16 4,974,363.61$ 33,382.20$ 27,164.25$ 6,217.95$ 4,947,199.37$
17 4,947,199.37$ 33,382.20$ 27,198.20$ 6,184.00$ 4,920,001.16$
18 4,920,001.16$ 33,382.20$ 27,232.20$ 6,150.00$ 4,892,768.96$
19 4,892,768.96$ 33,382.20$ 27,266.24$ 6,115.96$ 4,865,502.72$
20 4,865,502.72$ 33,382.20$ 27,300.32$ 6,081.88$ 4,838,202.40$
21 4,838,202.40$ 33,382.20$ 27,334.45$ 6,047.75$ 4,810,867.95$
22 4,810,867.95$ 33,382.20$ 27,368.62$ 6,013.58$ 4,783,499.33$
23 4,783,499.33$ 33,382.20$ 27,402.83$ 5,979.37$ 4,756,096.50$
24 4,756,096.50$ 33,382.20$ 27,437.08$ 5,945.12$ 4,728,659.42$
25 4,728,659.42$ 33,382.20$ 27,471.38$ 5,910.82$ 4,701,188.04$
26 4,701,188.04$ 33,382.20$ 27,505.72$ 5,876.49$ 4,673,682.32$
27 4,673,682.32$ 33,382.20$ 27,540.10$ 5,842.10$ 4,646,142.22$
28 4,646,142.22$ 33,382.20$ 27,574.52$ 5,807.68$ 4,618,567.70$
29 4,618,567.70$ 33,382.20$ 27,608.99$ 5,773.21$ 4,590,958.70$
30 4,590,958.70$ 33,382.20$ 27,643.50$ 5,738.70$ 4,563,315.20$
31 4,563,315.20$ 33,382.20$ 27,678.06$ 5,704.14$ 4,535,637.14$
32 4,535,637.14$ 33,382.20$ 27,712.66$ 5,669.55$ 4,507,924.48$
33 4,507,924.48$ 33,382.20$ 27,747.30$ 5,634.91$ 4,480,177.19$
34 4,480,177.19$ 33,382.20$ 27,781.98$ 5,600.22$ 4,452,395.21$
35 4,452,395.21$ 33,382.20$ 27,816.71$ 5,565.49$ 4,424,578.50$
36 4,424,578.50$ 33,382.20$ 27,851.48$ 5,530.72$ 4,396,727.02$
Monthly payment
Number of payments
Total interest
Total cost of loan
Loan amount
Annual interest rate
Loan period in years
492956
4
37 4,396,727.02$ 33,382.20$ 27,886.29$ 5,495.91$ 4,368,840.72$
38 4,368,840.72$ 33,382.20$ 27,921.15$ 5,461.05$ 4,340,919.57$
39 4,340,919.57$ 33,382.20$ 27,956.05$ 5,426.15$ 4,312,963.52$
40 4,312,963.52$ 33,382.20$ 27,991.00$ 5,391.20$ 4,284,972.52$
41 4,284,972.52$ 33,382.20$ 28,025.99$ 5,356.22$ 4,256,946.53$
42 4,256,946.53$ 33,382.20$ 28,061.02$ 5,321.18$ 4,228,885.51$
43 4,228,885.51$ 33,382.20$ 28,096.10$ 5,286.11$ 4,200,789.42$
44 4,200,789.42$ 33,382.20$ 28,131.22$ 5,250.99$ 4,172,658.20$
45 4,172,658.20$ 33,382.20$ 28,166.38$ 5,215.82$ 4,144,491.82$
46 4,144,491.82$ 33,382.20$ 28,201.59$ 5,180.61$ 4,116,290.23$
47 4,116,290.23$ 33,382.20$ 28,236.84$ 5,145.36$ 4,088,053.39$
48 4,088,053.39$ 33,382.20$ 28,272.14$ 5,110.07$ 4,059,781.26$
49 4,059,781.26$ 33,382.20$ 28,307.48$ 5,074.73$ 4,031,473.78$
50 4,031,473.78$ 33,382.20$ 28,342.86$ 5,039.34$ 4,003,130.92$
51 4,003,130.92$ 33,382.20$ 28,378.29$ 5,003.91$ 3,974,752.63$
52 3,974,752.63$ 33,382.20$ 28,413.76$ 4,968.44$ 3,946,338.87$
53 3,946,338.87$ 33,382.20$ 28,449.28$ 4,932.92$ 3,917,889.59$
54 3,917,889.59$ 33,382.20$ 28,484.84$ 4,897.36$ 3,889,404.75$
55 3,889,404.75$ 33,382.20$ 28,520.45$ 4,861.76$ 3,860,884.30$
56 3,860,884.30$ 33,382.20$ 28,556.10$ 4,826.11$ 3,832,328.21$
57 3,832,328.21$ 33,382.20$ 28,591.79$ 4,790.41$ 3,803,736.41$
58 3,803,736.41$ 33,382.20$ 28,627.53$ 4,754.67$ 3,775,108.88$
59 3,775,108.88$ 33,382.20$ 28,663.32$ 4,718.89$ 3,746,445.57$
60 3,746,445.57$ 33,382.20$ 28,699.15$ 4,683.06$ 3,717,746.42$
61 3,717,746.42$ 33,382.20$ 28,735.02$ 4,647.18$ 3,689,011.40$
62 3,689,011.40$ 33,382.20$ 28,770.94$ 4,611.26$ 3,660,240.46$
63 3,660,240.46$ 33,382.20$ 28,806.90$ 4,575.30$ 3,631,433.56$
64 3,631,433.56$ 33,382.20$ 28,842.91$ 4,539.29$ 3,602,590.65$
65 3,602,590.65$ 33,382.20$ 28,878.96$ 4,503.24$ 3,573,711.68$
66 3,573,711.68$ 33,382.20$ 28,915.06$ 4,467.14$ 3,544,796.62$
67 3,544,796.62$ 33,382.20$ 28,951.21$ 4,431.00$ 3,515,845.41$
68 3,515,845.41$ 33,382.20$ 28,987.40$ 4,394.81$ 3,486,858.02$
69 3,486,858.02$ 33,382.20$ 29,023.63$ 4,358.57$ 3,457,834.39$
70 3,457,834.39$ 33,382.20$ 29,059.91$ 4,322.29$ 3,428,774.48$
71 3,428,774.48$ 33,382.20$ 29,096.23$ 4,285.97$ 3,399,678.24$
72 3,399,678.24$ 33,382.20$ 29,132.60$ 4,249.60$ 3,370,545.64$
73 3,370,545.64$ 33,382.20$ 29,169.02$ 4,213.18$ 3,341,376.62$
74 3,341,376.62$ 33,382.20$ 29,205.48$ 4,176.72$ 3,312,171.14$
75 3,312,171.14$ 33,382.20$ 29,241.99$ 4,140.21$ 3,282,929.15$
76 3,282,929.15$ 33,382.20$ 29,278.54$ 4,103.66$ 3,253,650.61$
77 3,253,650.61$ 33,382.20$ 29,315.14$ 4,067.06$ 3,224,335.47$
78 3,224,335.47$ 33,382.20$ 29,351.78$ 4,030.42$ 3,194,983.68$
79 3,194,983.68$ 33,382.20$ 29,388.47$ 3,993.73$ 3,165,595.21$
80 3,165,595.21$ 33,382.20$ 29,425.21$ 3,956.99$ 3,136,170.00$
81 3,136,170.00$ 33,382.20$ 29,461.99$ 3,920.21$ 3,106,708.01$
82 3,106,708.01$ 33,382.20$ 29,498.82$ 3,883.39$ 3,077,209.19$
83 3,077,209.19$ 33,382.20$ 29,535.69$ 3,846.51$ 3,047,673.50$
84 3,047,673.50$ 33,382.20$ 29,572.61$ 3,809.59$ 3,018,100.89$
85 3,018,100.89$ 33,382.20$ 29,609.58$ 3,772.63$ 2,988,491.32$
86 2,988,491.32$ 33,382.20$ 29,646.59$ 3,735.61$ 2,958,844.73$
87 2,958,844.73$ 33,382.20$ 29,683.65$ 3,698.56$ 2,929,161.08$
88 2,929,161.08$ 33,382.20$ 29,720.75$ 3,661.45$ 2,899,440.33$
89 2,899,440.33$ 33,382.20$ 29,757.90$ 3,624.30$ 2,869,682.43$
90 2,869,682.43$ 33,382.20$ 29,795.10$ 3,587.10$ 2,839,887.33$
91 2,839,887.33$ 33,382.20$ 29,832.34$ 3,549.86$ 2,810,054.98$
92 2,810,054.98$ 33,382.20$ 29,869.63$ 3,512.57$ 2,780,185.35$
93 2,780,185.35$ 33,382.20$ 29,906.97$ 3,475.23$ 2,750,278.38$
94 2,750,278.38$ 33,382.20$ 29,944.35$ 3,437.85$ 2,720,334.02$
95 2,720,334.02$ 33,382.20$ 29,981.79$ 3,400.42$ 2,690,352.24$
96 2,690,352.24$ 33,382.20$ 30,019.26$ 3,362.94$ 2,660,332.98$
492956
5
97 2,660,332.98$ 33,382.20$ 30,056.79$ 3,325.42$ 2,630,276.19$
98 2,630,276.19$ 33,382.20$ 30,094.36$ 3,287.85$ 2,600,181.83$
99 2,600,181.83$ 33,382.20$ 30,131.98$ 3,250.23$ 2,570,049.86$
100 2,570,049.86$ 33,382.20$ 30,169.64$ 3,212.56$ 2,539,880.22$
101 2,539,880.22$ 33,382.20$ 30,207.35$ 3,174.85$ 2,509,672.86$
102 2,509,672.86$ 33,382.20$ 30,245.11$ 3,137.09$ 2,479,427.75$
103 2,479,427.75$ 33,382.20$ 30,282.92$ 3,099.28$ 2,449,144.83$
104 2,449,144.83$ 33,382.20$ 30,320.77$ 3,061.43$ 2,418,824.06$
105 2,418,824.06$ 33,382.20$ 30,358.67$ 3,023.53$ 2,388,465.39$
106 2,388,465.39$ 33,382.20$ 30,396.62$ 2,985.58$ 2,358,068.77$
107 2,358,068.77$ 33,382.20$ 30,434.62$ 2,947.59$ 2,327,634.15$
108 2,327,634.15$ 33,382.20$ 30,472.66$ 2,909.54$ 2,297,161.49$
109 2,297,161.49$ 33,382.20$ 30,510.75$ 2,871.45$ 2,266,650.74$
110 2,266,650.74$ 33,382.20$ 30,548.89$ 2,833.31$ 2,236,101.85$
111 2,236,101.85$ 33,382.20$ 30,587.08$ 2,795.13$ 2,205,514.78$
112 2,205,514.78$ 33,382.20$ 30,625.31$ 2,756.89$ 2,174,889.47$
113 2,174,889.47$ 33,382.20$ 30,663.59$ 2,718.61$ 2,144,225.88$
114 2,144,225.88$ 33,382.20$ 30,701.92$ 2,680.28$ 2,113,523.96$
115 2,113,523.96$ 33,382.20$ 30,740.30$ 2,641.90$ 2,082,783.66$
116 2,082,783.66$ 33,382.20$ 30,778.72$ 2,603.48$ 2,052,004.94$
117 2,052,004.94$ 33,382.20$ 30,817.20$ 2,565.01$ 2,021,187.74$
118 2,021,187.74$ 33,382.20$ 30,855.72$ 2,526.48$ 1,990,332.02$
119 1,990,332.02$ 33,382.20$ 30,894.29$ 2,487.92$ 1,959,437.73$
120 1,959,437.73$ 33,382.20$ 30,932.91$ 2,449.30$ 1,928,504.83$
121 1,928,504.83$ 33,382.20$ 30,971.57$ 2,410.63$ 1,897,533.26$
122 1,897,533.26$ 33,382.20$ 31,010.29$ 2,371.92$ 1,866,522.97$
123 1,866,522.97$ 33,382.20$ 31,049.05$ 2,333.15$ 1,835,473.92$
124 1,835,473.92$ 33,382.20$ 31,087.86$ 2,294.34$ 1,804,386.06$
125 1,804,386.06$ 33,382.20$ 31,126.72$ 2,255.48$ 1,773,259.34$
126 1,773,259.34$ 33,382.20$ 31,165.63$ 2,216.57$ 1,742,093.71$
127 1,742,093.71$ 33,382.20$ 31,204.59$ 2,177.62$ 1,710,889.13$
128 1,710,889.13$ 33,382.20$ 31,243.59$ 2,138.61$ 1,679,645.54$
129 1,679,645.54$ 33,382.20$ 31,282.65$ 2,099.56$ 1,648,362.89$
130 1,648,362.89$ 33,382.20$ 31,321.75$ 2,060.45$ 1,617,041.14$
131 1,617,041.14$ 33,382.20$ 31,360.90$ 2,021.30$ 1,585,680.24$
132 1,585,680.24$ 33,382.20$ 31,400.10$ 1,982.10$ 1,554,280.14$
133 1,554,280.14$ 33,382.20$ 31,439.35$ 1,942.85$ 1,522,840.78$
134 1,522,840.78$ 33,382.20$ 31,478.65$ 1,903.55$ 1,491,362.13$
135 1,491,362.13$ 33,382.20$ 31,518.00$ 1,864.20$ 1,459,844.13$
136 1,459,844.13$ 33,382.20$ 31,557.40$ 1,824.81$ 1,428,286.74$
137 1,428,286.74$ 33,382.20$ 31,596.84$ 1,785.36$ 1,396,689.89$
138 1,396,689.89$ 33,382.20$ 31,636.34$ 1,745.86$ 1,365,053.55$
139 1,365,053.55$ 33,382.20$ 31,675.89$ 1,706.32$ 1,333,377.67$
140 1,333,377.67$ 33,382.20$ 31,715.48$ 1,666.72$ 1,301,662.18$
141 1,301,662.18$ 33,382.20$ 31,755.12$ 1,627.08$ 1,269,907.06$
142 1,269,907.06$ 33,382.20$ 31,794.82$ 1,587.38$ 1,238,112.24$
143 1,238,112.24$ 33,382.20$ 31,834.56$ 1,547.64$ 1,206,277.68$
144 1,206,277.68$ 33,382.20$ 31,874.36$ 1,507.85$ 1,174,403.32$
145 1,174,403.32$ 33,382.20$ 31,914.20$ 1,468.00$ 1,142,489.12$
146 1,142,489.12$ 33,382.20$ 31,954.09$ 1,428.11$ 1,110,535.03$
147 1,110,535.03$ 33,382.20$ 31,994.03$ 1,388.17$ 1,078,541.00$
148 1,078,541.00$ 33,382.20$ 32,034.03$ 1,348.18$ 1,046,506.97$
149 1,046,506.97$ 33,382.20$ 32,074.07$ 1,308.13$ 1,014,432.90$
150 1,014,432.90$ 33,382.20$ 32,114.16$ 1,268.04$ 982,318.74$
151 982,318.74$ 33,382.20$ 32,154.30$ 1,227.90$ 950,164.44$
152 950,164.44$ 33,382.20$ 32,194.50$ 1,187.71$ 917,969.94$
153 917,969.94$ 33,382.20$ 32,234.74$ 1,147.46$ 885,735.20$
154 885,735.20$ 33,382.20$ 32,275.03$ 1,107.17$ 853,460.17$
155 853,460.17$ 33,382.20$ 32,315.38$ 1,066.83$ 821,144.79$
156 821,144.79$ 33,382.20$ 32,355.77$ 1,026.43$ 788,789.02$
492956
6
157 788,789.02$ 33,382.20$ 32,396.22$ 985.99$ 756,392.80$
158 756,392.80$ 33,382.20$ 32,436.71$ 945.49$ 723,956.09$
159 723,956.09$ 33,382.20$ 32,477.26$ 904.95$ 691,478.83$
160 691,478.83$ 33,382.20$ 32,517.85$ 864.35$ 658,960.98$
161 658,960.98$ 33,382.20$ 32,558.50$ 823.70$ 626,402.48$
162 626,402.48$ 33,382.20$ 32,599.20$ 783.00$ 593,803.28$
163 593,803.28$ 33,382.20$ 32,639.95$ 742.25$ 561,163.33$
164 561,163.33$ 33,382.20$ 32,680.75$ 701.45$ 528,482.58$
165 528,482.58$ 33,382.20$ 32,721.60$ 660.60$ 495,760.98$
166 495,760.98$ 33,382.20$ 32,762.50$ 619.70$ 462,998.48$
167 462,998.48$ 33,382.20$ 32,803.45$ 578.75$ 430,195.02$
168 430,195.02$ 33,382.20$ 32,844.46$ 537.74$ 397,350.57$
169 397,350.57$ 33,382.20$ 32,885.51$ 496.69$ 364,465.05$
170 364,465.05$ 33,382.20$ 32,926.62$ 455.58$ 331,538.43$
171 331,538.43$ 33,382.20$ 32,967.78$ 414.42$ 298,570.65$
172 298,570.65$ 33,382.20$ 33,008.99$ 373.21$ 265,561.66$
173 265,561.66$ 33,382.20$ 33,050.25$ 331.95$ 232,511.41$
174 232,511.41$ 33,382.20$ 33,091.56$ 290.64$ 199,419.85$
175 199,419.85$ 33,382.20$ 33,132.93$ 249.27$ 166,286.92$
176 166,286.92$ 33,382.20$ 33,174.34$ 207.86$ 133,112.57$
177 133,112.57$ 33,382.20$ 33,215.81$ 166.39$ 99,896.76$
178 99,896.76$ 33,382.20$ 33,257.33$ 124.87$ 66,639.43$
179 66,639.43$ 33,382.20$ 33,298.90$ 83.30$ 33,340.53$
180 33,340.53$ 33,382.20$ 33,340.53$ 41.68$ 0.00$
Award Notification Letter
Dear David Gephart,
Congratulations! This is to inform you that your application is now
awarded.
Project:Town of Oro Valley
Program:Coronavirus Local Fiscal Recovery Fund
Non-Entitlement Units
Approval Date:
Approved Amount:$15,377,781.40
Federal Awards:
US17341 Coronavirus State and
Local Fiscal Recovery Fund
(CSFRF/CLFRF) - FY 2021:
$15,377,781.40
Agency: U.S. Department of
the Treasury
Fiscal Year: 2021
CFDA: 21.027
Total Federal: $15,377,781.40
Other Awards:No non-federal funds were included in
this award.
Total Match:$0.00
Period of Performance:03/03/2021 - 12/31/2026
Award/Contract
Number:AZ0035
Ein:860293039
Page 1 of 2
Page 2 of 2
Coronavirus State & Local
Fiscal Recovery Funds:
Overview of the Final Rule
U.S. DEPARTMENT OF THE TREASURY
January 2022
2
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
The Overview of the Final Rule provides a summary of major provisions of the final
rule for informational purposes and is intended as a brief, simplified user guide to the
final rule provisions.
The descriptions provided in this document summarize key provisions of the final rule
but are non-exhaustive, do not describe all terms and conditions associated with the use
of SLFRF, and do not describe all requirements that may apply to this funding. Any SLFRF
funds received are also subject to the terms and conditions of the agreement entered
into by Treasury and the respective jurisdiction, which incorporate the provisions of the
final rule and the guidance that implements this program.
3
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Contents
Introduction .................................................................................................................................................. 4
Overview of the Program .............................................................................................................................. 6
Replacing Lost Public Sector Revenue .......................................................................................................... 9
Responding to Public Health and Economic Impacts of COVID-19 ............................................................. 12
Responding to the Public Health Emergency .......................................................................................... 14
Responding to Negative Economic Impacts ............................................................................................ 16
Assistance to Households ................................................................................................................... 17
Assistance to Small Businesses ........................................................................................................... 21
Assistance to Nonprofits ..................................................................................................................... 23
Aid to Impacted Industries .................................................................................................................. 24
Public Sector Capacity ............................................................................................................................. 26
Public Safety, Public Health, and Human Services Staff ..................................................................... 26
Government Employment and Rehiring Public Sector Staff ............................................................... 27
Effective Service Delivery .................................................................................................................... 28
Capital Expenditures ............................................................................................................................... 30
Framework for Eligible Uses Beyond those Enumerated ....................................................................... 32
Premium Pay ............................................................................................................................................... 35
Water & Sewer Infrastructure .................................................................................................................... 37
Broadband Infrastructure ........................................................................................................................... 39
Restrictions on Use ..................................................................................................................................... 41
Program Administration ............................................................................................................................. 43
4
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Introduction
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), a part of the American Rescue Plan,
delivers $350 billion to state, local, and Tribal governments across the country to support their response
to and recovery from the COVID-19 public health emergency. The program ensures that governments
have the resources needed to:
• Fight the pandemic and support families and businesses struggling with its public health and
economic impacts,
• Maintain vital public services, even amid declines in revenue, and
• Build a strong, resilient, and equitable recovery by making investments that support long-term
growth and opportunity.
EARLY PROGRAM IMPLEMENTATION
In May 2021, Treasury published the Interim final rule (IFR) describing eligible and ineligible uses of
funds (as well as other program provisions), sought feedback from the public on these program rules,
and began to distribute funds. The IFR went immediately into effect in May, and since then,
governments have used SLFRF funds to meet their immediate pandemic response needs and begin
building a strong and equitable recovery, such as through providing vaccine incentives, development of
affordable housing, and construction of infrastructure to deliver safe and reliable water.
As governments began to deploy this funding in their communities, Treasury carefully considered the
feedback provided through its public comment process and other forums. Treasury received over 1,500
comments, participated in hundreds of meetings, and received correspondence from a wide range of
governments and other stakeholders.
KEY CHANGES AND CLARIFICATIONS IN THE FINAL RULE
The final rule delivers broader flexibility and greater simplicity in the program, responsive to feedback in
the comment process. Among other clarifications and changes, the final rule provides the features
below.
Replacing Lost Public Sector Revenue
The final rule offers a standard allowance for revenue loss of $10 million, allowing recipients to select
between a standard amount of revenue loss or complete a full revenue loss calculation. Recipients that
select the standard allowance may use that amount – in many cases their full award – for government
services, with streamlined reporting requirements.
Public Health and Economic Impacts
In addition to programs and services, the final rule clarifies that recipients can use funds for capital
expenditures that support an eligible COVID-19 public health or economic response. For example,
recipients may build certain affordable housing, childcare facilities, schools, hospitals, and other projects
consistent with final rule requirements.
5
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
In addition, the final rule provides an expanded set of households and communities that are presumed
to be “impacted” and “disproportionately impacted” by the pandemic, thereby allowing recipients to
provide responses to a broad set of households and entities without requiring additional analysis.
Further, the final rule provides a broader set of uses available for these communities as part of COVID-
19 public health and economic response, including making affordable housing, childcare, early learning,
and services to address learning loss during the pandemic eligible in all impacted communities and
making certain community development and neighborhood revitalization activities eligible for
disproportionately impacted communities.
Further, the final rule allows for a broader set of uses to restore and support government employment,
including hiring above a recipient’s pre-pandemic baseline, providing funds to employees that
experienced pay cuts or furloughs, avoiding layoffs, and providing retention incentives.
Premium Pay
The final rule delivers more streamlined options to provide premium pay, by broadening the share of
eligible workers who can receive premium pay without a written justification while maintaining a focus
on lower-income and frontline workers performing essential work.
Water, Sewer & Broadband Infrastructure
The final rule significantly broadens eligible broadband infrastructure investments to address challenges
with broadband access, affordability, and reliability, and adds additional eligible water and sewer
infrastructure investments, including a broader range of lead remediation and stormwater management
projects.
FINAL RULE EFFECTIVE DATE
The final rule takes effect on April 1, 2022. Until that time, the interim final rule remains in effect; funds
used consistently with the IFR while it is in effect are in compliance with the SLFRF program.
However, recipients can choose to take advantage of the final rule’s flexibilities and simplifications now,
even ahead of the effective date. Treasury will not take action to enforce the interim final rule to the
extent that a use of funds is consistent with the terms of the final rule, regardless of when the SLFRF
funds were used. Recipients may consult the Statement Regarding Compliance with the Coronavirus
State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule, which can be found on Treasury’s
website, for more information on compliance with the interim final rule and the final rule.
6
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Overview of the Program
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program provides substantial flexibility
for each jurisdiction to meet local needs within the four separate eligible use categories. This Overview
of the Final Rule addresses the four eligible use categories ordered from the broadest and most flexible
to the most specific.
Recipients may use SLFRF funds to:
• Replace lost public sector revenue, using this funding to provide government services up to the
amount of revenue loss due to the pandemic.
• Recipients may determine their revenue loss by choosing between two options:
• A standard allowance of up to $10 million in aggregate, not to exceed their
award amount, during the program;
• Calculating their jurisdiction’s specific revenue loss each year using Treasury’s
formula, which compares actual revenue to a counterfactual trend.
• Recipients may use funds up to the amount of revenue loss for government services;
generally, services traditionally provided by recipient governments are government
services, unless Treasury has stated otherwise.
• Support the COVID-19 public health and economic response by addressing COVID-19 and its
impact on public health as well as addressing economic harms to households, small businesses,
nonprofits, impacted industries, and the public sector.
• Recipients can use funds for programs, services, or capital expenditures that respond to
the public health and negative economic impacts of the pandemic.
• To provide simple and clear eligible uses of funds, Treasury provides a list of
enumerated uses that recipients can provide to households, populations, or classes (i.e.,
groups) that experienced pandemic impacts.
• Public health eligible uses include COVID-19 mitigation and prevention, medical
expenses, behavioral healthcare, and preventing and responding to violence.
• Eligible uses to respond to negative economic impacts are organized by the type of
beneficiary: assistance to households, small businesses, and nonprofits.
• Each category includes assistance for “impacted” and “disproportionately
impacted” classes: impacted classes experienced the general, broad-based
impacts of the pandemic, while disproportionately impacted classes faced
meaningfully more severe impacts, often due to preexisting disparities.
• To simplify administration, the final rule presumes that some populations and
groups were impacted or disproportionately impacted and are eligible for
responsive services.
7
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
• Eligible uses for assistance to impacted households include aid for re-
employment, job training, food, rent, mortgages, utilities, affordable housing
development, childcare, early education, addressing learning loss, and many
more uses.
• Eligible uses for assistance to impacted small businesses or nonprofits include
loans or grants to mitigate financial hardship, technical assistance for small
businesses, and many more uses.
• Recipients can also provide assistance to impacted industries like travel, tourism, and
hospitality that faced substantial pandemic impacts, or address impacts to the public
sector, for example by re-hiring public sector workers cut during the crisis.
• Recipients providing funds for enumerated uses to populations and groups that
Treasury has presumed eligible are clearly operating consistently with the final rule.
Recipients can also identify (1) other populations or groups, beyond those presumed
eligible, that experienced pandemic impacts or disproportionate impacts and (2) other
programs, services, or capital expenditures, beyond those enumerated, to respond to
those impacts.
• Provide premium pay for eligible workers performing essential work, offering additional
support to those who have and will bear the greatest health risks because of their service in
critical sectors.
• Recipients may provide premium pay to eligible workers – generally those working in-
person in key economic sectors – who are below a wage threshold or non-exempt from
the Fair Labor Standards Act overtime provisions, or if the recipient submits justification
that the premium pay is responsive to workers performing essential work.
• Invest in water, sewer, and broadband infrastructure, making necessary investments to
improve access to clean drinking water, to support vital wastewater and stormwater
infrastructure, and to expand affordable access to broadband internet.
• Recipients may fund a broad range of water and sewer projects, including those eligible
under the EPA’s Clean Water State Revolving Fund, EPA’s Drinking Water State
Revolving Fund, and certain additional projects, including a wide set of lead
remediation, stormwater infrastructure, and aid for private wells and septic units.
• Recipients may fund high-speed broadband infrastructure in areas of need that the
recipient identifies, such as areas without access to adequate speeds, affordable
options, or where connections are inconsistent or unreliable; completed projects must
participate in a low-income subsidy program.
While recipients have considerable flexibility to use funds to address the diverse needs of their
communities, some restrictions on use apply across all eligible use categories. These include:
• For states and territories: No offsets of a reduction in net tax revenue resulting from a change
in state or territory law.
8
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
• For all recipients except for Tribal governments: No extraordinary contributions to a pension
fund for the purpose of reducing an accrued, unfunded liability.
• For all recipients: No payments for debt service and replenishments of rainy day funds; no
satisfaction of settlements and judgments; no uses that contravene or violate the American
Rescue Plan Act, Uniform Guidance conflicts of interest requirements, and other federal, state,
and local laws and regulations.
Under the SLFRF program, funds must be used for costs incurred on or after March 3, 2021. Further,
funds must be obligated by December 31, 2024, and expended by December 31, 2026. This time period,
during which recipients can expend SLFRF funds, is the “period of performance.”
In addition to SLFRF, the American Rescue Plan includes other sources of funding for state and local
governments, including the Coronavirus Capital Projects Fund to fund critical capital investments
including broadband infrastructure; the Homeowner Assistance Fund to provide relief for our country’s
most vulnerable homeowners; the Emergency Rental Assistance Program to assist households that are
unable to pay rent or utilities; and the State Small Business Credit Initiative to fund small business credit
expansion initiatives. Eligible recipients are encouraged to visit the Treasury website for more
information.
9
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Replacing Lost Public Sector Revenue
The Coronavirus State and Local Fiscal Recovery Funds provide needed fiscal relief for recipients that
have experienced revenue loss due to the onset of the COVID-19 public health emergency. Specifically,
SLFRF funding may be used to pay for “government services” in an amount equal to the revenue loss
experienced by the recipient due to the COVID-19 public health emergency.
Government services generally include any service traditionally provided by a government, including
construction of roads and other infrastructure, provision of public safety and other services, and health
and educational services. Funds spent under government services are subject to streamlined reporting
and compliance requirements.
In order to use funds under government services, recipients should first determine revenue loss. They
may, then, spend up to that amount on general government services.
DETERMINING REVENUE LOSS
Recipients have two options for how to determine their amount of revenue loss. Recipients must choose
one of the two options and cannot switch between these approaches after an election is made.
1. Recipients may elect a “standard allowance” of $10 million to spend on government services
through the period of performance.
Under this option, which is newly offered in the final rule Treasury presumes that up to $10
million in revenue has been lost due to the public health emergency and recipients are
permitted to use that amount (not to exceed the award amount) to fund “government services.”
The standard allowance provides an estimate of revenue loss that is based on an extensive
analysis of average revenue loss across states and localities, and offers a simple, convenient way
to determine revenue loss, particularly for SLFRF’s smallest recipients.
All recipients may elect to use this standard allowance instead of calculating lost revenue using
the formula below, including those with total allocations of $10 million or less. Electing the
standard allowance does not increase or decrease a recipient’s total allocation.
2. Recipients may calculate their actual revenue loss according to the formula articulated in the
final rule.
Under this option, recipients calculate revenue loss at four distinct points in time, either at the
end of each calendar year (e.g., December 31 for years 2020, 2021, 2022, and 2023) or the end
of each fiscal year of the recipient. Under the flexibility provided in the final rule, recipients can
choose whether to use calendar or fiscal year dates but must be consistent throughout the
period of performance. Treasury has also provided several adjustments to the definition of
general revenue in the final rule.
To calculate revenue loss at each of these dates, recipients must follow a four-step process:
10
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
a. Calculate revenues collected in the most recent full fiscal year prior to the public health
emergency (i.e., last full fiscal year before January 27, 2020), called the base year
revenue.
b. Estimate counterfactual revenue, which is equal to the following formula, where n is the
number of months elapsed since the end of the base year to the calculation date:
𝑎𝑎𝑟𝑑 𝑦𝑑𝑎𝑟 𝑟𝑑𝑟𝑑𝑚𝑟𝑑 × (1 +𝑔𝑟𝑚𝑟𝑟ℎ 𝑎𝑑𝑗𝑟𝑟𝑟𝑚𝑑𝑚𝑟)
𝑛
12
The growth adjustment is the greater of either a standard growth rate—5.2 percent—or
the recipient’s average annual revenue growth in the last full three fiscal years prior to
the COVID-19 public health emergency.
c. Identify actual revenue, which equals revenues collected over the twelve months
immediately preceding the calculation date.
Under the final rule, recipients must adjust actual revenue totals for the effect of tax
cuts and tax increases that are adopted after the date of adoption of the final rule
(January 6, 2022). Specifically, the estimated fiscal impact of tax cuts and tax increases
adopted after January 6, 2022, must be added or subtracted to the calculation of actual
revenue for purposes of calculation dates that occur on or after April 1, 2022.
Recipients may subtract from their calculation of actual revenue the effect of tax
increases enacted prior to the adoption of the final rule. Note that recipients that elect
to remove the effect of tax increases enacted before the adoption of the final rule must
also remove the effect of tax decreases enacted before the adoption of the final rule,
such that they are accurately removing the effect of tax policy changes on revenue.
d. Revenue loss for the calculation date is equal to counterfactual revenue minus actual
revenue (adjusted for tax changes) for the twelve-month period. If actual revenue
exceeds counterfactual revenue, the loss is set to zero for that twelve-month period.
Revenue loss for the period of performance is the sum of the revenue loss on for each
calculation date.
The supplementary information in the final rule provides an example of this calculation, which
recipients may find helpful, in the Revenue Loss section.
11
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
SPENDING ON GOVERNMENT SERVICES
Recipients can use SLFRF funds on government services up to the revenue loss amount, whether that be
the standard allowance amount or the amount calculated using the above approach. Government
services generally include any service traditionally provided by a government, unless Treasury has
stated otherwise. Here are some common examples, although this list is not exhaustive:
✓ Construction of schools and hospitals
✓ Road building and maintenance, and
other infrastructure
✓ Health services
✓ General government administration,
staff, and administrative facilities
✓ Environmental remediation
✓ Provision of police, fire, and other public
safety services (including purchase of
fire trucks and police vehicles)
Government services is the most flexible eligible use category under the SLFRF program, and funds are
subject to streamlined reporting and compliance requirements. Recipients should be mindful that
certain restrictions, which are detailed further in the Restrictions on Use section and apply to all uses of
funds, apply to government services as well.
12
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Responding to Public Health and Economic Impacts of COVID-19
The Coronavirus State and Local Fiscal Recovery Funds provide resources for governments to meet the
public health and economic needs of those impacted by the pandemic in their communities, as well as
address longstanding health and economic disparities, which amplified the impact of the pandemic in
disproportionately impacted communities, resulting in more severe pandemic impacts.
The eligible use category to respond to public health and negative economic impacts is organized
around the types of assistance a recipient may provide and includes several sub-categories:
• public health,
• assistance to households,
• assistance to small businesses,
• assistance to nonprofits,
• aid to impacted industries, and
• public sector capacity.
In general, to identify eligible uses of funds in this category, recipients should (1) identify a COVID-19
public health or economic impact on an individual or class (i.e., a group) and (2) design a program that
responds to that impact. Responses should be related and reasonably proportional to the harm
identified and reasonably designed to benefit those impacted.
To provide simple, clear eligible uses of funds that meet this standard, Treasury provides a non-
exhaustive list of enumerated uses that respond to pandemic impacts. Treasury also presumes that
some populations experienced pandemic impacts and are eligible for responsive services. In other
words, recipients providing enumerated uses of funds to populations presumed eligible are clearly
operating consistently with the final rule.1
Recipients also have broad flexibility to (1) identify and respond to other pandemic impacts and (2)
serve other populations that experienced pandemic impacts, beyond the enumerated uses and
presumed eligible populations. Recipients can also identify groups or “classes” of beneficiaries that
experienced pandemic impacts and provide services to those classes.
1 However, please note that use of funds for enumerated uses may not be grossly disproportionate to the harm. Further,
recipients should consult the Capital Expenditures section for more information about pursuing a capital expenditure; please
note that enumerated capital expenditures are not presumed to be reasonably proportional responses to an identified harm
except as provided in the Capital Expenditures section.
13
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Step 1. Identify COVID-19 public health or
economic impact
2. Design a response that addresses or
responds to the impact
Analysis • Can identify impact to a specific
household, business or nonprofit or
to a class of households, businesses,
or nonprofits (i.e., group)
• Can also identify disproportionate
impacts, or more severe impacts, to
a specific beneficiary or to a class
• Types of responses can include a
program, service, or capital
expenditure
• Response should be related and
reasonably proportional to the harm
• Response should also be reasonably
designed to benefit impacted
individual or class
Simplifying
Presumptions • Final Rule presumes certain
populations and classes are impacted
and disproportionately impacted
• Final Rule provides non-exhaustive
list of enumerated eligible uses that
respond to pandemic impacts and
disproportionate impacts
To assess eligibility of uses of funds, recipients should first determine the sub-category where their use
of funds may fit (e.g., public health, assistance to households, assistance to small businesses), based on
the entity that experienced the health or economic impact.2 Then, recipients should refer to the relevant
section for more details on each sub-category.
While the same overall eligibility standard applies to all uses of funds to respond to the public health
and negative economic impacts of the pandemic, each sub-category has specific nuances on its
application. In addition:
• Recipients interested in using funds for capital expenditures (i.e., investments in property,
facilities, or equipment) should review the Capital Expenditures section in addition to the
eligible use sub-category.
• Recipients interested in other uses of funds, beyond the enumerated uses, should refer to the
section on “Framework for Eligible Uses Beyond Those Enumerated.”
2 For example, a recipient interested in providing aid to unemployed individuals is addressing a negative economic impact
experienced by a household and should refer to the section on assistance to households. Recipients should also be aware of the
difference between “beneficiaries” and “sub-recipients.” Beneficiaries are households, small businesses, or nonprofits that can
receive assistance based on impacts of the pandemic that they experienced. On the other hand, sub -recipients are
organizations that carry out eligible uses on behalf of a government, often through grants or contracts. Sub-recipients do not
need to have experienced a negative economic impact of the pandemic; rather, they are providing services to beneficiaries that
experienced an impact.
14
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
RESPONDING TO THE PUBLIC HEALTH EMERGENCY
While the country has made tremendous progress in the fight against COVID-19, including a historic
vaccination campaign, the disease still poses a grave threat to Americans’ health and the economy.
Providing state, local, and Tribal governments the resources needed to fight the COVID-19 pandemic is a
core goal of the Coronavirus State and Local Fiscal Recovery Funds, as well as addressing the other ways
that the pandemic has impacted public health. Treasury has identified several public health impacts of
the pandemic and enumerated uses of funds to respond to impacted populations.
• COVID-19 mitigation and prevention. The pandemic has broadly impacted Americans and recipients
can provide services to prevent and mitigate COVID-19 to the general public or to small businesses,
nonprofits, and impacted industries in general. Enumerated eligible uses include:
✓ Vaccination programs, including vaccine
incentives and vaccine sites
✓ Testing programs, equipment and sites
✓ Monitoring, contact tracing & public
health surveillance (e.g., monitoring for
variants)
✓ Public communication efforts
✓ Public health data systems
✓ COVID-19 prevention and treatment
equipment, such as ventilators and
ambulances
✓ Medical and PPE/protective supplies
✓ Support for isolation or quarantine
✓ Ventilation system installation and
improvement
✓ Technical assistance on mitigation of
COVID-19 threats to public health and
safety
✓ Transportation to reach vaccination or
testing sites, or other prevention and
mitigation services for vulnerable
populations
✓ Support for prevention, mitigation, or
other services in congregate living
facilities, public facilities, and schools
✓ Support for prevention and mitigation
strategies in small businesses, nonprofits,
and impacted industries
✓ Medical facilities generally dedicated to
COVID-19 treatment and mitigation (e.g.,
ICUs, emergency rooms)
✓ Temporary medical facilities and other
measures to increase COVID-19 treatment
capacity
✓ Emergency operations centers &
emergency response equipment (e.g.,
emergency response radio systems)
✓ Public telemedicine capabilities for COVID-
19 related treatment
15
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
• Medical expenses. Funds may be used for expenses to households, medical providers, or others that
incurred medical costs due to the pandemic, including:
✓ Unreimbursed expenses for medical care
for COVID-19 testing or treatment, such
as uncompensated care costs for
medical providers or out-of-pocket costs
for individuals
✓ Paid family and medical leave for public
employees to enable compliance with
COVID-19 public health precautions
✓ Emergency medical response expenses
✓ Treatment of long-term symptoms or effects
of COVID-19
• Behavioral health care, such as mental health treatment, substance use treatment, and other
behavioral health services. Treasury recognizes that the pandemic has broadly impacted Americans’
behavioral health and recipients can provide these services to the general public to respond.
Enumerated eligible uses include:
✓ Prevention, outpatient treatment,
inpatient treatment, crisis care,
diversion programs, outreach to
individuals not yet engaged in
treatment, harm reduction & long-term
recovery support
✓ Enhanced behavioral health services in
schools
✓ Services for pregnant women or infants
born with neonatal abstinence
syndrome
✓ Support for equitable access to reduce
disparities in access to high-quality
treatment
✓ Peer support groups, costs for residence in
supportive housing or recovery housing, and
the 988 National Suicide Prevention Lifeline
or other hotline services
✓ Expansion of access to evidence-based
services for opioid use disorder prevention,
treatment, harm reduction, and recovery
✓ Behavioral health facilities & equipment
• Preventing and responding to violence. Recognizing that violence – and especially gun violence –
has increased in some communities due to the pandemic, recipients may use funds to respond in
these communities through:
✓ Referrals to trauma recovery services for
victims of crime
✓ Community violence intervention
programs, including:
• Evidence-based practices like
focused deterrence, with
wraparound services such as
behavioral therapy, trauma
recovery, job training, education,
housing and relocation services, and
financial assistance
✓ In communities experiencing increased
gun violence due to the pandemic:
• Law enforcement officers focused
on advancing community policing
• Enforcement efforts to reduce gun
violence, including prosecution
• Technology & equipment to support
law enforcement response
16
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
RESPONDING TO NEGATIVE ECONOMIC IMPACTS
The pandemic caused severe economic damage and, while the economy is on track to a strong recovery,
much work remains to continue building a robust, resilient, and equitable economy in the wake of the
crisis and to ensure that the benefits of this recovery reach all Americans. While the pandemic impacted
millions of American households and businesses, some of its most severe impacts fell on low-income
and underserved communities, where pre-existing disparities amplified the impact of the pandemic and
where the most work remains to reach a full recovery.
The final rule recognizes that the pandemic caused broad-based impacts that affected many
communities, households, and small businesses across the country; for example, many workers faced
unemployment and many small businesses saw declines in revenue. The final rule describes these as
“impacted" households, communities, small businesses, and nonprofits.
At the same time, the pandemic caused disproportionate impacts, or more severe impacts, in certain
communities. For example, low-income and underserved communities have faced more severe health
and economic outcomes like higher rates of COVID-19 mortality and unemployment, often because pre-
existing disparities exacerbated the impact of the pandemic. The final rule describes these as
“disproportionately impacted” households, communities, small businesses, and nonprofits.
To simplify administration of the program, the final rule presumes that certain populations were
“impacted” and “disproportionately impacted” by the pandemic; these populations are presumed to be
eligible for services that respond to the impact they experienced. The final rule also enumerates a non-
exhaustive list of eligible uses that are recognized as responsive to the impacts or disproportionate
impacts of COVID-19. Recipients providing enumerated uses to populations presumed eligible are clearly
operating consistently with the final rule.
As discussed further in the section Framework for Eligible Uses Beyond Those Enumerated, recipients
can also identify other pandemic impacts, impacted or disproportionately impacted populations or
classes, and responses.
17
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Assistance to Households
Impacted Households and Communities
Treasury presumes the following households and communities are impacted by the pandemic:
✓ Low- or-moderate income households or
communities
✓ Households that experienced
unemployment
✓ Households that experienced increased
food or housing insecurity
✓ Households that qualify for the Children’s
Health Insurance Program, Childcare
Subsidies through the Child Care
Development Fund (CCDF) Program, or
Medicaid
✓ When providing affordable housing programs:
households that qualify for the National Housing
Trust Fund and Home Investment Partnerships
Program
✓ When providing services to address lost
instructional time in K-12 schools: any student
that lost access to in-person instruction for a
significant period of time
Low- or moderate-income households and communities are those with (i) income at or below 300
percent of the Federal Poverty Guidelines for the size of the household based on the most recently
published poverty guidelines or (ii) income at or below 65 percent of the area median income for the
county and size of household based on the most recently published data. For the vast majority of
communities, the Federal Poverty Guidelines are higher than the area’s median income and using the
Federal Poverty Guidelines would result in more households and communities being presumed eligible.
Treasury has provided an easy-to-use spreadsheet with Federal Poverty Guidelines and area median
income levels on its website.
Recipients can measure income for a specific household or the median income for the community,
depending on whether the response they plan to provide serves specific households or the general
community. The income thresholds vary by household size; recipients should generally use income
thresholds for the appropriate household size but can use a default household size of three when easier
for administration or when measuring income for a general community.
The income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $65,880
per year.3 In other words, recipients can always presume that a household earning below this level, or a
community with median income below this level, is impacted by the pandemic and eligible for services
to respond. Additionally, by following the steps detailed in the section Framework for Eligible Uses
Beyond Those Enumerated, recipients may designate additional households as impacted or
disproportionately impacted beyond these presumptions, and may also pursue projects not listed below
in response to these impacts consistent with Treasury’s standards.
3 For recipients in Alaska, the income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $82,350
per year. For recipients in Hawaii, the income limit for 300 percent of the Federal Poverty Guidelines for a household of three is
$75,780 per year.
18
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Treasury recognizes the enumerated projects below, which have been expanded under the final rule, as
eligible to respond to impacts of the pandemic on households and communities:
✓ Food assistance & food banks
✓ Emergency housing assistance: rental
assistance, mortgage assistance, utility
assistance, assistance paying delinquent
property taxes, counseling and legal aid to
prevent eviction and homelessness &
emergency programs or services for homeless
individuals, including temporary residences
for people experiencing homelessness
✓ Health insurance coverage expansion
✓ Benefits for surviving family members of
individuals who have died from COVID-19
✓ Assistance to individuals who want and are
available for work, including job training,
public jobs programs and fairs, support for
childcare and transportation to and from a
jobsite or interview, incentives for newly-
employed workers, subsidized employment,
grants to hire underserved workers,
assistance to unemployed individuals to start
small businesses & development of job and
workforce training centers
✓ Financial services for the unbanked and
underbanked
✓ Burials, home repair & home weatherization
✓ Programs, devices & equipment for internet
access and digital literacy, including subsidies
for costs of access
✓ Cash assistance
✓ Paid sick, medical, and family leave programs
✓ Assistance in accessing and applying for
public benefits or services
✓ Childcare and early learning services, home
visiting programs, services for child welfare-
involved families and foster youth & childcare
facilities
✓ Assistance to address the impact of learning
loss for K-12 students (e.g., high-quality
tutoring, differentiated instruction)
✓ Programs or services to support long-term
housing security: including development of
affordable housing and permanent
supportive housing
✓ Certain contributions to an Unemployment
Insurance Trust Fund4
4 Recipients may only use SLFRF funds for contributions to unemployment insurance trust funds and repayment of the principal
amount due on advances received under Title XII of the Social Security Act up to an amount equal to (i) the difference between
the balance in the recipient’s unemployment insurance trust fund as of January 27, 2020 and the balance of such account as of
May 17, 2021, plus (ii) the principal amount outstanding as of May 17, 2021 on any advances received under Title XII of the
Social Security Act between January 27, 2020 and May 17, 2021. Further, recipients may use SLFRF funds for the payment of
any interest due on such Title XII advances. Additionally, a recipient that deposits SLFRF funds into its unemployment insurance
trust fund to fully restore the pre-pandemic balance may not draw down that balance and deposit more SLFRF funds, back up
to the pre-pandemic balance. Recipients that deposit SLFRF funds into an unemployment insurance trust fund, or use SLFRF
funds to repay principal on Title XII advances, may not take action to reduce benefits available to unemployed workers by
changing the computation method governing regular unemployment compensation in a way that results in a reduction of
average weekly benefit amounts or the number of weeks of benefits payable (i.e., maximum benefit entitlement).
19
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Disproportionately Impacted Households and Communities
Treasury presumes the following households and communities are disproportionately impacted by the
pandemic:
✓ Low -income households and communities
✓ Households residing in Qualified Census
Tracts
✓ Households that qualify for certain federal
5benefits
✓ Households receiving services provided by
Tribal governments
✓ Households residing in the U.S. territories or
receiving services from these governments
Low-income households and communities are those with (i) income at or below 185 percent of the
Federal Poverty Guidelines for the size of its household based on the most recently published poverty
guidelines or (ii) income at or below 40 percent of area median income for its county and size of
household based on the most recently published data. For the vast majority of communities, the Federal
Poverty Guidelines level is higher than the area median income level and using this level would result in
more households and communities being presumed eligible. Treasury has provided an easy-to-use
spreadsheet with Federal Poverty Guidelines and area median income levels on its website.
Recipients can measure income for a specific household or the median income for the community,
depending on whether the service they plan to provide serves specific households or the general
community. The income thresholds vary by household size; recipients should generally use income
thresholds for the appropriate household size but can use a default household size of three when easier
for administration or when measuring income for a general community.
The income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $40,626
per year.6 In other words, recipients can always presume that a household earning below this level, or a
community with median income below this level, is disproportionately impacted by the pandemic and
eligible for services to respond.
5 These programs are Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP),
Free- and Reduced-Price Lunch (NSLP) and/or School Breakfast (SBP) programs, Medicare Part D Low-Income Subsidies,
Supplemental Security Income (SSI), Head Start and/or Early Head Start, Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC), Section 8 Vouchers, Low-Income Home Energy Assistance Program (LIHEAP), and Pell Grants. For
services to address educational disparities, Treasury will recognize Title I eligible schools as disproportionately impacted and
responsive services that support the school generally or support the whole school as eligible.
6 For recipients in Alaska, the income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $50,783
per year. For recipients in Hawaii, the income limit for 185 percent of the Federal Poverty Guidelines for a household of three is
$46,731 per year
20
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Treasury recognizes the enumerated projects below, which have been expanded under the final rule, as
eligible to respond to disproportionate impacts of the pandemic on households and communities:
✓ Pay for community health workers to help
households access health & social services
✓ Remediation of lead paint or other lead
hazards
✓ Primary care clinics, hospitals, integration of
health services into other settings, and other
investments in medical equipment & facilities
designed to address health disparities
✓ Housing vouchers & assistance relocating to
neighborhoods with higher economic
opportunity
✓ Investments in neighborhoods to promote
improved health outcomes
✓ Improvements to vacant and abandoned
properties, including rehabilitation or
maintenance, renovation, removal and
remediation of environmental contaminants,
demolition or deconstruction, greening/vacant lot
cleanup & conversion to affordable housing7
✓ Services to address educational disparities,
including assistance to high-poverty school
districts & educational and evidence-based
services to address student academic, social,
emotional, and mental health needs
✓ Schools and other educational equipment &
facilities
7 Please see the final rule for further details and conditions applicable to this eligible use. This includes Treasury’s presumption
that demolition of vacant or abandoned residential properties that results in a net reduction in occupiable housing units for
low- and moderate-income individuals in an area where the availability of such housing is lower than the need for such housing
is ineligible for support with SLFRF funds.
21
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Assistance to Small Businesses
Small businesses have faced widespread challenges due to the pandemic, including periods of
shutdown, declines in revenue, or increased costs. The final rule provides many tools for recipients to
respond to the impacts of the pandemic on small businesses, or disproportionate impacts on businesses
where pre-existing disparities like lack of access to capital compounded the pandemic’s effects.
Small businesses eligible for assistance are those that experienced negative economic impacts or
disproportionate impacts of the pandemic and meet the definition of “small business,” specifically:
1. Have no more than 500 employees, or if applicable, the size standard in number of employees
established by the Administrator of the Small Business Administration for the industry in which
the business concern or organization operates, and
2. Are a small business concern as defined in section 3 of the Small Business Act8 (which includes,
among other requirements, that the business is independently owned and operated and is not
dominant in its field of operation).
Impacted Small Businesses
Recipients can identify small businesses impacted by the pandemic, and measures to respond, in many
ways; for example, recipients could consider:
✓ Decreased revenue or gross receipts
✓ Financial insecurity
✓ Increased costs
✓ Capacity to weather financial hardship
✓ Challenges covering payroll, rent or
mortgage, and other operating costs
Assistance to small businesses that experienced negative economic impacts includes the following
enumerated uses:
✓ Loans or grants to mitigate financial
hardship, such as by supporting payroll
and benefits, costs to retain employees,
and mortgage, rent, utility, and other
operating costs
✓ Technical assistance, counseling, or other
services to support business planning
Disproportionately Impacted Small Businesses
Treasury presumes that the following small businesses are disproportionately impacted by the
pandemic:
8 15 U.S.C. 632.
22
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
✓ Small businesses operating in Qualified
Census Tracts
✓ Small businesses operated by Tribal
governments or on Tribal lands
✓ Small businesses operating in the U.S.
territories
Assistance to disproportionately impacted small businesses includes the following enumerated uses,
which have been expanded under the final rule:
✓ Rehabilitation of commercial properties,
storefront improvements & façade
improvements
✓ Technical assistance, business incubators &
grants for start-up or expansion costs for
small businesses
✓ Support for microbusinesses, including
financial, childcare, and transportation costs
23
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Assistance to Nonprofits
Nonprofits have faced significant challenges due to the pandemic’s increased demand for services and
changing operational needs, as well as declines in revenue sources such as donations and fees.
Nonprofits eligible for assistance are those that experienced negative economic impacts or
disproportionate impacts of the pandemic and meet the definition of “nonprofit”—specifically those
that are 501(c)(3) or 501(c)(19) tax-exempt organizations.
Impacted Nonprofits
Recipients can identify nonprofits impacted by the pandemic, and measures to respond, in many ways;
for example, recipients could consider:
✓ Decreased revenue (e.g., from donations
and fees)
✓ Financial insecurity
✓ Increased costs (e.g., uncompensated
increases in service need)
✓ Capacity to weather financial hardship
✓ Challenges covering payroll, rent or
mortgage, and other operating costs
Assistance to nonprofits that experienced negative economic impacts includes the following
enumerated uses:
✓ Loans or grants to mitigate financial
hardship
✓ Technical or in-kind assistance or other
services that mitigate negative economic
impacts of the pandemic
Disproportionately Impacted Nonprofits
Treasury presumes that the following nonprofits are disproportionately impacted by the pandemic:
✓ Nonprofits operating in Qualified Census
Tracts
✓ Nonprofits operated by Tribal
governments or on Tribal lands
✓ Nonprofits operating in the U.S. territories
Recipients may identify appropriate responses that are related and reasonably proportional to
addressing these disproportionate impacts.
24
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Aid to Impacted Industries
Recipients may use SLFRF funding to provide aid to industries impacted by the COVID-19 pandemic.
Recipients should first designate an impacted industry and then provide aid to address the impacted
industry’s negative economic impact.
This sub-category of eligible uses does not separately identify disproportionate impacts and
corresponding responsive services.
1. Designating an impacted industry. There are two main ways an industry can be designated as
“impacted.”
1. If the industry is in the travel, tourism, or hospitality sectors (including Tribal development
districts), the industry is impacted.
2. If the industry is outside the travel, tourism, or hospitality sectors, the industry is impacted
if:
a. The industry experienced at least 8 percent employment loss from pre-pandemic
levels,9 or
b. The industry is experiencing comparable or worse economic impacts as the national
tourism, travel, and hospitality industries as of the date of the final rule, based on
the totality of economic indicators or qualitative data (if quantitative data is
unavailable), and if the impacts were generally due to the COVID-19 public health
emergency.
Recipients have flexibility to define industries broadly or narrowly, but Treasury encourages
recipients to define narrow and discrete industries eligible for aid. State and territory recipients
also have flexibility to define the industries with greater geographic precision; for example, a
state may identify a particular industry in a certain region of a state as impacted.
2. Providing eligible aid to the impacted industry. Aid may only be provided to support
businesses, attractions, and Tribal development districts operating prior to the pandemic and
affected by required closures and other efforts to contain the pandemic. Further, aid should be
generally broadly available to all businesses within the impacted industry to avoid potential
conflicts of interest, and Treasury encourages aid to be first used for operational expenses, such
as payroll, before being used on other types of costs.
9 Specifically, a recipient should compare the percent change in the number of employees of the recipient’s identified industry
and the national Leisure & Hospitality sector in the three months before the pandemic’s most severe impacts began (a straight
three-month average of seasonally-adjusted employment data from December 2019, January 2020, and February 2020) with
the latest data as of the final rule (a straight three-month average of seasonally-adjusted employment data from September
2021, October 2021, and November 2021). For parity and simplicity, smaller recipients without employment data that measure
industries in their specific jurisdiction may use data available for a broader unit of government for this calculation (e.g., a
county may use data from the state in which it is located; a city may use data for the county, if available, or state in which it is
located) solely for purposes of determining whether a particular industry is an impacted industry.
25
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Treasury recognizes the enumerated projects below as eligible responses to impacted
industries.
✓ Aid to mitigate financial hardship, such
as supporting payroll costs, lost pay and
benefits for returning employees,
support of operations and maintenance
of existing equipment and facilities
✓ Technical assistance, counseling, or
other services to support business
planning
✓ COVID-19 mitigation and infection
prevention measures (see section Public
Health)
As with all eligible uses, recipients may pursue a project not listed above by undergoing the steps
outlined in the section Framework for Eligible Uses Beyond Those Enumerated.
26
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
PUBLIC SECTOR CAPACITY
Recipients may use SLFRF funding to restore and bolster public sector capacity, which supports
government’s ability to deliver critical COVID-19 services. There are three main categories of eligible
uses to bolster public sector capacity and workforce: Public Safety, Public Health, and Human Services
Staff; Government Employment and Rehiring Public Sector Staff; and Effective Service Delivery.
Public Safety, Public Health, and Human Services Staff
SLFRF funding may be used for payroll and covered benefits for public safety, public health, health care,
human services and similar employees of a recipient government, for the portion of the employee’s
time spent responding to COVID-19. Recipients should follow the steps below.
1. Identify eligible public safety, public health, and human services staff. Public safety staff include:
✓ Police officers (including state police
officers)
✓ Sheriffs and deputy sheriffs
✓ Firefighters
✓ Emergency medical responders
✓ Correctional and detention officers
✓ Dispatchers and supervisor personnel
that directly support public safety staff
Public health staff include:
✓ Employees involved in providing medical
and other physical or mental health
services to patients and supervisory
personnel, including medical staff
assigned to schools, prisons, and other
such institutions
✓ Laboratory technicians, medical
examiners, morgue staff, and other
support services essential for patient
care
✓ Employees of public health
departments directly engaged in
public health matters and related
supervisory personnel
Human services staff include:
✓ Employees providing or administering
social services and public benefits
✓ Child welfare services employees
✓ Child, elder, or family care employees
2. Assess portion of time spent on COVID-19 response for eligible staff.
Recipients can use a variety of methods to assess the share of an employees’ time spent responding
to COVID-19, including using reasonable estimates—such as estimating the share of time based on
discussions with staff and applying that share to all employees in that position.
For administrative convenience, recipients can consider public health and safety employees entirely
devoted to responding to COVID-19 (and their payroll and benefits fully covered by SLFRF) if the
27
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
employee, or his or her operating unit or division, is “primarily dedicated” to responding to COVID-
19. Primarily dedicated means that more than half of the employee, unit, or division’s time is
dedicated to responding to COVID-19.
Recipients must periodically reassess their determination and maintain records to support their
assessment, although recipients do not need to track staff hours.
3. Use SLFRF funding for payroll and covered benefits for the portion of eligible staff time spent on
COVID-19 response. SLFRF funding may be used for payroll and covered benefits for the portion of
the employees’ time spent on COVID-19 response, as calculated above, through the period of
performance.
Government Employment and Rehiring Public Sector Staff
Under the increased flexibility of the final rule, SLFRF funding may be used to support a broader set of
uses to restore and support public sector employment. Eligible uses include hiring up to a pre-pandemic
baseline that is adjusted for historic underinvestment in the public sector, providing additional funds for
employees who experienced pay cuts or were furloughed, avoiding layoffs, providing worker retention
incentives, and paying for ancillary administrative costs related to hiring, support, and retention.
• Restoring pre-pandemic employment. Recipients have two options to restore pre-pandemic
employment, depending on the recipient’s needs.
• If the recipient simply wants to hire back employees for pre-pandemic positions: Recipients
may use SLFRF funds to hire employees for the same positions that existed on January 27,
2020 but that were unfilled or eliminated as of March 3, 2021. Recipients may use SLFRF
funds to cover payroll and covered benefits for such positions through the period of
performance.
• If the recipient wants to hire above the pre-pandemic baseline and/or would like to have
flexibility in positions: Recipients may use SLFRF funds to pay for payroll and covered
benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5
percent above its pre-pandemic baseline. Specifically, recipients should undergo the
following steps:
a. Identify the recipient’s budgeted FTE level on January 27, 2020. This includes all
budgeted positions, filled and unfilled. This is called the pre-pandemic baseline.
b. Multiply the pre-pandemic baseline by 1.075. This is called the adjusted pre-
pandemic baseline.
c. Identify the recipient’s budgeted FTE level on March 3, 2021, which is the beginning
of the period of performance for SLFRF funds. Recipients may, but are not required
to, exclude the number of FTEs dedicated to responding to the COVID-19 public
health emergency. This is called the actual number of FTEs.
d. Subtract the actual number of FTEs from the adjusted pre-pandemic baseline to
calculate the number of FTEs that can be covered by SLFRF funds. Recipients do not
have to hire for the same roles that existed pre-pandemic.
28
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Recipients may use SLFRF funds to cover payroll and covered benefits through the period of
performance; these employees must have begun their employment on or after March 3,
2021. Recipients may only use SLFRF funds for additional FTEs hired over the March 3, 2021
level (i.e., the actual number of FTEs).
• Supporting and retaining public sector workers. Recipients can also use funds in other ways
that support the public sector workforce.10 These include:
o Providing additional funding for employees who experienced pay reductions or were
furloughed since the onset of the pandemic, up to the difference in the employee’s pay,
taking into account unemployment benefits received.
o Maintaining current compensation levels to prevent layoffs. SLFRF funds may be used
to maintain current compensation levels, with adjustments for inflation, in order to
prevent layoffs that would otherwise be necessary.
o Providing worker retention incentives, including reasonable increases in
compensation to persuade employees to remain with the employer as compared to
other employment options. Retention incentives must be entirely additive to an
employee’s regular compensation, narrowly tailored to need, and should not exceed
incentives traditionally offered by the recipient or compensation that alternative
employers may offer to compete for the employees. Treasury presumes that retention
incentives that are less than 25 percent of the rate of base pay for an individual
employee or 10 percent for a group or category of employees are reasonably
proportional to the need to retain employees, as long as other requirements are met.
• Covering administrative costs associated with administering the hiring, support, and retention
programs above.
Effective Service Delivery
SLFRF funding may be used to improve the efficacy of public health and economic programs through
tools like program evaluation, data, and outreach, as well as to address administrative needs caused or
exacerbated by the pandemic. Eligible uses include:
• Supporting program evaluation, data, and outreach through:
10 Recipients should be able to substantiate that these uses of funds are substantially due to the public health emergency or its
negative economic impacts (e.g., fiscal pressures on state and local budgets) and respond to its impacts. See the final rule for
details on these uses.
29
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
✓ Program evaluation and evidence
resources
✓ Data analysis resources to gather,
assess, share, and use data
✓ Technology infrastructure to improve
access to and the user experience of
government IT systems, as well as
technology improvements to increase
public access and delivery of
government programs and services
✓ Community outreach and engagement
activities
✓ Capacity building resources to support
using data and evidence, including
hiring staff, consultants, or technical
assistance support
• Addressing administrative needs, including:
✓ Administrative costs for programs
responding to the public health
emergency and its economic impacts,
including non-SLFRF and non-federally
funded programs
✓ Address administrative needs caused
or exacerbated by the pandemic,
including addressing backlogs caused
by shutdowns, increased repair or
maintenance needs, and technology
infrastructure to adapt government
operations to the pandemic (e.g.,
video-conferencing software, data and
case management systems)
30
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
CAPITAL EXPENDITURES
As described above, the final rule clarifies that recipients may use funds for programs, services, and
capital expenditures that respond to the public health and negative economic impacts of the pandemic.
Any use of funds in this category for a capital expenditure must comply with the capital expenditure
requirements, in addition to other standards for uses of funds.
Capital expenditures are subject to the same eligibility standard as other eligible uses to respond to the
pandemic’s public health and economic impacts; specifically, they must be related and reasonably
proportional to the pandemic impact identified and reasonably designed to benefit the impacted
population or class.
For ease of administration, the final rule identifies enumerated types of capital expenditures that
Treasury has identified as responding to the pandemic’s impacts; these are listed in the applicable sub-
category of eligible uses (e.g., public health, assistance to households, etc.). Recipients may also identify
other responsive capital expenditures. Similar to other eligible uses in the SLFRF program, no pre-
approval is required for capital expenditures.
To guide recipients’ analysis of whether a capital expenditure meets the eligibility standard, recipients
(with the exception of Tribal governments) must complete and meet the requirements of a written
justification for capital expenditures equal to or greater than $1 million. For large-scale capital
expenditures, which have high costs and may require an extended length of time to complete, as well as
most capital expenditures for non-enumerated uses of funds, Treasury requires recipients to submit
their written justification as part of regular reporting. Specifically:
If a project has
total capital
expenditures
of
and the use is enumerated by Treasury
as eligible, then
and the use is beyond those
enumerated by Treasury as eligible,
then
Less than $1
million
No Written Justification required No Written Justification required
Greater than or
equal to $1
million, but
less than $10
million
Written Justification required but
recipients are not required to submit as
part of regular reporting to Treasury Written Justification required and
recipients must submit as part of regular
reporting to Treasury
$10 million or
more
Written Justification required and
recipients must submit as part of regular
reporting to Treasury
A Written Justification includes:
• Description of the harm or need to be addressed. Recipients should provide a description of the
specific harm or need to be addressed and why the harm was exacerbated or caused by the
public health emergency. Recipients may provide quantitative information on the extent and the
type of harm, such as the number of individuals or entities affected.
31
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
• Explanation of why a capital expenditure is appropriate. For example, recipients should include
an explanation of why existing equipment and facilities, or policy changes or additional funding
to pertinent programs or services, would be inadequate.
• Comparison of proposed capital project against at least two alternative capital expenditures and
demonstration of why the proposed capital expenditure is superior. Recipients should consider
the effectiveness of the capital expenditure in addressing the harm identified and the expected
total cost (including pre-development costs) against at least two alternative capital
expenditures.
Where relevant, recipients should consider the alternatives of improving existing capital assets already
owned or leasing other capital assets.
Treasury presumes that the following capital projects are generally ineligible:
Construction of new correctional
facilities as a response to an increase in
rate of crime
Construction of new congregate
facilities to decrease spread of COVID-19
in the facility
Construction of convention centers,
stadiums, or other large capital projects
intended for general economic
development or to aid impacted
industries
In undertaking capital expenditures, Treasury encourages recipients to adhere to strong labor standards,
including project labor agreements and community benefits agreements that offer wages at or above
the prevailing rate and include local hire provisions. Treasury also encourages recipients to prioritize in
their procurements employers with high labor standards and to prioritize employers without recent
violations of federal and state labor and employment laws.
32
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
FRAMEWORK FOR ELIGIBLE USES BEYOND THOSE ENUMERATED
As described above, recipients have broad flexibility to identify and respond to other pandemic impacts
and serve other populations that experienced pandemic impacts, beyond the enumerated uses and
presumed eligible populations. Recipients should undergo the following steps to decide whether their
project is eligible:
Step 1. Identify COVID-19 public health or
economic impact
2. Design a response that addresses or
responds to the impact
Analysis • Can identify impact to a specific
household, business or nonprofit or to
a class of households, businesses or
nonprofits (i.e., group)
• Can also identify disproportionate
impacts, or more severe impacts, to a
specific beneficiary or to a class
• Types of responses can include a
program, service, or capital
expenditure
• Response should be related and
reasonably proportional to the harm
• Response should also be reasonably
designed to benefit impacted
individual or class
1. Identify a COVID-19 public health or negative economic impact on an individual or a class.
Recipients should identify an individual or class that is “impacted” or “disproportionately
impacted” by the COVID-19 public health emergency or its negative economic impacts as well as
the specific impact itself.
• “Impacted” entities are those impacted by the disease itself or the harmful
consequences of the economic disruptions resulting from or exacerbated by the COVID-
19 public health emergency. For example, an individual who lost their job or a small
business that saw lower revenue during a period of closure would both have
experienced impacts of the pandemic.
• “Disproportionately impacted” entities are those that experienced disproportionate
public health or economic outcomes from the pandemic; Treasury recognizes that pre-
existing disparities, in many cases, amplified the impacts of the pandemic, causing more
severe impacts in underserved communities. For example, a household living in a
neighborhood with limited access to medical care and healthy foods may have faced
health disparities before the pandemic, like a higher rate of chronic health conditions,
that contributed to more severe health outcomes during the COVID-19 pandemic.
The recipient may choose to identify these impacts at either the individual level or at a class
level. If the recipient is identifying impacts at the individual level, they should retain
documentation supporting the impact the individual experienced (e.g., documentation of lost
revenues from a small business). Such documentation can be streamlined in many cases (e.g.,
self-attestation that a household requires food assistance).
Recipients also have broad flexibility to identify a “class” – or a group of households, small
businesses, or nonprofits – that experienced an impact. In these cases, the recipients should
33
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
first identify the class and the impact that it faced. Then, recipients only need to document that
the individuals served fall within that class; recipients do not need to document a specific impact
to each individual served. For example, a recipient could identify that restaurants in the
downtown area faced substantial declines in revenue due to decreased foot traffic from
workers; the recipient could develop a program to respond to the impact on that class and only
needs to document that the businesses being served are restaurants in the downtown area.
Recipients should keep the following considerations in mind when designating a class:
• There should be a relationship between the definition of the class and the proposed
response. Larger and less-specific classes are less likely to have experienced similar
harms, which may make it more difficult to design a response that appropriately
responds to those harms.
• Classes may be determined on a population basis or on a geographic basis, and the
response should be appropriately matched. For example, a response might be designed
to provide childcare to single parents, regardless of which neighborhood they live in, or
a response might provide a park to improve the health of a disproportionately impacted
neighborhood.
• Recipients may designate classes that experienced disproportionate impact, by
assessing the impacts of the pandemic and finding that some populations experienced
meaningfully more severe impacts than the general public. To determine these
disproportionate impacts, recipients:
o May designate classes based on academic research or government research
publications (such as the citations provided in the supplementary information in
the final rule), through analysis of their own data, or through analysis of other
existing data sources.
o May also consider qualitative research and sources to augment their analysis, or
when quantitative data is not readily available. Such sources might include
resident interviews or feedback from relevant state and local agencies, such as
public health departments or social services departments.
o Should consider the quality of the research, data, and applicability of analysis to
their determination in all cases.
• Some of the enumerated uses may also be appropriate responses to the impacts
experienced by other classes of beneficiaries. It is permissible for recipients to provide
these services to other classes, so long as the recipient determines that the response is
also appropriate for those groups.
• Recipients may designate a class based on income level, including at levels higher than
the final rule definition of "low- and moderate-income." For example, a recipient may
identify that households in their community with incomes above the final rule threshold
for low-income nevertheless experienced disproportionate impacts from the pandemic
and provide responsive services.
2. Design a response that addresses or responds to the impact. Programs, services, and other
interventions must be reasonably designed to benefit the individual or class that experienced
34
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
the impact. They must also be related and reasonably proportional to the extent and type of
impact experienced. For example, uses that bear no relation or are grossly disproportionate to
the type or extent of the impact would not be eligible.
“Reasonably proportional” refers to the scale of the response compared to the scale of the
harm, as well as the targeting of the response to beneficiaries compared to the amount of harm
they experienced; for example, it may not be reasonably proportional for a cash assistance
program to provide a very small amount of aid to a group that experienced severe harm and a
much larger amount to a group that experienced relatively little harm. Recipients should
consider relevant factors about the harm identified and the response to evaluate whether the
response is reasonably proportional. For example, recipients may consider the size of the
population impacted and the severity, type, and duration of the impact. Recipients may also
consider the efficacy, cost, cost-effectiveness, and time to delivery of the response.
For disproportionately impacted communities, recipients may design interventions that address
broader pre-existing disparities that contributed to more severe health and economic outcomes
during the pandemic, such as disproportionate gaps in access to health care or pre-existing
disparities in educational outcomes that have been exacerbated by the pandemic.
35
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Premium Pay
The Coronavirus State and Local Fiscal Recovery Funds may be used to provide premium pay to eligible
workers performing essential work during the pandemic. Premium pay may be awarded to eligible
workers up to $13 per hour. Premium pay must be in addition to wages or remuneration (i.e.,
compensation) the eligible worker otherwise receives. Premium pay may not exceed $25,000 for any
single worker during the program.
Recipients should undergo the following steps to provide premium pay to eligible workers.
1. Identify an “eligible” worker. Eligible workers include workers “needed to maintain continuity
of operations of essential critical infrastructure sectors.” These sectors and occupations are
eligible:
✓ Health care
✓ Emergency response
✓ Sanitation, disinfection & cleaning
✓ Maintenance
✓ Grocery stores, restaurants, food
production, and food delivery
✓ Pharmacy
✓ Biomedical research
✓ Behavioral health
✓ Medical testing and diagnostics
✓ Home and community-based health care
or assistance with activities of daily living
✓ Family or child care
✓ Social services
✓ Public health
✓ Mortuary
✓ Critical clinical research, development,
and testing necessary for COVID-19
response
✓ State, local, or Tribal government
workforce
✓ Workers providing vital services to
Tribes
✓ Educational, school nutrition, and other
work required to operate a school
facility
✓ Laundry
✓ Elections
✓ Solid waste or hazardous materials
management, response, and cleanup
✓ Work requiring physical interaction with
patients
✓ Dental care
✓ Transportation and warehousing
✓ Hotel and commercial lodging facilities
that are used for COVID-19 mitigation
and containment
Beyond this list, the chief executive (or equivalent) of a recipient government may designate
additional non-public sectors as critical so long as doing so is necessary to protecting the health
and wellbeing of the residents of such jurisdictions.
2. Verify that the eligible worker performs “essential work,” meaning work that:
• Is not performed while teleworking from a residence; and
• Involves either:
a. regular, in-person interactions with patients, the public, or coworkers of the
individual that is performing the work; or
b. regular physical handling of items that were handled by, or are to be handled by,
patients, the public, or coworkers of the individual that is performing the work.
36
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
3. Confirm that the premium pay “responds to” workers performing essential work during the
COVID-19 public health emergency. Under the final rule, which broadened the share of eligible
workers who can receive premium pay without a written justification, recipients may meet this
requirement in one of three ways:
• Eligible worker receiving premium pay is earning (with the premium included) at or below
150 percent of their residing state or county’s average annual wage for all occupations, as
defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics,
whichever is higher, on an annual basis; or
• Eligible worker receiving premium pay is not exempt from the Fair Labor Standards Act
overtime provisions; or
• If a worker does not meet either of the above requirements, the recipient must submit
written justification to Treasury detailing how the premium pay is otherwise responsive to
workers performing essential work during the public health emergency. This may include a
description of the essential worker’s duties, health, or financial risks faced due to COVID-19,
and why the recipient determined that the premium pay was responsive. Treasury
anticipates that recipients will easily be able to satisfy the justification requirement for
front-line workers, like nurses and hospital staff.
Premium pay may be awarded in installments or lump sums (e.g., monthly, quarterly, etc.) and may be
awarded to hourly, part-time, or salaried or non-hourly workers. Premium pay must be paid in addition
to wages already received and may be paid retrospectively. A recipient may not use SLFRF to merely
reimburse itself for premium pay or hazard pay already received by the worker, and premium pay may
not be paid to volunteers.
37
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Water & Sewer Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in
water and sewer infrastructure. State, local, and Tribal governments have a tremendous need to
address the consequences of deferred maintenance in drinking water systems and removal,
management, and treatment of sewage and stormwater, along with additional resiliency measures
needed to adapt to climate change.
Recipients may undertake the eligible projects below:
PROJECTS ELIGIBLE UNDER EPA’S CLEAN WATER STATE REVOLVING FUND (CWSRF)
Eligible projects under the CWSRF, and the final rule, include:
✓ Construction of publicly owned
treatment works
✓ Projects pursuant to implementation
of a nonpoint source pollution
management program established
under the Clean Water Act (CWA)
✓ Decentralized wastewater treatment
systems that treat municipal
wastewater or domestic sewage
✓ Management and treatment of
stormwater or subsurface drainage
water
✓ Water conservation, efficiency, or
reuse measures
✓ Development and implementation of a
conservation and management plan
under the CWA
✓ Watershed projects meeting the
criteria set forth in the CWA
✓ Energy consumption reduction for
publicly owned treatment works
✓ Reuse or recycling of wastewater,
stormwater, or subsurface drainage
water
✓ Security of publicly owned treatment
works
Treasury encourages recipients to review the EPA handbook for the CWSRF for a full list of eligibilities.
PROJECTS ELIGIBLE UNDER EPA’S DRINKING WATER STATE REVOLVING FUND (DWSRF)
Eligible drinking water projects under the DWSRF, and the final rule, include:
✓ Facilities to improve drinking water
quality
✓ Transmission and distribution,
including improvements of water
pressure or prevention of
contamination in infrastructure and
lead service line replacements
✓ New sources to replace contaminated
drinking water or increase drought
resilience, including aquifer storage
and recovery system for water storage
✓ Green infrastructure, including green
roofs, rainwater harvesting collection,
permeable pavement
✓ Storage of drinking water, such as to
prevent contaminants or equalize
water demands
✓ Purchase of water systems and
interconnection of systems
✓ New community water systems
Treasury encourages recipients to review the EPA handbook for the DWSRF for a full list of eligibilities.
38
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
ADDITIONAL ELIGIBLE PROJECTS
With broadened eligibility under the final rule, SLFRF funds may be used to fund additional types of
projects— such as additional stormwater infrastructure, residential wells, lead remediation, and certain
rehabilitations of dams and reservoirs — beyond the CWSRF and DWSRF, if they are found to be
“necessary” according to the definition provided in the final rule and outlined below.
✓ Culvert repair, resizing, and removal,
replacement of storm sewers, and
additional types of stormwater
infrastructure
✓ Infrastructure to improve access to
safe drinking water for individual
served by residential wells, including
testing initiatives, and
treatment/remediation strategies that
address contamination
✓ Dam and reservoir rehabilitation if
primary purpose of dam or reservoir is
for drinking water supply and project
is necessary for provision of drinking
water
✓ Broad set of lead remediation projects
eligible under EPA grant programs
authorized by the Water
Infrastructure Improvements for the
Nation (WIIN) Act, such as lead
testing, installation of corrosion
control treatment, lead service line
replacement, as well as water quality
testing, compliance monitoring, and
remediation activities, including
replacement of internal plumbing and
faucets and fixtures in schools and
childcare facilities
A “necessary” investment in infrastructure must be:
(1) responsive to an identified need to achieve or maintain an adequate minimum level of service,
which may include a reasonable projection of increased need, whether due to population
growth or otherwise,
(2) a cost-effective means for meeting that need, taking into account available alternatives, and
(3) for investments in infrastructure that supply drinking water in order to meet projected
population growth, projected to be sustainable over its estimated useful life.
Please note that DWSRF and CWSRF-eligible projects are generally presumed to be necessary
investments. Additional eligible projects generally must be responsive to an identified need to achieve
or maintain an adequate minimum level of service. Recipients are only required to assess cost-
effectiveness of projects for the creation of new drinking water systems, dam and reservoir
rehabilitation projects, or projects for the extension of drinking water service to meet population
growth needs. Recipients should review the supplementary information to the final rule for more details
on requirements applicable to each type of investment.
APPLICABLE STANDARDS & REQUIREMENTS
Treasury encourages recipients to adhere to strong labor standards, including project labor agreements
and community benefits agreements that offer wages at or above the prevailing rate and include local
hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with
high labor standards and to prioritize employers without recent violations of federal and state labor and
employment laws.
39
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Broadband Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in
broadband infrastructure, which has been shown to be critical for work, education, healthcare, and civic
participation during the public health emergency. The final rule broadens the set of eligible broadband
infrastructure investments that recipients may undertake.
Recipients may pursue investments in broadband infrastructure meeting technical standards detailed
below, as well as an expanded set of cybersecurity investments.
BROADBAND INFRASTRUCTURE INVESTMENTS
Recipients should adhere to the following requirements when designing a broadband infrastructure
project:
1. Identify an eligible area for investment. Recipients are encouraged to prioritize projects that
are designed to serve locations without access to reliable wireline 100/20 Mbps broadband
service (meaning service that reliably provides 100 Mbps download speed and 20 Mbps upload
speed through a wireline connection), but are broadly able to invest in projects designed to
provide service to locations with an identified need for additional broadband investment.
Recipients have broad flexibility to define need in their community. Examples of need could
include:
✓ Lack of access to a reliable high-speed
broadband connection
✓ Lack of affordable broadband
✓ Lack of reliable service
If recipients are considering deploying broadband to locations where there are existing and
enforceable federal or state funding commitments for reliable service of at least 100/20 Mbps,
recipients must ensure that SLFRF funds are designed to address an identified need for
additional broadband investment that is not met by existing federal or state funding
commitments. Recipients must also ensure that SLFRF funds will not be used for costs that will
be reimbursed by the other federal or state funding streams.
2. Design project to meet high-speed technical standards. Recipients are required to design
projects to, upon completion, reliably meet or exceed symmetrical 100 Mbps download and
upload speeds. In cases where it is not practicable, because of the excessive cost of the project
or geography or topography of the area to be served by the project, eligible projects may be
designed to reliably meet or exceed 100/20 Mbps and be scalable to a minimum of symmetrical
100 Mbps download and upload speeds.
Treasury encourages recipients to prioritize investments in fiber-optic infrastructure wherever
feasible and to focus on projects that will achieve last-mile connections. Further, Treasury
encourages recipients to prioritize support for broadband networks owned, operated by, or
affiliated with local governments, nonprofits, and co-operatives.
40
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
3. Require enrollment in a low-income subsidy program. Recipients must require the service
provider for a broadband project that provides service to households to either:
✓ Participate in the FCC’s Affordable
Connectivity Program (ACP)
✓ Provide access to a broad-based
affordability program to low-income
consumers that provides benefits
commensurate to ACP
Treasury encourages broadband services to also include at least one low-cost option offered
without data usage caps at speeds sufficient for a household with multiple users to
simultaneously telework and engage in remote learning. Recipients are also encouraged to
consult with the community on affordability needs.
CYBERSECURITY INVESTMENTS
SLFRF may be used for modernization of cybersecurity for existing and new broadband infrastructure,
regardless of their speed delivery standards. This includes modernization of hardware and software.
APPLICABLE STANDARDS & REQUIREMENTS
Treasury encourages recipients to adhere to strong labor standards, including project labor agreements
and community benefits agreements that offer wages at or above the prevailing rate and include local
hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with
high labor standards and to prioritize employers without recent violations of federal and state labor and
employment laws.
41
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Restrictions on Use
While recipients have considerable flexibility to use Coronavirus State and Local Fiscal Recovery Funds to
address the diverse needs of their communities, some restrictions on use of funds apply.
OFFSET A REDUCTION IN NET TAX REVENUE
• States and territories may not use this funding to directly or indirectly offset a reduction in net
tax revenue resulting from a change in law, regulation, or administrative interpretation
beginning on March 3, 2021, through the last day of the fiscal year in which the funds
provided have been spent. If a state or territory cuts taxes during this period, it must
demonstrate how it paid for the tax cuts from sources other than SLFRF, such as by enacting
policies to raise other sources of revenue, by cutting spending, or through higher revenue due to
economic growth. If the funds provided have been used to offset tax cuts, the amount used for
this purpose must be repaid to the Treasury.
DEPOSITS INTO PENSION FUNDS
• No recipients except Tribal governments may use this funding to make a deposit to a pension
fund. Treasury defines a “deposit” as an extraordinary contribution to a pension fund for the
purpose of reducing an accrued, unfunded liability. While pension deposits are prohibited,
recipients may use funds for routine payroll contributions connected to an eligible use of funds
(e.g., for public health and safety staff). Examples of extraordinary payments include ones that:
Reduce a liability incurred prior to the
start of the COVID-19 public health
emergency and occur outside the
recipient's regular timing for making the
payment
Occur at the regular time for pension
contributions but is larger than a regular
payment would have been
ADDITIONAL RESTRICTIONS AND REQUIREMENTS
Additional restrictions and requirements that apply across all eligible use categories include:
• No debt service or replenishing financial reserves. Since SLFRF funds are intended to be used
prospectively, recipients may not use SLFRF funds for debt service or replenishing financial
reserves (e.g., rainy day funds).
• No satisfaction of settlements and judgments. Satisfaction of any obligation arising under or
pursuant to a settlement agreement, judgment, consent decree, or judicially confirmed debt
restructuring in a judicial, administrative, or regulatory proceeding is itself not an eligible use.
However, if a settlement requires the recipient to provide services or incur other costs that are
an eligible use of SLFRF funds, SLFRF may be used for those costs.
• Additional general restrictions. SLFRF funds may not be used for a project that conflicts with or
contravenes the purpose of the American Rescue Plan Act statute (e.g., uses of funds that
42
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
undermine COVID-19 mitigation practices in line with CDC guidance and recommendations) and
may not be used in violation of the Award Terms and Conditions or conflict of interest
requirements under the Uniform Guidance. Other applicable laws and regulations, outside of
SLFRF program requirements, may also apply (e.g., laws around procurement, contracting,
conflicts-of-interest, environmental standards, or civil rights).
43
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
Program Administration
The Coronavirus State and Local Fiscal Recovery Funds final rule details a number of administrative
processes and requirements, including on distribution of funds, timeline for use of funds, transfer of
funds, treatment of loans, use of funds to meet non-federal match or cost-share requirements,
administrative expenses, reporting on use of funds, and remediation and recoupment of funds used for
ineligible purposes. This section provides a summary for the most frequently asked questions.
TIMELINE FOR USE OF FUNDS
Under the SLFRF, funds must be used for costs incurred on or after March 3, 2021. Further, costs must
be obligated by December 31, 2024, and expended by December 31, 2026.
TRANSFERS
Recipients may undertake projects on their own or through subrecipients, which carry out eligible uses
on behalf of a recipient, including pooling funds with other recipients or blending and braiding SLFRF
funds with other sources of funds. Localities may also transfer their funds to the state through section
603(c)(4), which will decrease the locality’s award and increase the state award amounts.
LOANS
Recipients may generally use SLFRF funds to provide loans for uses that are otherwise eligible, although
there are special rules about how recipients should track program income depending on the length of
the loan. Recipients should consult the final rule if they seek to utilize these provisions.
NON-FEDERAL MATCH OR COST-SHARE REQUIREMENTS
Funds available under the “revenue loss” eligible use category (sections 602(c)(1)(C) and 603(c)(1)(C) of
the Social Security Act) generally may be used to meet the non-federal cost-share or matching
requirements of other federal programs. However, note that SLFRF funds may not be used as the non-
federal share for purposes of a state’s Medicaid and CHIP programs because the Office of Management
and Budget has approved a waiver as requested by the Centers for Medicare & Medicaid Services
pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations.
SLFRF funds beyond those that are available under the revenue loss eligible use category may not be
used to meet the non-federal match or cost-share requirements of other federal programs, other than
as specifically provided for by statute. As an example, the Infrastructure Investment and Jobs Act
provides that SLFRF funds may be used to meet the non-federal match requirements of authorized
Bureau of Reclamation projects and certain broadband deployment projects. Recipients should consult
the final rule for further details if they seek to utilize SLFRF funds as a match for these projects.
ADMINISTRATIVE EXPENSES
SLFRF funds may be used for direct and indirect administrative expenses involved in administering the
program. For details on permissible direct and indirect administrative costs, recipients should refer to
Treasury’s Compliance and Reporting Guidance. Costs incurred for the same purpose in like
circumstances must be treated consistently as either direct or indirect costs.
44
U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
REPORTING, COMPLIANCE & RECOUPMENT
Recipients are required to comply with Treasury’s Compliance and Reporting Guidance, which includes
submitting mandatory periodic reports to Treasury.
Funds used in violation of the final rule are subject to remediation and recoupment. As outlined in the
final rule, Treasury may identify funds used in violation through reporting or other sources. Recipients
will be provided with an initial written notice of recoupment with an opportunity to submit a request for
reconsideration before Treasury provides a final notice of recoupment. If the recipient receives an initial
notice of recoupment and does not submit a request for reconsideration, the initial notice will be
deemed the final notice. Treasury may pursue other forms of remediation and monitoring in conjunction
with, or as an alternative to, recoupment.
Town Council Regular Session C.
Meeting Date:09/21/2022
Submitted By:Michelle Stine, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
Approval to ratify the Mayor's reappointment request of a citizen member to the Corrections Officers Retirement
Plan (CORP) Local Board
RECOMMENDATION:
The term of the current CORP citizen member, Dr. Roberta Hindenlang, expired on August 31, 2022. Mayor
Winfield is recommending that Dr. Hindenlang be reappointed as CORP citizen member for a term ending August
31, 2026.
EXECUTIVE SUMMARY:
Several Police Department dispatchers are members of the State of Arizona Corrections Officers Retirement Plan
(CORP). Pursuant to ARS 38-893, each municipality that offers CORP must also form a local board to administer
various aspects of the program to its members. The local board must be comprised of the following five (5)
members:
The Mayor or his designee who serves as chairperson
Town citizens appointed by the Mayor with the approval of Council to four-year terms
Two members (employees) elected by secret ballot by members employed by the Town of Oro Valley to
four-year terms
BACKGROUND OR DETAILED INFORMATION:
The other four members of the CORP local board are:
Michelle DeVault, Oro Valley Police Department - term ends June 30, 2023
Keli Mendivil, Oro Valley Police Department - term ends June 30, 2025
Carlene Kron, Mayor Designee - term ends August 31, 2023
Brett Sadovnick, Citizen Member - term ends August 31, 2023
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to approve Dr. Roberta Hindenlang as a citizen member of the CORP local board for a term ending August
31, 2026.
Attachments
Reappointment Request
From:Inboden, Jen
To:Stine, Michelle
Subject:FW: CORP Board position
Date:Monday, September 12, 2022 9:30:28 AM
From:
Sent: Monday, September 12, 2022 9:27 AM
To: Inboden, Jen <jinboden@orovalleyaz.gov>
Subject: Re: CORP Board position
Hi Jen.
Yes, I’m interested in serving.
Sent from my iPhone R. Hindenlang
On Sep 7, 2022, at 3:23 PM, Inboden, Jen <jinboden@orovalleyaz.gov> wrote:
Dr. Hindenlang,
First, let me introduce myself. I am the new Local Board secretary for CORP. I took over
for Carrie Rowley a few months ago and apologize for not reaching out sooner. I
noticed this week that your term ended on 8/31/22. I wanted to ask if you are
interested in serving another term on the CORP Board. As you know, the Board typically
meets in December and the time commitment is minimal since there are only two
members of CORP in the Town of Oro Valley.
I hope you are interested and available to serve another term. If so, please just respond
to this email indicating your interest. If you are not able to continue in this position, a
response is appreciated as well.
Jen Inboden
HR Analyst | Town of Oro Valley
11000 N La Cañada Drive | Oro Valley, AZ 85737
www.orovalleyaz.gov
520.229.4795
Town Council Regular Session 1.
Meeting Date:09/21/2022
Submitted By:Michelle Stine, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
PRESENTATION AND POSSIBLE DISCUSSION OF SCOPE OF WORK FOR PLANNED HOUSING STUDY PER THE TOWN
COUNCIL'S FY 21/22 - FY 22/23 STRATEGIC LEADERSHIP PLAN
RECOMMENDATION:
This item is for information and discussion purposes only.
EXECUTIVE SUMMARY:
The purpose of this item is to discuss and gather feedback on the proposed housing study scope (Attachment 1), prior to
commencing work with a consultant. Conducting a housing study is an objective in the Town Council's Strategic Leadership
Plan and an action item in the Your Voice, Our Future (YVOF) General Plan. Additionally, it will provide key factual information to
address the State-required housing element in the next General Plan (2026).
Preparation and early plans for the next General Plan update are already being discussed at the staff level. Essential to setting
a vision, goals and polices for the next 10-years is establishing the Town's baseline through a fact-based background report on
key General Plan topics. This report will be compiled over the next year to include information about economic development,
environment, public safety, community resources, land use and development. The housing study is one component of this larger
report.
The fact-based background report will eventually be used during the next General Plan's intensive public outreach process to
gauge community values related to housing. The combination of the facts and community input will ultimately be used to
formulate the next General Plan's goals, policies and actions items for housing.
Initially, staff was awaiting the full release of the 2020 Census data to begin work on the housing study. Unfortunately, the data
release has been unexpectedly delayed multiple times (now anticipated in Spring 2023). However, recent 5-year estimates have
been released that include the datasets recommended for the study. This new information combined with impending work for
next General Plan has spurred the need to start working on the housing study now.
The proposed scope was derived from the following sources:
Town Council's Strategic Leadership Plan and YVOF General Plan
State law parameters for the housing element required in the upcoming General Plan update process
Planning resources from nationally known sources (e.g. American Planning Association)
Analysis of other jurisdictions' housing studies
Preliminary feedback from Town Council received during a study session in December 2021
Based on this research, the proposed scope is divided into four parts. Data will be collected to answer the following questions:
Existing Guidance and Inventory (What is our current housing inventory?). This part compiles the Town's existing policies
related to housing and economic development for guidance. It also includes an inventory of the amount, type and quality
of housing in Oro Valley and baseline information about the Town's economy.
1.
Factors in Housing Demand (Who are we, and where are we headed?). This part provides information to project the
Town's future housing needs based on key demographic, housing and economic trends. This information will be compared
to the existing housing inventory (part 1) to understand the amount, type and cost of housing needed to support
current/future residents and a thriving economy.
2.
Housing Needs and Supportable Retail Demand (What are our housing needs?). Based on the first two parts, this section
provides an analysis to identify gaps, if any, between the Town's housing stock (current and projected) and needs.
Additionally, it will identify how much retail is supportable by the existing and projected housing demand.
3.
Action Plan (How do we meet our housing needs?). This part will allow the consultant to use the above information to
recommend goals, policies and actions to address any gaps identified in part 3 for consideration. It will also include an
analysis of any opportunities or unintended impacts in implementing the recommended actions (e.g. impacts to Town
infrastructure and resources or trade-off in zoning, like reducing commercial land to increase land available for housing).
4.
In summary, the proposed housing study scope will meet the Town Council's Strategic Leadership Plan's objective, YVOF action
and provide important research for the next General Plan. This item is presented for information and discussion purposes only.
Preliminary feedback was received from the Planning and Zoning Commission in August. Once feedback is received from Town
Council, a consultant will be selected through the Town's standard procurement process. The results of the housing study, along
with the full background report are expected to be presented to the Commission and Council in 2023.
BACKGROUND OR DETAILED INFORMATION:
Completion of a housing study was included in the Your Voice, Our Future (YVOF) General Plan and further prioritized by the
Town Council through the Strategic Leadership Plan FY21/22 – 22/23.
General Plan, Action 135: Respond to and plan for the present and future housing needs of the community, while
considering changes in demographics and overall growth by conducting a housing inventory, developing a housing plan
that addresses the needs of a diverse community, developing zoning strategies that implement the housing plan.
Town council Strategic Leadership Plan (SLP): Conduct an assessment to determine the types of residential opportunities
necessary to successfully promote a thriving and diverse economic base.
The housing study will not only help fulfill the goals of these policy documents but provide critical data for the State-required
housing element in the next General Plan. State law requires different elements in the General Plan based on a jurisdictions'
population. With the Town projected to reach 50,000 people by 2026, the General Plan must include "standards and programs
for" the following as quoted from ARS:
"Elimination of substandard dwelling conditions
Improvement of housing quality
Variety and affordability and for provision of adequate sites for housing.
This element shall contain an identification and analysis of existing and forecasted housing needs.
This element shall be designed to make equal provision for the housing needs of all segments of the community
regardless of race, color, creed or economic level."
The image below shows which of the proposed parts of the housing study meet each item's objectives:
Preparation for the next General Plan, which must be ratified by 2026, is underway at the staff level. Compiling a background
report is a key first step in the General Plan 10-year update process. The background report will establish the Town's statistical
baseline (where are we now) for economic development, environmental resources, public safety, community development and
land use. The housing study represents one component of this larger background report.
The background reports are then utilized as a foundation for community discussion as part of the intensive General Plan
outreach effort. The Town's direction on housing must ultimately comport with germane elements of federal housing laws, etc.
Initially staff was waiting for all the 2020 Census data to be released to begin work on the study. Unfortunately, the data release
has been delayed several times and is now projected to be released in Spring 2023. However, recent 5-year estimates have
been released that includes the data needed to complete the housing study. The need to start preparing for the next General
Plan and availability of recent estimates outweighs the benefits of waiting for the 2020 Census data release.
DISCUSSION
In addition to the Town's guiding documents and State requirements, staff reviewed planning resources and several
jurisdictions' housing studies to develop the proposed scope (Attachment 2). Sources included:
American Planning Association
Urban Land Institute Attainable Housing
National Community of Practice on Local Housing Policies
Tempe Housing Inventory and Affordability Analysis
Tempe Urban Core Market Study
Tucson/Pima County MAP
Town of Sahuarita and Green Valley Housing Feasibility
Tucson Comprehensive Housing Market Analysis
Sedona Housing Needs Assessment and Five-year Action Plan
Flagstaff 10-year Housing Plan
Based on staff's research and to meet the requirements established in the guiding documents and State law, the proposed
study is divided into the four parts. As depicted in the image below, the first two parts provide the data needed to identify any
housing needs (part three). Based on the identified needs (if any), part 4 will include consultant-recommended goals, policies
and actions to address the identified needs for consideration. More information and specifics about each part is included in
Attachment 1.
PLANNING AND ZONING COMMISSION
The Planning and Zoning Commission discussed the housing study scope during through a study session on August 4, 2022.
With respect to the scope, the key items discussed were the relationship between housing and transit, workforce housing and
affordability by age group and abilities. These items are included in the proposed scope. Minutes from the Planning and Zoning
Commission meeting are available here.
SUMMARY AND NEXT STEPS
Although initially waiting for the full release of 2020 Census data to begin on the housing study, the recent release of 5-year
estimates will provide the data needed to complete the study.
Of great importance, is completing the housing study in preparation for the next General Plan, which must be ratified by 2026.
This includes compiling a fact-based background report to establish a baseline for the Town of Oro Valley. The housing study is
a core component of this background information and foundational to addressing the State-required housing element in the next
General Plan.
The proposed scope is being presented for information and discussion. Once feedback is received from the Town Council, a
consultant will be selected through the Town's standard procurement process. The results of the housing study, along with the
full background report will be presented to the Commission and Council in 2023. Furthermore, the data collected for the
background report will be used during the General Plan outreach process to gauge community values regarding housing, etc.
FISCAL IMPACT:
Not applicable.
SUGGESTED MOTION:
This item is for discussion only.
Attachments
ATTACHMENT 1 - PROPOSED HOUSING STUDY SCOPE
ATTACHMENT 2 - RESEARCH AND ANALYSIS
Staff Presentation
ATTACHMENT 1 - PROPOSED HOUSING STUDY SCOPE
PROPOSED HOUSING STUDY SCOPE
PART 1: EXISTING GUIDANCE AND INVENTORY (What is our current housing inventory?)
PURPOSE: This part compiles the Town’s existing policies related to housing and economic development. It also provides an inventory of the existing
housing stock and baseline information about Oro Valley’s economy.
CATEGORIES IMPORTANCE AND OVERVIEW INFORMATION AND DATA
Guidance Entails compiling the community’s existing vision and
goals regarding housing and economic development.
Additionally, it provides the parameters from State law
to ensure the study meets the needs for the next
General Plan.
Detailed list of existing Town goals, policies and future guidance for the
General Plan 2026 related to housing and economic development.
Housing inventory
analysis
Provides an inventory of housing in Oro Valley. The
data in this section and Part 2 will be used to identify
any gaps in the OV housing market (Part 3).
Distribution of housing in Oro Valley and nearby region by type and size:
• Types - range from detached single-family homes, attached single-
family homes (townhomes, duplexes), apartments to mobile homes.
• Size – a breakdown of single-family home lot sizes and multi-family
homes dwelling units (the number of bedrooms) in Oro Valley.
Quality of housing in Oro Valley:
• Age – a breakdown of when homes were built
• Conditions – an overview of the physical characteristics of homes and
amenities
Economic base
analysis
Establishes the existing economic base for Oro Valley.
Data from this section and Part 2 will be used to identify
the number and type of housing needed to support a
thriving economy (Part 3).
Distribution of economic activity in Oro Valley and nearby region:
• Type of industries – a breakdown Oro Valley’s top industries (e.g.,
health services and social assistance, professional, scientific
management, administrative and waste management services,
manufacturing, retail trade and educational services)
• Quantity - built square footage for each industry type
ATTACHMENT 1 - PROPOSED HOUSING STUDY SCOPE
PART 2: FACTORS IN HOUSING DEMAND (Who are we, and where are we headed?)
PURPOSE: This part provides information to the project the Town’s future housing needs based on key demographic, housing and economic trends. This
information will be compared to the existing housing inventory (part 1) to understand the amount, type and cost of housing needed to support
current/future residents and a thriving economy.
CATEGORIES IMPORTANCE AND OVERVIEW INFORMATION AND DATA
Demographic
Trends
Provides information to project the Town’s future
housing needs based on key demographic trends.
• Population and migration trends
• Age – includes age distribution and median age
• Race and ethnicity
• Disability – status and types of disabilities reported
• Income and Poverty – includes a distribution of income and median
income for the Town
• Disposable income – remaining income after home and
transportation costs are removed
• Educational attainment – level of education completed amongst
different age groups
Housing Market
Trends
In addition to the existing policies (Part 1), this section
will provide more context about residents’ preferences
and housing needs. It also includes information to
project the type and cost of housing available to current
and future residents.
Consumer preferences and needs
• Occupancy type (renter or owner)
• Population living in group quarter facilities (senior care, etc.)
• Household characteristics – size (for rentals and owned homes),
number of household with people over 65, children,
grandparents raising children, households with families or
individuals.
Home sales market conditions
• Current conditions and trends regarding home sales and prices
for existing and new construction, housing turnover, delinquent
mortgages, absentee sales, and absorption rates of new homes
Rental market conditions
• Current conditions and trends regarding rental construction
activity and vacancy
Home trends and forecasts - changes in the supply through new
construction (permits issued per year), conversions, and demolitions.
Market trends and forecasts for rentals and homes.
Land availability and capacity of home builders.
ATTACHMENT 1 - PROPOSED HOUSING STUDY SCOPE
Economic Market
Trends
This section will help project the amount of
employment opportunities available in Oro Valley.
• Forecast for Oro Valley and regional economic base industries
• Workforce characteristics – commute times, salaries, and educational
attainment/skills for those working in Oro Valley
• Land availability and construction costs
PART 3: HOUSING NEEDS AND SUPPORTABLE RETAIL DEVELOPMENT (What are our housing needs?)
PURPOSE: Based on the first two parts, this section provides an analysis to identify gaps, if any, between the Town's housing stock (current and
projected) and needs. Additionally, it will identify how much retail is supportable by the existing and projected housing demand.
CATEGORIES IMPORTANCE AND OVERVIEW INFORMATION AND DATA
Housing market
gaps
Using the data collected in the previous parts, this
section identifies any gaps between Oro Valley’s
housing stock and projected needs.
• Number of units needed based on existing inventory, population, and
employment projections
• Any mismatches in consumer needs or preferences (age, disability,
and income) to the existing housing stock and land availability
• Comparison between income levels of residents and the Town’s
workforce to home sales prices and rental rates
Supportable retail
demand
This section will identify how much retail is supportable
by the existing and projected housing demand.
• Amount of disposable income per home
• Existing and projected number of housing units remaining and
needed
• Existing and projected amount of supportable retail
PART IV: ACTION PLAN
PURPOSE: This part provides recommended goals, policies, and actions to address any gaps identified in part 3. It also includes an analysis of any
intended or unintended impacts of implementing the recommended actions.
CATEGORIES IMPORTANCE AND OVERVIEW INFORMATION AND DATA
Goals and policy
recommendations
This part recommends goals and policies to be
considered with the next General Plan that address any
identified housing market gaps and support a thriving
economy.
Recommended goals and policies to fulfill any gaps identified in Part 3.
This may include goals and policies to address the following:
• Adjust the number of housing units to support the projected
population
• Accommodate housing types to support a diverse population and
economic base
• Support housing affordability to include all residents and workers
• Encourage quality housing
Actions to meet
policies
Specific and measurable actions to meet the proposed
goals and policies.
Action steps to meet goals and policies
ATTACHMENT 1 - PROPOSED HOUSING STUDY SCOPE
Review possible opportunities or impacts to Town
resources (e.g., water, roads, public safety) and overall
Town growth by implementing the proposed actions
• Analysis of any unintended impacts of implementing the
recommended actions (e.g., trade-off in zoning, Town resources
and infrastructure)
ATTACHMENT 1 - PROPOSED HOUSING STUDY SCOPE
ATTACHMENT 2 – RESEARCH AND ANALYSIS FOR HOUSING STUDY
GENERAL POINTS/ ELEMENTS
Existing inventory of housing stock
Economic and demographic trends used to predict housing needs
Focus on consumer preferences and affordability to identify housing needs
Information for both housing and rental markets
Action plans that are measurable and accountable through evaluations
JURISDICTION ELEMENTS KEY POINTS
Tempe Housing
Inventory and
Affordability
Analysis (2018)
BBC Research
and Consulting
Demographic Analysis
• Population; Ownership rate; Household composition (size and type, e.g., family
or non-family); Age; Income
Housing Market Analysis
• Housing stock; Product type; Occupancy; Age
Homeownership Market
• Trends in value; Market prices; Affordability
Rental Market
• Distribution of rents; Market rates; Affordability and public assistance
Housing Market Gaps
• Mismatch in the rental market (Rental Gap); Gaps in the sales market; Options
for renters wanting to buy
Includes consumer needs (such
as affordability) and
preferences.
Tucson-Pima
County MAP
(2020)
Neighborhood Vulnerability
• Percent of residents that identify as anything other than “non-Hispanic white
alone”; Percent of households who rent, rather than own, their homes; Percent
of residents aged 25 and over who lack a four-year bachelor’s degree or higher;
Percent of households with incomes below 80% of Area Median Income (as
determined by HUD); Share of children that live in households below the official
poverty line
Housing Market Assessment
• Owned home price trends; Rental home price trends; Housing cost burden for
owners and renters; Housing characteristics: age, type, and vacancy; New home
construction trends; Affordable housing trends
Gap Analysis
• Population; Income and affordability; Older adults; Housing by ethnicity and
race; Vulnerability
• Describes and provides
data for vulnerable
populations and housing
needs
• Interactive analysis to show
housing needs in the region
(current and future)
ATTACHMENT 2 – RESEARCH AND ANALYSIS FOR HOUSING STUDY
Town of
Sahuarita and
Green Valley
Housing
Feasibility (2020)
Consultants:
Crystal &
Company
Socio-economic profile
• Employment and labor force; Population growth; Household and median
income; Population by age, gender, race/ethnicity; Household type and
educational attainment; Poverty and disability status
Housing supply and market conditions
• Overview of Residential Inventory by Type, Age, Tenure and Bedroom Mix;
Inventory by Tenure & Type; Housing Turnover & Vehicles Available; Existing
Residential Homeownership Values, Vacancy Rates and Gross Rents; Residential
Market Conditions; Housing Distress in The Region; Assisted Housing Inventory
in the region
Residential market demand and site development analysis and prioritization
• Key Area Labor Force Estimates and Projections; Market Demand
Assumptions/Approach & Commute; Study Area Gross For-Sale Housing
Demand Estimates; Study Area Gross Rental Housing Demand Estimates; Study
Area Market Penetration Issues; Study Area Residential Development Sites &
Prioritization, Financial Considerations and Land Use Ordinance Considerations;
Findings for Sahuarita and Green Valley
Affordable housing strategies
• Introduction & Goals; Town of Sahuarita Housing Strategy; Green Valley
Affordable Housing Strategy
• Assisted living included in
the inventory
• Land use and site
development analysis
included to develop
strategies.
Comprehensive
Housing Market
Analysis –
Tucson, Arizona
(April 2019)
US department
of Housing and
Urban
Development
Economic Conditions
• Major Employers; Trends; Current conditions – payroll, unemployment;
Commuting patterns; Employment forecast
Population and households
• Population trends (migration); Age cohort trends; Population by geography;
Household trends; Households by tenure; Population and household growth
forecast
Home Sales Market Conditions
• Current conditions; REO Sales and Delinquent mortgages; Existing homes sales
and prices; Absentee sales; New home sales and prices; Affordability; Sales
construction activity; Forecast
Rental Market Conditions
• Current conditions and recent trends; Student housing; Military housing; Rental
construction activity; Recent completions; Affordability; Forecast
• Relates economic
development with housing
• Housing for different
temporary target groups
(e.g., students)
ATTACHMENT 2 – RESEARCH AND ANALYSIS FOR HOUSING STUDY
Tempe Urban
Core Market
Study - Projected
through 2040
Demographic trends
• Population and households; Household Composition; Age Distribution; Race
and Ethnicity; Household Income; Educational Attainment; Students; Resident
Employment; Workers; Commute Flow; Households by Tenure; Households by
Size; Occupancy; Overcrowding; Housing Stock
Real Estate Trends
• MFR Residential; Residential ownership; Retail; Office; Hotels and Conference
Space
Projections for supportable demand
• Employment and Office Space projections; Population and retail projections;
Hotel demand projections
Affordable Housing
• Housing cost burdens; Current need for affordable units; Affordability needs in
projected housing development; Current policies and programs to address
affordability; Additional tools to explore further
Includes the amount of retail,
office, and hotel space
supportable by the existing and
future housing amount
Sedona Housing
Needs
Assessment and
Five-Year Plan
Elliott D. Pollack
& Company
Volume I – Existing Conditions and Housing Gap Analysis
Demographic and Economic Analysis
• Population, households, household size, migration, income, educational
attainment; employment; commute time; occupations; inflow/outflow of
workforce; per capita taxable sales; forecasts
Housing analysis
• Occupancy type; year built; short-term rentals; prices and rents; housing costs;
apartments; overcrowding;
Gap Analysis
• Affordable housing for existing residents; different approaches (affordability
and housing costs burden)
Volume II – Affordable Housing Action Plan
• Objectives, funding sources and toolkit
• Includes information about
the workforce population
(e.g., commute time) with a
focus on housing for the
workforce
• Action plan with tools and
proposed funding sources
to implement
Flagstaff 10-year
Housing Plan
Purpose, vision, goals and policies related to housing
Housing data and needs assessment
• Housing affordability and cost burdens; racial disparities and housing justice;
homelessness
Housing first, housing equity, continuum and affordability
Thorough research conducted
for action plan and analysis of
infrastructure, zoning, etc.
needs to support affordable
housing.
ATTACHMENT 2 – RESEARCH AND ANALYSIS FOR HOUSING STUDY
Housing Gap Analysis
• Affordability; market rate housing
Housing survey and working group results.
Other resources/articles reviewed:
• American Planning Association – Housing Assessment
• ULI Attainable Housing: America’s Missed Opportunities
• APA Job-Housing Balance (PAS Report 516)
• APA Data-driven Housing Assessments and action plans, Part I & II (PAS Memo)
• National Community of Practice on Local Housing Policies
• US Census
• American Housing Survey (AHS)
• Consolidated Housing Affordability Survey (CHAS)
• Bureau of Applied Economics (BAE)
• Bureau of Labor Statistics (BLS)
• Paycheck to paycheck (data on employment salaries vs. income to own or rent a home): https://nhc.org/paycheck-to-paycheck/
Proposed Housing Study
Scope of Work
Town Council
September 21, 2022
Purpose and Timing
Proposed scope
Represents national, regional and local best
practices
Satisfies actions from the Your Voice, Our Future
General Plan (2016) & Town Council Strategic
Leadership Plan
Importance of the study
Fact-based findings for decision-making and
recommendations for policy development
Housing is integral to most aspects of the next
General Plan
•State required housing element in the next General Plan
•Component of Background Studies on key General Plan
elements -must be completed by Fall 2023
•Basis for community dialogue and policy development
Process for developing the Housing Study scope
Review of guiding policies and State law
YVOF General Plan –identify housing needs for current and future residents
Strategic Leadership Plan (SLP) –identify the types of housing to support a thriving economy
State law requirement –policies to provide variety, affordable and adequate sites for housing
Review of national resources and other jurisdictions’ housing studies
American Planning Association
Urban Land Institute Attainable Housing
National Community of Practice on Local Housing Policies
Tempe Housing Inventory and Affordability Analysis
Tempe Urban Core Market Study
Tucson/Pima County MAP
Town of Sahuarita and Green Valley Housing Feasibility
Tucson Comprehensive Housing Market Analysis
Sedona Housing Needs Assessment and Five-year Action Plan
Flagstaff 10-year Housing Plan
Input from Town Council and Planning & Zoning Commission
Existing Guidance and
Inventory
•Existing community
housing values
•Amount and type of
existing housing
•Economic base
information
Factors in Housing
Demand
•Demographics
•Consumer
Preferences
•Housing and
Economic Trends
Housing Needs and
Supportable Retail
Demand
•Gaps, if any, between
projected stock and
housing needs
•Retail supportable by
existing and
projected housing
Recommended
Actions and Analysis
•Recommend goals,
policies and actions
to meet housing
needs
•Analysis of potential
impacts
Proposed Scope
Part I Part II Part III Part IV
Timeline and Next Steps
2022-2023
Compile data
Analyze results
Recommendations
Present findings to the Commission
and Council (no action)
2023-2026
Gather community input on findings
through the extensive General Plan
community outreach process
Surveys
Forums
Open houses
Discussion boards
Webinars
Community Events
Online Polls
Committees
And More!
Fact Gathering Community Conversations
for next General Plan
Response to Commission and Council Feedback
Part
I
Part
II
Part
III
Part
IV
Next
Steps
Town Council
Study Session
Dec. 2021
Examine the intended or unintended impacts the proposed housing
recommendations may have on the environment, roadways, water, etc.
Analyze balance of residential and non-residential land uses
Planning and
Zoning
Commission
Study Session
August 2022
Understand the affordability needs of different age groups and abilities
Consider transportation and other factors to locate housing
Collect data on workforce housing needs
Consider various code and process changes to increase housing
production
Present findings to public
Town Council
Report
August 2022
Provide context of the larger region
Analyze impacts of housing development rate to the environment, water,
roadways, sewer, etc.
Gather input from residents on preferences for housing types and
locations
Summary and Next Steps
Proposed scope
Represents best practices for national, regional and local
studies
Incorporates feedback received to date
Importance of housing study
Fulfills General Plan actions and SLP objectives
Findings will assist with future land use decisions
Use for policy development in the next General Plan
Next steps
Contract a consultant to assist staff with study
Present fact-based study to the Commission and Council next
year
Gather community input on findings to create housing goals,
policies and actions for the next General Plan
Town Council Regular Session 1.
Meeting Date:09/21/2022
Submitted By:Mike Standish, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
FOR DIRECTION TO THE TOWN MANAGER AND/OR NECESSARY STAFF AS DISCUSSED IN EXECUTIVE
SESSION,TO APPROVE OR DENY A SETTLEMENT OF MARSH V. ORO VALLEY CLAIM
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to (Approve or Deny) the settlement of Marsh v. Oro Valley claim.
Attachments
No file(s) attached.
Town Council Regular Session 2.
Meeting Date:09/21/2022
Submitted By:Mike Standish, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
FOR DIRECTION TO THE TOWN ATTORNEY AND/OR NECESSARY STAFF AS DISCUSSED IN EXECUTIVE
SESSION REGARDING THE TOWN MANAGER'S ANNUAL PERFORMANCE REVIEW
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to...
Attachments
No file(s) attached.