Jacksonville City Called Work Session August 2, 2021

Call to order.

Roll call

1. Tony Taylor – Present
2. Andy Green – Absent
3. Terry Wilson – Present
4. Sherry Laster – Present
5. Coty Galloway – Present

Budget Discussion: American Rescue Plan Act (ARPA)

1. Albertha Grant spoke and presented a few slides. Jacksonville received $2,978,976.00. 50% was received this year and the remaining will come next year.
2. She spoke about the guidance on how the funds can be spent. Each council member was prepared a packet that is about 40 pages.
3. Eligible Uses 
   1. Public Health and Economic Impacts
   2. Premium Pay
   3. Revenue Loss (based on formula the rough amount they can claim is $200,000)
   4. Investment in Infrastructure (water, sewer, or broadband)
4. Do’s and Don’ts
   1. Do
      1. Use to cover cost incurred beginning on March 3, 2021
      2. Obligate funds by December 31, 2024
      3. Disburse funds by December 31, 2026
   2. Don’t
      1. Pay interest or principal on outstanding debt
      2. Replenish rainy day or other reserve funds
      3. Pay settlement obligations
      4. Pay pensions
      5. Pay non-federal match
5. Approved/Identified Requirements
   1. Economic Impact
      1. Retail Strategies (Retail) – $40,000
      2. Retail Strategies (Downtown) – $25,000
   2. Infrastructure
      1. Cotton Creek Drainage Study – $6,500
      2. Cotton Creek Pipe Straightening Design – $20,000
      3. Contract to Straighten Pipe – undetermined
      4. Storm Water Detention Pond Design – $37,200
      5.                        Purchase of Detention Pond Land – Undetermined 
      6. Storm Water Detention Pond Development – Undetermined
   3. Public Health
      1. COVID Vaccine Incentives – $35,698
      2. Emergency Sick Leave – $25,000
   4. Premium Pay
      1. COVID Hardship Compensation – $149,500
6. Reporting Requirements
   1. Project Expenditure Report due on 10/31/2021. This will be due annually through 2026.
   2. Recoupment possible if amounts spent violate guidelines
7. Discussion/Questions
   1. Terry Wilson – Confirmed that there is no way to get approval prior to spending funds. 
   2. Terry Wilson – Asked if there was more of a push to infrastructure. – The answer was not a specific push just the guidelines they set forth.
   3. Tony Taylor – Because we already have grants for infrastructure pending he thinks we should wait on some of the funds to see how the grants will come out.  Terry Wilson agreed.
   4. Interest can accrue on these funds.
   5. No funds have been spent or removed even on approved items.
   6. Coty Galloway wanted to ask about the premium pay. He wanted to know what those costs would be. The confirmed cost was $149,500.
   7. The Mayor also had a few projects he wanted to be considered that totaled between $800,000 and $1,000,000.
8. Terry Wilson asked  if he thought it was worth utilizing additional advisors. He did not think it was needed. Tony Taylor agreed. 
9. Tony Taylor – wanted a brief overview from Retail Strategies (Retail)
   1. They have come on site and done an arial view.
   2. They have done statistical analysis. 
   3. The next step is to start reaching out to retailers. 

Proposed City Hall Development

1. The city debt limit is 20% of the accessed value. The current property value is $100 million so 20% would be $20 million.  The city currently owes $16 million. This limits additional debt to $4 million. The building that is being looked at is $5-6 million. The options  are to take $4 million in debt and the remainder in cash. The city could do less in debt, but that requires more in cash. Right now the city is rated a AA- and that is a very good rating and shows the city is stable.  If a lot of cash is spent our rating will go down. Also taking on debt will decrease the rating as well.  Another option is called a Public Building Authority. This was created by the Code of Alabama. The way it works is the council would incorporate and appoint a minimum of three property owners and residents in the city. They also have to be voters. They also cannot be elected officials. They would actually take out the lease and own the debt.  They would then lease the building back to the city. They would use the cities rating to qualify for the building. This would not count as debt against the city. The current rate is very low. The turn around time if the city moved forward with this is 60-90 days. The money could be on hand and not be used immediately as long as plans are actively being developed. Capital projects are not budgeted, so it would not be part of the budget. 
2. The rebuild Alabama – Gas tax.
   1. The city is required to adopt by majority vote an annual transportation plan by August 31, 2021 for the next fiscal year.
3.  The Alabama Trust Fund can be used for capital projects, but would be a last option. 

1. No other business