County Board Work Session

County Manager’s Revised Proposed FY 2021

Budget

Thursday, April 16, 2020, 3 p.m.

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• Timeline for Revenue and Expenditure Information

• Neighboring Jurisdiction Strategies for Balancing their Budgets

• Federal CARES Act and Federal Community Development Block

Grant (CDBG) Funding

• Single Family Borrower Forgiveness Program and Multifamily

Borrower Limited Waiver Program

• Small Business Support

• Staff proposal & recommended adoption report

• Arlington Community Foundation Donation

County Manager's Revised Proposed FY 2021 Budget

Agenda

2County Manager's Revised Proposed FY 2021 Budget

Timeline for Updates on FY 2020

Dates Additional FY 2020 Information Available

Tomorrow, April 17 First payroll reflecting stay-home order and hiring freeze.

Early to mid-May Meals, Transient Occupancy Tax, & Sales receipts for March; better estimates of non-tax impacts and better trends in County payroll since stay-home order and hiring freeze.

Early to mid-June Meals, Transient Occupancy Tax, & Sales receipts for April; 99% of BPOL and Personal Property will have been received.

Late June All expenses incurred or committed. Most FY 2020 Real Estate Taxes received; balance received by August 15.

Late August All FY 2020 revenues and expenses recorded.

Reporting Back to the County Board• Updates provided in May and June and as economic conditions change

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For Balancing Budgets: Common focus of revised proposals include

maintaining existing programs and current employees

• Compensation: Elimination/deferral of compensation increases (Alexandria, Fairfax, Loudoun) and Hiring

Freezes (Alexandria, Loudoun)

• Funding Reductions

• Elimination/deferral of program enhancement funding in initial proposals (Alexandria, Fairfax, Loudoun)

• Reduction in the transfer to schools amount from initial proposals (Alexandria, Fairfax)

• Delaying capital projects (Alexandria, Fairfax, Loudoun)

• Reserve / Fund Balance Utilization

• City of Alexandria: Contingent Reserve ($0.50 M), use of economic downturn and natural disaster reserves

($8.0 M)

• Fairfax: Use of Economic Opportunity Reserve to establish Microloan Fund

• Loudoun: $100 Million in planned FY 2021 expenditures placed in Reserve ($40M County and $60M Schools)

County Manager's Revised Proposed FY 2021 Budget

Neighboring Jurisdiction Strategies

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$2.2 trillion aid package that provides financial aid to families, governments,

and businesses impacted by the COVID-19 public health crisis; Virginia’s

allocation is expected to be $3.310 billion; allocation process is uncertain

Arlington’s Funding for Housing & Other Support

• Community Development Block Grant (CDBG): $830K

• Includes $40K for Falls Church

• Funds available once Action Plan amended

• Community Services Block Grant (CSBG): $230K (estimated)

• Funds anticipated to be available in May

• HOME Investment Partnerships Program (HOME) funds and additional CDBG funds may be

available at a later date

• Department of Justice award ($137k) & other state funds may be allocated at a later date

County Manager's Revised Proposed FY 2021 Budget

Federal Stimulus (CARES Act)

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• Single Family Borrowers of the Moderate Income Purchase Assistance

Program (MIPAP) and Home Improvement Program (HIP) with monthly

amortized payments are eligible.

• Monthly payments (principal and interest) between May 1 and December 31,

2020 will be administratively credited by the County’s loan servicer,

AmeriNat.

• Monthly payments shall resume on January 1, 2021.

County Manager's Revised Proposed FY 2021 Budget

Single Family: Temporary Payment Forgiveness

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Recommended Action: Authorize the County Manager, or his designee, to

forgive payment of monthly amortized principal and interest payments

between May 1, 2020 and December 31, 2020, for all single family borrowers

under the County’s Moderate Income Purchase Assistance Program (MIPAP)

and the County’s Home Improvement Program (HIP) on condition that the

borrowers are not more than 90 days delinquent on their monthly payments

and that they currently occupy as their primary residence the property for

which the loan was made, and to take all steps necessary, including those

through the County’s loan servicer, AmeriNat, to implement the loan payment

forgiveness.

County Manager's Revised Proposed FY 2021 Budget

Single Family: Temporary Payment Forgiveness

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• Multifamily borrowers who have not submitted CY 2020 residual receipt loan

repayments as of April 1, 2020 can request a “Limited Loan Payment Waiver” to

address emergency needs, including:

• rental assistance for tenants so that they can remain at the property

• operating deficits resulting from vacancy and rent losses

• other emergency needs associated with COVID-19

• Waived payments are not forgiven or forborne. The County loan continues to accrue

interest on the unpaid balance, including the portion not remitted to the County, as

prescribed by terms in the County loan agreements.

• Staff will notify borrowers of waiver details and return to the County Board in May for

approval of Limited Waiver Agreements.

County Manager's Revised Proposed FY 2021 Budget

Multifamily: Limited Loan Payment Waiver

Small Business Emergency GRANT Program

Arlington Economic Development 8

Provide financial assistance to Arlington-based small businesses and non-profits with less than 50 employees impacted by the COVID-19 pandemic

Grants up to $10,000 – individual grant amounts will be determined by need, availability of funds, and number of applicants

Employee salary and benefits and other business capital and operating expenses directly related to the immediate impacts of COVID-19

Applications will be evaluated through a three-stage competitive process, which will culminate with review by a diverse panel of community business stakeholders

Working with partners to engage hard to reach entrepreneurs and provide comprehensive services throughout process

Giving Resiliency Assets Near Term

AMOUNT

USAGE

EQUITY FOCUS

PURPOSE

PROCESS

Arlington Economic Development 9

Small Business Emergency GRANT ProgramGiving Resiliency Assets Near Term

The estimated timeframe to implement the program is one month from the opening of applications to awarding grants. The timeline also may be slightly adjusted depending on the volume of applications received. AED will communicate with applicants through each stage of the review process as to the status of their applications.

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$75,000 donation will expand the Meals on Wheels program, in partnership

with the Department of Human Services, to provide meals to low-income

older adults in their homes during the COVID-19 crisis

• This donation allows Meals on Wheels to expand existing programming

beyond the 198 low-income older adults that it now serves in

partnership with the Department of Human Services

• Meal delivery can begin as soon as possible and for a period of 10

weeks.

• The Arlington Cooperative for a Hunger Free Arlington, working through

Volunteer Arlington, would arrange for volunteers to deliver meals to

residents’ doors.

County Manager's Revised Proposed FY 2021 Budget

New Donation from Arlington Community Foundation

11County Manager's Revised Proposed FY 2021 Budget

Budget Calendar

April 6Revised Budget Proposal: County Manager’s Revised Proposed FY 2021 Budget submitted to the

County Board

April 16 Schools Budget Proposed

April 16 Budget Work Session

April 237:00 p.m., County Board Room

2100 Clarendon Blvd.

Public Hearing: County Board hosted public hearing on Proposed FY 2021 Budget

April 23Following Budget Hearing

County Board Room

2100 Clarendon Blvd.

Public Hearing: County Board hosts second public hearing on Proposed FY 2021 Taxes and Fees

April 27 Budget Mark-up

April 30County Budget Adoption: County Board adopts FY 2021 Budget and Appropriations Resolutions for

the County government, the public schools, and Pay-As-You-Go Capital. County Board adopts CY 2020

real estate tax rate and other FY 2021 taxes and fees

May 7 Schools Budget Adoption: School Board adopts FY 2021 school budget

July 1 FY 2021 begins

County Board Work Session

County Manager’s Revised Proposed FY 2021

Budget

Thursday, April 16, 2020, 3 p.m.