Special Revenue Funds (Continued)

Fiscal Year 2022/23

Included in this funds are the Home Investment Partnerships Program Fund, Other Federal and Non-Federal Grants Funds, Green Strom Water Infrastructure Fund, PSPRS Pension Trust and Street Improvement - Prop 411 Fund.

Home Investment Partnerships Program Fund

This is a U.S. Department of Housing and Urban Development entitlement grant program used to strengthen public- private partnerships and to expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing for low-income families.

The adopted revenues for Fiscal Year 2022/23 are $5.1 million, which is a $0.2 million increase.

Home Investment Partnerships Program Fund By Category FY2020/21 - FY2022/23

Other Federal and Non-Federal Grants Fund

The Other Federal and Non-Federal Grants Funds are for miscellaneous federal grants not accounted for in the Mass Transit Fund, Enterprise Funds, or any of the Housing Funds. The grants are awarded by federal agencies such as the Department of Justice, Department of Energy, Department of the Interior, Department of Homeland Security, National Highway Traffic Safety Administration, the Federal Highway Administration, the Arizona Criminal Justice Commission, the Arizona Counter Narcotics Alliance (CNA), and the Arizona Department of Transportation. City departments apply for federal and state grants enhancing the department’s mission in providing services to the community.

The adopted Fiscal Year 2022/23 revenue budget is $56.7 million, an increase of $14.1 million from the Fiscal Year 2021/22 estimated revenues of $42.6 million. The increase is mainly due to new grant funding awarded to the Tucson Water Department.

Other Federal and Non-Federal Grants Fund By Category FY2020/21 - FY2022/23

Coronavirus Aid, Relief, and Economic Security Act

As part of the Federal Government's response to the COVID-19 pandemic the Coronavirus Aid, Relief, and Economic Security Act was passed on March 27th 2020. The $2 trillion economic relief package established the $150 billion Coronavirus Relief Fund (CRF) to provide payments to state, local, and tribal governments. Under this Act the City of Tucson received $95,634,512 in CRF funding.

At the May 27, 2020 Mayor and Council Study Session, the Mayor and Council approved the CRF Strategic Plan as the framework to allocate the funding among a variety of programs and projects to address the primary and secondary impacts of the pandemic within our community.

Coronavirus Aid, Relief, and Economic Security Act By Category FY2020/21 - FY2022/23

American Rescue Plan Act

In order to aid public health and economic recovery, the Federal Government passed the $1.9 trillion American Rescue Plan Act (APRA) on March 11, 2021. The plan includes $350 billion in emergency funding for state, local and territorial and tribal governments, known as the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The City of Tucson is allocated $135.7 million in funding as a metropolitan city, funding will be received in two disbursements for $67.8 million each. By December 31, 2024, the funds must be obligated and spent by December 31, 2026. The first of the disbursements was received in May 2021; the second is expected in May 2022.

American Rescue Plan Act By Category FY2020/21 - FY2022/23

Green Stormwater Infrastructure Fund

On May 1, 2020 a new fee was included on the water utility services bill. The fee is based on customers’ water usage, at a rate of $0.13 per CcF (cubic feet) (about $1.0 per month for the average residential customer). Revenues are used for building and maintainance projects throughout the City that capture stormwater runoff from public streets and parking lots and divert it into vegetated water harvesting areas.

The adopted Fiscal Year 2022/23 revenue budget is $3.1 million. Fiscal Year 2021/22 revenues were higher than anticipated due to an increase in overall consumption likely due to a lackluster monsoon season and warmer weather.

Green Stormwater Infrastructure Fund By Category FY2020/21 - FY2022/23

PSPRS Pension Trust

City of Tucson Public Safety Pension Trust (section 115 Trust) was established in Fiscal Year 2020/21. Mayor and Council approved the issuance of $658.0 million of certificates of participations to partially fund the City’s long-term Public Safety Personnel Retirement System (PSPRS) obligation through Public Safety Pension Trust. The PSPRS liability arises from the retirement benefits provided to elected officials and sworn public safety personnel, which is about $1.5 billion. This is the largest liability for the City. Through the creation of the section 115 Trust, the City can manage and safeguard the proceeds in the investment portfolio established with pension bond proceeds.

The goal of the trust is to bring the City’s pension funding level to at least 70% of the City’s PSPRS pension obligation. The City plans to use a stairstep approach to minimize the City’s increases over time. The contributions by the City are projected to be $77.25 million through Fiscal Rear 2024/25 and increase gradually as modeled out.

PSPRS Pension Trust By Category FY2020/21 - FY2022/23

Street Improvements Fund - Prop 411

The Street Improvement Fund accounts for taxes collected to fund the investment of repairing, restoring, resurfacing, or improving every local neighborhood street in Tucson over the next 10 years. Additionally, 20% of revenue collected will fund bicycle and pedestrian safety improvements, sidewalks, lighting, traffic signal technology, and traffic-calming infrastructure. Revenue collection dedicated for this initiative will begin July 1, 2022.

The adopted Fiscal Year 2022/23 revenue budget is $74.0 million. This is the first year of revenue collection for this funding source.