intent of ARPA dollars was revenue replacement; the extreme loss of revenue due
to the pandemic. Losing revenue meant a loss in the ability to pay for services,
salaries, etc., so it was not a matter of bad planning, as no one anticipated the
pandemic, but the City always planned to pay for its fire and police services, and
other traditional expenses that took place year over year. He reiterated, due to the
unanticipated expenses resulting from the pandemic, the staff felt the best use of
ARPA dollars was revenue replacement; and had there been no pandemic, the City
would have sufficient funding to pay for its traditional services, and address other
increases. Part of the challenge Finance staff faced was to manage the City’s
funds, trying to make sure the City did not spend more than it collected in revenue;
and this was not a one-year process, rather it was a few years in the future when
staff went through this exercise. Mr. Hobbs said staff was compiling five-year
budget projections based on the City Commission’s request that would be
presented to the Commission in August 2023. He added, how the City was using
its ARPA dollars was consistent with how they were being used throughout
Broward County, which staff surveyed, contacting other Broward cities to find out
how they were utilizing their ARPA funds. Even though it might appear the funds
were being used to pay for capital projects, etc., without the pandemic, cities would
have the funding needed to cover such expenses, particularly in light of increases in
revenue due to increases in property values, and from other sources, such as new
development and redevelopment. Staff would review all these factors, and other
financial details in the upcoming budget workshop.
Commissioner L. Martin observed it was not possible to control the future, and
though staff planned to spend about $6 million of the remaining $9 million in the
current fiscal year, there was no way to predict the obstacles that might prevent
their expenditure. The fact that the City Manager’s proposed budget was a
balanced one, the time to ask staff to try to expend all ARPA dollars before the end
of the current fiscal year should have come earlier in the calendar year, as the City
was now in the final quarter of its current fiscal year; staff updated the Commission
at the end of each quarter on the City’s revenues, expenditures, etc. He had no
wish for any plans staff had to expend the $6 million in ARPA dollars to get stalled,
but the unexpected happened, and he fully supported finding ways to lower City
taxes on residents, but this must be done in a smart way that did not derail the
City’s services, etc. Everyone agreed inflation was driving prices up in all areas of
life, so if the City arbitrarily dropped its millage rate by even one mil down to 7.119
for FY 2024, only to discover that for FY 2025 there was such a shortfall that
necessitated increasing the millage rate or cut services, which he felt such cuts
were likely to directly affect public safety. Commissioner L. Martin commented the
City was currently in a position to enter its next fiscal year with a positive cashflow,
the ability to build up its fund balance, and then consider ways to reduce taxes in FY
2025 with increased revenues from new construction coming into the City. He
cautioned Lauderhill’s taxpayers to understand the meaning of the percentages on
their tax bill, as he, too, paid a considerable amount in taxes each year. Again, until
the City spent the $6 million, it currently had about $9 million in ARPA funding in the
bank, and if left unspent, it had to be returned to the federal government by the end
of 2025; hopefully, the City would expend its allocation long before that time.
City Manager Giles-Smith said Vice Mayor S. Martin was right in believing one of the
ways to expend the ARPA dollars was to help households and small businesses,
but in reading the language of the ARPA legislation, the first intent stated was to
provide $350 billion to help states, counties, cities, and tribal governments cover
increased expenditures, replenish lost revenue, and mitigate economic harm from
the COVID 19 pandemic. She noted the City lost revenue in the pandemic, as
