The city wants the public to weigh in on how it should spend the $386 million awarded through the American Rescue Plan Act.

The federal government awarded states and municipalities millions of dollars of relief funds meant to combat the public health and economic impacts of the COVID-19 pandemic. Honolulu was awarded $386 million to be received in two installments. The city received the first $193 million in June, and the rest of the funds are expected this year.

Although the city has been in receipt of the $193 million for about six months, the final rules from the U.S. Treasury Department were released last week, which is why the city is just now releasing an online survey that will be live until Feb. 14.

People can access the survey about ARPA funding priorities at oneoahu.org/frf.

So far, the city has expended $10.1 million, mostly for public health purposes. This includes COVID-19 test kits and call center services for the isolation facilities.

Office of Economic Revitalization Director Amy Asselbaye said the survey is meant to reach more than just those who regularly tune in to Honolulu City Council meetings.

“We want to make sure first and foremost as we get this going that we have a sound data integrity in terms of what’s received from the community,” she said during Tuesday’s Council Housing and Economy Committee meeting.

“We continue to try to reach out and engage as it’s not just a requirement of the American Rescue Plan, and our use of fiscal recovery funds, but something that we think is really important.”

However, one item that potentially could take up a chunk of the ARPA funding is revenue replacement.

The U.S. Treasury rules allow cities to use ARPA funding to replace lost revenue for city operations due to COVID-19. The way that it is calculated is looking at revenue from fiscal years 2017 through 2019 to determine the average growth rate during that period. Then that is applied to the subsequent years.

Budget and Fiscal Services Director Andrew Kawano said based off that calculation, the recovery amount is about $250 million.

Kawano said the city would not use the revenue replacement to bolster the city’s balance sheet like the state has done.

“They’ve put money in their rainy day fund,” he said.

“We’re looking at how we’re going to be spend it, because our city’s focus is more operational. We’re looking at how to best spend it to continue and enhance services that we provide to the general public.”

Although property taxes, the city’s main source of revenue, stayed steady throughout the pandemic, Kawano listed revenue losses from fuel taxes and city services and fees.

He also mentioned a $45 million loss in the state transient accommodations tax. The state Legislature stopped sharing portions of the state TAT with counties. However, Honolulu implemented its own 3% TAT in December which will need to be paid by affected visitor accommodation businesses by Feb. 20.

“If we get out of this pandemic and we’re in recovery, I think more spending will be for revenue replacement purposes,” he said.

“We’re so focused on public health now, but I think the focus will turn as we get through the recovery process.”

He noted that some of the funds possibly could be used for collective bargaining as city worker union contracts expire.

At Tuesday’s meeting Council Chairman Tommy Waters pointed out that most of the priorities that the Council set for the ARPA funds, such as climate change solutions, agricultural grants and stormwater management, have not yet been funded.

City Managing Director Michael Formby thought that the Council and the administration should work collaboratively, but added that some of the Council’s priorities possibly could be funded through other federal grants.

Council member Esther Kia‘aina also suggested that the city administration consider using funds to fill the gaps for people from Micronesia living in Hawaii who have been ineligible for many of the federal relief programs.

“I feel that it is discriminatory on behalf of our federal government to not treat our citizens from Micronesia, who live in Hawaii with equity,” she said.