04-28-2021 Council Packet - Laserfiche WebLink

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•Due to favorable winter conditions, 32% less salt was purchased in 2021 than 2020 through the 1st quarter. American Rescue Plan Funds On March 11th, the $1.9 trillion American Rescue Plan was signed into law. It includes $350 billion in federal aid for states, municipalities, counties, tribes, and territories. The purpose of this funding is to provide financial relief to governmental entities as they continue to respond to the pandemic. Unlike the 2020 federal Coronavirus Relief Fund (CRF), the American Rescue Plan funds will be able to be used to address revenue losses. Funds will be distributed in two tranches, the first of which must be distributed no later than 60 days following enactment of the law. Metropolitan cities under 50,000 in population are considered “non-entitlement” units of local government, and will receive payments from the state, with funds distributed by population. Preliminary estimates indicate that Little Canada will receive $1.2 million, however this number may decrease based on Federal guidance. These funds will be released to the City of Little Canada in two installments, with half within 60-days of the enactment of the bill (March 11, 2021) and the second half paid 12-months following receipt of the first payment. The expenditure deadline for the use of these funds is December 31, 2024. Eligible uses of these funds include: •Assistance to households, small businesses, and nonprofits in response to the public health emergency or to aid industries such as tourism, travel, and hospitality •Premium pay for essential workers •Revenue replacement for the provision of government services •Investments in water, sewer, or broadband infrastructure As with the CARES Act funds, the Department of Treasury will be releasing guidance on the detailed uses of these funds, which is expected to be released late in April or in early May. The League of MN Cities and Metro Cities will co-host a webinar on Wednesday, May 5th at 11:00 am providing additional guidance on the American Rescue Plan, and staff will be in attendance. Once this guidance is released, the ultimate use of these funds will be determined by Council. Special Revenue and Enterprise Funds The Quarterly Financial Report for the special revenue and enterprise funds is attached to this report. All funds fell within expected budget amounts. Other Items The worker’s compensation coverage premium and property insurance premiums were paid during the 1st quarter to the League of Minnesota Cities Insurance Trust. The worker’s compensation coverage had a slight decrease from the 2020 actual, and the property insurance premium increased 2.5% from the 2020 actual. Due to the favorable premiums, there will be budget savings in the insurance fund. Insurance Budget Actual Worker’s Compensation $40,080 $33,922 Property Insurance $76,570 $70,810