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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of the City Council <br /> <br />FROM: Chris Heineman, City Administrator <br />Brenda Malinowski, Finance Director <br /> <br />DATE: May 26, 2021 <br /> <br />RE: American Rescue Plan Funds <br /> <br /> <br />BACKGROUND <br /> <br />The American Rescue Plan (ARP) is federal funding to address the COVID-19 pandemic. The <br />ARP funding that was approved in 2021 builds on the CARES Act that was distributed to local <br />governments in 2020. Unlike the CARES Act, ARP funding is more flexible, provides a longer <br />period for recipients to use funds, and can be used for revenue losses incurred. ARP funding is <br />intended for continued responses to COVID-19 and for addressing longer term effects of the <br />pandemic. Additional ARP funding is being distributed to other entities for childcare, Head <br />Start, family caregivers, mental health, transit, education, small businesses, and other uses. <br />Funding Allocations: <br />Minnesota counties will receive $1.1 billion and 21 cities considered as “Entitlement” cities will <br />receive $644.1 million. All other cities, including Little Canada, will receive $376.9 million. <br />Entitlement cities and all counties will receive funds directly from the Department of Treasury <br />(UST); other cities will receive their funding from the State of Minnesota. The state has 30 days <br />to distribute funds once they are received, with the first half in 2021 and the second half in 2022. <br />The state may request an additional 30-day extension to distribute funds. <br />Eligible Uses: <br />Eligible uses include, but are not limited to, vaccinations, PPE, testing, mental health treatment, <br />essential worker premium pay, unemployment and training, food, housing, small business loans <br />and grants, assistance to impacted industries such as hospitality and tourism, re-hiring public <br />sector employees, lost revenue replacement, addressing health disparities, violence intervention, <br />access to infrastructure (broadband, drinking water, modern technologies), urgent response <br />efforts to continue decreasing virus spread, and immediate economic stabilization for households <br />and businesses. Any diminishment in revenues since the pandemic began is presumed to be the <br />result of COVID-19 and recipients will not be required to provide proof of revenue losses.