05-26-2021 Council Packet - Laserfiche WebLink

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MMB noted that funding used to address health disparities and assistance in qualified census tracts (low income and tribal areas) are presumed to be eligible uses. Ineligible Uses: A non-exclusive list of ineligible uses includes offsets for tax cuts, deposits in pension funds, bolstering rainy day reserves, and debt service payments. A key difference between CRF funding and ARP funding relates to public health/safety and first responder payroll expenses. Under the CRF, all salary and benefit payments for these workers was eligible. Under the ARP, funds are allowed for payroll and benefit expenses, with the stipulation that expenses are for services dedicated to mitigating or responding to the COVID-19 emergency. Local units of government, whether receiving funds directly from the UST or the state, will submit spending reports directly to the US Department of Treasury. Funds will be allowed for expenses incurred between March 3, 2021 and December 31, 2024. In addition, cities will have until 2026 to expend funds once funds have been obligated. City of Little Canada Funding Allocation: As part of the Federal American Rescue Plan, the City of Little Canada will receive funds under the Local Fiscal Recovery Fund. While the exact amount of funds to be received are unknown at this time, it is estimated that amount will be between $104 and $105 per capita, which translates to $1.05-$1.1 million based on the 2019 estimated population of 10,451 for Little Canada. Unlike the CARES Act Funds, there will be a longer spending periods for the American Rescue Plan Funds. As stated above, the spending period for these funds will be December 31, 2024. City s taff will continue to monitor guidance related to ARP funding, and staff will bring this issue back to the City Council for further discussion later in 2021.