06-23-2021 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of the City Council FROM: Chris Heineman, City Administrator Brenda Malinowski, Finance Director DATE: June 23, 2021 RE: American Rescue Plan Funds ACTION TO BE CONSIDERED Motion to adopt Resolution 2021-6-81, Authorizing Staff to Apply for the Coronavirus Local Fiscal Recovery Funds Established under the American Rescue Plan Act. BACKGROUND The American Rescue Plan Act (ARPA) are federal funds that are to be used to address the COVID-19 pandemic. The ARPA funding that was approved in 2021, builds on the CARES Act that was distributed to local governments in 2020. Unlike the CARES Act, ARPA funds are more flexible, provides a longer period for recipients to use funds, and can be used for revenue losses incurred. ARPA funding is intended for continued responses to COVID-19 and for addressing longer term effects of the pandemic. Additional ARPA funding is being distributed to other entities for childcare, Head Start, family caregivers, mental health, transit, education, small businesses, and other uses. City of Little Canada Funding Allocation: As part of the American Rescue Plan Act, 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 approximately $1,071,102. Unlike the CARES Act Funds, there will be a longer spending period for the ARPA funds. The current reporting deadline for spending these funds will be December 31, 2024, however the Department of Treasury has indicated that an extension of up to 2-years may be granted for approved projects. City staff 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. In order to apply for these funds, it is recommended that the City pass a resolution authorizing the application.