12-01-2021 Council Packet - Laserfiche WebLink

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A determination of the use of the remaining ARPA funds will need to be determined by Council in the future. Eligible categories are as follows: 1. To respond to the COVID-19 public health emergency or its negative economic impacts; 2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to such eligible workers of the recipient, or by providing grants to eligible employers that have eligible workers who performed essential work; 3. For the provision of government services, to the extent of the reduction in revenue of such recipient due to the COVID-19 public health emergency, relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; and; 4. To make necessary investments in water, sewer, or broadband infrastructure. In addition, these funds may be used to replace lost public sector revenue. Once there is lost public sector revenue, there is a broad latitude on use of the funds for government services. Government services include, but are not limited to, maintenance of infrastructure or spending for building new infrastructure, including roads; modernization of cybersecurity; environmental remediation; and the provision of police, fire, and other public safety services. Determination on whether there is a loss of public sector revenue is calculated at each year-end starting on December 31, 2020. The city did not qualify in 2020 but will likely qualify in 2021. There is a long spending period for the ARPA funds. The current reporting deadline for spending these funds will be December 31, 2024, however there is a 2-years extension for approved projects. These funds were discussed at the Council Meeting on 5-26-2021. At that meeting there were suggestions and questions regarding the use of the funds. Responses to those suggestions and questions are included in this packet. Council may wait until 2022 to determine the use of the remaining funds, when there has been a determination on whether there was lost public sector revenue in 2021. STAFF RECOMMENDATION Staff recommends adopting Resolution 2021-12-144, Accepting the Coronavirus Local Fiscal Recovery Funds Established under the American Rescue Plan Act, and motion to record the 2021 allotment of $573,786.39 of ARPA Funds in the General Capital Improvement Fund to be used for future capital projects including the Rondeau Park Improvements. ATTACHMENTS 1. Resolution, Accept the Coronavirus Local Fiscal Recover Funds 2. Responses to Questions and Suggestions regarding use of ARPA Funds 3. Coronavirus Local Fiscal Recovery Fund Award Terms and Conditions 4. Title VI Assurance for ARPA Funding