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<br />WS – Item 3 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 3 <br /> <br /> <br />Date: July 6, 2021 <br /> <br />To: City Council <br /> <br />From: Hannah Lynch, Finance Director <br /> <br />Re: ARPA Fiscal Recovery Funds <br /> <br />Background <br /> <br />The American Rescue Plan Act (ARPA) provides eligible state, local, territorial, and <br />Tribal governments funding through the Coronavirus State and Local Fiscal Recovery <br />Funds (Fiscal Recovery Funds) program to respond to the COVID-19 public health <br />emergency. The City of Lino Lakes has submitted a request to the Minnesota COVID-19 <br />Response Accountability Office for its share of federal aid (estimated at $2.3 million). <br />The City is expected to receive the first half of the funds by the end of July and the <br />second half 12 months after receipt of the first half. <br /> <br />The ARPA specifies Fiscal Recovery Funds must be used in one of the four eligible use <br />categories: <br /> <br />1. To respond to the public health emergency or its negative economic impacts; <br />2. Provide premium pay to eligible essential works; <br />3. For the provision of government services to the extent of the reduction in revenue <br />due to COVID-19; and <br />4. To make necessary investments in water, sewer, and broadband infrastructure. <br /> <br />The covered period for using the funds is March 3, 2021 through December 31, 2024. <br />Although the funds must be obligated by December 31, 2024, the period of performance <br />will run until December 31, 2026, which will provide recipients a reasonable amount of <br />time to complete projects funded with Fiscal Recovery Funds. <br /> <br />The City will be required to submit annual project and expenditure reports to the U.S. <br />Treasury by October 31st regarding the utilization of the funds. Also, if the expenditure <br />of federal funds exceeds $750,000 in a fiscal year, the City will be required to obtain a <br />federal single audit. <br /> <br />Staff is prepared to host an initial discussion on the use of ARPA Fiscal Recovery Funds. <br /> <br />Attachments <br /> <br />Fiscal Recovery Funds Quick Reference Guide <br />Fiscal Recovery Funds FAQ