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<br />WS – Item 2 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 2 <br /> <br /> <br />Date: October 4, 2021 <br /> <br />To: City Council <br /> <br />From: Hannah Lynch, Finance Director <br /> <br />Re: American Rescue Plan Act (ARPA) Eligible Expenditures <br /> <br /> <br />Background <br />The City of Lino Lakes received the first half of the ARPA funds on July 27, 2021 in the <br />amount of $1,170,283.35. The second half will be received one year after the receipt of <br />the first half. No funds have been expended or committed to be spent at this time. Staff <br />has been working through U.S. Treasury guidance to determine eligible expenditures. <br /> <br />Eligible Expenditures <br />The funds must be used in one of the four eligible use categories specified in the <br />American Rescue Plan Act and implemented in the Interim Final Rule. Staff has prepared <br />a summary of the categories and potential uses in the Lino Lakes Potential ARPA <br />Expenditures attachment. The examples given under each use are broad and are taken <br />from current U.S. Treasury Guidance. Staff is continuing to evaluate specific projects or <br />purchases that would apply. <br /> <br />Re-Opening the Recreation Facility <br />Staff believes re-opening costs for the recreation facility fall under the first eligible use <br />category. The use towards the recreation facility is not identified on the U.S. Treasury’s <br />non-exclusive list, but the Interim Final Rule provides flexibility if the objectives of the <br />eligible use is met. <br /> <br />The American Rescue Plan Act of 2021 allows funds to be used “to respond to the public <br />health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its <br />negative economic impacts, including assistance to households, small businesses, and <br />nonprofits, or aid to impacted industries such as tourism, travel, and hospitality”. <br /> <br />North Metro TV originally covered the closure of the Lino Lakes YMCA and reported <br />“the location closed March 15, 2020 due to the COVID-19 pandemic and statewide <br />shutdown, and has not since re-opened. According to a statement from Chief Operating <br />Officer Greg Waibel, 2020 started off strong for the organization, but the pandemic has <br />hit hard with many financial and organization struggles. As a result, the YMCA locations <br />in Downtown St. Paul, Prior Lake, and Lino Lakes will be transitioning away from