02-14-2022 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM IE STAFF ORIGINATOR: Hannah Lynch, Finance Director MEETING DATE: February 14, 2022 TOPIC: Consider Resolution No. 22-22, Electing the Standard Allowance Available under the Revenue Loss Provision of the American Rescue Plan Act VOTE REQUIRED: 3/5 BACKGROUND The City has been allocated $2,417,213.82 of American Rescue Plan Act (ARPA) funds. The funds have been accepted and are planned to be used in a manner consistent with guidance adopted by the United States Department of Treasury. In May 2021, the Treasury published the Interim Final Rule describing eligible and ineligible uses of funds as well as other program provisions. Under that guidance the City adopted a spending plan on December 13, 2021. On January 6, 2022, Treasury issued the Final Rule delivering broader flexibility and greater simplicity in the program. The Final Rule offers a standard allowance for revenue loss of up to $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation. Recipients that elect the standard allowance may use that amount, in many cases their full award, for government services, with streamlined reporting requirements. By electing the standard allowance available under the revenue loss provision of ARPA in the amount of $2,417,213.82, the City may spend all allocated ARPA funds for the provision of government services. Similar to the initial spending plan, the City intends to use the revenue loss funds for the provision of government services to re -open the Rookery Activity Center and, if needed, other pay -go spending for capital improvements and purchases. RECOMMENDATION Staff is recommending approval of Resolution No. 22-22, Electing the Standard Allowance Available under the Revenue Loss Provision of the American Rescue Plan Act. ATTACHMENTS Resolution 22-22