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HomeMy WebLinkAbout2021-144 Council Resolution CITY OF LINO LAKES RESOLUTION NO. 21-144 A RESOLUTION TO ACCEPT THE REDISTRIBUTION OF UNREQUESTED CORONAVIRUS LOCAL FISCAL RECOVERY FUND ESTABLISHED UNDER THE AMERICAN RESCUE PLAN ACT WHEREAS, Congress adopted the American Rescue Plan Act in March 2021 ("ARPA")which included $65 billion in recovery funds for cities across the country. WHEREAS,ARPA funds are intended to provide support to state, local, and tribal governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 in their communities, residents, and businesses. WHEREAS, The Fiscal Recovery Funds provides for$19.53 billion in payments to be made to States and territories which will distribute the funds to nonentitlement units of local government (NEUs). WHEREAS,NEUs generally have populations below 50,000. WHEREAS, The ARPA requires that States and territories allocate funding to NEUs in an amount that bears the same proportion as the population of the NEU bears to the total population of all NEUs in the State or territory. WHEREAS, after the deadline of October 11,2021,passed for NEUs to request ARPA funds, nearly $12 million of the $377 million available to Minnesota's NEUs remained unrequested. WHEREAS, as allowed by the U.S. Treasury,the State of Minnesota has redistributed these remaining funds amongst eligible local governments who requested ARPA funds. WHEREAS,the redistribution amount is approximately $3.47 per capita, capped at 75%of the most recent budget adopted as of January 27, 2020. WHEREAS, $76,647.12 has been allocated to the City of Lino Lakes ("City")pursuant to the ARPA(Redistribution). WHEREAS,the Redistribution will be distributed in two tranches with half received in 2021 and the second half in 2022. WHEREAS,the United States Department of Treasury has adopted guidance regarding the use of ARPA funds. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES,MINNESOTA AS FOLLOWS: 1. The City accepts the Redistribution of coronavirus local fiscal recovery fund established under the ARPA to be used in a manner consistent with guidance adopted by the United State Department of Treasury. 2. The City Clerk and Mayor are authorized to take actions to secure the Redistribution for the City, if necessary. Adopted by the City Council of the City of Lino Lakes this 13th day of December 2021. The motion for the adoption of the foregoing resolution was introduced by Councilmember Ruhland and was duly seconded by Councilmember Lyden and upon vote being taken thereon, the following voted in favor thereof. Ruhland, Lyden, Cavegn, Stoesz, Rafferty The following voted against same: None , '• k t-tom... Of - R'3156 Rafferty,Mayor ATTEST: *ine Bartell, Ci Clerk CITY COUNCIL AGENDA ITEM 1F STAFF ORIGINATOR: Hannah Lynch, Finance Director MEETING DATE: December 13, 2021 TOPIC: Accepting the Redistribution of Unrequested American Rescue Plan Act Funds VOTE REQUIRED: 3/5 INTRODUCTION Local governments were required to request American Rescue Plan Act (ARPA) funds by October 11, 2021. After the deadline passed, the state of Minnesota redistributed remaining funds amongst eligible local governments who requested ARPA funds. The City of Lino Lakes was allocated an additional $76,647.12 in the redistribution. Half was distributed on November 22, 2021 and the remaining balance will follow in 2022 unless guidance changes. BACKGROUND The City of Lino Lakes received $1,170,283.35 in July and a supplemental distribution of $38,323.56 in November. With the second payment anticipated in the Summer of 2022, the City of Lino Lakes total ARPA allocation is expected to be $2,417,213.82. The League of Minnesota Cities developed a model resolution to accept ARPA funds. There is not a specific requirement in the law that cities pass a resolution but it is a formal way to acknowledge that the city will be receiving the funds and grants staff the authority to take the necessary steps once the process is open through Minnesota Management and Budget. RECOMMENDATION Staff is recommending approval of Resolution No. 21-144. ATTACHMENTS Resolution 21-144