HomeMy WebLinkAbout2022-022 Council Resolution CITY OF LINO LAKES
RESOLUTION NO.22-22
RESOLUTION ELECTING THE STANDARD ALLOWANCE
AVAILABLE UNDER THE REVENUE LOSS PROVISION OF THE
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, 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, $2,417,213.82 has been allocated to the City of Lino Lakes ("City")pursuant to the
ARPA.
WHEREAS, The Coronavirus State and Local Fiscal Recovery Funds ensures that governments
have the resources needed to fight the pandemic and support families and businesses struggling
with its public health and economic impacts, maintain vital public services, even amid declines
in revenue, and build a strong, resilient, and equitable recovery by making investments that
support long-term growth and opportunity.
WHEREAS, In May 2021, the US Department of Treasury ("Treasury")published the Interim
Final Rule describing eligible and ineligible uses of funds as well as other program provisions,
sought feedback from the public on these program rules, and began to distribute funds.
WHEREAS, on January 6, 2022, Treasury issued the final rule. The final rule delivers broader
flexibility and greater simplicity in the program,responsive to feedback in the comment process.
WHEREAS,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.
WHEREAS,recipients that select the standard allowance may use that amount, in many cases
their full award, for government services,with streamlined reporting requirements.
League of Minnesota Cities
American Rescue Plan Act Resolution Page 1
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes,the
City elects the standard allowance available under the revenue loss provision of the American
Rescue Plan Act in the amount of$2,417,213.82 to be used for the general provision of
government services.
Adopted by the Council of the City of Lino Lakes this 14th day of February, 2022.
The motion for the adoption of the foregoing resolution was introduced by Councilmember
Ruhland and was duly seconded by Councilmember Cavegn and upon vote being taken thereon,
the following voted in favor thereof: Ruhland, Cavegn,Lyden, Stoesz,Rafferty
The following voted against same: None
Rob Rafferty, Mayor
ATTEST:
u ' e Bartell, Ci Cler
League of Minnesota Cities
American Rescue Plan Act Resolution Page 2
CITY COUNCIL
AGENDA ITEM 1E
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