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1 <br />City of Mounds View Staff Report <br />Item No. 8.K. <br />Meeting Date: December 12, 2022 <br />Type of Business: Council Business <br />City Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 9673 Accepting and Allocating American Rescue Plan <br />Act Funding <br />The City has received $728,038 in American Rescue Plan Act (ARPA) grant funding in 2022. The funds <br />need to be spent or dedicated by December 31, 2024. <br />The guidance provided by the U.S. Treasury indicates that ARPA funds may be used to Support Public <br />Health Expenditures, Address Negative Economic Impacts Caused by the Public Health Emergency, <br />Replace Lost Public Sector Revenue, Provide Premium Pay, and Invest in Water, Sewer, and <br />Broadband Infrastructure. <br />We have projected lost revenue of $2,177,037, which is more than what is needed to satisfy the grant <br />requirements, the funds only need to be spent on the provision of government services. This will provide <br />the City Council with the greatest flexibility in expending the funds. Staff is recommending that the City <br />Council designate up to $600,000 for the provision of Public Safety in 2022. We have already budgeted <br />for the public safety expenditures so this will increase fund balance which will allow the City Council to <br />use fund balance for other public purpose expenditures at their discretion. This will keep us under the <br />Single Audit threshold which would add $3,500 - $4,500 additional costs to our annual audit. The US <br />Treasury has provided final guidance so eligible expenses have not changed from preliminary guidance. <br />Strategic Plan Strategy/Goal: <br />Operate under a balanced budget that meets the needs and goals of the community. <br />Financial Impact: <br />$1,456,076 in grant funds, $728,038 in 2021 and $728,038 in 2022 to be spent in 2021 - $650,000, <br />2022 - $600,000, and 2023 - $206,076 for the provision of Public Safety. <br />Conclusion <br />Using public safety expenses would be the most efficient administratively. This provides the City <br />Council with the greatest flexibility. This will be a multi -year process and will be wrapped up in 2023. <br />Respectfully Submitted, <br />Mara weer <br />Mark Beer, Finance Director <br />