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Item No. 8.H. <br /> M0LJNDS VIEW Meeting Date: December 11, 2023 <br /> Type of Business: Council Business <br /> City Administrator Review: <br /> City of Mounds View Staff Report <br /> To: Honorable Mayor and City Council <br /> From: Gayle Bauman, Finance Director <br /> Item Title/Subject: Resolution 9834 Accepting and Allocating American Rescue Plan <br /> Act Funding <br /> The City received $1,456,076.53 in American Rescue Plan Act(ARPA)grant funding of which $650,000 <br /> was spent in 2021 and $560,009.90 was spent in 2022. The remaining funds ($246,066.63) need to be <br /> 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 /> The City had projected lost revenue of $2,177,037 which was more than what was needed to satisfy <br /> the grant requirements. The funds only need to be spent on the provision of government services which <br /> provides the City Council with the greatest flexibility in expending the funds. Staff is recommending that <br /> the City Council designate the remaining balance of $246,066.63 for the provision of Public Safety in <br /> 2023. We have already budgeted for the public safety expenditures so this will increase fund balance <br /> which will allow the City Council to use fund balance for other public purpose expenditures at their <br /> discretion. This will keep us under the Single Audit threshold which would have added $3,500 - $4,500 <br /> additional costs to our annual audit. The US Treasury has provided final guidance so eligible expenses <br /> 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 - $560,010; and 2023 - $246,066 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 concludes the multi-year ARPA process. <br /> Respectfully Submitted, <br /> Gayle Bauman, Finance Director <br />