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MEMORANDUM <br />To:Saint Anthony Village City Council <br />From:Shelly Rueckert, Finance Director <br />Date:June 14, 2022 City Council Work Session <br />Request:American Rescue Plan Act (ARPA) <br />BACKGROUND <br />Initial ARPA guidance on eligible costs was limiting in the options available for the City’s use of funds. The City’s <br />use of ARPA funds for the rehabbing of the Water Tower fit within the guidelines with a broad benefit to <br />residents and businesses. The City Engineer’s estimated cost project cost was $690,000-$750,000. That amount <br />was within the range of funds preliminary projected for ARPA. <br />Since that time the amount of ARPA funds available has been established at $984,960. Also, final ARPA guidance <br />was issued on April 1, 2022. This final guidance expanded the eligible uses for Cities receiving less than $10 <br />million. Attached is the pertinent slide from the US Treasury’s presentation highlighting the changes that benefit <br />smaller recipients. The Treasury recommended that all small recipients to use the $10 million revenue loss <br />standard allowance which simplifies reporting and retains and expands eligible uses. City Staff has followed that <br />recommendation in its initial report filed on April 30, 2022. <br />Staff has reassessed the City’s intended use of ARPA funds in light of these recent changes in guidance. Eligible <br />uses now include spending on Public safety vehicles (Fire and Police) and stormwater infrastructure. The City’s <br />resources used to support these expenditures are not as significant as the resources available to fund the water <br />and sewer infrastructure projects. Therefore, Staff is recommending the ARPA funds are redirected to support: <br />Harding Pond Stormwater Pond project – Estimated costs $275,000-$325,000 (Preserves available <br />stormwater funds for additional stormwater projects -Foss Rd Ditch, Water re-use tank cleaning etc.) <br />New Fire Truck – Estimated costs $725,000 (Eliminates Financing) <br />The water sewer infrastructure fund would support the cost to rehab the Water tower. The water sewer <br />infrastructure fund has also benefited from connection fees due to redevelopment. The fund received $521,900 <br />in connection fees in 2021 and is expected to receive $425,000 in the 2022-2023 timeframe. <br />DISCUSSION ITEMS FOR COUNCIL FEEDBACK <br />Below are the specific items for discussion and feedback: <br />Does the Council have any concerns with redirecting use of ARPA funds? <br />Other considerations for staff? <br />ATTACHMENTS: <br />US Treasury final rule presentation slide