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CITY OF HUGO <br />RESOLUTION 2023- <br /> <br />RESOLUTION AUTHORIZING ROAD MAINTENANCE EXPENDITURES FROM <br />THE AMERICAN RESCUE PLAN ACT FUNDS UNDER THE STANDARD <br />ALLOWANCE ELECTED UNDER THE REVENUE LOSS PROVISION OF THE <br />CORONAVIRUS LOCAL FISCAL RECOVERY FUND <br /> <br /> <br />WHEREAS, Congress adopted the American Rescue Plan Act (ARPA) in March 2021, which <br />included $65 billion in recovery funds for cities across the country. <br /> <br />WHEREAS, In May 2021, the US Department of Treasury (Treasury) published the Interim <br />Final Rule describing eligible and ineligible uses of funds, as well as other program provisions, <br />sought feedback from the public on these program rules, and began to distribute funds. <br /> <br />WHEREAS, $1,668,411.91 was received by the City of Hugo (City) pursuant to the ARPA. <br /> <br />WHEREAS, on January 6, 2022, Treasury issued the Final Rule. The Final Rule delivered <br />broader flexibility and greater simplicity in the program, reflective of feedback in the comment <br />process. <br /> <br />WHEREAS, the Final Rule offered a standard allowance for revenue loss of up to $10 million, <br />allowing recipients to select between a standard amount of revenue loss or complete a full <br />revenue loss calculation. <br /> <br />WHEREAS, recipients that selected the standard allowance could use that amount, in many <br />cases their full award, for general government services, with streamlined reporting requirements. <br /> <br />WHEREAS, general government services generally include any service traditionally provided <br />by a government, unless the Treasury has stated otherwise. The Final Rule provided that <br />government services expressly recognized by the Treasury included, but were not limited to, (a) <br />road building, road maintenance and other infrastructure; (b) general government administration, <br />staff and administrative facilities; and (c) provision of police, fire and other public safety <br />services. <br /> <br />WHEREAS, the City, by virtue of Resolution 2022-18, elected to take the standard allowance <br />available under the revenue loss provision of the American Rescue Plan Act in the amount of <br />$1,668,411.91 to be used for the general provision of government services. <br /> <br />WHEREAS, the City Council, has identified road maintenance projects, which in the judgement <br />of the Council, qualifies as a permitted use of the ARPA Funds, in the direct support of the <br />provision of governmental services, which consists of the Birch Tree Ponds Area Street <br />Improvement Project and additional unexpected road maintenance projects that need to be <br />completed due to the unprecedented freeze-thaw cycle that took place Spring of 2023 that <br />wreaked havoc on City roads.