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Council Meeting Minutes for May 15, 2023 <br />Page 5 of 7 <br />Discussion on Use of American Rescue Plan Act (ARPA) Funds to Fund Road Maintenance <br />Projects <br />Finance Director Anna Wobse reminded Council that the ARPA funds were discussed at the goal <br />setting workshop in January, and Council showed interest in using ARPA funds for the <br />construction of the North Star Wetland Bank. To date, the City received the full allocation of <br />$1,668,411.91 of ARPA Funds and had until December 31, 2024, to spend them. In January <br />2022, the US Treasury Department released the final rule that allowed the City to use these funds <br />to fund general government services and specifically recognized road building and road <br />maintenance as a government service. <br />Wobse explained that since the goal setting workshop, Public Works staff had completed a <br />comprehensive review of the roads in the City and found that because of the continuous freeze- <br />thaw that took place Spring of 2023, many roads in the City were in worse condition than <br />expected. Staff worked together to re-evaluate the Street Capital Improvement Projects (CIP) <br />and found many of these roads were not on the upcoming CIP and were in worse condition than <br />some roads currently on the CIP. There were four streets that rated the same and should be <br />completed over the next two years. The current street fund only funded one project each year. <br />Staff recommended using ARPA funds to do the 2023 Birch Tree Street Improvement Project, <br />which would free up the street funds to be used for the additional road maintenance projects that <br />needed to be completed. Staff requested Council adopt the resolution authorizing road <br />maintenance expenditures from the America Rescue Plan Act Funds. If approved, staff would <br />present to Council a new CIP at an upcoming meeting. <br />Weidt said he thought it was a good idea since there were current government negotiations to <br />take back some of the unused funds. This would also help the City catch up on road projects. <br />Strub said he was still concerned about the wetland bank construction and asked if there was <br />another way to fund that. Wobse replied that the City could possibly use Capital Facility Funds <br />since the City would get most of the money back when selling credits. <br />Bear added that it was very easy to see delays in the wetland bank. Now extra data needed to be <br />collected to prove hydrology, which was just one little delay in the project. There was only so <br />much time to spend the ARPA Funds. He said staff would come back with an alternate funding <br />path for the wetland bank, and would come back in June with a new CIP, which was being <br />prepared by staff. <br />Klein made motion, Petryk seconded, RESOLUTION 2023-8 RESOLUTION AUTHORIZING <br />ROAD MAINTENANCE EXPENDITURES FROM THE AMERICAN RESCUE PLAN ACT <br />FUNDS UNDER THE STANDARD ALLOWANCE ELECTED UNDER THE REVENUE <br />LOSS PROVISION OF THE CORONAVIRUS LOCAL FISCAL RECOVERY FUND. <br />All Ayes. Motion carried.