HomeMy WebLinkAbout2022.04.04 RESO 2022-18 Standard Allowance for ARPA FundsCITY OF HUGO
RESOLUTION 2022-18
RESOLUTION ELECTING THE STANDARD ALLOWANCE
AVAILABLE UNDER THE REVENUE LOSS PROVISION OF THE
CORONAVIRUS LOCAL FISCAL RECOVERY FUND
ESTABLISHED UNDER THE AMERICAN RESCUE PLAN ACT
WHEREAS, Congress adopted the American Rescue Plan Act (ARPA) in March 2021, which
included $65 billion in recovery funds for cities across the country.
WHEREAS, ARPA funds are intended to provide support to state, local, and tribal governments
in responding to the impact of COVID-19 and in their efforts to contain COVID-19 in their
communities, residents, and businesses.
WHEREAS, The Fiscal Recovery Funds provides for $19.53 billion in payments to be made to
States and territories which will distribute the funds to nonentitlement units of local government
(NEUs).
WHEREAS, The ARPA requires that States and territories allocate funding to NEUs in an
amount that bears the same proportion as the population of the NEU bears to the total population
of all NEUs in the State or territory.
WHEREAS, $1,668,411.92 has been allocated to the City of Hugo (City) pursuant to the ARPA.
WHEREAS, The Coronavirus State and Local Fiscal Recovery Funds ensures that governments
have the resources needed to fight the pandemic and support families and businesses struggling
with its public health and economic impacts, maintain vital public services, amid declines in
revenue, and build a resilient and equitable recovery by making investments that support long-
term growth and opportunity.
WHEREAS, In May 2021, the US Department of Treasury (Treasury) published the Interim
Final Rule describing eligible and ineligible uses of funds, as well as other program provisions,
sought feedback from the public on these program rules, and began to distribute funds.
WHEREAS, on January 6, 2022, Treasury issued the Final Rule. The Final Rule delivers
broader flexibility and greater simplicity in the program, reflective of feedback in the comment
process.
WHEREAS, the Final Rule offers a standard allowance for revenue loss of up to $10 million,
allowing recipients to select between a standard amount of revenue loss or complete a full
revenue loss calculation.
WHEREAS, recipients that select the standard allowance may use that amount, in many cases
their full award, for general government services, with streamlined reporting requirements.
Resolution 2022-18
Page 2
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUGO, MINNESOTA, THE CITY ELECTS THE STANDARD ALLOWANCE
AVAILABLE UNDER THE REVENUE LOSS PROVISION OF THE AMERICAN
RESCUE PLAN ACT IN THE AMOUNT OF $1,668,411.92 TO BE USED FOR THE
GENERAL PROVISION OF GOVERNMENT SERVICES.
Adopted by the City Council of the City of Hugo, Minnesota this 4th day of April, 2022.
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Tom Weidt, Mayor
Attested:
Michele Lindau, City Clerk