HomeMy WebLinkAbout2023.05.15 RESO 2023-8 ARPA Funds for Roads CITY OF HUGO
RESOLUTION 2023-8
RESOLUTION AUTHORIZING ROAD MAINTENANCE EXPENDITURES FROM
THE AMERICAN RESCUE PLAN ACT FUNDS UNDER THE STANDARD
ALLOWANCE ELECTED UNDER THE REVENUE LOSS PROVISION OF THE
CORONAVIRUS LOCAL FISCAL RECOVERY FUND
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, 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, $1,668,411.91 was received by the City of Hugo (City)pursuant to the ARPA.
WHEREAS, on January 6,2022, Treasury issued the Final Rule. The Final Rule delivered
broader flexibility and greater simplicity in the program,reflective of feedback in the comment
process.
WHEREAS,the Final Rule offered 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 selected the standard allowance could use that amount, in many
cases their full award, for general government services, with streamlined reporting requirements.
WHEREAS, general government services generally include any service traditionally provided
by a government, unless the Treasury has stated otherwise. The Final Rule provided that
government services expressly recognized by the Treasury included,but were not limited to, (a)
road building, road maintenance and other infrastructure; (b) general government administration,
staff and administrative facilities; and (c)provision of police, fire and other public safety
services.
WHEREAS,the City,by virtue of Resolution 2022-18, elected to take the standard allowance
available under the revenue loss provision of the American Rescue Plan Act in the amount of
$1,668,411.91 to be used for the general provision of government services.
WHEREAS,the City Council,has identified road maintenance projects,which in the judgement
of the Council, qualifies as a permitted use of the ARPA Funds, in the direct support of the
provision of governmental services, which consists of the Birch Tree Ponds Area Street
Improvement Project and additional unexpected road maintenance projects that need to be
completed due to the unprecedented freeze-thaw cycle that took place Spring of 2023 that
wreaked havoc on City roads.
Resolution 2023-8
Page 2
WHEREAS,the City seeks to use ARPA Funds to pay for expenditures resulting from said road
maintenance projects.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUGO,MINNESOTA,THE CITY AUTHORIZES THAT THE EXPENDITURES
RESULTING FROM THE BIRCH TREE PONDS AREA STREET IMPROVEMENT
PROJECT AND ADDITIONAL NECESSARY ROAD MAINTENANCE PROJECTS,
ARE A PERMISSIBLE EXPENDITURE OF ARPA FUNDS FOR THE PROVISION OF
GOVERNMENT SERVICES.
BE IT FURTHER RESOLVED, THE EXPENDITURES RESULTING FROM SAID
ROAD MAINTENANCE PROJECTS AND COUNCIL APPROVED ROAD
MAINTENANCE PROJECTS ARE HEREBY AUTHORIZED AND SHALL BE PAID
FOR FROM THE ARPA FUNDS IN AN AMOUNT NOT TO EXCEED $1,668,411.91.
Adopted by the City Council of the City of Hugo, Minnesota this 15th day of May, 2023.
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Tom Weidt,Mayor
Attested:
Michele Lindau, City Clerk