City Council Meeting Date: June 8, 2021
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
American Rescue Plan Update on Guidance and Process for Application of Funds.
Body
Action Requested:
Discussion only.
Summary Report:
Staff is preparing additional background information related to this agenda item that will be coming as a supplemental item. There is information from the League of Minnesota Cities included in this memo and attachments to review as initial background information.
The following is some background information from the League of Minnesota Cities.
LMC Background
Federal guidance released last week provides initial direction for how cities can receive and use Coronavirus State and Local Fiscal Recovery Funds.
The U.S. Department of Treasury released the Interim Final Rule on May 10 for the Coronavirus State and Local Fiscal Recovery Funds authorized by the American Rescue Plan Act (ARPA). The Interim Final Rule will serve as the guidance for states and local governments on eligible expenditures and reporting requirements for the funds.
The 151-page document provides a non-exclusive list of allowable expenditures, encouraged expenditures, and prohibited expenditures, as well as a framework for states and local government to assess eligibility for using the funds for specific projects and services.
Cities are also encouraged to review the Treasury's Frequently Asked Questions document, which provides highlights from the Interim Final Rule. This document is attached to this memorandum.
Guidance highlights
The Interim Final Rule provides a framework for a broad array of eligible uses of the funds. Categories of eligible uses include:
* Responding to the public health emergency.
* Responding to the negative economic impacts of the pandemic.
* Premium pay for essential workers.
* Replacement of revenue lost due to the pandemic that would be used to provide government services.
* Necessary investments in water, se...
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