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ARDEN HILLS CITY COUNCIL WORK SESSION — JUNE 21, 2021 5 Mayor Grant felt they could do one meeting and have it recorded but he was OK with an evening meeting. Mayor Grant directed staff to give each Council member a topic, and to have NineNorth video the event. Councilmember Holden also suggested discussing the length of time City Staff has to respond to inquiries. Discussion ensued regarding other potential videos with NineNorth. C. American Rescue Plan Act (ARPA) Funds Finance Director Bauman stated the American Rescue Plan funds will be received over the next two years. The current amount allocated to Arden Hills is $1,079,505. 50% is expected to be received in July 2021, with the remaining funds coming in 2022. Eligible uses for the funds include supporting public health expenditures, addressing negative economic impacts, replacing lost public sector revenue, providing premium pay for essential workers, and infrastructure investments for water, sewer and broadband. Public safety payroll costs can be applied but there are different criteria. Under the CARES funds it was presumed that all work being performed could be considered. ARPA funds may be used only to the extent that services are devoted to mitigating or responding to the COVID-19 public health emergency. Loss of revenue is a new category, and based on the current interpretations of the Act, the calculations show that the City had a loss of revenue in 2020 in excess of the total amount allocated to us. What this means is Arden Hills could claim all of the funds under the loss of revenue provision. This money cannot be just placed into fund balance. We must identify what it is being used for. Finance Director Bauman reported there is a 3 lh year time period to use the funds. Government services can include, but are not limited to, maintenance of infrastructure or pay -go spending for building new infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services. The funds should be directed toward one-time priorities and not programs or policies that will continue to need funding into the future. Care should be taken to avoid creating new programs or add-ons to existing programs, funds shouldn't be used to cover operating deficits or normal budgetary items, but long-term capital type projects are well suited for use. There is other money available for capital projects, housing, small business assistance, individual assistance, unemployment and tax changes. Finance Director Bauman noted that costs must be incurred beginning on or after March 3, 2021 (with the exception of premium pay); Costs must be incurred or obligated by December 31, 2024. That means the item must be paid for or an agreement or contract to pay by that date. If it is obligated in 2024, it doesn't have to be spent for another two years. Staff would like direction on how the Council would like to prioritize spending the funds. Councilmember Holden suggested a subcommittee of the Council be formed to make a list of potential items.