04-18-22-WS - Laserfiche WebLink

Home Browse Search

Page 2 of 3 • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet. One-time funds These funds should be directed toward one-time priorities and not programs or policies that will continue to need funding into the future. With the temporary nature of ARPA funds: • Care should be taken to avoid creating new programs or add-ons to existing programs that require an ongoing financial commitment. • Use of ARPA funds to cover operating deficits caused by COVID-19 should be considered temporary and additional budget restraint may be necessary to achieve/maintain structural balance in future budgets. • Investment in critical infrastructure is particularly well suited use of ARPA funds because it is a non-recurring expenditure that can be targeted to strategically important long- term assets that provide benefits over many years. However, care should be taken to assess any on-going operating costs that may be associated with the project. Timeline • Cost must be incurred beginning on or after March 3, 2021 (with the exception of premium pay); • Costs must be incurred or obligated (orders placed for property and services, contracts and sub- awards made, and similar transactions that require payment) by December 31, 2024; • End of performance period is December 31, 2026 (allows for projects obligated at December 31, 2024 to be completed). Discussion Mayor Grant, Councilmember Holden and Finance Director Bauman met in July 2021, to start developing a list of items that meet the eligibility requirements and bring the greatest benefit to the City. On March 21, 2022, this was discussed with Council at the work session. The conversation centered on water, sewer and storm water projects. Using ARPA funds on utility projects means the city won’t have to bond for future improvements and can keep utility costs down, which impacts all property owners. Investment in critical infrastructure is a particularly well suited use of ARPA funds because it is a non-recurring expenditure that can be targeted to strategically important long- term assets that provide benefits over many years. The City Administrator, Public Works Director and Finance Director met to discuss the different utility funds and possible projects. Sewer Fund – COVID had the biggest impact on the Sewer Fund in 2020, with a loss in revenue in excess of $150,000. An annually scheduled transfer out of the fund was reduced by $63,000 to help offset the loss of revenue. Staff would propose to use up to $200,000 of the ARPA funds on a sewer project depending on need.