2022-04-27 CC WS & Council Packet

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CLIENT PAYMENT NEWS SUBMIT RFP CLIENT PORTAL Industries Services Insights Ambfd0 About Careers Contact Us Article What you need to know now about the recent ARPA Coronavirus State and Local Fiscal Recovery Funds ruling The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan, delivers $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency. Funding from the Coronavirus State and Local Fiscal Recovery Funds is subject to the requirements specified in the Final Rule released by the Treasury on January 27, 2022. The Treasury released an Overview of the Final Rule which provides a summary of major rule provisions to assist recipients and stakeholders. The Final Rule takes effect on April 1, 2022, but you can choose to take advantage of its flexibilities and simplifications now. SLFRF funds can be used the following ways: • Replace lost public sector revenue • Support the COVID-19 public health and economic response • Provide premium pay for eligible workers performing essential work • Invest in water, sewer, and broadband infrastructure The option that allows the most flexibility is using it for the replacement of lost public sector revenue. This money can be spent on government services, this includes any service traditionally provided by a government. Some examples would include, but not limited to: • Road building and maintenance and other infrastructure • Health services • General government administration, staff, and administrative facilities • Environmental remediation • Provision of police, fire, and other public safety services (including purchase of fire trucks and police vehicles The costs must be incurred on or after March 3, 2021, obligated by December 31, 2024, and expended by December 31, 2026. If the city uses less than 810 million (in aggregate) as lost revenue, there is no need to calculate the revenue that was lost. If the city would want to use more than $10 million then they would need to calculate using the Treasury's formula, which compares actual revenue to a trend. The city must report whether they are electing the standard allowance in their April 30, 2022, Project and Expenditure Report. The choice indicated on that report cannot be changed later. The city will still need to track how it spends money. The amount spent each year will be included on the schedule of federal awards. Below are the restrictions on use of funds if the city elects to use the standard allowance: • Offset a reduction in net tax revenue — If taxes are cut during this period, the city must demonstrate how it paid for the tax cuts from sources other than SLFRF • Deposit into a pension fund • No debt service payments • No replenishing or building up fund balance