2023-02-22 CC Packet - REVISED - Laserfiche WebLink

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(AEst4z6(ishedI857 652-429-3232 or Tcx557-4294629 Memorandum Date: February 22, 2023 To: Honorable Mayor and City Council Members Through: Mark R. Statz, City Administrator/City Engineer From: Bruce DeJong, Finance Director Item: ARPA - Election of Governmental Operations to Fund Discussion Staff are looking forward to closing out the ARPA project funding and reporting requirements. After much debate at the national level, the Treasury Department determined that cities who received ARPA funding could use it towards traditional governmental operations. Replacing Lost Public Sector Revenue The final rule offers 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. Recipients that select the standard allowance may use that amount in many cases their full award for government services, with streamlined reporting requirements. Page 4 https:Hhome.treasurygov/system/files/136/SLFRF-Final-Rule-Overview.pdf The final rule from Treasury was effective on April 1, 2022. Any qualifying expenditures after that date are considered eligible expenses. Recipients may use funds up to the amount of revenue loss for government services; generally, services traditionally provided by recipient governments are government services, unless Treasury has stated otherwise. Page 6 https:Hhome.treasurygov/ssystem/files/136/SLFRF-Final-Rule-Overview.pdf Recipients can use SLFRF funds on government services up to the revenue loss amount, whether that be the standard allowance amount or the amount calculated using the above approach. Government services generally include any service traditionally provided by a government, unless Treasury has stated otherwise. Here are some common examples, although this list is not exhaustive: ✓Construction of schools and hospitals ✓Road