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REQUEST FOR COUNCIL ACTION <br /> Date: March 20, 2023 <br /> Item No.: 7.a <br />Department Approval City Manager Approval <br /> <br />Item Description: Receive update on the American Rescue Plan Act (ARPA) spending plan. <br />Page 1 of 3 <br />BACKGROUND 1 <br />Congress adopted the American Rescue Plan Act in March 2021 (“ARPA”) which included $65 billion 2 <br />in recovery funds for cities across the country. The US Treasury provided guidelines for each city to 3 <br />follow while thinking about ways to use the funds. The City was awarded $3,984,102.54 in ARPA funds. 4 <br /> 5 <br />The City Council approved use of the flat standard revenue loss option as allowed under the final rules 6 <br />for use of the ARPA funds on January 24, 2022 along with the proposed spending plan. The ARPA funds 7 <br />are available for appropriation through December 31, 2024. 8 <br /> 9 <br />The Final Rule issued by the U.S. Department of the Treasury has the general categories of eligible use 10 <br />of these ARPA funds as follows: 11 <br />1. Replacement of lost public sector revenues 12 <br />2. Responding to the Public Health Emergency/Negative Economic Impacts 13 <br />3. Infrastructure investments – water, sewer and broadband projects 14 <br />4. Premium Pay for essential workers. 15 <br /> 16 <br />The following chart shows the spending plan and expenditures that have occurred in 2021 and 2022. It 17 <br />also shows amounts that have been dedicated in 2023 and 2024 thus far. The full amount of ARPA funds 18 <br />have not been allocated at this time so the City can remain flexible to handle anything major that may 19 <br />arise in the next year and to provide flexibility in the 2024 budget. The spending plan outlines the use of 20 <br />the dollars in the categories outlined in the ARPA funding rules and it is the intent to utilize these funds 21 <br />strategically for one-time costs. 22 <br /> 23 <br /> 24