9.
City Council Work Session
- Meeting Date:
- 10/12/2021
- From:
- Rick Tadder, Management Services Director
TITLE
Discussion and Direction on American Rescue Plan Act Local Recovery Funding continued from September 7, 2021 Council meeting.
STAFF RECOMMENDED ACTION:
Staff is seeking Council discussion and direction for allocating the American Rescue Plan Act (ARPA) Local Recovery Funding (LRF) of $13,252,816.00 which the City of Flagstaff will receive.
EXECUTIVE SUMMARY:
On September 7, 2021, City staff presented as allocation of the ARPA Local Recovery Funding to City Council based on the Budget Team's preliminary draft proposal. Staff received feedback from City Council on recommendations to reallocate funding and asked staff to bring back another discussion on the funding.
The budget Team has worked the last several weeks to bring back a balanced plan based on City Council recommendation and developed the revised proposal for tonight’s discussion.
The budget Team has worked the last several weeks to bring back a balanced plan based on City Council recommendation and developed the revised proposal for tonight’s discussion.
INFORMATION:
The American Rescue Plan Act (ARPA) for State and Local Recovery Fund (SLFRF) provides a substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout and lay the foundation for a strong and equitable recovery. The ARPA funds provide substantial flexibility for each government to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hit hardest by the crisis. These funds may also be used to make necessary investments in water, sewer, and broadband infrastructure.
On May 10, 2021, the United States Treasury released an Interim Final Rule (IFR) related to the guidance for eligible use of ARPA funds. There was a 60-day comment period that closed on July 16, 2021. After reviewing comments, the Treasury will issue a Final Rule which may differ slightly from the previous rule. The release of the Interim Final Rule gave the City of Flagstaff more guidance on what we can use the funds for within our city and community.
The US Treasury also released Frequently Asked Questions (FAQs) which provides further understanding of how cities can apply the Interim Final Rule. In addition, the US Treasury has created a Compliance and Reporting Guidance document which we are beginning to review.
The US Treasury has not released the Final Rule for ARPA Local Recovery Funding as of October 5, 2021, and the latest FAQ was released on July 19, 2021. The Final Rule and additional FAQ will provide much-needed guidance on programs and revenue loss calculations.
For information, guidance, and frequently asked questions on the American Rescue Plan Act for State and Local Recovery Fund please visit the US Treasury website:
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds
On May 10, 2021, the United States Treasury released an Interim Final Rule (IFR) related to the guidance for eligible use of ARPA funds. There was a 60-day comment period that closed on July 16, 2021. After reviewing comments, the Treasury will issue a Final Rule which may differ slightly from the previous rule. The release of the Interim Final Rule gave the City of Flagstaff more guidance on what we can use the funds for within our city and community.
The US Treasury also released Frequently Asked Questions (FAQs) which provides further understanding of how cities can apply the Interim Final Rule. In addition, the US Treasury has created a Compliance and Reporting Guidance document which we are beginning to review.
The US Treasury has not released the Final Rule for ARPA Local Recovery Funding as of October 5, 2021, and the latest FAQ was released on July 19, 2021. The Final Rule and additional FAQ will provide much-needed guidance on programs and revenue loss calculations.
For information, guidance, and frequently asked questions on the American Rescue Plan Act for State and Local Recovery Fund please visit the US Treasury website:
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds