10.
City Council Work Session
- Meeting Date:
- 02/25/2025
- From:
- Stacey Brechler-Knaggs, Grants, Contracts & Emergency Management Director
- Department:
- Management Services
Co-Submitter:
TITLE:
U.S. Department of Treasury, American Rescue Plan Act (ARPA), Local Recovery Fund Update
DESIRED OUTCOME:
City staff will provide an update on the ARPA and Non-Federal ARPA Coronavirus Local Fiscal Recovery Funds.
Executive Summary:
The City of Flagstaff received $13,252,816 from the American Rescue Plan Act (ARPA) Local Recovery Funding (LRF). The funds were to provide much-needed relief to:
- Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control;
- Replace lost public sector revenue to strengthen support for vital public services and help retain jobs;
- Support immediate economic stabilization for households and businesses; and,
- Address systemic public health and economic challenges that have contributed to the unequal impact of the pandemic on certain populations.
Information:
The American Rescue Plan Act (ARPA) for State and Local Recovery Fund (SLFRF) provided 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 provided 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 September 7, 2021, the City Council provided their recommendations on the allocation of the funding categories.
On April 1, 2022 the Department of Treasury Final Rule offered a standard allowance of Revenue Loss Replacement of up to $10 million. Its intent was to help minimize administrative burden, and in recognition of the fast that thousands of local governments continue to operate at some level of reduced capacity. The City elected to use the "standard allowance" of $10 million to spend on government services through the funding period of performance. By utilizing the standard allowance for lost revenue of up to $10 million for the lifetime of the grant. This added effectiveness and efficiency in delivering Council directed programs. This also alleviated some of the administrative burden, procurement restrictions, compliance/audit risks, extensive reporting, monitoring and oversight.
The remaining $3,252,816 was designated to nine (9) of the ARPA allowed categories as designated by City Council.
Per the Department of Treasury all funds must be obligated by December 31, 2024 and expended by December 31, 2026. As of December 31, 2024, all funds were obligated.
On September 7, 2021, the City Council provided their recommendations on the allocation of the funding categories.
On April 1, 2022 the Department of Treasury Final Rule offered a standard allowance of Revenue Loss Replacement of up to $10 million. Its intent was to help minimize administrative burden, and in recognition of the fast that thousands of local governments continue to operate at some level of reduced capacity. The City elected to use the "standard allowance" of $10 million to spend on government services through the funding period of performance. By utilizing the standard allowance for lost revenue of up to $10 million for the lifetime of the grant. This added effectiveness and efficiency in delivering Council directed programs. This also alleviated some of the administrative burden, procurement restrictions, compliance/audit risks, extensive reporting, monitoring and oversight.
The remaining $3,252,816 was designated to nine (9) of the ARPA allowed categories as designated by City Council.
Per the Department of Treasury all funds must be obligated by December 31, 2024 and expended by December 31, 2026. As of December 31, 2024, all funds were obligated.