City Council Agenda and Packet 2021 04 13 SP

Home Browse Search

LL City0f CITY COUNCIL COMMUNICATION Louisville AGENDA ITEM 2 COLORADO -SINCE 1878 SUBJECT: UPDATE ON COVID-19 RECOVERY FUNDING THROUGH AMERICAN RESCUE PLAN DATE: APRIL 13, 2021 PRESENTED BY: HEATHER BALSER, CITY MANAGER MEGAN DAVIS, DEPUTY CITY MANAGER SUMMARY: In March 2021 President Biden signed the American Rescue Plan Act (ARPA) to address the impacts of the COVID-19 pandemic across the country, including additional funding for state and local governments. The local government funding is approximately $130 billion, equally divided between cities and counties. Localities will receive the funds in two tranches—the first after the U.S. Treasury certifies the proceeds to each jurisdiction (60 days after enactment) and the second one year later. The anticipated local funding allocations are in the attached spreadsheet, and reflect that the City of Louisville will receive $4.47 million over the next two years. The first half which would be provided initially would be approximately $2.235 million, and the second half would be received next year. Funding must be spent by the end of calendar year 2024. City staff has been gathering more information about the funding distribution, eligible investments, reporting requirements and other specifics that will inform how we may utilize the funds to meet COVID-related needs in the community. As with previous COVID-19 relief packages, including the Coronavirus Relief Fund in which the City received a direct distribution of $945,974, implementation will be an extensive process with new or updated guidance and FAQs developed and released by the US Department of Treasury. At this time, it's unknown how the funding will be distributed to local governments, but there will likely be a statewide distribution process through DOLA. According to DOLA partners we anticipate we may receive Treasury guidance in the next two weeks. The ARPA requirements are very broad, and the eligible uses of the funds reflected in the bill include: Revenue replacement for the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency, relative to revenues collected in the most recent fiscal year prior to the emergency; Respond to the public health emergency with respect to the COVID-19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; CITY COUNCIL COMMUNICATION 2