City Council Agenda and Packet 2021 04 13 SP

Home Browse Search

SUBJECT: AMERICAN RESCUE PLAN UPDATE DATE: APRIL 13, 2021 PAGE 2 OF 3 Premium pay for essential workers during the COVID-19 public health emergency; Investments in water, sewer, and broadband infrastructure. In addition to the direct funding to state and local governments, there is funding provided to direct services providers for emergency housing assistance, education, transportation (transit and airports) and low-income water and energy assistance. Based on the guidance the City has received regarding planning for expending the funds, staff has identified some general principles to keep in mind when it comes to utilization of the ARPA funds: • ARPA funds are non -recurring so their use should be applied primarily to non- recurring expenditures. • Consider investments that fall squarely within eligibility requirements, and that can be easily reported and audited. • Consider investment strategies that leverage existing programs and regional partnerships, vs. those that would require new program administration and infrastructure. • Investments should focus on rebuilding financial and organizational stability, and restoring fiscal resiliency. • Consider capital investment in critical infrastructure since this is a non -recurring expenditure that can be targeted to strategically building and improving long- term assets to provide benefit over many years. In the absence of any new Treasury guidance and based on the general information we currently have, staff has been contemplating the following general uses for the funds: • Replacement of lost revenues for the Recreation Center. • Replacement of lost sales tax revenue for those tax categories most impacted. • Strategic investments in economic assistance for small and local businesses still experiencing the impacts of COVID-19 closures. Support for programs with existing administrative infrastructure. • Additional pay for employees who responded during the COVID-19 pandemic, and market rate adjustments that were foregone due to budget reductions. • Investments in community recovery through non-profit providers, if direct federal assistance and county funding isn't able to meet ongoing need. • Technology investments in middle mile and other eligible infrastructure. These ideas will be further refined as the City receives additional guidance around the program implementation and eligible expenses. Additionally, staff will look at some regional/county funding opportunities related to business support, which would provide for ease of administration and consistency in programming. Staff will come back to City Council for input on the ARPA funding plan when it is further refined and more information is available. CITY COUNCIL COMMUNICATION 3