2022 02 15 City Council
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FINANCE DEPARTMENT MEMORANDUM TO: C. Seth Sumner, City Manager FROM: Mike Keith, Finance Director DATE: January 31, 2022 SUBJECT: Allocating ARPA Funds for the City The City will receive a total of $4,159,922.74 through the State as our portion of the American Rescue Plan Act (ARPA) funds. We received the first half in November and will receive the final portion in November of this year. As discussed previously, we have been awaiting the release of the final rules to determine how we could best utilize these funds. The final rules simplified the process for those receiving up to $10,000,000 so that we can take a standard allowan ce for revenue loss and use it for government services. Go vernment services is considered a broad category covering basically all things done by a government, with the exception of four items. Based on the new guidance, I am recommending that we allocate the funds to be used for 4 projects. I am recommending that the amount of all of the projects total $4,700,000 to allow some flexibility in submitting the expenditures to be used as quickly as possible . The projects are: Animal Shelter Building - $600,000; Public Works Building - $2,500,000; Fire Training Tower - $600,000; and City Hall Renovations - $1,000,000. We are allowed to allocate more than the funds we will receive and the primary purpose for doing so is to make the required reporting as easy as possible. As a reminder, our ARPA funding will not increase above the amount designated to us. Please let me know if I can supply any additional information for the use of these funds. 28