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<br /> <br />REQUEST FOR COUNCIL CONSIDERATION <br /> <br />ITEM DESCRIPTION: Review American Rescue Plan Act (ARPA) Funds Spending Plan <br />DEPARTMENT HEAD’S APPROVAL: <br />CITY MANAGER’S APPROVAL: <br />No comments to supplement this report ___ Comments attached ___ <br /> <br />Recommendation: Review plan that has been created to spend City of New Brighton’s ARPA funds <br /> <br />Financial Impact: <br />The financial impact of this plan is significant. The City of New Brighton received $2.4 million from the <br />Federal Government. <br /> <br />Explanation: <br /> <br />On March 11, President Biden signed the $1.9 trillion American Rescue Plan (ARPA) Act. The plan <br />included $350 billion in funding for state and local governments. Non -entitlement jurisdictions in <br />Minnesota (generally cities under 50,000 in population) including New Brighton received $105.81 per <br />capita based on 2019 census data. The City of New Brighton is set to receive $2.4 million total. We <br />already received one half of this payment; the other half will be received in the second half of 2022. <br />Unlike the Coronavirus Aid, Relief, and Economic Security Act (CARES) funding that the City received in <br />2020, the ARPA funds can be spent over a much longer time horizon. The City of New Brighton has <br />until the end of 2026 to expend these funds (but must be allocated by the end of 2024). <br /> <br />Also different from the CARES Funding, ARPA funds have a much broader scope in their use. The US <br />Department of Treasury is the agency responsible for providing guidance on the use of the funds. <br />Generally, eligible uses include “responding to the public health emergency, responding to the <br />negative economic impacts of the pandemic, premium pay for essential workers, revenue <br />replacement for the provision of government services, and investments in water, sewer, and <br />broadband infrastructure”. <br /> <br />Funds cannot be used to directly or indirectly offset tax reductions or delay a tax/tax increase, nor can <br />fund be deposited into any pension fund. <br /> <br />The City of New Brighton has a revenue loss calculation of $2.3 million for 2020 (stemming from our <br />charges for services operations). Through ARPA, we can cover the cost of our lost revenue and use <br />Agenda Section: Work Session <br />Report Date: 12/30/21 <br />Council Meeting Date: 1/4/22