2022.01.11 CC Packet - Laserfiche WebLink

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Council Worksession January 4, 2022 5:00 pm Present: Mayor Kari Niedfeldt-Thomas Councilmember Abdullahi Abdulle Councilmember Graeme Allen Councilmember Pam Axberg Councilmember Emily Dunsworth Absent: Staff in Attendance: Devin Massopust, Gina Foschi, Mark Suggs, Jennifer Fink, Craig Schlichting, Tony Paetznick, and Brenda Davitt Guests in Attendance: Review American Rescue Plan Act (ARPA) Funds Spending Plan Massopust stated on March 11, President Biden signed the $1.9 trillion American Rescue Plan (ARPA) Act. The plan included $350 billion in funding for state and local governments. Non-entitlement jurisdictions in Minnesota (generally cities under 50,000 in population) including New Brighton received $105.81 per capita based on 2019 census data. The City of New Brighton is set to receive $2.4 million total. We already received one half of this payment; the other half will be received in the second half of 2022. Unlike the Coronavirus Aid, Relief, and Economic Security Act (CARES) funding that the City received in 2020, the ARPA funds can be spent over a much longer time horizon. The City of New Brighton has until the end of 2026 to expend these funds (but must be allocated by the end of 2024). Massopust reported also different from the CARES Funding, ARPA funds have a much broader scope in their use. The US Department of Treasury is the agency responsible for providing guidance on the use of the funds. Generally, eligible uses include “responding to the public health emergency, responding to the negative economic impacts of the pandemic, premium pay for essential workers, revenue replacement for the provision of government services, and investments in water, sewer, and broadband infrastructure”. Funds cannot be used to directly or indirectly offset tax reductions or delay a tax/tax increase, nor can fund be deposited into any pension fund. Massopust explained the City of New Brighton has a revenue loss calculation of $2.3 million for 2020 (stemming from our charges for services operations). Through ARPA, we can cover the cost of our lost revenue and use these funds to cover the costs of governmental services. This approach is cleanest and most effective in terms or reporting, auditing, and efficiency. An internal team of City staff have worked to develop our proposed plan. We have worked closely with our auditing partner as well as our financial consultant to craft a plan that adheres to the intent of the ARPA uses, provides effective financing over a long-term horizon, and positively impacts our organization and community. It is important for Council to understand that this is just a plan and is fluid. Any expenditures using these funds will be brought forward to Council in a manner consistent with all other expenditures. The purpose of this agenda item is to show Council the plan as it stands so that if/when it comes time to expend the funds on such projects there is a baseline understanding. Staff