HomeMy WebLinkAboutDocumentation_Workshop_Tab 04_6/1/2021Agenda Item #4.
Workshop
STAFF
Meeting:
Staff Contact
MEMO
Workshop - Jun 01 2021
Jeremy Allen, Village Manager
Update and Discussion on American Rescue Funds
Department: Manager
Within the eligible use categories outlined in the Fiscal Recovery Funds provisions of ARPA, State,
local, and Tribal governments have flexibility to determine how best to use payments from the Fiscal
Recovery Funds to meet the needs of their communities and populations. The Interim Final Rule
facilitates swift and effective implementation by establishing a framework for determining the types of
programs and services that are eligible under the ARPA along with examples of uses that State, local,
and Tribal governments may consider. The ARPA provides a substantial infusion of resources to meet
pandemic response needs and rebuild a stronger, more equitable economy as the country recovers.
In the U.S. Department of Treasury guidance for Local Governments, eligible local governments that
are classified as non -entitlement units NEUs will receive their funding through the state government.
Non -entitlement units are local governments with populations of less than 50,000. Jurisdictions
classified as non -entitlement units cannot receive this funding directly from U.S. Treasury. The Village
of Tequesta has not received funding at this point.
Summary of the operational guidance form U.S. Department of Treasury.
State and Local Revenue Loss
• General Revenue is based on the methodology of the Census Bureau's annual survey of state
and local government finances. It includes all revenues collected by a recipient and generated
from economic activity, rather than a fund or administrative unit established to account for and
control a particular activity, such as a public utility. It also includes intergovernmental transfers
between state and local governments.
• Calculating revenue loss: Reduction in revenue is measured relative to revenue collected in the
most recent full fiscal year prior to the emergency over four points in time through Dec. 31, 2023.
• Tax Reductions: Establishes a framework for determining the cost of any reduction of net tax
revenue from changes in law or regulation. As recovery funds are not permissible for offsetting
a tax cut, it clarifies the sources of funding that would be considered acceptable for covering an
offset in tax reductions —organic growth, increases in revenue and spending cuts,
Pensions
• Restrictions on pension "deposits" are limited to extraordinary payments toward pre-COVID-19
legacy costs. Generally, if an employee's wages and salaries are eligible expenses for recovery
funds, payroll contributions for their retirement benefits are as well.
Infrastructure
• Allows states and local governments to use the money for a wide variety of
important projects, such as investment in broadband infrastructure and public
health measures.
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Agenda Item #4.
Per the Treasury Department, in the case of revenue loss, it provides
recipients with broad latitude to use recovery funds for the provision of
government services. Government services can include maintenance or pay -go
funded building of infrastructure, including roads; modernization of
cybersecurity, including hardware, software, and protection of critical
infrastructure; health services; environmental remediation; school or
educational services; and the provision of police, fire and other public safety
services. Pay -go infrastructure funding refers to the practice of funding capital
projects with cash on hand from taxes, fees, grants, and other sources, rather
than with borrowed sums.
Water and Wastewater
• Allows states and local governments to invest in improvements to their water
and sewer infrastructure, including projects which address the impacts of
climate change.
• Provides funds for a variety of water infrastructure projects that align with
projects currently eligible to receive financial assistance through the
Environmental Protection Agency's clean and drinking water state revolving
funds, including:
• Drinking water infrastructure.
o Building or upgrading facilities and transmission, distribution and
storage systems.
o Replacement of lead service lines.
• Building or upgrading facilities and transmission, distribution, and storage
systems.
• Replacement of lead service lines.
• Wastewater infrastructure.
o Construction and procurement of publicly owned treatment
infrastructure.
o Managing and treatment of stormwater or subsurface drainage water.
o Facilitating water reuse.
• Construction and procurement of publicly owned treatment infrastructure.
• Managing and Treatment of stormwater or subsurface drainage water.
• Facilitating water reuse.
Additionally, recovery funds may be used for cybersecurity needs to protect water or
sewer infrastructure, such as developing effective cybersecurity practices and measures
at drinking water systems and publicly owned treatment works. In cases of a natural
disaster, the guidance indicates that recipients may also use recovery funds to provide
relief, such as interconnecting water systems or rehabilitating existing wells during an
extended drought.
Broadband
Provides that investments in broadband be made in areas that are currently
unserved or underserved, which is defined as areas lacking a wireline
connection that reliably delivers minimum speeds of 25 Mbps download and 3
Mbps upload.
Funds for broadband should generally build broadband infrastructure with
modern technologies in mind, mainly projects that deliver services offering
reliable 100 Mbps download and 100 Mbps upload speeds.
Encourages using the funds to pursue fiber-optic investments.
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Agenda Item #4.
• Assistance to households to support internet access or digital literacy is an
eligible use of funds.
Health and Human Services Highlights
Supports COVID-19 response efforts to help decrease the virus, bring the
pandemic under control, and address systemic public health and economic
challenges that unequally impacted certain populations during the pandemic.
Eligible services also include addressing health disparities and social
determinants of health through funding for community health workers and
public benefits navigators.
Funds public health services and programs including vaccination programs,
PPE purchases, medical expenses, enhancement of public health data
systems, support for vulnerable populations to access medical or public health
services and capital investments in public facilities to meet pandemic needs.
Allows funds to be used to address behavioral health issues that have been
exacerbated by the pandemic, including mental health treatment, substance
misuse treatment and services to promote access to health and social
services, among other assistance.
Permits funds to be used to promote healthy childhood environments,
including new or expanded high -quality childcare, home visiting programs for
families with young children and enhanced services for child welfare -involved
families and foster youth. In addition, funds can be spent to provide premium
pay to essential service workers, which includes childcare workers, and social
services and human services staff.
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