HomeMy WebLinkAboutDocumentation_Workshop_Tab 01_2/15/2022Agenda Item #1.
Workshop
STAFF MEMO
Meeting: Workshop - Feb 15 2022
Staff Contact: Jeremy Allen, Village Manager Department: Manager
Discussion of ARPA Funds
During the onset of the pandemic, the federal government passed the Coronavirus State & Local Fiscal
Recovery Funds (SLFRF), a part of the American Rescue Plan Act — "ARPA, " which provided $350
billion to state, local and tribal governments across the U.S. The major developments of the SLFRF
are as follows:
1. May 2021 — U.S. Treasury issued Interim Final Rule dictating how governments could spend the
funds.
2. May 2021 — December 2021 — U.S. Treasury received feedback from various stakeholders regarding
challenges that they were facing in deploying funds under the Interim Final Rule.
3. January 2022 — U.S. Treasury issued "Final Rule" which allowed for greater flexibility and simplicity
in usage of program funds. One of the most significant change in the final rule was that it allowed a
standard allowance for revenue loss up to $10 million.
4. The new revenue loss revenue allowance enabled governments to claim up to $10 million of revenue
loss, not to exceed their award amount [without actually showing any calculations]. For smaller
governments, this meant that these governments could potentially claim their full award amount as loss
revenue. This provision of the Final Rule significantly reduced the administrative burden on most
governments, but especially those with fewer employees.
5. Recipients can use amounts claimed as "loss revenue" on government services. The Treasury
considers "government services" as services traditionally provided by a government . Some common
examples are below:
a.Road building and maintenance
b. Health services
c.General government administration, staff and administrative facilities
d.Provision of police, fire, and other public services (including the purchase of fire trucks and police
vehicles).
As part of the budget we developed a plan and accounting for the ARPA funds to be expended
(Attached V7 - ARPA 2021)
Page 3of6
Agenda Item #1.
January 2022 a new set of rules came out for the uses and accounting for the ARPA funds. Working
with the auditors we developed an accounting for the ARPA funds Attached V8 - ARPA 2022). The
uses authorized under the previous plan did not change.
Restrictions on Use While recipients have considerable flexibility to use Coronavirus State and
Local Fiscal Recovery Funds to address the diverse needs of their communities, some
restrictions on use of funds apply. OFFSET A REDUCTION IN NET TAX REVENUE •
States and territories may not use this funding to directly or indirectly offset a reduction in net tax
revenue resulting from a change in law, regulation, or administrative interpretation beginning on March
3, 2021, through the last day of the fiscal year in which the funds provided have been spent. If a state
or territory cuts taxes during this period, it must demonstrate how it paid for the tax cuts from sources
other than SLFRF, such as by enacting policies to raise other sources of revenue, by cutting spending,
or through higher revenue due to economic growth. If the funds provided have been used to offset tax
cuts, the amount used for this purpose must be repaid to the Treasury.
This document and any attachments may be reproduced upon request in an alternative format by completing
our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443.
BUDGETED AMOUNT: NA AVAILABLE AMOUNT: NA EXPENDITURE AMOUNT: NA
Additional Budgetary Information: Funding Source(s):
NA
NA
Staff recommends we update the uses of ARPA funds and make additional recommendations for uses
during the upcoming budget process.
Copy of ARPA projects v8 diff scenario (00a)
Copy of Copy of ARPA projects v7 diff scenario (002)
Page 4 of 6
Agenda Item #1.
+�•+
�ftk
O
O
0
�
o
O
O
�
Ln
O
w0
0 0
0
0
N
�O
M
O
N
N
LA
M
O
N
�-zt
N
rl
N
M
rl
N
N
N
rl
M
O
N
N
M
i
Q
O
O
o
O
O
N
O
O
O
N O
O
O
V-1
r-I
rl
o
O
o
O
O
o
M O
O
O
O
O
O
N
O
O
LA
O
Ln
LA
N O
O
LA
N
M
LA
r-1
M
r i
LA
rl
W
O�
OLn
O
O
N
l00
N
N O
O
rl
l0
Mft.
rl
r1
N
O O
O
N�
Ln
N
N
N LA
Lr)
M
�
9:4-
�
00
V-4
rl
W
CV
M
N
O
N
V-1
M
LA
V--1
O O
N N
r� rl
1 �
M M
Ln LA
r-i r1
V)
O
V
cn
i
Q1
.y
iz
>
>
N
M
O
s
•
O
Q
0
( )
)
L.
cn
_0
>
Z
U
V
E
E
0
Q
O
�
•�
J
O
cn2`0
11'J
M
z
°
cn
U
°
V
V
M
>
s
E
O
2
In
Ln
N
N
W
(A
Lu
GC
N
>
W
V
N
N
E
E
N
M�
0
V
�
O
O_•
_U
>
0
Q
m
> I
ci
ci
C
p
aC
U
0_
M
O
GC
M
Q
W
a
Q
V
M
0 S
N
to M i
E
•� p
N E U
•O >
CL
> i
}+ w O M
4 V
• 0
- +r
3 s M �
i
.� M
O W O tw
N V
O
O w .�
Q -
> •-
O
OC �
0 .
i
i
Z O U
Page 5of6
Agenda Item #1.
M
0
N
�
+�•+ 00
O
O
00
M
O
O�
O
I�
r*4
0 00
O
O
00
O
O
O
(O
M
O
O
M
M
N
R*
O
O
�
Ln
O
O
Rzi-
m
O
m
qqr
Rzi-
li*
W
M
O
rl
R*
O
N
Rzl-
�
N
rl
O
l0
P%
M
rl
N
l0
00
rl
N
rl
M
N
f V
O
i
rl
rl
M
V'
00
O
00 ' ' '
' O
O
000
O
000
O
O
p R*
O
q
�--I
rl
�y ^
O
�
Ma1
I
O
O
O
00
O
LA
O
O
rl
Ln
r-I
w
O
O
O
O
O
O%
O
O
rl
M
O
O
O
l0
M
Ln
O
O
z
..
�
N
00
000
O
00
0 0 0l0 0
0 0 0 00
0 0 0 0
O Ln
M
00IM
� M�
00
00
000
O
O
00
N
N
N
O
M
M
M
Ln
LA
Ln
p
ko
0
00
Ln
N
00
N
N
M
M
O
O
Ln
LM
�O
l0
O
V
V
r
O
'S
c.i
L
i
4-,
4A
w
is
E
Ln-00
0
i
cn
.y
V
>O
U
E
}'
—
i
Y
iz
M
-W
�
0
i
i
>
`
'
Q
E
-W0
0
M
oC
01
V
N
a
0
i
V
S
u
—
.�
O
M
0
-W.-
0
>
vi
W
a)
C:
W
U
0
cn
41
C6
C6
>
01
Q
ui
W
i
Q
blA
00
Q
a"'
0
0
i
GC
z
M
Q
%`
U
�,
u
6
�
bD
�
0
•�
t
O
U
Z
• N
O
J
�
0
cn
—
O
W
O
!aA
tw
W
H
M
+-'
0
cn
U
0
4-1
0
,�
•�
°'
ac
�
°
V
J
V
W
U
VA
(B
(��—,
>
4J
cn
cn
N
E
c
c
�,
cn
_O
Q
•—
Q
W
cn
V)
N
V
Ln
—
a
j
Q
J
V
I
O
O
to
cn
—
Q
0
O
cn
._
DuuO
u
m
W
�
ci
ci
Z)
CL
m
m�
O
DC
c6
U
a-
Q
tA
m
M
CC
i
N
C7
p
O
i
C
NO
u
a
'
i
(D
z
°n
O
U
Page 6of6