As you are already aware, the city expects to receive in the amount of $7,062,000.00 in ARPA funds. Also as you are aware the Treasury Department has issued standards which must be complied with as it relates to the use of funds. In short, projects must meet at least one of the following standards:

• Support public health expenditures by funding COVID-19 mitigation efforts
•  Assist businesses in replacing lost revenue incurred as a result of business closures during the pandemic
•  Cover costs associated with rehiring staff to pre-pandemic levels
•  Providing premium pay to essential workers that continued employment during the pandemic
•  Address economic impacts of the pandemic by providing: worker assistance, household nutrition, rent, mortgage or utility assistance and small business assistance
•  Improving access to clean water, supporting the installation of wastewater and stormwater infrastructure and
•  Expanding access to broadband internet and protecting vital information technology resources

In reviewing the criteria I am certain that you will agree that there is enough flexibility to allow the city to obligate not only the funding being provided but even more so. The challenge for us as a group will be to identify the projects and priorities which address the unique needs and most pressing priorities of the city which are related to the Coronavirus Pandemic.

Lastly, as you are also already aware the Treasury Department has decided that the distribution of the funding will occur over a two-year period of time rather than as a lump sum. The distribution of the first check is due to be released and arrive in August of 2021 and the second and final check will arrive in August of 2022.

Therefore, in specific regard to planning for the use of the funds and additionally being mindful of the actual cash flow the staff’s proposed use of funds is also distributed over a two-year period of time.  A copy of the staff’s recommendation for the use of ARPA funds and which will be fully presented to you at your work session is attached for your review and consideration.