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HomeMy WebLinkAboutARPA Treasury Guidance - City Council Presentation 5.18.21CITY OF IOWA CITY American Rescue Plan Act : Local Government Relief Overview May 4, 2021 WHAT IS IN THE AMERICAN RESCUE PLAN? State and Local Government Relief Allocations $195.3 billion to States and Washington D.C. $65.1 billion each to cities and counties $1.3 billion allocation to the State of Iowa Notable estimated allocations in Johnson County: •Johnson County: $29.3 million •Iowa City: $17.3 million •Coralville: $3.1 million •North Liberty: $2.7 million Timing of Allocations & Spending Deadlines Funding to be issued in two tranches: •First Tranche: funds allocated no later than 60- days after enactment (March 11) •Second Tranche: funds allocated no earlier than 12 months after first payment Direct allocations will remain available until December 31, 2024 Bill Text: Use of Funds USE OF FUNDS.—Subject to paragraph (2), and except as provided in paragraphs (3) and (4), a metropolitan city, nonentitlement unit of local government, or county shall only use the funds provided under a payment made under this section to cover costs incurred by the metropolitan city, nonentitlement unit of local government, or county, by December 31, 2024 •To respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; •To respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the metropolitan city, nonentitlement unit of local government, or county that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work; •For the provision of government services to the extent of the reduction in revenue of such metropolitan city, nonentitlement unit of local government, or county due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, nonentitlement unit of local government, or county prior to the emergency; or •To make necessary investments in water, sewer, or broadband infrastructure. Bill Text: Use of Funds •TRANSFER AUTHORITY --A metropolitan city, nonentitlement unit of local government, or county receiving a payment from funds made available under this section may transfer funds to a: •Private nonprofit organization •Public benefit corporation involved in the transportation of passengers or cargo •Special-purpose unit of State or local government •State in which the entity is located. •NON-ELIGIBLE USE OF FUNDS --No metropolitan city, nonentitlement unit of local government, or county may use funds made available under this section for deposit into any pension fund. Recommended Process 1. Establish Guiding Principles 2. Coordinate with Johnson County and Local Municipalities 3. Provide Public Input Opportunities 4. Determine Priority Uses 5. Initiate Regular Community Reporting Draft Guiding Principles Leverage outside funding and avoid duplication with other relief programs Restore financial stability to support future governmental operations Retain flexibility to address evolving emergent community needs Seek opportunities to make lasting change in physical and social infrastructure Ensure funding decisions help mitigate racial inequalities Pursue actions that contribute toward the City’s climate action goals Limit operational investments without identified sustainable funding sources Demonstrate compliance and transparency through regular public reporting Final Thoughts… •When possible, coordination with other local governments can reduce confusion and barriers to access while ensuring an efficient use of funds •Spending the next few months identifying guiding principles, collaborating with other governments and soliciting public input will allow time for clarification of rules and the announcement of program details on other American Rescue Plan relief funding streams •Effective and measurable recovery investments and compliance with federal legislative intent and guidance may set the table for similarly local controlled distributions in the future