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