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Home My WebLink AboutWS - ARPItem: WS STAFF PRESENTATION TO FOLLOW: T4 CITY OF IOWA CITY 410 East Washin�lon Street Iowa City, Iowa 52240-1926 (3 19) 3 5 6 -5 000 (3 19) 356-5009 FAX www.icgov.org CITY OF IOWA CITY American Rescue Plan Act: Local Government Relief Treasury Rules Overview May 18,2021 $13.713 ECONOMIC & SMALL BUSINESS DEVELOPMENT 0.7% SI4.9B SIOB CHILD & FAMILY RELIEF INFRASTRUCTURE 0.5% $813 TRANSPORTATION RELIEF HUNGER RELIEF $47.1B Z2% $7.90 CA% WHAT IVIA HOUSING & UFFILITY ASSISTANCE TECHNOLOGY MODERNIZATION 13A% SIB $60.913 . . . . . . . . . . . . PUBLIC HIRING IN THE DISASTER RELIEF 13% $86B PENSION RELIEF ;,Afti6k AMERIC; $98,813 HEALTHCARE $112.913 BUSINESS RELIEF S11.85 TRILLION $178.6B EDUCATION 9 WORKFORCE $325.513 GOVERNMENT FISCAL RELIEF $647.5B INDIVIDUAL RELIEF 0 DA WA, $1.95.3 billion to States and Washington D.C. s65 -i. billion each to cities and counties $1--4 billion allocation to the State of Iowa Notable allocations in Johnson County: • Johnson County: $29.3 million • Iowa City: si.8-3 million • Coralville: $3.1. million (estimated) • North Liberty: $2.7 million (estimated) Funding to be issued in two tranches: • 5o% beginning in May 2021 • Remaining 5o% approximatelyl2months later December 31,2024: Deadline for funds to be obligated December 31,2026: Deadline for activities/projects to be completed and to 'incur and expend approved funds City has applied for and is awaiting receipt of funds from the U.S. Treasury U.S. Treasury Interim Final Rule Four Primary Categories of Eligible Uses r- Respond to pandernic's public health and economic impacts FPPremium pay for eligible workers performing essential work Replace lost revenue and restore government service levels Necessary Water, Sewer & Broadband Infrastructure Respond to pandernic's negative public health and economic impacl Public Health Impacts: Eligible Uses COVID-19 mitigation and prevention Behavioral health care, mental health, substance misuse, domestic violence services Broader latitude to address disparities in public health outcomes caused by or exacerbated by the pandemic U.S. Treasury encourages prioritizing households, businesses, and non -profits most disproportionately impacted by COVID-3.9 or its compounding effects Respond to pandemic"s negative public health and economic impacts Economic Impacts: Eligible Uses • Address economic harm and disparities caused by or exacerbated by the pandemic • Assistance to households/ workers/ businesses/ non -profits/ and impacted industries • Expanded uses for hardest hit communities: housing/ community development/ homelessness/ childcare/ and education U.S. Treasury encourages prioritizing households & business disproportionately impacted: Households: Prioritize BIPOC, women, low-income/low-wage populations Businesses: Prioritize smallest businesses, low credit, substantial declines in revenue Non -Profits: Prioritize those serving disadvantaged communities, cut service levels Premium pay for eligible workers performing essential work "Eligible workers performing essential work during the COVID-:Lg public health emergency • Essential work definition: "work involving,regular in-person interactions or regular physical handli of items that were also handled by others' • El ble worker definition: "workers needed to maintain continuity of operations of essential critic inAi structure sectors" and "additional sectors ... criticalto protect health and well-being of residents" as designated by governments - Direct premium payto eligible City staff or grants to third -party employers with eligibleworkei Eligible worker examples: • Health and home care staff; social service staff • Food production, grocery store, and restaurantworkers • Janitors and sanitation workers - Transit drivers, warehouse workers, truck drivers U.S. Treasury encourages prioritizing low-income eligible workers & retrospective pay Replace lost revenue and restore government service levels Revenue Replacement • Provision of government services to the extent of the reduction in general revenue, relative to last full fiscal year prior to the pandemic (FY-ig) • Guidance defines methodologyfor calculating revenue loss Negative Economic Impact - Eligible: • Restore service and staffing to pre -pandemic levels • New service or projects that were planned prior to the pandemic, but paused or delayed due to the pandernic Not eligible: - Utilities - Debt proceeds Necessary Investments in Water, Sewer & Broadband Infrastructure 0 "Necessary Investments" Water/Stormwater/Wastewater Infrastructure: provide an adequate minimum level of service that meet applicable health -based standards, taking into account resilience or climate change • Capital improvements (facilities, storage, infrastructure) • Treatment, management, distribution, efficiency, and re -use • Projects addressing climate change (pollution, severe weather events, efficiency & conservation) Broadband: establishes or improves service to underserved populations (minimum 25/3) to reach an adequate level (loo/loo) for work school and is unlikely to be done privately. - Prioritize "last mile" connections, fiberoptic infrastructure where feasible, consider affordability U.S. Treasury's Encouraged Uses & Framework for Assessing Use Eligibility • Identify harmful effect caused or exacerbated by the pandernic • Demonstrate how use of funds addresses that harmful effect • Assess disproportionate impact of effect on certain populations or sectors • Identify if workers are eligible under'essential work' and 'eligible worker' definitions • Prioritize low-wage/low-income frontline workers and retrospective pay where needed Calculate revenue loss using defined methodology Compare service, project, and staff reductions to pre -pandemic levels • Broadband: Determine if project targets 25/3 geography and investment will provide adequate minimum service levels unlikely to be made by private sources. • Water/Storm/Sewer: Identify if project is necessary to maintain minimum health -based standards, considering resiliency or climate change Transfers of Funds • Transfer to another jurisdiction, special purpose unit of government, public benefit corporation involved in transportation, private non-profit, or private entity • Transfers must be used for a qualifying eligible use underTreasury guidance • Transferred funds are still bound byARPA and Treasury guidance • Cannot transfer to another entity to make funds become an eligible use Interim Final Rule: Ineligible Uses • Federal Matching Requirements • Premium Pay forTelework • Pensions • Infrastructure not directly addressed in ARPA E I igib I e: water, sewer, broadband, infrastructure directly tied to mitigating COVID-ig or direct economic/public health impacts * Contributions to reserve funds • Debt payments • Replacement of lost utility revenue 1. Establish Guiding Principles 4. Determine Priority Uses 2. Coordinate with Johnson County and Local Municipalities 5. Initiate Regular Community Reporting 3. Provide Public Input Opportunities Recommended Process STAFF PRESENTATION CONCLUDED 14 M CITY OF IOWA CITY 4 10 East Washington Street Iowa City, Iowa 52240-1826 (3 19) 356-SOOO (319) 3S6-SO09 FAX www.icgov.org