For City Council Meeting [September 14, 2021]
TO: Honorable City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Stephen Erlandson, Director of Finance
Title
Request City Council to Provide Direction to Staff on the Use and Allocation of the American Rescue Plan Act (ARPA) Funding.
(ACTION)
Body
BACKGROUND
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA), which appropriates nearly $1.9 trillion nationwide for COVID-19 pandemic relief funding including $350 billion for every eligible state, city, town, territorial and Tribal governments in the country. ARPA establishes the Coronavirus State and Local Fiscal Recovery (SLFR) Fund to provide an infusion of resources to help State, local and Tribal governments address their economic struggles in responding to the impact of COVID-19 and to assist with recovery on their communities, residents and businesses.
The City of Rialto was awarded $29,373,105 in SLFR funds through the ARPA. The U.S. Department of Treasury used the standard Community Development Block Grant (CDBG) formula for determining the allocation of funds to metropolitan cities. The distribution of ARPA funds will be separated into two tranches, with 50% provided in May 2021 and the balance delivered approximately 12 months later. On June 18, 2021, the City of Rialto received the first distribution of funding, in the amount of 14,868,552.50.
Given the City's receipt of the first tranche of SLFR funds which have not been appropriated for any use, Staff prepared this staff report to allow the City Council to consider the range of options and available use of the SLFR funds as may be restricted by the administrative regulations implemented through the ARPA.
ANALYSIS/DISCUSSION
SLFR Funds provide eligible state, local, territorial, and Tribal governments with a substantial infusion of resources to meet pandemic response needs and rebuild a stronger, more equitable economy as the country recovers. Within t...
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