For Special City Council Workshop Meeting [October 7, 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.
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 (City) 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 allocations. On June 18, 2021, the City received the first distribution of funding, in the amount of $14,868,552.50. The balance is expected to be allocated approximately 12 months later.
The SLFR funds must be spent using the Interim Final Rules provided by the United States Federal Government Department of Treasury (US Treasury), also known as the "ARP guidelines" that accompanied the SLFR funds which identify and define the eligible uses of these federal funds.
On September 14, 2021, City staff prepared a 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. Staff was provided direction to continue exploring possible...
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