HomeMy WebLinkAbout6.j. Accepting Coronavirus Local Fiscal Recovery Fund Established Under the American Resuce Plan Act
EXECUTIVE SUMMARY
City Council Regular Meeting: December 21, 2021
AGENDA ITEM: Coronavirus Local Fiscal Recovery Fund AGENDA SECTION:
Consent
PREPARED BY: Teah Malecha, Finance Director AGENDA NO. 6.j.
ATTACHMENTS: Resolution Accepting Funds Under the
American Rescue Plan Act APPROVED BY: LJM
RECOMMENDED ACTION: Adopt the Resolution to Accept the Coronavirus Fiscal
Recover Fund Under the American Rescue Plan Act.
BACKGROUND
The City received financial assistance under the American Rescue Plan Act (ARPA) that is intended to
provide support to state, local, and tribal governments in responding to the impact of COVID-19.
Guidelines and frequently asked questions on the use of these funds have been developed by the United
States Treasury Department and continue to be updated.
Congress adopted the ARPA in March 2021 which included $65 billion in recovery funds for cities across
the county. The City of Rosemount was initially estimated to receive an allocation of $2,667,330 from the
ARPA. The distribution cannot exceed 75 percent of the individual jurisdiction’s most recent annual
budget as of January 27, 2020. The calculation is based upon $105.82 per capita of the City’s 2019
population of 25,207. Other local governments in Minnesota did not apply for their share of ARPA funds
and it resulted in a reallocation of the funds to eligible cities. The City received $1,333,664.83 on August
24, 2021 and a reallocation of $43,673.85 on November 23,2021. ‘The final portion of our allocation is
expected in 2022.
Funds received from the ARPA allocation be used to reimburse the City for revenue recovery, assisting
businesses in the community, and infrastructure among numerous other items in accordance with the
United States Department of Treasury guidance.
RECOMMENDATION
Adopt the attached resolution to Accept the Coronavirus Local Fiscal Recovery Fund Established Under
the American Rescue Plan Act.
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CITY OF ROSEMOUNT
DAKOTA COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021- 99
A RESOLUTION TO ACCEPT THE CORONAVIRUS LOCAL FISCAL RECOVERY FUND
ESTABLISHED UNDER THE AMERICAN RESCUE PLAN ACT
WHEREAS, since the first case of COVID-19 was discovered in the United States in January 2020,
the disease has infected over 32 million and killed over 575,000 Americans (“Pandemic”). COVID-19 has
impacted every part of life: social distancing measures were implemented, businesses closed, schools
transitioned to remote education, travel was sharply reduced, and millions of Americans lost their jobs;
WHEREAS, as a result of the Pandemic, cities responded to the needs of their communities to
address COVID-19 in many ways, including prevention, treatment, and vaccination efforts;
WHEREAS, the negative economic impacts of COVID-19 have affected the operations and
revenues of businesses, nonprofits, and the City;
WHEREAS, Congress adopted the American Rescue Plan Act in March 2021 (“ARPA”) which
included $65 billion in recovery funds for cities across the country;
WHEREAS, ARPA funds are intended to provide support to state, local, and tribal governments in
responding to the impact of COVID-19 and in their efforts to contain COVID-19 in their communities,
residents, and businesses;
WHEREAS, approximately $2,667,330 was initially estimated to be the amount the City of
Rosemount (“City”) would receive pursuant to ARPA (“Allocation”), with the City receiving the first
distribution of $1,333,664.83 on August 24, 2021, and the second distribution expected in 2022;
WHEREAS, the City received a second, supplemental payment of ARPA funds on November 23,
2021 in the amount of $43,673.85 (“Additional Allocation”). This Additional Allocation is a result of
other local governments in Minnesota not applying for their share of ARPA funds and the State of
Minnesota distributing the unclaimed amount to eligible local governments that received ARPA funds;
WHEREAS, the Additional Allocation results in the City receiving $1,377,338.68 in 2021 and the
City estimates that it will receive the second disbursement of the same amount in 2022, resulting in the
estimated total Allocation of ARPA funds being increased to approximately $2,754,677.36;
WHEREAS, the United States Department of Treasury has adopted guidance regarding the use of
ARPA funds;
WHEREAS, the City, in response to the Pandemic, has had expenditures and anticipates future
expenditures consistent with the Department of Treasury’s ARPA guidance; and
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WHEREAS, the State of Minnesota is the entity that distributes ARPA funds to the City.
NOW THEREFORE, IT IS HEREBY RESOLVED, by the City Council of the City of Rosemount as
follows:
1.The City intends to collect its share of ARPA funds from the State of Minnesota to use in a
manner consistent with the Department of Treasury’s guidance.
2.City staff and City Administrator together with the Mayor and the City Attorney are hereby
authorized to take any actions necessary to receive the City’s share of ARPA funds from the
State of Minnesota for expenses incurred because of the Pandemic.
3.City staff and City Administrator together with the Mayor and the City Attorney are hereby
authorized to make recommendations to the City Council for future expenditures that may be
reimbursed with ARPA funds.
Approved by the City Council of the City of Rosemount, Minnesota this 21st day of December, 2021.
William Droste, Mayor
ATTEST:
Erin Fasbender, City Clerk