HomeMy WebLinkAboutVIII-07 Approve Standard Allowance for ARPA Reporting
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Chris Eitemiller, Finance Manager
Date: March 21, 2022
Item: Approve Electing the Standard Allowance under Revenue Loss for Reporting
ARPA Grant Expenditures
Council Action Requested:
Approve the attached resolution to elect using the standard allowance for revenue loss for
reporting City spending of ARPA grant funding.
Background Information:
Between the original and subsequent supplementary allocations, the City of Hastings will receive
a total of $2,501,034 under the American Rescue Plan Act (ARPA).
On January 6, 2022, the US Treasury Department issued its final rule to guide recipients on how
to report City expenditures of their grant allocations. This final rule allows recipients to elect a
standard allowance of up to $10 million under the revenue loss provision.
By selecting the standard allowance, the City will not need to calculate revenue loss, will have
broader flexibility in how to spend the ARPA funds, and will have streamlined reporting and
auditing requirements. While all spending must be identified and reported, no further
justification would be required.
Further, if the City selects the standard allowance, it must do so prior to the first ARPA report to
Treasury, which is due by April 30, 2022. After this first report, no changes can be made to how
the City reports, or justifies, its spending.
Because the City is required identify whether or not it wishes to utilize the standard allowance
under the revenue loss provision, and because the standard allowance would allow the greatest
flexibility in using the ARPA funds, staff requests the City Council approve using this standard
allowance for the City’s full ARPA allocation of $2.5 million.
Financial Impact:
Reporting the City’s ARPA-funded expenditures will be simpler and more flexible. In addition to
reporting to the US Treasury, the City’s audit will also be simplified.
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Advisory Commission Discussion:
N/A
Council Committee Discussion:
N/A
Attachments:
Resolution electing standard allowance
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CITY OF HASTINGS
RESOLUTION NO. _____
A RESOLUTION TO ELECT THE STANDARD ALLOWANCE
AVAILABLE UNDER THE REVENUE LOSS PROVISION OF THE
CORONAVIRUS LOCAL FISCAL RECOVERY FUND
ESTABLISHED UNDER THE AMERICAN RESCUE PLAN ACT
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, The Fiscal Recovery Funds provides for $19.53 billion in payments to be
made to States and territories which will distribute the funds to non-entitlement units of
local government (NEUs).
WHEREAS, The ARPA requires that States and territories allocate funding to NEUs in
an amount that bears the same proportion as the population of the NEU bears to the total
population of all NEUs in the State or territory.
WHEREAS, $2.5 million has been allocated to the City of Hastings (“City”) pursuant to
the ARPA.
WHEREAS, The Coronavirus State and Local Fiscal Recovery Funds ensures that
governments have the resources needed to fight the pandemic and support families and
businesses struggling with its public health and economic impacts, maintain vital public
services, even amid declines in revenue, and build a strong, resilient, and equitable
recovery by making investments that support long-term growth and opportunity.
WHEREAS, In May 2021, the US Department of Treasury (“Treasury”) published the
Interim Final Rule describing eligible and ineligible uses of funds as well as other
program provisions, sought feedback from the public on these program rules, and began
to distribute funds.
WHEREAS, on January 6, 2022, Treasury issued the final rule. The final rule delivers
broader flexibility and greater simplicity in the program, responsive to feedback in the comment
process.
WHEREAS, the final rule offers a standard allowance for revenue loss of up to $10
million, allowing recipients to select between a standard amount of revenue loss or
complete a full revenue loss calculation.
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WHEREAS, recipients that select the standard allowance may use that amount, in many
cases their full award, for government services, with streamlined reporting requirements.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF HASTINGS, MINNESOTA, THE CITY ELECTS THE STANDARD
ALLOWANCE AVAILABLE UNDER THE REVENUE LOSS PROVISION OF
THE AMERICAN RESCUE PLAN ACT FOR THE FULL AMOUNT
ALLOCATED OF $2,501,034 TO BE USED FOR THE GENERAL PROVISION
OF GOVERNMENT SERVICES.
Adopted by the City Council of Hastings, Minnesota this 21st day of March, 2022.
___________________
Mayor
Attested:
__________________
City Clerk
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