Share to Facebook Share to Twitter Bookmark and Share
File #: 21-148    Version: 1
Type: Informational Report Status: Filed
In control: City Council
On agenda: 4/12/2021 Final action: 4/12/2021
Title: American Rescue Plan Act Ward(s): All Wards Councilor(s): All Councilors Neighborhood(s): All Neighborhoods Result Area(s): All Result Areas
Attachments: 1. American Rescue Plan Act Flyer.pdf
Related files:

TO:                      Mayor and City Council   

THROUGH:                      

FROM:                      Steve Powers, City Manager    

                                          

SUBJECT:

title

 

American Rescue Plan Act   

 

Ward(s): All Wards    

Councilor(s): All Councilors    

Neighborhood(s):  All Neighborhoods    

Result Area(s): All Result Areas  

end

 

ISSUE:

 

Overview of American Rescue Plan Act and initial framework for use of funds. 

 

 

RECOMMENDATION:

recommendation

 

Information only.

body

 

SUMMARY:

 

The attached information sheet and framework summarize the American Rescue Plan Act (ARPA) and use of the funds.  Salem’s direct ARPA payment will be $32.88 million. The initial framework recommends using the City funds to stabilize the City budget; support local households, small businesses and non-profits where there are gaps in available resources for COVID recovery; and for priority projects determined by City Council.  ARPA also includes substantial funding increases for federal programs that will benefit communities. Coordination with existing COVID resources and federal programs will be critical. 

 

 

FACTS AND FINDINGS:

The City Manager’s Proposed Fiscal Year 2022 Budget includes ARPA funds to replace revenue directly impacted by COVID-19 and for reimbursement of expenses caused by COVID-19. The funds impacted by COVID-19:

                     General Fund

                     Transportation Services

                     Cultural and Tourism (TOT)

                     Downtown Parking

                     Utility

 

Federal funding has helped mitigate the City’s COVID expenses and revenue losses.  Federal CARES funding did not cover all of Salem’s direct COVID expenses or COVID-related revenue losses. Stabilizing local government budgets impacted by COVID-19 to ensure that community services can continue is one of the allowable uses in the current ARPA guidance.

The balance of ARPA funds will be held in reserve for future use for assistance programs or projects identified within the City’s framework.

The City’s $32.88 million from the ARPA will be in two payments.  The first installment is expected in May 2021, and the second within the next year. ARPA funding must be expended by December 31, 2024. The American Rescue Plan Act funding will not alter the City’s fiscal position in the long-term. The funds are one-time and should not be used for recurring expenditures.

 

BACKGROUND:

 

President Biden signed into law the American Rescue Plan Act (ARPA) on March 11, 2021. Funds directed to local government will be coming from a new program at the US Treasury.  The US Treasury is developing guidance for the resources directed to local governments.       

 

                     Courtney Knox Busch  

                     Strategic Initiatives Manager    

 

Attachments:

1. American Rescue Plan investment framework for Salem