PowerPoint Presentation (Added on 2/3/22)
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Council Workshop American Rescue Plan Act (ARPA) February 8, 2022 2 Overview • ARPA Background • ARPA Final Rule • ARPA Strategy –Update on employee retention pay –Next Steps 3 ARPA Background • $59,516,611 in funding to Glendale – $29,758,305.50 was received in May 2021 – Expect to receive the final distribution in May 2022 • Eligible costs incurred between March 3, 2021 and December 31, 2024 – Funds must be obligated by December 31, 2024 • An order placed for property and services and entering into contracts, subawards, and similar transactions that require payment – Funds must be expended by December 31, 2026 4 ARPA Background • Interim Final Rule issued on May 17, 2021 – Established a framework for determining the types of programs and services eligible under ARPA – Established regular reporting requirements, including requiring certain recipients to publish information regarding use of funds – Comments on Interim Final Rule due on July 16, 2021 • Compliance and Reporting Guidance issued on Jun 17, 2021, and updated on June 24, 2021 – One-time Interim Report due on August 31, 2021 – Project Expenditure Report due quarterly – Recovery Plan Performance Report due annually 5 ARPA Final Rule • Confirms the approach and consistent with the Council approved ARPA strategy – Council consensus on September 28, 2021 and January 11, 2022 • Issued on January 6, 2022 – Response to feedback in the comment process of the Interim Rule – Broader flexibility and simplicity in the program – Established a list of eligible uses (not all inclusive) • Framework for eligible uses that are not included in the enumerated list • Takes effect on April 1, 2022 – Can choose to take advantage of the Final Rule’s flexibilities and simplifications now, even ahead of the effective date 6 ARPA Final Rule • Allows recipients to select a standard amount of revenue loss or calculate actual revenue loss –Standard allowance of up to $10 million –Most flexible use of funds and streamlined compliance and requirements –Can be used for any government services • General government administration, staff, and administrative facilities –Provision for public safety services • Road construction and maintenance • Environmental remediation 7 ARPA Final Rule • Expanded on households and communities that are presumed to be impacted and disproportionately impacted by the pandemic • Designated travel, tourism, or hospitality sectors as impacted industries • Broader eligible uses to restore and support government employment – Restore to pre-pandemic employment or hire above pre-pandemic baseline up to 7.5% above pre-pandemic baseline – Employee retention incentives 8 ARPA Final Rule • Clarifies that funds can be used for capital expenditures – Support Covid-19 public health or economic response – Requires regular reporting • Technology Infrastructure – Improve access to and user experience to government systems – Improvements to increase public access and delivery of programs and services – Modernization of cybersecurity and existing broadband infrastructure 9 ARPA Final Rule • Restrictions on use of funds –To makeup for lost revenue from a direct or indirect tax cut –Payments to a pension fund reduce unfunded liability –Funding debt service, legal settlements, or judgments –Deposits to rainy day funds or financial reserves –Projects or services that undermine the COVID-19 practices in line with CDC guidelines or recommendations 10 ARPA Strategy Update • Employee Retention Pay –$1,500 to all city employees • Prorated for part-time employees –Additional retention pay for public safety employees will be addressed in the MOU negotiations and administered per the agreement 11 Questions?