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Agenda Item: 16 |
Prepared By: Guillermo Polanco |
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Business: City Manager’s Report |
Department: Finance |
Subject:
Title
American Rescue Plan Act (ARP)
Body
BACKGROUND:
On March 11, 2021, on the anniversary of COVID-19 being declared a global pandemic, the American Rescue Plan Act of 2021 (ARP) was signed into law. The Act is intended to speed up the recovery of the economic recession caused by the COVID-19 pandemic in the United States.
The stimulus package totals $1.9 trillion with $350 billion included in the Coronavirus Local Fiscal Recovery Fund. This amount is earmarked for states, municipalities, counties, tribes, and territories. The Funds for the State of Florida are currently estimated as follows:
$9 billion for Florida State Government
$1.46 billion for Florida Metro Cities
$4.1 billion for Florida Counties
$1.39 billion for Florida small cities, towns, and villages
$364 million for Florida Broadband Investment Program
It appears the preliminary documents have incorrectly grouped us with the Metro Cities, as those are usually Cities with populations over 50,000. According to the documents that have been published by different organizations, the City of Marco Island has been allocated $2.13 million. Naples is included in the list of Towns, with an allocation of $9.28 million. It is customary for Metro Cities to receive their funding directly from the US Treasury, whereas smaller municipalities are funded through the State and sometimes through the Counties, as was the case with the Coronavirus Aid, Relief, and Economic Security Act (CARES) funding.
According to the National League of Cities (NLC), it “is working on a summary of provisions relevant to municipalities and local leaders.” The NLC is also lobbying U.S. Treasury, as it develops its rules, to not allow the States to develop rules that are more stringent than those included in the Act itself, or as promulgated by the U.S. Treasury. The Secretary of Treasury can allow up to 120 days for the state to pass through the money if they can show undue burden. The ARP’s Section 603 covers local distributions, including allowable uses:
(c) Requirements.-
“(1) USE OF FUNDS.-Subject to paragraph (2), and except as provided in paragraphs (3) and (4), a metropolitan city, nonentitlement unit of local government, or county shall only use the funds provided under a payment made under this section to cover costs incurred by the metropolitan city, nonentitlement unit of local government, or county, by December 31, 2024-
“(A) to respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
“(B) to respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the metropolitan city, nonentitlement unit of local government, or county that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
“(C) for the provision of government services to the extent of the reduction in revenue of such metropolitan city, nonentitlement unit of local government, or county due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, nonentitlement unit of local government, or county prior to the emergency; or
“(D) to make necessary investments in water, sewer, or broadband infrastructure.
“(2) PENSION FUNDS.-No metropolitan city, nonentitlement unit of local government, or county may use funds made available under this section for deposit into any pension fund.
“(3) TRANSFER AUTHORITY.-A metropolitan city, nonentitlement unit of local government, or county receiving a payment from funds made available under this section may transfer funds to a private nonprofit organization (as that term is defined in paragraph (17) of section 401 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(17) <http://uscode.house.gov/quicksearch/get.plx?title=42§ion=11360>), a public benefit corporation involved in the transportation of passengers or cargo, or a special-purpose unit of State or local government.
“(4) TRANSFERS TO STATES.-Notwithstanding paragraph (1), a metropolitan city, nonentitlement unit of local government, or county receiving a payment from funds made available under this section may transfer such funds to the State in which such entity is located.
“(d) Reporting.-Any metropolitan city, nonentitlement unit of local government, or county receiving funds provided under a payment made under this section shall provide to the Secretary periodic reports providing a detailed accounting of the uses of such funds by such metropolitan city, nonentitlement unit of local government, or county and including such other information as the Secretary may require for the administration of this section.
Attached is the estimated breakout so far, and below is a link below to the Act itself.
https://www.congress.gov/bill/117th-congress/house-bill/1319/text#toc-HA2014788068F45DFB8DF03D5E72AFEE7 <https://www.congress.gov/bill/117th-congress/house-bill/1319/text>
The NLC also included the following disclaimer on its website:
These are estimates from the House Committee on Oversight, not final allocations. Congress continues to refine the estimates for allocations from the State and Local Fiscal Relief Funds.
FUNDING SOURCE / FISCAL IMPACT: The current estimate is $2.13 million in assistance for the City of Marco Island.
RECOMMENDATION: N/A
POTENTIAL MOTION: N/A