G.15 American Rescue Plan Act FundingAMERICAN RESCUE PLAN ACT (ARPA)
AMERICAN RESCUE
PLAN ACT (ARPA)
•ARPA is $1.9 trillion Federal stimulus aid package signed into law 03/11/2021
•Within ARPA is the Coronavirus State and Local Fiscal Recovery Fund(SLFRF) with
$350 billion in stimulus funding including $130 billion for local governments with
every city and town in the U.S receiving an allocation including $1.02 billion to small
cities in California (cities under population of 50,000 such as Grand Terrace)
•ARPA to be used for:
❖Responding to COVID-19 Pandemic and public health emergency
❖Replacing lost or delayed revenues
❖Addressing negative impacts on local businesses and non-profits
❖Investing in water, sewer or broadband infrastructure
ARPA
•Small cities (non-entitlement cities)get funding allocations
through the State (CA Department of Finance in California)
•Grand Terrace has a total ARPA allocation of $3,010,360 and has
received its initial allocation of $1,505,180 (50 %)in July 2021
•ARPA funds must be allocated by 12/31/2024 and spent by
12/31/2026
ARPA
Use of Fiscal Recovery Funds for General Fund Revenue Loss Incurred by the City
•ARPA recipients may use payments from the Fiscal Recovery Funds for the provision of government
services to the extent of the reduction in revenue experienced due to the COVID-19 public health
emergency.
•Section 603(c)(1)(C)of the ARPA allows recipients facing budget shortfalls to use payments from the
Fiscal Recovery Funds to avoid cuts to government services.
•Additionally,general fund revenue loss is an expenditure category that gives cities broad latitude and
flexibility to use funds to provide government services to the extent of the reduction in revenue with few
restrictions than directly funding eligible programs and services.
•Moving Fiscal Recovery Funds (based on eligible shortfall and revenue loss)to a city’s general fund
provides maximum flexibility on how the city ultimately uses funds to meet the needs of its residents and
local businesses.
•In the calculation of loss of revenue,ARPA fund recipients will compute the extent of the reduction in
general fund revenues by comparing actual revenue to a “counterfactual trend”(i.e.,Counterfactual
Revenue),which represents the amount of general revenues the city could have been expected to
generate in the absence of the pandemic.
ARPA
Use of Fiscal Recovery Funds for General Fund Revenue Loss Incurred by the City
The four-step process to determine the extent of a city’s reduction in revenue includes:
•Step 1:Identify general revenues collected in the most recent full fiscal year prior to
the pandemic,called the Base Year Revenue (i.e.,FY 2018-19)
•Step 2:Estimate “Counterfactual Revenue”
•Step 3:Identify Actual Revenue
•Step 4:The extent of the Reduction in Revenue is equal to Counterfactual Revenue
less Actual Revenue.
ARPA
ARPA
Local governments are encouraged to use payments from the Fiscal Recovery Funds to respond to the direct
and immediate needs of the pandemic and its negative economic impacts and the needs of households and
businesses that were disproportionately and negatively impacted by COVID-19 and the public health
emergency.
Ideas for possible projects and programs for the City of Grand Terrace to consider include,but are not limited
to,the following:
•City Council priorities.
•Small Business Emergency Relief Grants (e.g.,local businesses and non-profits meeting minimum criteria
that can demonstrate economic hardship would be eligible to receive grants to be used towards paying
business rent,utilities,payroll or other operating costs.Re-payment not required.)
•Matching funds community gift card program –launch a community E gift card program and offer BOGO
cards as a promotion (e.g.,buy a $25 card and receive a bonus $25 card).The Yiftee E-gift card platform
is currently being used in California communities such as Benicia,Brentwood,Carlsbad,Concord,
Pleasanton,and Selma.
•Upgrades of city owned properties to ensure COVID-19 compliance from a health and safety perspective
and possible remote service delivery or service enhancements.
•Technology upgrades for the city that can help with remote meetings and on-line services.
ARPA
Staff recommendations for possible use of ARPA Funds are listed below:
•Public Works –Park Improvements $56,300
•Public Works –Ford F-150 Trucks (2)$90,000
•Public Works –Ford 250 Crew Cab $50,000
•City Clerk –Laserfiche Add-on $16,000 one-time,$4,000 annual
maintenance
•City Clerk –Scanning $10,000
•City Clerk –Destruction Services $5,000
•Planning and Development Services –Demolition of houses along Barton
Road $40,000
•Planning and Development Services –Credit of building and permit fees for
developer $65,000
ARPA
Timeline for Fiscal Recovery Funds Implementation
•July 2021 –Received ARPA funds via the State of California Department of Finance.
•November 9,2021 –Present ARPA staff report to City Council explaining the American Rescue Plan
Act Funding and eligible uses,Staff recommendations,along with a Sample Business Needs Survey.
•November/December 2021 –If directed by Council,City Staff along with HdL to review Sales Tax Data
analysis to determine hardest hit business sectors in Grand Terrace and draft a Business Needs Survey
for local Grand Terrace businesses.
•January 2022 –City staff analyze results of Business Needs Survey and any stakeholder meetings.
•February 2022 –Presentation to City Council of business survey results and any community feedback,
sales tax data analysis,and recommendations on ARPA Strategy.
ARPA
Questions?