Submitted By
Steve Drazner, CFO
Reviewed By
AMZ
Agenda Item Title
Title
Discussion Regarding the Survey Results for the Expenditure of American Rescue Act Funds
End
Overview
Overview
The Village will receive an allocation of $38,984,402 under the America Rescue Plan Act which may be used under the following broad categories:
1) Replace "lost" revenues
2) Support public health expenditures for the ongoing response to COVID-19
3) Addressing negative economic impacts caused by the public health emergency
4) Health Equity
Within these broad categories are one or more subcategories of eligible expenses. For example, providing grants to businesses or non-profit organizations having financial challenges due to the pandemic would be considered an eligible expense under the "negative economic impact" category. Similarly, offering financial assistance with homelessness and mental health recovery would fall under the "support public health" category.
Thus far, the Village received half of its allocation or $19,492,201 under the ARPA program. Approximately $8.6 million of this amount was already used to reimburse the Village for lost revenues for fiscal year 2020 as calculated using the Department of Treasury formula. Additional lost revenues are expected for 2021, 2022, and 2023, however, it is still premature to estimate what lost revenues will be for this and the next two years.
It is important to understand that when ARPA funds are deemed "lost revenues", such classification removes a great deal of the above-referenced spending restrictions surrounding the funds. However, even lost revenue funds may not be spent on paying down debt service, payments towards settlements or lawsuits, or paying down unfunded pension liabilities.
Body
Staff Recommendation
Staff recommends a special meeting in the 1st Quarter of 2022 to discuss. As a next step staff will explore each comment and try to determine current community need or impact, identify any duplicated...
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