City Council Workshop


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  E.1.       
Meeting Date: 11/02/2021  

Information
SUBJECT
Discussion and direction on allocations of the American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds (CLFRF) from the Texas Division of Emergency Management (TDEM).  Ryan Haverlah, City Manager
BACKGROUND/HISTORY
The American Rescue Plan Act (ARPA) was passed by Congress and signed into law by President Biden on March 11, 2021.  The ARPA provides relief funding for eligible activities to State, County and Local Governments as well as many others. The ARPA funding for the State of Texas for cities under 50,000 population is managed by the Texas Division of Emergency Management (TDEM).
FINDINGS/CURRENT ACTIVITY
The City of Copperas Cove is eligible for funding from ARPA CLFRF in an amount of up to $8,235,166.01.  Upon initial request, the City received 50% of the total amount to address needed qualifying expenditures.

The Texas Division of Emergency Management (TDEM) notified the City of Copperas Cove, as a nonentitlement unit, on July 8 and 13, 2021 that the state will soon announce the availability of CLFRF. The CLFRF program is a component of the American Rescue Plan Act of 2021 and provides funding to local governments to broadly respond to the COVID-19 public health emergency. As established by U.S. Treasury Department guidance, the state, through TDEM, will distribute two tranches of payments to eligible non-entitlement units of local government (NEUs), which are local governments typically serving populations of under 50,000. The total funding amounts were determined by formula as directed by federal law and Treasury guidance. The state did not have discretion in determining these funding amounts, the eligibility of the NEUs, or how these funds must be spent. The state formally applied for funding on August 2. The City received the first half of funding on August 24, 2021. Per Treasury requirements, the state, through TDEM, will distribute the second tranche approximately one year later.

Participant Responsibilities
NEUs participating in the program will have direct obligations to the Treasury Department, including reporting and recordkeeping requirements. All costs are subject to audit by the Treasury Office of Inspector General and Government Accountability Office and improperly used funds will be subject to recoupment by Treasury.

Cost Eligibility
NEUs may use these funds for eligible purposes, as follows:
1. To respond to the public health emergency with respect to 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;
2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the State, territory, or tribal government that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
3. For the provision of government services to the extent of the reduction of revenue of such State, territory, or Tribal government due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the State, territory, or tribal government prior to the emergency; or
4. To make necessary investments in water, sewer, or broadband infrastructure.
Additional allowable uses can be found in this FAQ document located at https://tdem.texas.gov/clfrf/. The Treasury Department will also update their draft rule which determines eligible uses. Please periodically check the TDEM website for updates.

Cost Period of Eligibility
CLFRF funds may be used to cover costs incurred from March 3, 2021, through December 31, 2026. However, participants must obligate all funding by December 31, 2024. Obligate means an order placed for property and services and entering into contracts, subawards, and similar transactions that require payment.

Resources
• NEU allocation amounts along with full program information may be found at the TDEM CLFRF webpage https://tdem.texas.gov/clfrf/
US Treasury information and guidance

OPTIONS FOR FUNDING ALLOCATION WILL BE PROVIDED PRIOR TO THE WORKSHOP.
ACTION OPTIONS/RECOMMENDATION
City staff recommends City Council discussion and provide direction on the allocation of the American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds.
 

Fiscal Impact
Attachments
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