RES 22-12City of
El =�-
River
City of Elk River
City Council
Resolution 22-12
A Resolution of the City Council of the City of Elk River to Elect the
Standard Allowance Available Under the Revenue Loss Provision of the
Coronavirus Local Fiscal Recovery Fund Established Under the American
Rescue Plan Act
WHEREAS, Congress adopted the American Rescue Plan Act in March 2021
("ARPA") which included $65 billion in recovery funds for cities across the country.
WHEREAS, ARPA funds are intended to provide support to state, local, and tribal
governments in responding to the impact of COVID-19 and in their efforts to contain
COVID-19 in their communities, residents, and businesses.
WHEREAS, the Fiscal Recovery Funds provides for $19.53 billion in payments to be
made to States and territories which will distribute the funds to nonentitlement units of
local government (NEUs).
WHEREAS, the ARPA requires that States and territories allocate funding to NEUs in
an amount that bears the same proportion as the population of the NEU bears to the total
population of all NEUs in the State or territory.
WHEREAS, $2.755 million has been allocated to the City of Elk River ("City")
pursuant to the ARPA.
WHEREAS, the Coronavirus State and Local Fiscal Recovery Funds ensures that
governments have the resources needed to fight the pandemic and support families and
businesses struggling with its public health and economic impacts, maintain vital public
services, even amid declines in revenue, and build a strong, resilient, and equitable
recovery by making investments that support long-term growth and opportunity.
WHEREAS, in May 2021, the US Department of Treasury ("Treasury") published the
Interim Final Rule describing eligible and ineligible uses of funds as well as other
program provisions, sought feedback from the public on these program rules, and began
to distribute funds.
WHEREAS, on January 6, 2022, Treasury issued the final rule. The final rule delivers
broader flexibility and greater simplicity in the program, responsive to feedback in the comment
process.
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N"A"''TURE
WHEREAS, the final rule offers a standard allowance for revenue loss of up to $10
million, allowing recipients to select between a standard amount of revenue loss or
complete a full revenue loss calculation.
WHEREAS, recipients that select the standard allowance may use that amount, in many
cases their full award, for government services, with streamlined reporting requirements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The City elects the standard allowance available under the
revenue loss provision of the American Rescue Plan Act in the amount of $2.755 million to
be used for the general provision of government services.
Passed and adopted this 22nd day of February 2022.
6
hn J. ietz, or
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Tina Allard, City Clerk
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