4.7 SR 11-21-2022
Request for Action
To Item Number
Mayor and City Council 4.7
Agenda Section Meeting Date Prepared by
Consent November 21, 2022 Lori Ziemer, Finance Director
Item Description Reviewed by
Resolution Authorizing Transfer of ARPA Cal Portner, City Administrator
Funds to the Multipurpose Facility Fund
Reviewed by
Action Requested
Adopt, by motion, a resolution authorizing the transfer of $655,000 of ARPA funds to the Multipurpose Facility
fund.
Background/Discussion
Prior to the pandemic, the Multipurpose Facility Fund carried a sizable fund balance. In early 2020 the facility was
closed to ensure mandated pandemic precautions could be met. The governor’s emergency order was lifted in July
of 2021 and throughout this period operational costs of the facility were offset with existing fund balance due to
the revenue loss.
As a result of the pandemic, Congress adopted the American Rescue Plan Act to provide support to local
governments faced with the economic impacts due to COVID-19. Eligible uses of ARPA funds include
addressing negative economic impacts and revenue replacement.
Financial Impact
Transfer $655,000 of ARPA funds to the Multipurpose Facility fund.
Mission/Policy/Goal
Meet the needs in an ever-changing environment for a sustainable and prosperous community.
Attachments
Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020
City of Elk River
City Council
Resolution 22-____
A Resolution of the City Council of the City of Elk River Authorizing a
Transfer from the ARPA Fund to the Multipurpose Facility Fund
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, $2.755 million has been allocated to the City of Elk River (“City”) pursuant
to the ARPA (“Allocation”).
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, the United States Department of Treasury has adopted guidance regarding
the use of ARPA funds.
WHEREAS, on January 6, 2022, Treasury issued the final rule. The final rule offered a
standard allowance for revenue loss of up to $10 million with broader flexibility and
streamlined reporting requirements.
WHEREAS, recipients that select the standard allowance may use that amount for
government services.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The transfer of $655,000 from the ARPA Fund to the
Multipurpose Facility Fund.
Passed and adopted this 21st day of November 2022.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk