4.16 SR 11-20-2023Request for Action
To Item Number
Ma Tor and CinT Council 4.16
Agenda Section Meeting Date Prepared by
Consent November 20, 2023 Lori Stich, Finance Manager
Item Description Reviewed by
Resolution: Authorize Transfer of ARPA Funds oe Stremcha, Assistant Ci T Administrator
to the General Fund Reviewed by
Cal Portner, Ci r Administrator
Action Requested
Adopt, byT motion, a resolution authorizing the transfer of $300,000 of ARPA funds to the General fund.
Background/Discussion
During the 2023 budget work sessions, the Council was concerned about increasing the tax rate at a time `vhen
propert�T owners were alread�T struggling with increasing propert�T values. The goal was to keep the tax rate low to
ease the buYden on taxpayers following the pandemic.
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. Additional guidance on eligible uses of ARPA
funds allows for spending that was not tied to specific reporting categories.
Financial Impact
Transfer $300,000 of ARPA funds to the General fund.
Mission/Policy/Goal
Meet the needs in an ever-changing environment foY a sustainable and pYospeYous communityr.
Attachments
■ Resolution
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
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Up�iited.• August 2020
City of
Elk -�-�
RiVer
City of Elk River
City Council
Resolution 23-
A Resolution of the City Council of the City of Elk River Authorizing a
Transfer from the ARPA Fund to the General Fund
WHEREAS, Congress adopted the American Rescue Plan Act in March 2021 ("ARPA")
`vhich included $65 billion in recoveryT funds for cities across the countr�r.
WHEREAS, ARPA funds are intended to provide support to state, local, and tribal
governments in �esponding to the impact of COVID-19 and in their effoYts to contain
COVID-19 in their communities, residents, and businesses.
WHEREAS, $2.755 million has been allocated to the City of Elk River ("CityT") pursuant
to the ARPA ("Allocation").
WHEREAS, the Coronavirus State and Local Fiscal Recover�r 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 recoveryT
byT making investments that support long-term gro�vth and opportunit�-.
WHEREAS, the United States Department of TYeasury has adopted guidance regarding
the use of ARPA funds.
WHEREAS, on JanuaryT 6, 2022, TreasuryT issued the final rule. The final rule offered a
standard allo`vance for revenue loss of up to $10 million `vith broader flexibilityT and
streamlined reporting requirements.
WHEREAS, Yecipients that select the standaYd allowance may use that amount for
government services.
NOW, THEREFORE, BE IT RESOLVED b�r the CityT Council of the City= of Elk
River, iVlinnesota, as follo�us: The transfer of $300,000 from the ARPA Fund to the General
Fund.
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Passed and adopted this 20`i' day of NovembeY 2023.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
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