Report to Mayor and City Council
Tuesday, January 04, 2022
Consent
SUBJECT:
Title
CONSIDER TAKING A POSITION OF SUPPORT AND SENDING A CORRESPONDING LETTER OF REGARDING H.R.5735 TO INCREASE FLEXIBILITY FOR CITIES IN HOW AMERICAN RESCUE PLAN ACT FUNDING CAN BE SPENT (CITY COUNCIL)
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I. SUMMARY
This item transmits a request for City Council to consider taking a position of support and directing staff to send a corresponding letter (included as Exhibit 1) regarding H.R.5735, the "State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act" that would increase flexibility for cities in how American Rescue Plan Act ("ARPA") funds can be spent.
II. RECOMMENDATION
Recommendation
SUPPORT H.R.5735 and DIRECT staff to transmit a corresponding letter of support.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate and that is consistent with applicable laws.
IV. BACKGROUND
According to the U.S. Conference of Mayors, H.R. 5735 is bipartisan legislation that would both streamline and strengthen ARPA in three keys ways:
* it would allow cities to allocate up to $10 million of ARPA funds for the provision of government services without using more complicated budgetary analysis to calculate lost revenue, while at the same time retaining the original provision of the law that would allow for a higher amount to be used if justified under Treasury's revenue loss calculator;
* it would allow the greater of $10 million or 30 percent of the total ARPA allocation provided to a city to be used under a new, separate provision that further allows infrastructure related activities authorized under federal surface transportation laws or Title I of the Housing and Community Development Act of 1974; and
* it would allow funding to be used to provide, emergency relief from natural disasters or the negative economic impacts of natural disasters, including temporary emergency housing, food assist...
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