Title
Recommendation to Provide Direction to Staff Regarding the Allocation of an Anticipated $28.95 Million of Funding from the Federal Government through the American Rescue Plan Act (ARPA) of 2021 to Assist with Recovery from the Impacts of the COVID-19 Pandemic. (City Manager 2110/Finance 2410) [Not heard on April 20, 2021 or May 11, 2021]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Based on current information on the American Rescue Plan Act of 2021 (ARPA), the City of Alameda (City) expects to receive approximately $28.95 million. The United States Congress and local government trade associations have prepared charts that estimate that the City will receive this amount, but it is not the official number. The official number and the rules for spending these funds will be determined by the Treasury Department. As of April 7, 2021 specific rules for eligibility of the use of the funds had not been released.
The funding provided under ARPA provides a unique opportunity for the City to make strategic investments using these funds.
The City will receive these one-time funds over two years. The first phase of funding will come after the United States Department of the Treasury (Treasury) certifies the proceeds to each jurisdiction, and the second will come one year later. Further refinement and specific projects will still have to be defined as the rules and guidelines for spending become clearer; however, at this time staff is recommending that the City Council begin to prioritize the funding and staff has used the City's Priorities as the framework for the discussion in how to allocate the funds. Alternative approaches/frameworks are also discussed in the report.
BACKGROUND
How Much Money Will Flow to Cities?
Based on the ARPA funding formula, $65 billion is divided between jurisdictions that are Community Development Block Grant (CDBG) entitlement jurisdictions and those that are not. $45.5 billion of the $65 billio...
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