CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the report on the American Rescue Plan Act and direct staff to calculate the City's revenue replacement value for 2020
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In March 2021, the American Rescue Plan Act (ARPA) was signed into law. This $1.9 trillion coronavirus relief package included $350 billion in direct assistance to state and local governments. These funds are intended to address the economic impacts of the coronavirus pandemic and lay the foundation for a strong recovery.
The Coronavirus Local Fiscal Recovery Fund (CLFRF), established under ARPA, serves as the funding source for local governments receiving ARPA funds. The CLFRF identified communities as entitlement or non-entitlement. In general, entitlement communities, also referred to as metropolitan cities, are defined as those with a population exceeding 50,000 or a recipient of Community Development Block Grant (CDBG) funds. Metropolitan cities receive direct funding from the U.S. Treasury, while non-entitlement communities receive funding through their state government. The City of Naperville is classified as a metropolitan city, both by population and by status as a CDBG recipient.
As a metropolitan city, Naperville received a direct allocation of $13,308,689. Funding allocations for metropolitan cities were based on the CDBG funding formula, however, the funds are not tied to CDBG and are managed under separate program rules. The dollars will be provided in two tranches. The first half of the funds were released in May, and the second half is to be released one year later. The City received its initial deposit of $6,654,344.50 on May 19. All funds must be used by Dec. 31, 2024.
The U.S. Treasury released interim guidance on the acceptable use of funds on May 10. The guidance lays the groundwork for the City to consider how this one-time infusion of res...
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