Title
Discuss and consider action regarding the obligation of American Rescue Plan Act (ARPA) funds.
Summary
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021.
ARPA provides $350 billion in direct aid to state and local governments. Pflugerville has been allocated approximately $6.1 million based on population. The direct allocation funding must be committed to eligible projects by December 31, 2024. Additional funding opportunities through competitive grants is also available with additional details and guidelines forthcoming from US Treasury.
Eligible uses of direct allocation funds are:
response to public health emergency
essential worker premium pay
replenish lost revenue
invest in infrastructure (water, wastewater, or broadband)
Ineligible uses of direct allocation funds are:
used to offset a reduction in the net tax revenue
deposited into any pension fund
used as a match to federal programs
funds may not be use on roads
Eligible project requests from General Fund and Utility Fund to include technology to support remote work/access, cyber security, and investments in clean water/wastewater projects to consider for either/both direct allocation or competitive grant funding opportunities.
This item has been included on the agenda for City Council to review and approve the obligation of ARPA funds for the following items and amounts. Below is a combination of council direction and staff recommendation for expenditures.
Staff recommendations allocated on August 24
$160K- Cisco Voice over IP cloud system
$800K- ERP system
Recommendations from Council:
Small Business Assistance
Water
Vaccine incentives
Prior City Council Action
Previous council presentation on ARPA was June 8, 2021 and August 24,2021.
Deadline for City Council Action
None
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes __ No __ N/A __
Amount: _$6.1M_______
1295 Form Required? Yes __ No _X_
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