II.2. American Rescue Plan Act Overview; Bishop
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Department
Date: January 11, 2022
Subject: American Rescue Plan Act Overview
_____________________________________________________________________
PURPOSE
The January 11, 2022 City Council special meeting will give an overview of the
American Rescue Plan Act (ARPA), the City’s allocation and proposed timeline for
adopting a Spending Plan. Staff is not expecting input from City Council until a later
date.
INFORMATION
ARPA was signed into law on March 11, 2021. Within ARPA, the State and Local
Fiscal Recovery Fund will provide $350 billion dollars to state, local, territorial and Tribal
governments. Minnesota Cities and Towns will receive approximately $1.02 billion in
funding.
The City of Hopkins has been allocated $2,018,224 in federal grant aid through ARPA.
Half of the funds were received during 2021 and half will be delivered in 2022. The City
has until the end of 2024 to complete the spending of the ARPA funds.
There are six broad categories for which the funds can be used:
1. Support Public Health Response
2. Address Negative Economic Impacts
3. Replace Public Sector Revenue Loss
4. Premium Pay for Essential Workers
5. Water & Sewer Infrastructure
6. Broadband Infrastructure
There are two broad categories that are ineligible uses of the ARPA funds:
1. Direct or indirect tax reductions, rebates or credits.
2. Deposits into pension funds
Finance Department
The U.S. Department of Treasury provides the guidance for eligible expenditures. The
attached fact sheet gives additional details and example uses of funds.
FUTURE ACTION
The next two work sessions (February 8th and March 8th) are being proposed as dates
to review and discuss an ARPA spending plan. The April 4th City Council Meeting is
being proposed to approve an ARPA spending plan. City staff would begin
implementing the plan on April 5th.
The Coronavirus State and Local Fiscal Recovery Funds provide a
substantial infusion of resources to help turn the tide on the
pandemic, address its economic fallout, and lay the foundation for
a strong and equitable recovery.
The American Rescue Plan will deliver $350 billion for state, local, territorial, and
Tribal governments to respond to the COVID-19 emergency and bring back jobs.
Eligible Jurisdictions & Allocations
Direct Recipients
•States and District of Columbia
($195.3 billion)
•Counties ($65.1 billion)
•Metropolitan cities ($45.6 billion)
•Tribal governments ($20.0 billion)
•Territories ($4.5 billion)
Indirect Recipients
•Non-entitlement units ($19.5 billion)
Funding Objectives
•Support urgent COVID-19 response efforts to continue to
decrease spread of the virus and bring the pandemic under control
•Replace lost public sector revenue to strengthen support for vital
public services and help retain jobs
•Support immediate economic stabilization for households and
businesses
•Address systemic public health and economic challenges that
have contributed to the inequal impact of the pandemic
Address Negative Economic Impacts
Respond to economic harms to workers, families,
small businesses, impacted industries, and the
public sector
Premium Pay for Essential Workers
Offer additional support to those who have and
will bear the greatest health risks because of their
service in critical infrastructure sectors
Replace Public Sector Revenue Loss
Use funds to provide government services to
the extent of the reduction in revenue
experienced due to the pandemic
Support Public Health Response
Fund COVID-19 mitigation efforts, medical
expenses, behavioral healthcare, and certain
public health and safety staff
Broadband Infrastructure
Make necessary investments to provide unserved
or underserved locations with new or expanded
broadband access
Water and Sewer Infrastructure
Make necessary investments to improve access
to clean drinking water and invest in
wastewater and stormwater infrastructure
Example Uses of Funds