To: Board of County Commissioners
Through: Michelle Halstead, Director, Commissioners’ Office
Prepared By:
prepared
Cody O’Brien, Management Analyst I, Commissioners’ Office
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presenter
Presenter: ARPA Team
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Subject:
title
2:00 PM *ARPA Information Session and Quarterly Update
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Purpose and Request:
recommended action
The purpose of this study session is to provide the Board a final update on Arapahoe County’s ARPA program, including funding and allocations to date. Per ARPA regulations, the entirety of the County’s ARPA funding was obligated before the December 31, 2024, deadline.
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Background and Discussion: The American Rescue Plan Act (ARPA) is a $1.9 trillion economic stimulus bill signed into law March 2021. The goal of ARPA is to support public health response, address negative economic impacts resulting from or exacerbated by the COVID-19 public health emergency, replace public sector revenue loss, address premium pay for essential workers, and invest in water, sewer, and broadband infrastructure. The legislation builds on the CARES Act funding from 2020, which provided Arapahoe County $114 million in one-time funding. Arapahoe County received over $127 million in ARPA funds, which had to be obligated no later than December 31, 2024, and will need to be expended no later than December 31, 2026.
The Board updated its Response & Recovery Plan goals and objectives in 2021 and expanded its list of initial programmatic areas for potential funding consideration. The Board also held 14 stakeholder outreach meetings to understand community needs and solicit funding proposals. Based on U.S. Treasury Guidance and stakeholder input, an interdisciplinary staff team presented an allocation approach as well as evaluation criteria matrix to help inform future Board decision-making. This information was presented at a Sept. 21, 2021, study session and received Board approval to move forward. Throughout 2021 and 2022, the Board reviewed numerous proposals within key programmatic areas, selecting projects for allocations.
Revenue Loss Funds
Treasury allows local governments to calculate estimated revenue loss and claim it as part of their total ARPA allocation. Generally, the calculations consider the revenue trend three years prior to the pandemic compared to actual revenue collections during the pandemic. The revenue loss category is the most flexible within ARPA, allowing governments to use the funds for any traditional government service that do not violate the Treasury restrictions outlined in the attached presentation.
In September 2021, the Board approved planning assumptions for using the ARPA funds, the first of which is to adopt the maximum amount of federally defined revenue loss available to provide flexibility in addressing general government concerns. Additional information regarding use of revenue loss is included in the presentation for reference.
Future Timing and Next Steps
Consistent with U.S. Treasury regulations and direction from the BOCC, the County encumbered all ARPA funds by Dec. 31, 2024. Capital construction projects must expend funds by Dec. 31, 2026. These encumbered funds must be used for stated purposes; any changes or unspent funds would be returned to the federal government.
Now that all funds have been allocated and nearly all funding expended, staff will provide status updates on remaining funds and projects during the County’s quarterly strategic workplan updates.
Fiscal Impact: None. The study session is informational and would not alter the existing ARPA allocation balance.
Alternatives: N/A
Alignment with Strategic Plan:
☐Be fiscally sustainable
☐Provide essential and mandated service
☒Be community focused
Staff Recommendation: N/A