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File #: 24-622    Version: 1
Type: Presentation Status: Agenda Ready
File created: 10/30/2024 In control: Board of County Commissioners Study Session
On agenda: 11/4/2024 Final action:
Title: 1:30 PM *ARPA Information Session and Quarterly Update
Attachments: 1. Board Summary Report, 2. Presentation, 3. ACWWA Project Alternatives

To:                                                               Board of County Commissioners

 

Through:                                          Michelle Halstead, Director, Commissioners’ Office

 

Prepared By:

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Cody O’Brien, Management Analyst I, Commissioners’ Office

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presenter

Presenter:                                          ARPA Team

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Subject:

title

1:30 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 an update on Arapahoe County’s ARPA program, including funding and allocations to date. The ARPA Team will provide status updates on several projects, including Ridge View Campus; Aurora and Sheridan Public Schools; and several water projects from Arapahoe County Water and Wastewater Authority (ACWWA), Byers Water and Sanitation District, and Inverness Water and Sanitation District. ACWWA provided alternative projects that they are seeking to use existing funding allocations. A detailed document reviewing these alternatives is attached for reference. Additionally, staff will seek board guidance on an updated request from the Finance Department for additional accounting support funding. Lastly, staff will provide recommendations and seek board guidance on final determination of projects to convert to revenue loss/general government expenses before year-end.

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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 have to be obligated no later than December 31, 2024, and 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.

 

Updated ARPA Projects

Staff will provide an update on the following projects:

                     Ridgeview Campus

                     Aurora Public Schools Restorative Practices

                     Sheridan School District K-12 Mental Health Project

                     Byers Water and Sanitation District Water System Improvements

                     ACWWA Redundancy Pipeline

                     ACWWA Peoria Lift Station

                     ACWWA Joint Water Purification Plant

                     ACWWA Alluvial Wells

                     ACWWA Critical Valve Replacement

                     Inverness Cherry Creek Water Conveyance

                     Inverness Local Connections

 

Future Timing and Next Steps

Consistent with U.S. Treasury regulations, the County must encumber ARPA funds by Dec. 31, 2024, with capital construction projects able to expend funds by Dec. 31, 2026. Once encumbered, funds must be used for stated purposes; any changes or unspent funds would be returned to the federal government.

 

BOCC direction to date is to ensure all funds provided from ARPA remain within Arapahoe County. To that end, staff will continue quarterly status updates on allocated funds and associated projects.

 

Fiscal Impact: None. The majority of the study session is informational, and the updated requests would not alter the existing ARPA allocation balance.

 

Alternatives: The Board could amend existing allocation or deny the update ARPA allocation requests.

 

Alignment with Strategic Plan:

                     Be fiscally sustainable

                     Provide essential and mandated service

                     Be community focused

 

Staff Recommendation: Staff recommends approving the requests.