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
3:00 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 an update on Arapahoe County’s ARPA program, including funding and allocations to date. The ARPA Team will provide status updates on projects previously identified during the first quarter, including: Ridgeview Campus, SAFER, Gateway Domestic Violence, Colorado Legal Services’ Eviction Clinic, and two ACWWA water projects. Additionally, staff will seek board guidance on an updated request from Public Works and Development regarding the reallocation of remaining funds from the Stormwater Culvert Replacements and Inverness Drive Inlets projects.
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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 Requests
Staff will provide an update on the following projects:
• Ridgeview Campus
• SAFER
• Gateway Domestic Violence
• Tri-Cities Navigation Center
• Colorado Legal Services’ Eviction Clinic
• Stormwater Culvert Replacements
• Inverness Drive Inlets
• ACWWA Redundancy Line
• ACWWA Manganese Treatment Plant
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.