1 January 10, 2022
American Rescue Plan Act (ARPA)
Update
American Rescue Plan Act Overview 2
In March 2021, Congress passed the American Rescue Plan Act of 2021 (ARPA), which established the Coronavirus State and Local Fiscal Recovery Fund. This fund helps local governments nationwide with COVID-19 pandemic recovery assistance and specific types of infrastructure investment.
Lathrop is expected to receive $5.8 million in federal funding as part of the ARPA. Funds must be obligated by December 31, 2024, and funds must be expended by December 31, 2026.
The City of Lathrop received $2.9 million for the first installment of our disbursement in July 2021 and the second installment will follow a year later in July of 2022. 3 American Rescue Plan Act (ARPA)
Current regulations allow local governments to utilize funds in the following ways:
4 ARPA General Fund Revenue Replacement
In order to determine the amount of revenue that may be used under the "revenue loss" provisions a recipient agency must calculate it's revenue loss under the provisions of ARPA and implementing rules issued by the US Department of the Treasury.
The City of Lathrop has used the revenue loss calculation tool that is intended to assist local agencies with calculating “revenue loss”. It was developed by the League of California Cities with a team of city finance professionals and the collaboration of the California Society of Municipal Finance Officers (CSMFO) and reflects the current best understanding of the law and rules surrounding ARPA uses as they currently stand.
5 ARPA General Fund Revenue Replacement
$20,638,249
from "ActualRevenues" worksheet cell F10.
20.30%
from "ActualRevenues" worksheet cell F12 or 4.1% whichever is greater.
June 30, 2019
computed from "ActualRevenues" worksheet.
Reporting Period
Months
Elapsed
Counterfactual
Revenue
Revenue
Loss
Fund basis of accounting (modified accrual)
January 1, 2020 - December 31, 2020 18 $ 27,231,073 -$2,774,436 Revenue Loss Summary
$24,456,637
Base Year Revenue: The amount of revenues collected in the most recent fiscal year prior to the public health emergency (i.e., the last fiscal year before January 27, 3030), called the base year value.
Growth Adjustment: The average percent revenue growth in the three full fiscal years prior to the COVID-19 public health emergency -or- 4.1 percent, whichever is greater.
Fiscal Year End Date: The date for the most recent full fiscal year prior to the declaration of public health emergency on January 27, 2020.
Actual
Revenue
2020
6 ARPA 1st Reporting Period through 3/31/22
American Rescue Plan Act
July 2021 – 1
st Installment $2,928,427
General Fund Revenue Replacement -$2,774,436
Small Business Economic Assistance Reimbursement -$ 153,991 1 st Installment Total Remaining $0
July 2022 – 2
nd Installment* $2,928,427
*Staff will return with Revenue Replacement Calculation once 2nd Installment Received.
General fund revenue replacement is an expenditure category that gives the Council broad latitude to use funds to provide government services with few restrictions. Depositing ARPA funds in the City’s General Fund provides maximum flexibility on how the City ultimately uses funds to meet the needs of its residents and local businesses and without additional reporting requirements to the Department of the Treasury.
7 QUESTIONS?
8 12%
27%
22%
0%
5%
10%
15%
20%
25%
30%
$-
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
FY2015-2016
Year Ending
June 30, 2016
FY2016-2017
Year Ending
June 30, 2017
FY2017-2018
Year Ending
June 30, 2018
FY2018-2019
Year Ending
June 30, 2019
Public Revenue Loss Calculator Base Establishment
Governmental Funds - Total Revenue Change Percent from Prior Year