3.17 Accept ARPA Funding
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty December 13, 2021
PRESENTER(s) REVIEWED BY: ITEM #:
Consent 3.17 – Accept ARPA Funding
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends City Council adoption of a resolution accepting ARPA funding.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
In March 2021, Congress adopted the American Rescue Plan Act (ARPA), which included $65 billion in
recovery funds intended to provide support to state, local and tribal governments in responding to the
impact of COVID-19 and in their efforts to COVID-19 in their communities, residents and businesses.
The City of Otsego has been allocated ARPA funds from the State of Minnesota, with half of the allocation
being distributed in 2021, with the remaining half planned to be distributed in 2022.
To date, the City of Otsego has received distributions totaling $989,714.59. Use of this funding is outlined
in guidance adopted by the United States Department of Treasury. The coverage period for using the funds
began on March 3, 2021, and the deadline for spending is December 31, 2024. Thus far, the City of Otsego
has not expended any of the ARPA funding allocated to the City.
City staff continues to develop an approach for use of the ARPA funding, with recommendations for City
Council consideration planned for spring 2022.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2021-94
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2021-94 accepting Coronavirus Local Recovery Funding Established under the
American Rescue Plan Act.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2021-94
ACCEPTING CORONAVIRUS LOCAL RECOVERY FUNDING
ESTABLISHED UNDER THE AMERICAN RESCUE PLAN ACT
WHEREAS, Congress adopted the American Rescue Plan Act in March 2021 (“ARPA”) which included
$65 billion in recovery funds for cities across the country; and
WHEREAS, ARPA funds are intended to provide support to state, local, and tribal governments in
responding to the impact of COVID-19 and in their efforts to contain COVID-19 in their communities,
residents, and businesses; and
WHEREAS, the City of Otsego has been allocated ARPA funds from the State of Minnesota pursuant to
the ARPA allocation; and
WHEREAS, the State of Minnesota distributed the first half, $958,331.86 of ARPA funds on July 27, 2021;
and
WHEREAS, nearly $12 million of ARPA funds remained unclaimed after the October 11, 2021 deadline
and the state of Minnesota distributed additional ARPA funds to eligible governments; and
WHEREAS, the City received $31,382.73 on November 23, 2021, the first half of the additional American
Rescue Plan Supplemental Distribution; and
WHEREAS, the United States Department of Treasury has adopted guidance regarding the use of ARPA
funds; and
WHEREAS, the City, in response to the Pandemic, has had expenditures and anticipates future
expenditures consistent with the Department of Treasury’s ARPA guidance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. The City accepts the ARPA distributions to-date and intends to collect its full share of ARPA
funds from the State of Minnesota to use in a manner consistent with the Department of
Treasury’s guidance.
2. City staff are hereby authorized to take any actions necessary to receive the City’s share of ARPA
funds from the State of Minnesota for expenses incurred because of the Pandemic.
3. City staff are hereby authorized to make recommendations to the City Council for future
expenditures that may be reimbursed with ARPA funds.
ADOPTED by the Otsego City Council this 13th day of December, 2021.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk