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RES 2022-40 Utilizing the Coronavirus Local Recovery Funding Established Under the American Rescue Plan Act for the Replacement of Lost RevenuesCITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2022-40 UTILIZING THE CORONAVIRUS LOCAL RECOVERY FUNDING ESTABLISHED UNDER THE AMERICAN RESCUE PLAN ACT FOR THE REPLACEMENT OF LOST REVENUES WHEREAS, Congress adopted the American Rescue Plan Act in March 2021 ("ARPA")which included $350 billion in recovery funds to provide support to state, local, and tribal governments in responding to the impact of COVID49 and in their efforts to contain COVID49 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 the City expects to receive the remaining second half of the funding in 2022; 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 released the Final Rule on January 6, 2022 outlining guidance regarding the use of ARPA funds; and WHEREAS, the Final Rule notes that recipients may elect a standard allowance to replace lost public sector revenue up to a maximum amount of $10 million and use those funds for services traditionally provided by the recipient government; and WHEREAS, the City Council has met to discuss and review the use of the ARPA funding. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. The City Council has met to discuss and review the City's share of ARPA funding and hereby elects the Standard Allowance for the City's full allocation of funding consistent with guidance from the United States Department of Treasury. 2. City staff is hereby authorized to complete the necessary APRA Project and Expenditure Report electing the Standard Allowance. ADOPTED by the Otsego City Council this 25th day of April, 2022. MOTION BY: M%d% E/ SECONDED BY: GOEDE IN FAVOR: STOCKAMP, DARKENWALD, OPPOSED: NONE GOEDE, MOORES, DAHL CITY OF OTSEGO jj°�,$j (gyp( ELM � \ ` F I. Y V py4j.Y Y%+� 4 J6essica L. Stockamp, Wayor ATTEST: Audra Etl, City Clerk