American Rescue Plan What Does it Mean for Your City?

On March 10, 2021, President Biden approved the American Rescue Plan (ARP), which includes a Coronavirus Local Fiscal Recovery Fund of $350 billion in emergency funding for state, local, territorial, and tribal governments.   The Coronavirus Local Fiscal Recovery Fund is a chance for agencies to remedy the mismatch between rising costs and falling revenues from the pandemic. We hope this information will help you plan for just that. Wishing you the best on your journey to recovery, – The Team at Climatec

ARP Allocation

Local governments will receive $130.2 billion–$65.1 billion to cities and $65.1 billion to counties. They will receive fiscal recovery funds based on formulas that consider their jurisdiction’s population, among other factors.

ARP Distribution

Cities with Populations Greater than 50,000 (Entitlement Cities) Your agency will receive funding directly from the U.S. Treasury. The Treasury requires your agency to have a Data Universal Numbering System (DUNS) number and an active registration with the System for Award Management (SAM) database at SAM.gov. Cities with Populations Less than 50,000 (Nonentitlement Cities) Your agency will receive funding from the State.

Projected Allocations by City

Climatec has made a free American Rescue Plan Info Package containing projected funding allocations and DUNS number and SAM registration guidance (if applicable) for anyone to access–customer or otherwise. Download it at no cost by clicking/tapping the image to the left or the button below. DOWNLOAD

Timeline

Payments will be split into two equal tranches. The first tranche must be paid to states as well as cities with populations greater than 50,000 by May 10. Upon receiving funding, states have 30 days to get funding to cities with populations less than 50,000.   The second tranche must be paid after 12 months of the first payment, likely Spring 2022. All local/state government funds must be spent by Dec. 31, 2024.

Allowable Uses

The legislation on how ARP funds can be used is brief, leaving much discretion to cities based on their unique priorities and budgets. It specifically states funds can be used for:  Investments in Infrastructure Facility modernizations HVAC, indoor air quality, etc. Water Sewer Broadband Response to the public health emergency or its negative economic consequences Provision of premium pay to eligible workers Revenue replacement

Prohibited Uses

There are two restrictions on the use of the fiscal recovery funds:  State and local governments are prohibited from using the funds to make supplemental pension payments. State governments cannot use ARP funds to directly or indirectly offset a reduction in net tax revenue through a change in law, regulation, or administrative interpretation. This restriction does not apply to local governments.   Each municipality will ultimately need to account for the funds expended and will need to provide periodic reports to the Treasury.

Calls to Action

1. Download Projections by City Click/tap the image to the left or the button above to download our American Rescue Plan Info Package containing projected funding allocations and DUNS number and SAM registration guidance (if applicable). 2. Seek DUNS Number & SAM Registration It's imperative that cities with populations greater than 50,000 begin the process to secure their DUNS number and active SAM registration. Detailed guidance is in our ARP Info Package. 3. Keep an Eye Out for Treasury Updates Check the Treasury's website for more guidance in the coming weeks.

Climatec California Team | (916) 216-1943