Subject:
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Approve Phase 1 ARPA Spending
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EXPLANATION AND SUMMARY:
On March 11, 2021, the U.S. Congress passed the American Rescue Plan Act (ARPA), authorizing "relief funds to support state, local and tribal governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 on their communities, residents, and businesses" (Interim Final Rule, U.S. Treasury Department, 5/24/2021).
On June 9, 2021 the Town received confirmation from Virginia's Secretary of Finance that Vienna would receive $17.1 million in ARPA dollars distributed by the State, distributed in two equal tranches, one in June 2021 and one 365 days later.
The Town received the first $8.5 million tranche on June 30, 2021. The budget committee (BCOM) and department heads met over the summer of 2021 to develop and rank plans for spending the ARPA funds. These plans were discussed with Council in a conference session on Sept. 20. At the same session, the Capital Improvement Plan (CIP) was also discussed. The plans were also discussed briefly at additional conference sessions on Nov. 8, 2021 and Dec. 13, 2021.
There is a timetable to complete ARPA projects by 2024 and there is a stated desire by Congress for relief funds to get spent. It is important that we all agree that the approved ARPA uses are authorized so that no funds will have to be repaid in the future.
The attached list has been cross-referenced to the Interim Final Ruling Frequently Asked Questions, which is the latest guidance from the Treasury Department. It has also been reviewed by the Town Attorney and has been discussed with other finance directors across the Commonwealth. The list has also been cross-referenced to the 2022 and 2024 bond issuances. Some capital projects are eligible for ARPA funding, which reduces the burden on our regular capital financing sources.
Staff recommends approval of the attached list for Phase 1 spending. Of the $8.5 million received, the project list include...
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