Resolution authorizing the Finance Director to classify American Rescue Plan Act funds as Revenue Loss and use a portion of those funds to replace revenue lost between March and December of 2020.

·         The City of Council Bluffs has been awarded approximately $24.8 million in American Rescue Plan Act (ARPA) funds.

·         One of the four approved spending categories for ARPA funds is “For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency”.

·         From the ARPA Interim Final Rule: “For purpose of measuring revenue growth in the counterfactual trend, recipients may use a growth adjustment of either 4.1 percent per year or the recipient’s average annual revenue growth over the three full fiscal years prior to the COVID-19 public health emergency, whichever is higher”.

·         The City of Council Bluffs Finance Department staff have run the calculations and it is most advantageous for the City to use the allowed 4.1% rather than the City’s actual growth percentage.

·         Funds obligated under Revenue Loss are allowed for more uses than the other ARPA funds, so the full amount allowed should be obligated to Revenue Loss. 

·         Using the allowed 4.1%, the City can obligate $11,108,208.00. The actual amount needed to replace lost revenue in 2020 is $3,457,874.00. The remainder would be allocated to other projects, as approved by Council.