HomeMy WebLinkAbout8.1 Discussion - American Rescue Plan Allocationt�.f)AAI1C 1�d'+rn�iect
Item Cover Page
Meeting August 17, 2021 - REGULAR MEETING OF THE MOUNT
PROSPECT VILLAGE BOARD -
Fiscal Impact
Dollar Amount
Budget Source
Category NEW BUSINESS
Type Discussion Item
Information
Recently, the Village was awarded $7.0 million from the American Rescue Plan.
The Village received $3.5 million (50 percent) from the U.S. Treasury in May 2021
and the remaining amount will be received in May 2022. The awarded sum can be
used for the following qualified uses:
• To respond to the coronavirus health impacts or economic impacts,
including assistance to households, small businesses, nonprofits, and
impacted industries including hospitality, travel, and tourism.
• By providing premium pay for essential workers, up to $13 an hour,
with an annual cap of $25,000.
o To cover for lost revenue in providing services.
• To make investments in water, sewer or broadband infrastructure.
• Funds cannot be used to cover lost revenues if the loses were due to a
tax cut. Funds cannot be used to cover pension shortfalls.
• The awarded grant amount will have to be spent by December 2024.
The revenue loss criteria are defined in the Interim Final Rule published by the
Department of Treasury. It compares the pre -pandemic revenues with a 4.1
percent growth against the actual revenues for the year 2020. Similarly, the
counterfactual revenues with an additional 4.1% growth can be used to calculate
the revenue loss for the year 2021, and so on. Based on a preliminary analysis
conducted by the Finance Department, the Village has $3.2 million in qualified lost
revenues from the year 2020. The amount proven as a revenue loss can be used
on some of the Village's qualified capital projects and can be used to fund the
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expansion of the Village's Community Connection Center. Staff is expecting that
the revenue loss formula allocation for 2020, 2021 and 2022 should be enough to
cover the expansion costs.
Based on the initial discussion, Finance Commission suggested to maximize the
use of the American Rescue Plan for the Human Service Programs, and staff is
proposing programs and items as attached. It allocates around 90 percent of the
allotted amounts towards the Human Service Programs. These items are not final
and subject to change. Staff will review these items further and may propose new
programs down the road or may change the programming based on need. These
programs are designed to provide long-term and short-term support for the
people in need of assistance and supports residents as well as small businesses.
The proposed allocations will also be discussed with the Finance Commission. After
the discussion and concurrence from the Village Board, staff will present a budget
amendment to fund these programs for the fiscal year 2021.
Staff must provide an initial compliance report to the US Treasury, which is due on
August 31, 2021. The compliance requirements are still evolving and there may
not be any formal plan adoption requirements at this time, but there are quarterly
and annual reporting requirement associated with spending American Rescue Plan
amounts.
Alternatives
1. Discussion - American Rescue Plan Allocation
2. Action at the discretion of the Village Board
Staff Recommendation
Discussion - American Rescue Plan Allocation
ATTACHMENTS:
American Rescue Plan Proposed Programs.pdf
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Village of Mount Prospect
Draft - For Discussion Purpose Only
Human Services
Police Social Worker
Behavioral Health Subsidy Program
Emergency Assistance Program
Dial -a -Bus Program
Medical Expenses
Job/Education/Skills Training
Internet Access/Digital Literacy Program
Community Connections Center Expansion
Total Human Services
Community & Economic Development
Fagade Improvement Program
Green Building Grant Program
Website Improvement Program
Total Community & Economic Development
Grant Total
Proposal
Total American
2021 2022 2023 2024 Rescue Plan
-
82,600
84,252
85,937
252,789
25,000
75,000
82,500
90,750
273,250
25,000
75,000
75,000
25,000
200,000
-
50,000
100,000
100,000
250,000
25,000
25,000
25,000
25,000
100,000
25,000
50,000
50,000
25,000
150,000
25,000
25,000
25,000
25,000
100,000
125,000
382,600
441,752
376,687
1,326,039
- 5,000,000 - - 5,000,000
125,000 5,382,600 441,752 376,687 6,326,039
50,000
200,000
150,000
400,000
50,000
100,000
50,000
200,000
25,000
50,000
25,000
100,000
125,000
350,000
225,000 -
700,000
125,000
350,000
225,000 -
700,000
250,000
5,732,600
666,752 376,687
7,026,039
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