Title
Use of American Recovery Plan (ARP) Funds
Brief Description: This is a discussion with City Council on the use of the $4.36 million in federal funds available to the City as part of the American Rescue Plan.
Body
Legislative History
None.
Purpose & Explanation
The US Treasury issued information on eligible uses for the American Recovery Plan (ARP) funds. In summary, eligible areas for the funds that would be applicable to Hudson include assistance to small business, tourism or non-profits; and investment in water, sewer or broadband infrastructure.
In reviewing our capital plan and considering the eligibility criteria, staff would ask Council to consider using the Hudson ARP funds for:
1. The Route 303 transmission water line replacement. This is a part of our water system that is critical and is also the most vulnerable part of said system. The cost for this replacement is $2.5 million.
2. Providing additional marketing/digital marketing dollars to the Chamber of Commerce for continuation of the marketing campaign Council originally provided funds for. Our small businesses throughout the City have indicated marketing is the number one way in which the City can assist in their recovery efforts. Suggested funding level of a minimum of $75,000.
3. Provide funds to VBB for the purpose of building fiber to the adaptive signals project. The current cost for this is estimated to be $550,000 of the total $3,000,000 construction.
4. Provide VBB with additional capital funding for increases in access, including to underserved areas and a public wireless system in our major parks, as well as capital equipment upgrades and replacement. For this it is recommended to use a minimum of $750,000.
Attached is a summary document from the US Treasury that outlines permissible uses of the funding.
Timing Considerations
The funds will be sent to the City in two payments - ½ in mid-2021 and ½ in mid-2022. Funds need to be expended by December 31, 2024.
Fiscal Impact
Currently Budgeted (Account #, $)
X Supplemental Appropriation Required
Appropriation Not Required
Recommendation
Suggested Action
Staff recommends Council determine the best permissible use of the funding and direct staff to move forward with the project(s) and/or purchase(s).
Submitted by,
Jane Howington, City Manager
Jeff Knoblauch, Asst City Manager - Finance Director