Guide to Local Recovery Update: January 26
The League of California Cities released an updated version of its American Rescue Plan Act revenue loss calculators to reflect the U.S. Department of the Treasury's Final Rule and added information about the Infrastructure Investment and Jobs Act resources to the Guide to Local Recovery portal. The National League of Cities also has two webinars to help cities’ pandemic recovery efforts, including one on American Rescue Plan Act compliance. Additionally, state leaders have reached an agreement on new COVID-19 sick leave legislation.
Updated revenue loss calculator available
Cal Cities also released an updated version of its American Rescue Plan Act revenue loss calculators to reflect the U.S. Department of the Treasury's Final Rule. The calculators contain important updates for cities that are slated to receive more than $10 million from the Coronavirus Local Fiscal Recovery Fund and have a revenue loss calculation that might indicate more than $10 million of revenue loss. Cities that received less than $10 million can simply take the $10 million standard allowance provided for in the Final Rule. No further loss calculation is necessary to qualify for use of the funds under Category C.
A full list of changes is below, along with links to the calculators. For questions or concerns, contact Michael Coleman at email@example.com.
- Users may take the $10 million “standard allowance” instead of doing the calculation. This does not increase your agency’s allocation, but for many agencies with allocations less than $10 million, it will qualify their entire allocation under Category C, Revenue Loss. This is a one-time, irrevocable election.
- The counterfactual annual growth factor has been increased to 5.2% or the average growth of the three years prior to the base year (starting point for revenue loss calculations) which is 2018-19, whichever is greater. The previous growth factor was 4.1%.
- Users may calculate revenue loss on a fiscal year basis rather than a calendar year basis. This is preferable because you can use audited reports. Cities must use the same basis throughout the life of the program.
- Users may now choose to include or exclude utility enterprises (defined as water, gas, electric, and transit) from the calculation. Cities must be consistent with their choice.
- Users may choose to exclude tax rate increases and reductions adopted prior to Jan. 6, 2022, but after the start of the base year fiscal year 2018-19. If you choose to do so, you must exclude the revenue effect of all tax rate increases and rate reductions adopted during this period.
- Users must exclude tax increases or reductions adopted after Jan. 6, 2022.
Revenue Loss Calculator Links
- Revenue Loss Calculator (Government-wide – Full Accrual)
- Revenue Loss Calculator (Fund Basis – Modified Accrual)
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National League of Cities Resources
The National League of Cities (NLC) has released a recording of its American Rescue Plan Act (ARPA) compliance webinar. The U.S. Department of the Treasury has stated that the Single Audit Act of 1984 will apply to Coronavirus Local Fiscal Recovery Fund awards, which were authorized by ARPA. This may impact up to 10,000 previously unaffected municipalities and organizations. The webinar highlighted what auditors will be looking for and how municipalities with limited experience administering federal awards can prepare for the single audit process.
NLC is also hosting a new webinar series, which covers the new federal infrastructure programs and resources included in the Infrastructure Investment and Jobs Act. The next webinar features current and former U.S. Department of Transportation officials and will focus on the department’s $124 billion in competitive funding that will be distributed under the five-year law.
New supplemental paid sick leave policy proposed
Gov. Gavin Newsom and legislative leaders have reached an agreement on new COVID-19 sick leave legislation. The proposal is similar to SB 95 (Skinner), which expired last fall. The new policy would apply retroactively to Jan. 1, 2022, and would sunset on Sept. 30, 2022. The agreement would require employers — including public agencies — with at least 26 workers to provide up to 80 hours of supplemental sick leave to recover from COVID-19.
Guide to Local Recovery Portal expanded
The Guide to Local Recovery portal has been updated to include information about the Infrastructure Investment and Jobs Act. The page now includes several fact sheets, a funding resource guide, and links to relevant public comment forms.
City officials looking for additional information about the American Rescue Plan Act and additional tools for recovery can visit the Cal Cities Guide to Local Recovery webpage.