HomeMy WebLinkAbout2021 06 14 City Commission Regular Meeting AgendaCITY COMMISSION
REGULAR MEETING AGENDA
MONDAY, JUNE 14, 2021 - 6:30 PM
CITY HALL - COMMISSION CHAMBERS
1126 EAST STATE ROAD 434, WINTER SPRINGS, FLORIDA
1
CALL TO ORDER
Roll Call
Invocation
Pledge of Allegiance
Agenda Changes
AWARDS AND PRESENTATIONS
100. Not Used
INFORMATIONAL AGENDA
200. Current Development Projects Summary
20210614 Agenda Item #200 Projects Summary.pdf
201. American Rescue Plan Act of 2021
ARPA INTERIM FINAL RULE - Federal Register Vol.86 No.93 5-17-21.pdf
PUBLIC INPUT
Anyone who wishes to speak during Public Input on any Agenda Item or subject matter will need to fill out a
“Public Input” form. Individuals will limit their comments to three (3) minutes, and representatives of groups or
homeowners' associations shall limit their comments to five (5) minutes, unless otherwise determined by the City
Commission.
CONSENT AGENDA
300. Appointment of City of Winter Springs representative to the South Seminole and
North Orange County Wastewater Transmission Authority (SSNOCWTA).
301. Seminole Crossing Townhomes (WS Town Center) Site Acceptance
20210614 Seminole Crossing ExA Site Acceptance Punchlist
302. Revised Public Input Form
Current Public Input Form
Proposed Public Input Form
303. FY 2020-2021 Mid-Year Budget Amendment
RESOLUTION 2021-03 (MGS)
Mid Year Budget Amendment 06.08.21(MGS)
304. Resolution 2021-07 for a lot split located at 815 W. State Road 434.
Resolution 2021-07 Voska Lot Split
305. Award of the Water Treatment Plant No. 1 Electrical Improvements ITB #02-21
DS
2
Award of WTP 2 Generator Improvement
306. Loan and/or Grant Acquisition and Compliance Services Contract
20-7690 Angie Brewer & Associates, L.C._Contract - Fully executed
20-7690_Amendment#1_Fully Exec
Grant Acquisition and Compliance Services Contract 6 05 2021
Piggyback Rider Angie Brewer & Associates
307. FY21-22 Budget Workshop
308. Minutes from the Monday, May 10, 2021 City Commission Regular Meeting
Minutes
309. Minutes from the June 1, 2021 City Commission Special Meeting
Minutes
PUBLIC HEARINGS AGENDA
400. Not Used
REGULAR AGENDA
500. City of Winter Springs Commission consideration of recognition of Father John
Bluet for more than three decades of community service to the citizens of Winter
Springs and Seminole County.
501. Appointment Opportunities for City Boards and Committees
502. Body-worn camera (BWC) system discussion
BWC quote
503. CUP Presentation and Discussion on Potable Water Utilization
Presentation
504. New Business
REPORTS
600. City Manager Shawn Boyle
601. City Attorney Anthony A. Garganese
602. City Clerk Christian Gowan
603. Seat Five Commissioner Rob Elliott
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604. Mayor Kevin McCann
605. Seat One Commissioner Matt Benton
606. Seat Two Commissioner Kevin Cannon
607. Seat Three Commissioner/Deputy Mayor Ted Johnson
608. Seat Four Commissioner TiAnna Hale
PUBLIC INPUT
Anyone who wishes to speak during Public Input on any Agenda Item or subject matter will need to fill out a
“Public Input” form. Individuals will limit their comments to three (3) minutes, and representatives of groups or
homeowners' associations shall limit their comments to five (5) minutes, unless otherwise determined by the City
Commission.
ADJOURNMENT
PUBLIC NOTICE
This is a Public Meeting, and the public is invited to attend and this Agenda is subject to change. Please be
advised that one (1) or more Members of any of the City's Advisory Boards and Committees may be in
attendance at this Meeting, and may participate in discussions.
Persons with disabilities needing assistance to participate in any of these proceedings should contact the
City of Winter Springs at (407) 327-1800 "at least 48 hours prior to meeting, a written request by a
physically handicapped person to attend the meeting, directed to the chairperson or director of such
board, commission, agency, or authority" - per Section 286.26 Florida Statutes.
"If a person decides to appeal any decision made by the board, agency, or commission with respect to
any matter considered at such meeting or hearing, he or she will need a record of the proceedings, and
that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made,
which record includes the testimony and evidence upon which the appeal is to be based" - per Section
286.0105 Florida Statutes.
4
INFORMATIONAL AGENDA ITEM 200
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Current Development Projects Summary
SUMMARY
Staff is advising the City Commission of the status of current development
projects within the City.
RECOMMENDATION
5
CURRENT COMMUNITY DEVLEOPMENT PROJECTS SUMMARY
PROJECT NAME LOCATION LAST ACTION ITEM CURRENT STATUS
AITC Office Building 863 N US 17-92 N/A DA, Final Engineering & Aesthetic Plans are under Staff review.
Chase Bank Town Center Community Workshop was held on 02/20/20
CUP and DA approved by the City Commission on 11/16/20.
Final Engineering & Aesthetic Plans are under Staff review.
Dream Finders Townhomes (Seminole Crossing):
114 Single-Family (Attached) Units
Town Center -
East side of Michael Blake Blvd.
Preliminary Engineering approved by City Commission on 1/8/18.
DA, Final Engineering, Waivers, & Aesthetic Review approved by the City Commission on 12/09/2019.
Final Plat approved by the City Commission on 09/28/20.
Single-Family Homes Building Permits under Staff Review.
Site work complete.
Site acceptance pending.
Iriye Suites Live
Work Community
Town Center SE & DA approved by City Commission on 01/28/19 Final Engineering and Aesthetic Plans are pending.
Northern Oaks:
35 Single-Family
Homes by Dream
Finders Homes
North side of
SR 434, East of SR 417
Final Engineering & Waivers
approved 03/13/17. Aesthetic
Review approved 04/9/18.
Waiver approved by City
Commission on 11/18/19
Single-Family Homes are under
construction.
Site acceptance complete on
01/13/20.
Southern Oaks:
54 single-family homes
West of
DeLeon St. &
North of SR
434
DA, Final Engineering,
Waivers, & Aesthetic Review
approved on 06/22/15. Commission accepted site
work on 08/14/17.
Site acceptance complete.
Single-Family Homes were
complete as of 11/2020.
The Studios at Tuscawilla Vistawilla Drive Community Workshop was held on 07/19/19.
DA approved by the City
Commission on 01/13/20.
Final Engineering, Aesthetic, &
Waivers are under Staff Review.
Tuskawilla Crossings:
379 Single-Family Homes
Town Center DA, Final Engineering,
Waivers, & Aesthetics
approved by City
Commission on 04/24/17.
Plat approved 08/13/18.
Phase 1 and Phase 2 Site
work approved by City
Commission.
Single-Family Homes under construction.
Site acceptance complete.
6
Winter Springs
Medical Office
E SR 434 Community Workshop was
held on 08/13/19
DA, Final Engineering &
Aesthetic Plans approved by
the City Commission on
11/16/20
Site work started.
Winter Springs
Marketplace
Five (5) Building Commercial Shopping Center
SW Corner of SR 434 and Tuskawilla Road
Community Workshop was held on 05/28/20
DA, Final Engineering, Waivers, & Aesthetic Review approved by the City Commission on 02/22/2021.
Site work started.
Winter Springs
Retirement Residence
(The Savoy):
144 independent suites
Town Center DA, Final Engineering,
Waivers, & Aesthetic Review
approved by City
Commission on 01/22/18.
Site work complete.
Suites under construction.
Winter Springs Town
Center Retail Building
(Ocean Bleu)
Town Center Final Engineering &
Aesthetic Plans approved by
City Commission on 06/10/19.
Preconstruction Meeting Pending.
Wendy’s Town Center Community Workshop was held on 12/17/19.
DA, Final Engineering & Aesthetic Review approved by the Planning and Zoning Board on 02/05/2020 and City Commission on 02/10/20.
Building under construction.
Site work complete.
Site acceptance complete on 05/10/2021.
For more information please click the link below:
City of Winter Springs Community Development Projects List/Locations
Notes: ADU = Accessory Dwelling Unit
CUP = Conditional Use Permit
DA = Development Agreement
PZB = Planning and Zoning Board
SE = Special Exception
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INFORMATIONAL AGENDA ITEM 201
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
American Rescue Plan Act of 2021
SUMMARY
On March 11, 2021, President Biden signed into law the $1.9 trillion relief bill
commonly referred to as The American Rescue Plan Act of 2021 (ARPA). The
relief package provides funding in several areas such as state and local aid,
education, rental assistance, transit, stimulus payments for individuals, and
other provisions. ARPA provides guaranteed direct relief to cities, towns and
villages in the United States (Sec. 9901: Coronavirus State and Local Fiscal
Recovery Funds). The U.S. Department of the Treasury is responsible for
overseeing this unprecedented program. The grants are formula
grants and under the formula every municipal government
is entitled to receive a calculated share of the $65.1 billion for cities, towns,
and villages. These are not competitive grants and local governments will NOT
have to submit an application or certification to justify their needs in advance.
ARPA breaks municipalities into two types:
Metropolitan cities (population greater than 50,000)
Non-entitlement Units of Local Government (population less than
50,000)
The City of Winter Springs is included in the Non-entitlement Units of Local
Government (NEUs) based on our latest census numbers. Accurate grant
calculations depend on a perfected list of eligible municipalities. The Treasury
department is finalizing a list of all local governments to accurately calculate
the share each municipality will receive from the $65.1 billion municipal fund.
As of May 10th, The Treasury Department released the final allocations for
Metropolitan cities. Final allocations are not yet available for NEUs but are
expected to be released soon. (The City has received preliminary estimates
ranging from $10M - $18M.) The Act designates NEUs will receive federal funds
that through the state.
The State may not impose stricter limitations than permitted by statute or
Treasury regulations or guidance on an NEU’s use of Fiscal Recovery Funds
8
based on the NEU’s proposed spending plan or other policies. States and
territories are also not permitted to offset any debt owed by the NEUs
against the NEU’s distribution. Further, States and territories may not provide
funding on a reimbursement basis—e.g., requiring NEU’s to pay for project
costs up front before being reimbursed with Fiscal Recovery Funds payments
—because this funding model would not comport with the statutory
requirement that States and territories make distributions to NEU’s within the
statutory timeframe.
ARPA’s Fiscal Recovery Funds have the following eligible uses identified in the
statute:
To respond to the public health emergency or its negative economic
impacts, including assistance to households, small businesses, and
nonprofits, or aid to impacted industries such as tourism, travel, and
hospitality;
To respond to workers performing essential work during the COVID-19
public health emergency by providing premium pay to eligible workers;
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; and
To make necessary investments in water, sewer, or broadband
With regard to item d) above, ARPA explicitly includes infrastructure if it is
for necessary improvements to water and sewer. Recipients may use this
funding to invest in an array of drinking water infrastructure projects, such as
building or upgrading facilities and transmission, distribution, and
storage systems, including the replacement of lead service lines.
Recipients may also use this funding to invest in wastewater infrastructure
projects, including constructing publicly-owned treatment
infrastructure, managing and treating stormwater or subsurface
drainage water, facilitating water reuse, and securing publicly-owned
treatment works.
By allowing funds to be used for water and sewer infrastructure needs,
Congress recognized the critical role that clean drinking water and services for
the collection and treatment of wastewater and stormwater play in protecting
public health. Understanding that local governments like ours, have a broad
range of water and sewer infrastructure needs, the attached interim final rule
provides local governments with wide latitude to identify investments in
water and sewer infrastructure that are of the highest priority for their own
communities
9
Recipients should align the use Fiscal Recovery Funds to make investments in
projects that would otherwise qualify under the Clean Water State Revolving
Fund and Drinking Water State Revolving Fund investments. Projects or activities
of the type that would be eligible under section 603(c) of the Federal Water
Pollution Control Act (33 U.S.C. 1383(c)) or section 1452 of the Safe Drinking
Water Act (42 U.S.C. 300j-12).
Timeline for Use of Fiscal Recovery Funds
ARPA expressly permits the use of Fiscal Recovery Funds for improvements to
water, sewer, and broadband infrastructure, which entail a longer timeframe.
In recognition of this, Treasury is interpreting the requirement in section 602
and section 603 that costs be incurred by December 31, 2024, to require only
that recipients have obligated the Fiscal Recovery Funds by such date. The
interim final rule adopts a definition of “obligation” that is based on the
definition used for purposes of the Uniform Guidance. As set forth in the
award terms, the period of performance will run until December 31, 2026,
which will provide recipients a reasonable amount of time to complete
projects funded with payments from the Fiscal Recovery Funds.
RECOMMENDATION
No action is required at this time. Final guidance is still pending.
10
26786 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
1Centers for Disease Control and Prevention,
COVID Data Tracker, http://www.covid.cdc.gov/
covid-data-tracker/#datatracker-home (last visited
May 8, 2021).
2U.S. Bureau of Labor Statistics, Unemployment
Rate [UNRATE], retrieved from FRED, Federal
Reserve Bank of St. Louis; https://
fred.stlouisfed.org/series/UNRATE, May 3, 2021.
U.S. Bureau of Labor Statistics, Employment Level
[LNU02000000], retrieved from FRED, Federal
Reserve Bank of St. Louis; https://
fred.stlouisfed.org/series/LNU02000000, May 3,
2021.
3U.S. Bureau of Labor Statistics, All Employees,
Total Nonfarm [PAYEMS], retrieved from FRED,
Federal Reserve Bank of St. Louis; https://
fred.stlouisfed.org/series/PAYEMS, May 7, 2021.
4Nirmita Panchal et al., The Implications of
COVID–19 for Mental Health and Substance Abuse
(Feb. 10, 2021), https://www.kff.org/coronavirus-
covid-19/issue-brief/the-implications-of-covid-19-
for-mental-health-and-substance-use/#:∼:text=
Older%20adults%20are%20also%20
more,prior%20to%20the%20current%20crisis; U.S.
Census Bureau, Household Pulse Survey:
Measuring Social and Economic Impacts during the
Coronavirus Pandemic, https://www.census.gov/
programs-surveys/household-pulse-survey.html
(last visited Apr. 26, 2021); Rebecca T. Leeb et al.,
Mental Health-Related Emergency Department
Visits Among Children Aged <18 Years During the
COVID Pandemic—United States, January 1—
October 17, 2020, Morb. Mortal. Wkly. Rep.
69(45):1675–80 (Nov. 13, 2020), https://
www.cdc.gov/mmwr/volumes/69/wr/
mm6945a3.htm.
5Board of Governors of the Federal Reserve
System, Monetary Policy Report (June 12, 2020),
https://www.federalreserve.gov/monetarypolicy/
2020-06-mpr-summary.htm.
6Joseph R. Biden, Remarks by President Biden on
Helping Small Businesses (Feb. 22, 2021), https://
www.whitehouse.gov/briefing-room/speeches-
remarks/2021/02/22/remarks-by-president-biden-
on-helping-small-businesses/.
7Michael Leachman, House Budget Bill Provides
Needed Fiscal Aid for States, Localities, Tribal
Nations, and Territories (Feb. 10, 2021), https://
www.cbpp.org/research/state-budget-and-tax/
house-budget-bill-provides-needed-fiscal-aid-for-
states-localities.
8U.S. Bureau of Labor Statistics, All Employees,
State Government [CES9092000001] and All
Employees, Local Government [CES9093000001],
retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/
CES9092000001 and https://fred.stlouisfed.org/
series/CES9093000001 (last visited May 8, 2021).
DEPARTMENT OF THE TREASURY
31 CFR Part 35
RIN 1505–AC77
Coronavirus State and Local Fiscal
Recovery Funds
AGENCY: Department of the Treasury.
ACTION: Interim final rule.
SUMMARY: The Secretary of the Treasury
(Treasury) is issuing this interim final
rule to implement the Coronavirus State
Fiscal Recovery Fund and the
Coronavirus Local Fiscal Recovery Fund
established under the American Rescue
Plan Act.
DATES: Effective date: The provisions in
this interim final rule are effective May
17, 2021.
Comment date: Comments must be
received on or before July 16, 2021.
ADDRESSES: Please submit comments
electronically through the Federal
eRulemaking Portal: http://
www.regulations.gov. Comments can be
mailed to the Office of the
Undersecretary for Domestic Finance,
Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington,
DC 20220. Because postal mail may be
subject to processing delay, it is
recommended that comments be
submitted electronically. All comments
should be captions with ‘‘Coronavirus
State and Local Fiscal Recovery Funds
Interim Final Rule Comments.’’ Please
include your name, organization
affiliation, address, email address and
telephone number in your comment.
Where appropriate, a comment should
include a short executive summary.
In general, comments received will be
posted on http://www.regulations.gov
without change, including any business
or personal information provided.
Comments received, including
attachments and other supporting
materials, will be part of the public
record and subject to public disclosure.
Do not enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT:
Katharine Richards, Senior Advisor,
Office of Recovery Programs,
Department of the Treasury, (844) 529–
9527.
SUPPLEMENTARY INFORMATION:
I. Background Information
A. Overview
Since the first case of coronavirus
disease 2019 (COVID–19) was
discovered in the United States in
January 2020, the disease has infected
over 32 million and killed over 575,000
Americans.1 The disease has impacted
every part of life: As social distancing
became a necessity, businesses closed,
schools transitioned to remote
education, travel was sharply reduced,
and millions of Americans lost their
jobs. In April 2020, the national
unemployment rate reached its highest
level in over seventy years following the
most severe month-over-month decline
in employment on record.2 As of April
2021, there were still 8.2 million fewer
jobs than before the pandemic.3 During
this time, a significant share of
households have faced food and
housing insecurity.4 Economic
disruptions impaired the flow of credit
to households, State and local
governments, and businesses of all
sizes.5 As businesses weathered
closures and sharp declines in revenue,
many were forced to shut down,
especially small businesses.6
Amid this once-in-a-century crisis,
State, territorial, Tribal, and local
governments (State, local, and Tribal
governments) have been called on to
respond at an immense scale.
Governments have faced myriad needs
to prevent and address the spread of
COVID–19, including testing, contact
tracing, isolation and quarantine, public
communications, issuance and
enforcement of health orders,
expansions to health system capacity
like alternative care facilities, and in
recent months, a massive nationwide
mobilization around vaccinations.
Governments also have supported major
efforts to prevent COVID–19 spread
through safety measures in settings like
nursing homes, schools, congregate
living settings, dense worksites,
incarceration settings, and public
facilities. The pandemic’s impacts on
behavioral health, including the toll of
pandemic-related stress, have increased
the need for behavioral health resources.
At the same time, State, local and
Tribal governments launched major
efforts to address the economic impacts
of the pandemic. These efforts have
been tailored to the needs of their
communities and have included
expanded assistance to unemployed
workers; food assistance; rent, mortgage,
and utility support; cash assistance;
internet access programs; expanded
services to support individuals
experiencing homelessness; support for
individuals with disabilities and older
adults; and assistance to small
businesses facing closures or revenue
loss or implementing new safety
measures.
In responding to the public health
emergency and its negative economic
impacts, State, local, and Tribal
governments have seen substantial
increases in costs to provide these
services, often amid substantial declines
in revenue due to the economic
downturn and changing economic
patterns during the pandemic.7 Facing
these budget challenges, many State,
local, and Tribal governments have been
forced to make cuts to services or their
workforces, or delay critical
investments. From February to May of
2020, State, local, and Tribal
governments reduced their workforces
by more than 1.5 million jobs and, in
April of 2021, State, local, and Tribal
government employment remained
nearly 1.3 million jobs below pre-
pandemic levels.8 These cuts to State,
local, and Tribal government workforces
VerDate Sep<11>2014 19:28 May 14, 2021 Jkt 253001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\17MYR2.SGM 17MYR2 11
26787 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
9Tracy Gordon, State and Local Budgets and the
Great Recession, Brookings Institution (Dec. 31,
2012), http://www.brookings.edu/articles/state-and-
local-budgets-and-the-great-recession.
10Sebastian D. Romano et al., Trends in Racial
and Ethnic Disparities in COVID–19
Hospitalizations, by Region—United States, March–
December 2020, MMWR Morb Mortal Wkly Rep
2021, 70:560–565 (Apr. 16, 2021), https://
www.cdc.gov/mmwr/volumes/70/wr/
mm7015e2.htm?s_cid=mm7015e2_w.
11Center on Budget and Policy Priorities,
Tracking the COVID–19 Recession’s Effects on
Food, Housing, and Employment Hardships,
https://www.cbpp.org/research/poverty-and-
inequality/tracking-the-covid-19-recessions-effects-
on-housing-and (last visited May 4, 2021).
12Lisa R. Fortuna et al., Inequity and the
Disproportionate Impact of COVID–19 on
Communities of Color in the United States: The
Need for Trauma-Informed Social Justice Response,
Psychological Trauma Vol. 12(5):443–45 (2020),
available at https://psycnet.apa.org/fulltext/2020-
37320-001.pdf.
13Emily Vogles et al., 53% of Americans Say the
internet Has Been Essential During the COVID–19
Outbreak (Apr. 30, 2020), https://
www.pewresearch.org/internet/2020/04/30/53-of-
americans-say-the-internet-has-been-essential-
during-the-covid-19-outbreak/.
14Emma Dorn et al., COVID–19 and student
learning in the United States: The hurt could last
a lifetime (June 2020), https://
webtest.childrensinstitute.net/sites/default/files/
documents/COVID-19-and-student-learning-in-the-
United-States_FINAL.pdf; Andrew Bacher-Hicks et
al., Inequality in Household Adaptation to
Schooling Shocks: Covid-Induced Online
Engagement in Real Time, J. of Public Econ. Vol.
193(C) (July 2020), available at https://
www.nber.org/papers/w27555.
15See, e.g., Tyler Atkinson & Alex Richter,
Pandemic Disproportionately Affects Women,
Minority Labor Force Participation, https://
www.dallasfed.org/research/economics/2020/1110
(last visited May 9, 2021); Jared Bernstein & Janelle
Jones, The Impact of the COVID19 Recession on the
Jobs and Incomes of Persons of Color, https://
www.cbpp.org/sites/default/files/atoms/files/6-2-
20bud_0.pdf (last visited May 9, 2021).
16American Rescue Plan Act of 2021 (ARPA), sec.
9901, Public Law 117–2, codified at 42 U.S.C. 802
et seq. The term ‘‘state’’ as used in this
SUPPLEMENTARY INFORMATION and defined in section
602 of the Act means each of the 50 States and the
District of Columbia. The term ‘‘territory’’ as used
in this SUPPLEMENTARY INFORMATIONand defined in
section 602 of the Act means the Commonwealth
of Puerto Rico, the United States Virgin Islands,
Guam, the Commonwealth of Northern Mariana
Islands, and American Samoa. Tribal government is
defined in the Act and the interim final rule to
mean ‘‘the recognized governing body of any Indian
or Alaska Native tribe, band, nation, pueblo, village,
community, component band, or component
reservation, individually identified (including
parenthetically) in the list published most recently
as of the date of enactment of the [American Rescue
Plan Act] pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C.
5131).’’ See section 602(g)(7) of the Social Security
Act, as added by the American Rescue Plan Act. On
January 29, 2021, the Bureau of Indian Affairs
published a current list of 574 Tribal entities. See
86 FR 7554, January 29, 2021. The term ‘‘local
governments’’ as used in this SUPPLEMENTARY
INFORMATION includes metropolitan cities, counties,
and nonentitlement units of local government.
1742 U.S.C. 801 et seq.
18Sections 602, 603 of the Act.
19The CRF was established by the section 601 of
the Act as added by the Coronavirus Aid, Relief,
and Economic Security Act (CARES Act), Public
Law 116–136, 134 Stat. 281 (2020).
come at a time when demand for
government services is high, with State,
local, and Tribal governments on the
frontlines of fighting the pandemic.
Furthermore, State, local, and Tribal
government austerity measures can
hamper overall economic growth, as
occurred in the recovery from the Great
Recession.9
Finally, although the pandemic’s
impacts have been widespread, both the
public health and economic impacts of
the pandemic have fallen most severely
on communities and populations
disadvantaged before it began. Low-
income communities, people of color,
and Tribal communities have faced
higher rates of infection, hospitalization,
and death,10 as well as higher rates of
unemployment and lack of basic
necessities like food and housing.11 Pre-
existing social vulnerabilities magnified
the pandemic in these communities,
where a reduced ability to work from
home and, frequently, denser housing
amplified the risk of infection. Higher
rates of pre-existing health conditions
also may have contributed to more
severe COVID–19 health outcomes.12
Similarly, communities or households
facing economic insecurity before the
pandemic were less able to weather
business closures, job losses, or declines
in earnings and were less able to
participate in remote work or education
due to the inequities in access to
reliable and affordable broadband
infrastructure.13 Finally, though schools
in all areas faced challenges, those in
high poverty areas had fewer resources
to adapt to remote and hybrid learning
models.14 Unfortunately, the pandemic
also has reversed many gains made by
communities of color in the prior
economic expansion.15
B. The Statute and Interim Final Rule
On March 11, 2021, the American
Rescue Plan Act (ARPA) was signed into
law by the President.16 Section 9901 of
ARPA amended Title VI of the Social
Security Act17 (the Act) to add section
602, which establishes the Coronavirus
State Fiscal Recovery Fund, and section
603, which establishes the Coronavirus
Local Fiscal Recovery Fund (together,
the Fiscal Recovery Funds).18 The Fiscal
Recovery Funds are intended to provide
support to State, local, and Tribal
governments (together, recipients) in
responding to the impact of COVID–19
and in their efforts to contain COVID–
19 on their communities, residents, and
businesses. The Fiscal Recovery Funds
build on and expand the support
provided to these governments over the
last year, including through the
Coronavirus Relief Fund (CRF).19
Through the Fiscal Recovery Funds,
Congress provided State, local, and
Tribal governments with significant
resources to respond to the COVID–19
public health emergency and its
economic impacts through four
categories of eligible uses. Section 602
and section 603 contain the same
eligible uses; the primary difference
between the two sections is that section
602 establishes a fund for States,
territories, and Tribal governments and
section 603 establishes a fund for
metropolitan cities, nonentitlement
units of local government, and counties.
Sections 602(c)(1) and 603(c)(1) provide
that funds may be used:
(a) To respond to the public health
emergency or its negative economic
impacts, including assistance to
households, small businesses, and
nonprofits, or aid to impacted industries
such as tourism, travel, and hospitality;
(b) To respond to workers performing
essential work during the COVID–19
public health emergency by providing
premium pay to eligible workers;
(c) 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; and
(d) To make necessary investments in
water, sewer, or broadband
infrastructure.
In addition, Congress clarified two
types of uses which do not fall within
these four categories. Sections
602(c)(2)(B) and 603(c)(2) provide that
these eligible uses do not include, and
thus funds may not be used for,
depositing funds into any pension fund.
Section 602(c)(2)(A) also provides, for
States and territories, that the eligible
uses do not include ‘‘directly or
indirectly offset[ting] a reduction in the
net tax revenue of [the] State or territory
resulting from a change in law,
regulation, or administrative
interpretation.’’
The ARPA provides a substantial
infusion of resources to meet pandemic
response needs and rebuild a stronger,
more equitable economy as the country
recovers. First, payments from the Fiscal
Recovery Funds help to ensure that
State, local, and Tribal governments
have the resources needed to continue
to take actions to decrease the spread of
COVID–19 and bring the pandemic
under control. Payments from the Fiscal
Recovery Funds may also be used by
recipients to provide support for costs
incurred in addressing public health
and economic challenges resulting from
the pandemic, including resources to
offer premium pay to essential workers,
in recognition of their sacrifices over the
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20Sections 602(c)(1)(A), 603(c)(1)(A) of the Act.
21Press Release, Centers for Disease Control and
Prevention, First Travel-related Case of 2019 Novel
Coronavirus Detected in United States (Jan. 21,
2020), https://www.cdc.gov/media/releases/2020/
p0121-novel-coronavirus-travel-case.html.
22Anne Schuchat et al., Public Health Response
to the Initiation and Spread of Pandemic COVID–
19 in the United States, February 24–April 21, 2021,
MMWR Morb Mortal Wkly Rep 2021, 69(18):551–
56 (May 8, 2021), https://www.cdc.gov/mmwr/
volumes/69/wr/mm6918e2.htm.
last year. Recipients may also use
payments from the Fiscal Recovery
Funds to replace State, local, and Tribal
government revenue lost due to COVID–
19, helping to ensure that governments
can continue to provide needed services
and avoid cuts or layoffs. Finally, these
resources lay the foundation for a
strong, equitable economic recovery, not
only by providing immediate economic
stabilization for households and
businesses, but also by addressing the
systemic public health and economic
challenges that may have contributed to
more severe impacts of the pandemic
among low-income communities and
people of color.
Within the eligible use categories
outlined in the Fiscal Recovery Funds
provisions of ARPA, State, local, and
Tribal governments have flexibility to
determine how best to use payments
from the Fiscal Recovery Funds to meet
the needs of their communities and
populations. The interim final rule
facilitates swift and effective
implementation by establishing a
framework for determining the types of
programs and services that are eligible
under the ARPA along with examples of
uses that State, local, and Tribal
governments may consider. These uses
build on eligible expenditures under the
CRF, including some expansions in
eligible uses to respond to the public
health emergency, such as vaccination
campaigns. They also reflect changes in
the needs of communities, as evidenced
by, for example, nationwide data
demonstrating disproportionate impacts
of the COVID–19 public health
emergency on certain populations,
geographies, and economic sectors. The
interim final rule takes into
consideration these disproportionate
impacts by recognizing a broad range of
eligible uses to help States, local, and
Tribal governments support the
families, businesses, and communities
hardest hit by the COVID–19 public
health emergency.
Implementation of the Fiscal
Recovery Funds also reflect the
importance of public input,
transparency, and accountability.
Treasury seeks comment on all aspects
of the interim final rule and, to better
facilitate public comment, has included
specific questions throughout this
SUPPLEMENTARY INFORMATION. Treasury
encourages State, local, and Tribal
governments in particular to provide
feedback and to engage with Treasury
regarding issues that may arise
regarding all aspects of this interim final
rule and Treasury’s work in
administering the Fiscal Recovery
Funds. In addition, the interim final
rule establishes certain regular reporting
requirements, including by requiring
State, local, and Tribal governments to
publish information regarding uses of
Fiscal Recovery Funds payments in
their local jurisdiction. These reporting
requirements reflect the need for
transparency and accountability, while
recognizing and minimizing the burden,
particularly for smaller local
governments. Treasury urges State,
territorial, Tribal, and local governments
to engage their constituents and
communities in developing plans to use
these payments, given the scale of
funding and its potential to catalyze
broader economic recovery and
rebuilding.
II. Eligible Uses
A. Public Health and Economic Impacts
Sections 602(c)(1)(A) and 603(c)(1)(A)
provide significant resources for State,
territorial, Tribal governments, and
counties, metropolitan cities, and
nonentitlement units of local
governments (each referred to as a
recipient) to meet the wide range of
public health and economic impacts of
the COVID–19 public health emergency.
These provisions authorize the use of
payments from the Fiscal Recovery
Funds to respond to the public health
emergency with respect to COVID–19 or
its negative economic impacts. Section
602 and section 603 also describe
several types of uses that would be
responsive to the impacts of the COVID–
19 public health emergency, including
assistance to households, small
businesses, and nonprofits and aid to
impacted industries, such as tourism,
travel, and hospitality.20
Accordingly, to assess whether a
program or service is included in this
category of eligible uses, a recipient
should consider whether and how the
use would respond to the COVID–19
public health emergency. Assessing
whether a program or service ‘‘responds
to’’ the COVID–19 public health
emergency requires the recipient to,
first, identify a need or negative impact
of the COVID–19 public health
emergency and, second, identify how
the program, service, or other
intervention addresses the identified
need or impact. While the COVID–19
public health emergency affected many
aspects of American life, eligible uses
under this category must be in response
to the disease itself or the harmful
consequences of the economic
disruptions resulting from or
exacerbated by the COVID–19 public
health emergency.
The interim final rule implements
these provisions by identifying a non-
exclusive list of programs or services
that may be funded as responding to
COVID–19 or the negative economic
impacts of the COVID–19 public health
emergency, along with considerations
for evaluating other potential uses of the
Fiscal Recovery Funds not explicitly
listed. The interim final rule also
provides flexibility for recipients to use
payments from the Fiscal Recovery
Funds for programs or services that are
not identified on these non-exclusive
lists but that fall under the terms of
section 602(c)(1)(A) or 603(c)(1)(A) by
responding to the COVID–19 public
health emergency or its negative
economic impacts. As an example, in
determining whether a program or
service responds to the negative
economic impacts of the COVID–19
public health emergency, the interim
final rule provides that payments from
the Fiscal Recovery Funds should be
designed to address an economic harm
resulting from or exacerbated by the
public health emergency. Recipients
should assess the connection between
the negative economic harm and the
COVID–19 public health emergency, the
nature and extent of that harm, and how
the use of this funding would address
such harm.
As discussed, the pandemic and the
necessary actions taken to control the
spread had a severe impact on
households and small businesses,
including in particular low-income
workers and communities and people of
color. While eligible uses under sections
602(c)(1)(A) and 603(c)(1)(A) provide
flexibility to recipients to identify the
most pressing local needs, Treasury
encourages recipients to provide
assistance to those households,
businesses, and non-profits in
communities most disproportionately
impacted by the pandemic.
1. Responding to COVID–19
On January 21, 2020, the Centers for
Disease Control and Prevention (CDC)
identified the first case of novel
coronavirus in the United States.21 By
late March, the virus had spread to
many States and the first wave was
growing rapidly, centered in the
northeast.22 This wave brought acute
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23Centers for Disease Control and Prevention,
COVID Data Tracker: Trends in Number of
COVID–19 Cases and Deaths in the US Reported to
CDC, by State/Territory, https://covid.cdc.gov/
covid-data-tracker/#trends_dailytrendscases (last
visited May 8, 2021).
24Id.
25Centers for Disease Control and Prevention,
COVID Data Tracker: COVID–19 Vaccinations in the
United States, https://covid.cdc.gov/covid-data-
tracker/#vaccinations (last visited May 8, 2021).
26Panchal, supra note 4; Mark E´. Czeisler et al.,
Mental Health, Substance Abuse, and Suicidal
Ideation During COVID–19 Pandemic– United
States, June 24–30 2020, Morb. Mortal. Wkly. Rep.
69(32):1049–57 (Aug. 14, 2020), https://
www.cdc.gov/mmwr/volumes/69/wr/
mm6932a1.htm.
27Leeb, supra note 4.
28Centers for Disease Prevention and Control,
National Center for Health Statistics, Provisional
Drug Overdose Death Counts, https://www.cdc.gov/
nchs/nvss/vsrr/drug-overdose-data.htm (last visited
May 8, 2021).
29Megan L. Evans, et al., A Pandemic within a
Pandemic—Intimate Partner Violence during
Covid–19, N. Engl. J. Med. 383:2302–04 (Dec. 10,
2020), available at https://www.nejm.org/doi/full/
10.1056/NEJMp2024046.
30Jeanne M. Santoli et al., Effects of the
COVID–19 Pandemic on Routine Pediatric Vaccine
Ordering and Administration—United States, Morb.
Mortal. Wkly. Rep. 69(19):591–93 (May 8, 2020),
https://www.cdc.gov/mmwr/volumes/69/wr/
mm6919e2.htm; Marisa Langdon-Embry et al.,
Notes from the Field: Rebound in Routine
Childhood Vaccine Administration Following
Decline During the COVID–19 Pandemic—New
York City, March 1–June 27, 2020, Morb. Mortal.
Wkly. Rep. 69(30):999–1001 (Jul. 31 2020), https://
www.cdc.gov/mmwr/volumes/69/wr/
mm6930a3.htm.
31Office of the White House, National Strategy for
the COVID–19 Response and Pandemic
Preparedness (Jan. 21, 2021), https://
www.whitehouse.gov/wp-content/uploads/2021/01/
National-Strategy-for-the-COVID-19-Response-and-
Pandemic-Preparedness.pdf.
32In a study of 13 states from October to
December 2020, the CDC found that Hispanic or
Latino and Native American or Alaska Native
individuals were 1.7 times more likely to visit an
emergency room for COVID–19 than White
individuals, and Black individuals were 1.4 times
more likely to do so than White individuals. See
Romano, supra note 10.
33Centers for Disease Control and Prevention,
COVID Data Tracker: Trends in COVID–19 Cases
and Deaths in the United States, by County-level
Population Factors, https://covid.cdc.gov/covid-
data-tracker/#pop-factors_totaldeaths (last visited
May 8, 2021).
34The CDC’s Social Vulnerability Index includes
fifteen variables measuring social vulnerability,
including unemployment, poverty, education
levels, single-parent households, disability status,
non-English speaking households, crowded
housing, and transportation access.
Centers for Disease Control and Prevention,
COVID Data Tracker: Trends in COVID–19 Cases
Continued
strain on health care and public health
systems: Hospitals and emergency
medical services struggled to manage a
major influx of patients; response
personnel faced shortages of personal
protective equipment; testing for the
virus was scarce; and congregate living
facilities like nursing homes and prisons
saw rapid spread. State, local, and
Tribal governments mobilized to
support the health care system, issue
public health orders to mitigate virus
spread, and communicate safety
measures to the public. The United
States has since faced at least two
additional COVID–19 waves that
brought many similar challenges: The
second in the summer, centered in the
south and southwest, and a wave
throughout the fall and winter, in which
the virus reached a point of
uncontrolled spread across the country
and over 3,000 people died per day.23
By early May 2021, the United States
has experienced over 32 million
confirmed COVID–19 cases and over
575,000 deaths.24
Mitigating the impact of COVID–19,
including taking actions to control its
spread and support hospitals and health
care workers caring for the sick,
continues to require a major public
health response from State, local and
Tribal governments. New or heightened
public health needs include COVID–19
testing, major expansions in contact
tracing, support for individuals in
isolation or quarantine, enforcement of
public health orders, new public
communication efforts, public health
surveillance (e.g., monitoring case
trends and genomic sequencing for
variants), enhancement to health care
capacity through alternative care
facilities, and enhancement of public
health data systems to meet new
demands or scaling needs. State, local,
and Tribal governments have also
supported major efforts to prevent
COVID–19 spread through safety
measures at key settings like nursing
homes, schools, congregate living
settings, dense worksites, incarceration
settings, and in other public facilities.
This has included implementing
infection prevention measures or
making ventilation improvements in
congregate settings, health care settings,
or other key locations.
Other response and adaptation costs
include capital investments in public
facilities to meet pandemic operational
needs, such as physical plant
improvements to public hospitals and
health clinics or adaptations to public
buildings to implement COVID–19
mitigation tactics. In recent months,
State, local, and Tribal governments
across the country have mobilized to
support the national vaccination
campaign, resulting in over 250 million
doses administered to date.25
The need for public health measures
to respond to COVID–19 will continue
in the months and potentially years to
come. This includes the continuation of
the vaccination campaign for the general
public and, if vaccinations are approved
for children in the future, eventually for
youths. This also includes monitoring
the spread of COVID–19 variants,
understanding the impact of these
variants (especially on vaccination
efforts), developing approaches to
respond to those variants, and
monitoring global COVID–19 trends to
understand continued risks to the
United States. Finally, the long-term
health impacts of COVID–19 will
continue to require a public health
response, including medical services for
individuals with ‘‘long COVID,’’ and
research to understand how COVID–19
impacts future health needs and raises
risks for the millions of Americans who
have been infected.
Other areas of public health have also
been negatively impacted by the
COVID–19 pandemic. For example, in
one survey in January 2021, over 40
percent of American adults reported
symptoms of depression or anxiety, up
from 11 percent in the first half of
2019.26,The proportion of children’s
emergency department visits related to
mental health has also risen
noticeably.27 Similarly, rates of
substance misuse and overdose deaths
have spiked: Preliminary data from the
CDC show a nearly 30 percent increase
in drug overdose mortality from
September 2019 to September 2020.28
Stay-at-home orders and other
pandemic responses may have also
reduced the ability of individuals
affected by domestic violence to access
services.29 Finally, some preventative
public health measures like childhood
vaccinations have been deferred and
potentially forgone.30
While the pandemic affected
communities across the country, it
disproportionately impacted some
demographic groups and exacerbated
health inequities along racial, ethnic,
and socioeconomic lines.31 The CDC
has found that racial and ethnic
minorities are at increased risk for
infection, hospitalization, and death
from COVID–19, with Hispanic or
Latino and Native American or Alaska
Native patients at highest risk.32
Similarly, low-income and socially
vulnerable communities have seen the
most severe health impacts. For
example, counties with high poverty
rates also have the highest rates of
infections and deaths, with 223 deaths
per 100,000 compared to the U.S.
average of 175 deaths per 100,000, as of
May 2021.33 Counties with high social
vulnerability, as measured by factors
such as poverty and educational
attainment, have also fared more poorly
than the national average, with 211
deaths per 100,000 as of May 2021.34
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and Deaths in the United States, by Social
Vulnerability Index, https://covid.cdc.gov/covid-
data-tracker/#pop-factors_totaldeaths (last visited
May 8, 2021).
35Centers for Disease Control and Prevention,
Risk for COVID–19 Infection, Hospitalization, and
Death By Race/Ethnicity, https://www.cdc.gov/
coronavirus/2019-ncov/covid-data/investigations-
discovery/hospitalization-death-by-race-
ethnicity.html (last visited Apr. 26, 2021).
36See, e.g., Centers for Disease Control and
Prevention, Risk of Severe Illness or Death from
COVID–19 (Dec. 10, 2020), https://www.cdc.gov/
coronavirus/2019-ncov/community/health-equity/
racial-ethnic-disparities/disparities-illness.html
(last visited Apr. 26, 2021).
37Milena Almagro et al., Racial Disparities in
Frontline Workers and Housing Crowding During
COVID–19: Evidence from Geolocation Data (Sept.
22, 2020), NYU Stern School of Business
(forthcoming), available at https://papers.ssrn.com/
sol3/papers.cfm?abstract_id=3695249; Grace
McCormack et al., Economic Vulnerability of
Households with Essential Workers, JAMA
324(4):388–90 (2020), available at https://
jamanetwork.com/journals/jama/fullarticle/
2767630.
38See, e.g., Joseph G. Courtney et al., Decreases
in Young Children Who Received Blood Lead Level
Testing During COVID–19—34 Jurisdictions,
January–May 2020, Morb. Mort. Wkly. Rep.
70(5):155–61 (Feb. 5, 2021), https://www.cdc.gov/
mmwr/volumes/70/wr/mm7005a2.htm; Emily A.
Benfer & Lindsay F. Wiley, Health Justice Strategies
to Combat COVID–19: Protecting Vulnerable
Communities During a Pandemic, Health Affairs
Blog (Mar. 19, 2020), https://www.healthaffairs.org/
do/10.1377/hblog20200319.757883/full/.
39See, e.g., Centers for Disease Control and
Prevention, supra note 34; Benfer & Wiley, supra
note 38; Nathaniel M. Lewis et al., Disparities in
COVID–19 Incidence, Hospitalizations, and Testing,
by Area-Level Deprivation—Utah, March 3–July 9,
2020, Morb. Mortal. Wkly. Rep. 69(38):1369–73
(Sept. 25, 2020), https://www.cdc.gov/mmwr/
volumes/69/wr/mm6938a4.htm.
40This includes implementing mitigation
strategies consistent with the Centers for Disease
Control and Prevention’s (CDC) Operational
Strategy for K–12 Schools through Phased
Prevention, available at https://www.cdc.gov/
coronavirus/2019-ncov/community/schools-
childcare/operation-strategy.html.
41Many of these expenses were also eligible in
the CRF. Generally, funding uses eligible under CRF
as a response to the direct public health impacts of
COVID–19 will continue to be eligible under the
ARPA, including those not explicitly listed here
(e.g., telemedicine costs, costs to facilitate
compliance with public health orders, disinfection
of public areas, facilitating distance learning,
increased solid waste disposal needs related to PPE,
paid sick and paid family and medical leave to
public employees to enable compliance with
COVID–19 public health precautions), with the
following two exceptions: (1) The standard for
eligibility of public health and safety payrolls has
been updated (see section II.A of this
SUPPLEMENTARY INFORMATION) and (2) expenses
related to the issuance of tax-anticipation notes are
no longer an eligible funding use (see discussion of
debt service in section II.B of this SUPPLEMENTARY
INFORMATION).
42Coronavirus Relief Fund for States, Tribal
Governments, and Certain Eligible Local
Governments, 86 FR 4182 (Jan. 15, 2021), available
at https://home.treasury.gov/system/files/136/CRF-
Guidance-Federal-Register_2021-00827.pdf.
43Centers for Disease Control and Prevention,
supra note 24.
44Centers for Disease Control and Prevention,
Long-Term Effects (Apr. 8, 2021), https://
www.cdc.gov/coronavirus/2019-ncov/long-term-
effects.html (last visited Apr. 26, 2021).
45Pursuant to 42 CFR 433.51 and 45 CFR 75.306,
Fiscal Recovery Funds may not serve as a State or
locality’s contribution of certain Federal funds.
Over the last year, Native Americans
have experienced more than one and a
half times the rate of COVID–19
infections, more than triple the rate of
hospitalizations, and more than double
the death rate compared to White
Americans.35 Low-income and minority
communities also exhibit higher rates of
pre-existing conditions that may
contribute to an increased risk of
COVID–19 mortality.36
In addition, individuals living in low-
income communities may have had
more limited ability to socially distance
or to self-isolate when ill, resulting in
faster spread of the virus, and were
over-represented among essential
workers, who faced greater risk of
exposure.37 Social distancing measures
in response to the pandemic may have
also exacerbated pre-existing public
health challenges. For example, for
children living in homes with lead
paint, spending substantially more time
at home raises the risk of developing
elevated blood lead levels, while
screenings for elevated blood lead levels
declined during the pandemic.38 The
combination of these underlying social
and health vulnerabilities may have
contributed to more severe public health
outcomes of the pandemic within these
communities, resulting in an
exacerbation of pre-existing disparities
in health outcomes.39
Eligible Public Health Uses. The
Fiscal Recovery Funds provide
resources to meet and address these
emergent public health needs, including
through measures to counter the spread
of COVID–19, through the provision of
care for those impacted by the virus,
and through programs or services that
address disparities in public health that
have been exacerbated by the pandemic.
To facilitate implementation and use of
payments from the Fiscal Recovery
Funds, the interim final rule identifies
a non-exclusive list of eligible uses of
funding to respond to the COVID–19
public health emergency. Eligible uses
listed under this section build and
expand upon permissible expenditures
under the CRF, while recognizing the
differences between the ARPA and
CARES Act, and recognizing that the
response to the COVID–19 public health
emergency has changed and will
continue to change over time. To assess
whether additional uses would be
eligible under this category, recipients
should identify an effect of COVID–19
on public health, including either or
both of immediate effects or effects that
may manifest over months or years, and
assess how the use would respond to or
address the identified need.
The interim final rule identifies a
non-exclusive list of uses that address
the effects of the COVID–19 public
health emergency, including:
•COVID–19 Mitigation and
Prevention. A broad range of services
and programming are needed to contain
COVID–19. Mitigation and prevention
efforts for COVID–19 include
vaccination programs; medical care;
testing; contact tracing; support for
isolation or quarantine; supports for
vulnerable populations to access
medical or public health services;
public health surveillance (e.g.,
monitoring case trends, genomic
sequencing for variants); enforcement of
public health orders; public
communication efforts; enhancement to
health care capacity, including through
alternative care facilities; purchases of
personal protective equipment; support
for prevention, mitigation, or other
services in congregate living facilities
(e.g., nursing homes, incarceration
settings, homeless shelters, group living
facilities) and other key settings like
schools;40 ventilation improvements in
congregate settings, health care settings,
or other key locations; enhancement of
public health data systems; and other
public health responses.41 They also
include capital investments in public
facilities to meet pandemic operational
needs, such as physical plant
improvements to public hospitals and
health clinics or adaptations to public
buildings to implement COVID–19
mitigation tactics. These COVID–19
prevention and mitigation programs and
services, among others, were eligible
expenditures under the CRF and are
eligible uses under this category of
eligible uses for the Fiscal Recovery
Funds.42
•Medical Expenses. The COVID–19
public health emergency continues to
have devastating effects on public
health; the United States continues to
average hundreds of deaths per day and
the spread of new COVID–19 variants
has raised new risks and genomic
surveillance needs.43 Moreover, our
understanding of the potentially serious
and long-term effects of the virus is
growing, including the potential for
symptoms like shortness of breath to
continue for weeks or months, for multi-
organ impacts from COVID–19, or for
post-intensive care syndrome.44 State
and local governments may need to
continue to provide care and services to
address these near- and longer-term
needs.45
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46In general, if an employee’s wages and salaries
are an eligible use of Fiscal Recovery Funds,
recipients may treat the employee’s covered
benefits as an eligible use of Fiscal Recovery Funds.
For purposes of the Fiscal Recovery Funds, covered
benefits include costs of all types of leave (vacation,
family-related, sick, military, bereavement,
sabbatical, jury duty), employee insurance (health,
life, dental, vision), retirement (pensions, 401(k)),
unemployment benefit plans (Federal and state),
workers compensation insurance, and Federal
Insurance Contributions Act (FICA) taxes (which
includes Social Security and Medicare taxes).
47Qualified Census Tracts are a common, readily-
accessible, and geographically granular method of
identifying communities with a large proportion of
low-income residents. Using an existing measure
may speed implementation and decrease
administrative burden, while identifying areas of
need at a highly-localized level.
While QCTs are an effective tool generally, many
tribal communities have households with a wide
range of income levels due in part to non-tribal
member, high income residents living in the
community. Mixed income communities, with a
significant share of tribal members at the lowest
levels of income, are often not included as eligible
QCTs yet tribal residents are experiencing
disproportionate impacts due to the pandemic.
Therefore, including all services provided by Tribal
governments is a more effective means of ensuring
that disproportionately impacted Tribal members
can receive services.
48U.S. Department of Housing and Urban
Development (HUD), Qualified Census Tracts and
Difficult Development Areas, https://
www.huduser.gov/portal/datasets/qct.html (last
visited Apr. 26, 2021); U.S. Department of the
Interior, Bureau of Indian Affairs, Indian Lands of
Federally Recognized Tribes of the United States
(June 2016), https://www.bia.gov/sites/bia.gov/files/
assets/bia/ots/webteam/pdf/idc1-028635.pdf (last
visited Apr. 26, 2021).
49The social determinants of health are the social
and environmental conditions that affect health
outcomes, specifically economic stability, health
care access, social context, neighborhoods and built
environment, and education access. See, e.g., U.S.
Department of Health and Human Services, Office
of Disease Prevention and Health Promotion,
Healthy People 2030: Social Determinants of
Health, https://health.gov/healthypeople/objectives-
and-data/social-determinants-health (last visited
Apr. 26, 2021).
50National Commission on COVID–19 and
Criminal Justice, Impact Report: COVID–19 and
Crime (Jan. 31, 2021), https://
covid19.counciloncj.org/2021/01/31/impact-report-
covid-19-and-crime-3/ (showing a spike in
homicide and assaults); Brad Boesrup et al.,
Alarming Trends in US domestic violence during
the COVID–19 pandemic, Am. J. of Emerg. Med.
38(12): 2753–55 (Dec. 1, 2020), available at https://
www.ajemjournal.com/article/S0735-
6757(20)30307-7/fulltext (showing a spike in
domestic violence).
•Behavioral Health Care. In addition,
new or enhanced State, local, and Tribal
government services may be needed to
meet behavioral health needs
exacerbated by the pandemic and
respond to other public health impacts.
These services include mental health
treatment, substance misuse treatment,
other behavioral health services,
hotlines or warmlines, crisis
intervention, overdose prevention,
infectious disease prevention, and
services or outreach to promote access
to physical or behavioral health primary
care and preventative medicine.
•Public Health and Safety Staff.
Treasury recognizes that responding to
the public health and negative economic
impacts of the pandemic, including
administering the services described
above, requires a substantial
commitment of State, local, and Tribal
government human resources. As a
result, the Fiscal Recovery Funds may
be used for payroll and covered benefits
expenses for public safety, public
health, health care, human services, and
similar employees, to the extent that
their services are devoted to mitigating
or responding to the COVID–19 public
health emergency.46 Accordingly, the
Fiscal Recovery Funds may be used to
support the payroll and covered benefits
for the portion of the employee’s time
that is dedicated to responding to the
COVID–19 public health emergency. For
administrative convenience, the
recipient may consider public health
and safety employees to be entirely
devoted to mitigating or responding to
the COVID–19 public health emergency,
and therefore fully covered, if the
employee, or his or her operating unit
or division, is primarily dedicated to
responding to the COVID–19 public
health emergency. Recipients may
consider other presumptions for
assessing the extent to which an
employee, division, or operating unit is
engaged in activities that respond to the
COVID–19 public health emergency,
provided that the recipient reassesses
periodically and maintains records to
support its assessment, such as payroll
records, attestations from supervisors or
staff, or regular work product or
correspondence demonstrating work on
the COVID–19 response. Recipients
need not routinely track staff hours.
•Expenses to Improve the Design and
Execution of Health and Public Health
Programs. State, local, and Tribal
governments may use payments from
the Fiscal Recovery Funds to engage in
planning and analysis in order to
improve programs addressing the
COVID–19 pandemic, including through
use of targeted consumer outreach,
improvements to data or technology
infrastructure, impact evaluations, and
data analysis.
Eligible Uses to Address Disparities in
Public Health Outcomes. In addition, in
recognition of the disproportionate
impacts of the COVID–19 pandemic on
health outcomes in low-income and
Native American communities and the
importance of mitigating these effects,
the interim final rule identifies a
broader range of services and programs
that will be presumed to be responding
to the public health emergency when
provided in these communities.
Specifically, Treasury will presume that
certain types of services, outlined
below, are eligible uses when provided
in a Qualified Census Tract (QCT),47 to
families living in QCTs, or when these
services are provided by Tribal
governments.48 Recipients may also
provide these services to other
populations, households, or geographic
areas that are disproportionately
impacted by the pandemic. In
identifying these disproportionately-
impacted communities, recipients
should be able to support their
determination that the pandemic
resulted in disproportionate public
health or economic outcomes to the
specific populations, households, or
geographic areas to be served.
Given the exacerbation of health
disparities during the pandemic and the
role of pre-existing social vulnerabilities
in driving these disparate outcomes,
services to address health disparities are
presumed to be responsive to the public
health impacts of the pandemic.
Specifically, recipients may use
payments from the Fiscal Recovery
Funds to facilitate access to resources
that improve health outcomes,
including services that connect
residents with health care resources and
public assistance programs and build
healthier environments, such as:
•Funding community health workers
to help community members access
health services and services to address
the social determinants of health;49
•Funding public benefits navigators
to assist community members with
navigating and applying for available
Federal, State, and local public benefits
or services;
•Housing services to support healthy
living environments and neighborhoods
conducive to mental and physical
wellness;
•Remediation of lead paint or other
lead hazards to reduce risk of elevated
blood lead levels among children; and
•Evidence-based community
violence intervention programs to
prevent violence and mitigate the
increase in violence during the
pandemic.50
2. Responding to Negative Economic
Impacts
Impacts on Households and
Individuals. The public health
emergency, including the necessary
measures taken to protect public health,
resulted in significant economic and
financial hardship for many Americans.
As businesses closed, consumers stayed
home, schools shifted to remote
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51U.S. Bureau of Labor Statistics, All Employees,
Total Nonfarm (PAYEMS), retrieved from FRED,
Federal Reserve Bank of St. Louis; https://
fred.stlouisfed.org/series/PAYEMS (last visited May
8, 2021).
52Id.
53U.S. Bureau of Labor Statistics, Civilian Labor
Force Level [CLF16OV], retrieved from FRED,
Federal Reserve Bank of St. Louis, https://
fred.stlouisfed.org/series/CLF16OV (last visited May
8, 2021).
54U.S. Bureau of Labor Statistics, Labor Force
Statistics from the Current Population Survey:
Employment status of the civilian population by sex
and age (May 8 2021), https://www.bls.gov/
news.release/empsit.t01.htm (last visited May 8,
2021); U.S. Bureau of Labor Statistics, Labor Force
Statistics from the Current Population Survey:
Employment status of the civilian noninstitutional
population by race, Hispanic or Latino ethnicity,
sex, and age (May 8, 2021), https://www.bls.gov/
web/empsit/cpseea04.htm (last visited May 8,
2021); U.S. Bureau of Labor Statistics, Labor Force
Statistics from the Current Population Survey:
Employment status of the civilian noninstitutional
population 25 years and over by educational
attainment (May 8, 2021), https://www.bls.gov/web/
empsit/cpseea05.htm (last visited May 8, 2021).
55Elise Gould & Jori Kandra, Wages grew in 2020
because the bottom fell out of the low-wage labor
market, Economic Policy Institute (Feb. 24, 2021),
https://files.epi.org/pdf/219418.pdf. See also,
Michael Dalton et al., The K-Shaped Recovery:
Examining the Diverging Fortunes of Workers in the
Recovery from the COVID–19 Pandemic using
Business and Household Survey Microdata, U.S.
Bureau of Labor Statistics Working Paper Series
(Feb. 2021), https://www.bls.gov/osmr/research-
papers/2021/pdf/ec210020.pdf.
56Center on Budget and Policy Priorities,
Tracking the COVID–19 Recession’s Effects on
Food, Housing, and Employment Hardships,
https://www.cbpp.org/research/poverty-and-
inequality/tracking-the-covid-19-recessions-effects-
on-food-housing-and (last visited May 8, 2021).
57Women have carried a larger share of childcare
responsibilities than men during the COVID–19
crisis. See, e.g., Gema Zamarro & Marı´a J. Prados,
Gender differences in couples’ division of
childcare, work and mental health during COVID–
19, Rev. Econ. Household 19:11–40 (2021),
available at https://link.springer.com/article/
10.1007/s11150-020-09534-7; Titan Alon et al., The
Impact of COVID–19 on Gender Equality, National
Bureau of Economic Research Working Paper 26947
(April 2020), available at https://www.nber.org/
papers/w26947.
58U.S. Bureau of Labor Statistics, Labor Force
Participation Rate—20 Yrs. & Over, Black or African
American Women [LNS11300032], retrieved from
FRED, Federal Reserve Bank of St. Louis; https://
fred.stlouisfed.org/series/LNS11300032 (last visited
May 8, 2021).
59U.S. Bureau of Labor Statistics, Labor Force
Participation Rate—20 Yrs. & Over, Black or African
American Men [LNS11300031], retrieved from
FRED, Federal Reserve Bank of St. Louis; https://
fred.stlouisfed.org/series/LNS11300031 (last visited
May 8, 2021).
60U.S. Bureau of Labor Statistics, Labor Force
Participation Rate—20 Yrs. & Over, White Women
[LNS11300029], retrieved from FRED, Federal
Reserve Bank of St. Louis; https://
fred.stlouisfed.org/series/LNS11300029 (last visited
May 8, 2021).
61See, e.g., Michael Greenstone & Adam Looney,
Unemployment and Earnings Losses: A Look at
Long-Term Impacts of the Great Recession on
American Workers, Brookings Institution (Nov. 4,
2021), https://www.brookings.edu/blog/jobs/2011/
11/04/unemployment-and-earnings-losses-a-look-
at-long-term-impacts-of-the-great-recession-on-
american-workers/.
62Chi Chi Wu, Solving the Credit Conundrum:
Helping Consumers’ Credit Records Impaired by the
Foreclosure Crisis and Great Recession (Dec. 2013),
https://www.nclc.org/images/pdf/credit_reports/
report-credit-conundrum-2013.pdf.
63Irwin Garfinkel, Sara McLanahan, Christopher
Wimer, eds., Children of the Great Recession,
Russell Sage Foundation (Aug. 2016), available at
https://www.russellsage.org/publications/children-
great-recession.
64Board of Governors of the Federal Reserve
System, supra note 5.
65U.S. Small Business Administration, Office of
Advocacy, Small Businesses Generate 44 Percent of
U.S. Economic Activity (Jan. 30, 2019), https://
advocacy.sba.gov/2019/01/30/small-businesses-
generate-44-percent-of-u-s-economic-activity/.
66Biden, supra note 6.
67Daniel Wilmoth, U.S. Small Business
Administration Office of Advocacy, The Effects of
the COVID–19 Pandemic on Small Businesses, Issue
Brief No. 16 (Mar. 2021), available at https://
cdn.advocacy.sba.gov/wp-content/uploads/2021/
03/02112318/COVID-19-Impact-On-Small-
Business.pdf.
68U.S. Census Bureau, Small Business Pulse
Survey, https://portal.census.gov/pulse/data/ (last
visited May 8, 2021).
69Olivia S. Kim et al., Revenue Collapses and the
Consumption of Small Business Owners in the
Early Stages of the COVID–19 Pandemic (Nov.
2020), https://www.nber.org/papers/w28151.
70See e.g., Board of Governors of the Federal
Reserve System, Report to Congress on the
Availability of Credit to Small Businesses (Sept.
2017), available at https://www.federalreserve.gov/
publications/2017-september-availability-of-credit-
to-small-businesses.htm.
71Alexander W. Bartik et al., The Impact of
COVID–19 on small business outcomes and
expectations, PNAS 117(30): 17656–66 (July 28,
2020), available at https://www.pnas.org/content/
117/30/17656.
education, and travel declined
precipitously, over 20 million jobs were
lost in March and April 2020.51
Although many have returned to work,
as of April 2021, the economy remains
8.2 million jobs below its pre-pandemic
peak,52 and more than 3 million workers
have dropped out of the labor market
altogether relative to February 2020.53
Rates of unemployment are
particularly severe among workers of
color and workers with lower levels of
educational attainment; for example, the
overall unemployment rate in the
United States was 6.1 percent in April
2021, but certain groups saw much
higher rates: 9.7 percent for Black
workers, 7.9 percent for Hispanic or
Latino workers, and 9.3 percent for
workers without a high school
diploma.54 Job losses have also been
particularly steep among low wage
workers, with these workers remaining
furthest from recovery as of the end of
2020.55 A severe recession—and its
concentrated impact among low-income
workers—has amplified food and
housing insecurity, with an estimated
nearly 17 million adults living in
households where there is sometimes or
often not enough food to eat and an
estimated 10.7 million adults living in
households that were not current on
rent.56 Over the course of the pandemic,
inequities also manifested along gender
lines, as schools closed to in-person
activities, leaving many working
families without child care during the
day.57 Women of color have been hit
especially hard: The labor force
participation rate for Black women has
fallen by 3.2 percentage points58 during
the pandemic as compared to 1.0
percentage points for Black men 59 and
2.0 percentage points for White
women.60
As the economy recovers, the effects
of the pandemic-related recession may
continue to impact households,
including a risk of longer-term effects on
earnings and economic potential. For
example, unemployed workers,
especially those who have experienced
longer periods of unemployment, earn
lower wages over the long term once
rehired.61 In addition to the labor
market consequences for unemployed
workers, recessions can also cause
longer-term economic challenges
through, among other factors, damaged
consumer credit scores 62 and reduced
familial and childhood wellbeing.63
These potential long-term economic
consequences underscore the continued
need for robust policy support.
Impacts on Businesses. The pandemic
has also severely impacted many
businesses, with small businesses hit
especially hard. Small businesses make
up nearly half of U.S. private-sector
employment64 and play a key role in
supporting the overall economic
recovery as they are responsible for two-
thirds of net new jobs.65 Since the
beginning of the pandemic, however,
400,000 small businesses have closed,
with many more at risk.66 Sectors with
a large share of small business
employment have been among those
with the most drastic drops in
employment.67 The negative outlook for
small businesses has continued: As of
April 2021, approximately 70 percent of
small businesses reported that the
pandemic has had a moderate or large
negative effect on their business, and
over a third expect that it will take over
6 months for their business to return to
their normal level of operations.68
This negative outlook is likely the
result of many small businesses having
faced periods of closure and having seen
declining revenues as customers stayed
home.69 In general, small businesses can
face greater hurdles in accessing
credit,70 and many small businesses
were already financially fragile at the
outset of the pandemic.71 Non-profits,
which provide vital services to
communities, have similarly faced
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72Federal Reserve Bank of San Francisco, Impacts
of COVID–19 on Nonprofits in the Western United
States (May 2020), https://www.frbsf.org/
community-development/files/impact-of-covid-
nonprofits-serving-western-united-states.pdf.
73Bureau of Labor Statistics, supra note 8; Elijah
Moreno & Heather Sobrepena, Tribal entities remain
resilient as COVID–19 batters their finances,
Federal Reserve Bank of Minneapolis (Nov. 10,
2021), https://www.minneapolisfed.org/article/
2020/tribal-entities-remain-resilient-as-covid-19-
batters-their-finances.
74Kim Parker et al., Economic Fallout from
COVID–19 Continues to Hit Lower-Income
Americans the Hardest, Pew Research Center (Sept.
24, 2020), https://www.pewresearch.org/social-
trends/2020/09/24/economic-fallout-from-covid-19-
continues-to-hit-lower-income-americans-the-
hardest/; Gould, supra note 55.
75See infra Section II.B of this Supplementary
Information.
76Elizabeth Kneebone, The Changing geography
of US poverty, Brookings Institution (Feb. 15, 2017),
https://www.brookings.edu/testimonies/the-
changing-geography-of-us-poverty/.
77Elizabeth Kneebone & Natalie Holmes, U.S.
concentrated poverty in the wake of the Great
Recession, Brookings Institution (Mar. 31, 2016),
https://www.brookings.edu/research/u-s-
concentrated-poverty-in-the-wake-of-the-great-
recession/.
78David Erickson et al., The Enduring Challenge
of Concentrated Poverty in America: Case Studies
from Communities Across the U.S. (2008), available
at https://www.frbsf.org/community-development/
files/cp_fullreport.pdf.
79Educational quality, as early as Kindergarten,
has a long-term impact on children’s public health
and economic outcomes. See, e.g., Tyler W. Watts
et al., The Chicago School Readiness Project:
Examining the long-term impacts of an early
childhood intervention, PLoS ONE 13(7) (2018),
available at https://journals.plos.org/plosone/
article?id=10.1371/journal.pone.0200144;
Opportunity Insights, How Can We Amplify
Education as an Engine of Mobility? Using big data
to help children get the most from school, https://
opportunityinsights.org/education/ (last visited
Apr. 26, 2021); U.S. Department of Health and
Human Services (HHS), Office of Disease
Prevention and Health Promotion, Early Childhood
Development and Education, https://
www.healthypeople.gov/2020/topics-objectives/
topic/social-determinants-health/interventions-
resources/early-childhood-development-and-
education (last visited Apr. 26, 2021).
80See, e.g., Bacher-Hicks, supra note 14.
81A Department of Education survey found that,
as of February 2021, 42 percent of fourth grade
students nationwide were offered only remote
education, compared to 48 percent of economically
disadvantaged students, 54 percent of Black
students and 57 percent of Hispanic students. Large
districts often disproportionately serve low-income
students. See Institute of Education Sciences,
Monthly School Survey Dashboard, https://
ies.ed.gov/schoolsurvey/ (last visited Apr. 26, 2021).
In summer 2020, a review found that 74 percent of
the largest 100 districts chose remote learning only.
See Education Week, School Districts’ Reopening
Plans: A Snapshot (Jul. 15, 2020), https://
www.edweek.org/leadership/school-districts-
reopening-plans-a-snapshot/2020/07 (last visited
May 4, 2021).
82HHS, supra note 79.
83Hirokazu Yoshikawa, Effects of the Global
Coronavirus Disease—2019 Pandemic on Early
Childhood Development: Short- and Long-Term
Risks and Mitigating Program and Policy Actions,
J. of Pediatrics Vol. 223:188–93 (Aug. 1, 2020),
available at https://www.jpeds.com/article/S0022-
3476(20)30606-5/abstract.
84Based on calculations conducted by the
Minneapolis Fed’s Center for Indian Country
Development using Flood et al. (2020)’s Current
Population Survey.’’ Sarah Flood, Miriam King,
Renae Rodgers, Steven Ruggles and J. Robert
Warren. Integrated Public Use Microdata Series,
Current Population Survey: Version 8.0 [dataset].
Minneapolis, MN: IPUMS, 2020. https://doi.org/
10.18128/D030.V8.0; see also Donna Feir & Charles
Golding, Native Employment During COVID–19:
Hard hit in April but Starting to Rebount? (Aug. 5,
2020), https://www.minneapolisfed.org/article/
2020/native-employment-during-covid-19-hit-hard-
in-april-but-starting-to-rebound.
85Moreno & Sobrepena, supra note 73.
economic and financial challenges due
to the pandemic.72
Impacts to State, Local, and Tribal
Governments. State, local, and Tribal
governments have felt substantial fiscal
pressures. As noted above, State, local,
and Tribal governments have faced
significant revenue shortfalls and
remain over 1 million jobs below their
pre-pandemic staffing levels.73 These
reductions in staffing may undermine
the ability to deliver services effectively,
as well as add to the number of
unemployed individuals in their
jurisdictions.
Exacerbation of Pre-existing
Disparities. The COVID–19 public
health emergency may have lasting
negative effects on economic outcomes,
particularly in exacerbating disparities
that existed prior to the pandemic.
The negative economic impacts of the
COVID–19 pandemic are particularly
pronounced in certain communities and
families. Low- and moderate-income
jobs make up a substantial portion of
both total pandemic job losses,74 and
jobs that require in-person frontline
work, which are exposed to greater risk
of contracting COVID–19.75 Both factors
compound pre-existing vulnerabilities
and the likelihood of food, housing, or
other financial insecurity in low- and
moderate-income families and, given
the concentration of low- and moderate-
income families within certain
communities,76 raise a substantial risk
that the effects of the COVID–19 public
health emergency will be amplified
within these communities.
These compounding effect of
recessions on concentrated poverty and
the long-lasting nature of this effect
were observed after the 2007–2009
recession, including a large increase in
concentrated poverty with the number
of people living in extremely poor
neighborhoods more than doubling by
2010–2014 relative to 2000.77
Concentrated poverty has a range of
deleterious impacts, including
additional burdens on families and
reduced economic potential and social
cohesion.78 Given the disproportionate
impact of COVID–19 on low-income
households discussed above, there is a
risk that the current pandemic-induced
recession could further increase
concentrated poverty and cause long-
term damage to economic prospects in
neighborhoods of concentrated poverty.
The negative economic impacts of
COVID–19 also include significant
impacts to children in
disproportionately affected families and
include impacts to education, health,
and welfare, all of which contribute to
long-term economic outcomes.79 Many
low-income and minority students, who
were disproportionately served by
remote or hybrid education during the
pandemic, lacked the resources to
participate fully in remote schooling or
live in households without adults
available throughout the day to assist
with online coursework.80 Given these
trends, the pandemic may widen
educational disparities and worsen
outcomes for low-income students,81 an
effect that would substantially impact
their long-term economic outcomes.
Increased economic strain or material
hardship due to the pandemic could
also have a long-term impact on health,
educational, and economic outcomes of
young children.82 Evidence suggests
that adverse conditions in early
childhood, including exposure to
poverty, food insecurity, housing
insecurity, or other economic hardships,
are particularly impactful.83
The pandemic’s disproportionate
economic impacts are also seen in
Tribal communities across the
country—for Tribal governments as well
as families and businesses on and off
Tribal lands. In the early months of the
pandemic, Native American
unemployment spiked to 26 percent
and, while partially recovered, remains
at nearly 11 percent.84 Tribal enterprises
are a significant source of revenue for
Tribal governments to support the
provision of government services. These
enterprises, notably concentrated in
gaming, tourism, and hospitality,
frequently closed, significantly reducing
both revenues to Tribal governments
and employment. As a result, Tribal
governments have reduced essential
services to their citizens and
communities.85
Eligible Uses. Sections 602(c)(1)(A)
and 603(c)(1)(A) permit use of payments
from the Fiscal Recovery Funds to
respond to the negative economic
impacts of the COVID–19 public health
emergency. Eligible uses that respond to
the negative economic impacts of the
public health emergency must be
designed to address an economic harm
resulting from or exacerbated by the
public health emergency. In considering
whether a program or service would be
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86In some cases, a use may be permissible under
another eligible use category even if it falls outside
the scope of section (c)(1)(A) of the Act.
eligible under this category, the
recipient should assess whether, and the
extent to which, there has been an
economic harm, such as loss of earnings
or revenue, that resulted from the
COVID–19 public health emergency and
whether, and the extent to which, the
use would respond or address this
harm.86 A recipient should first
consider whether an economic harm
exists and whether this harm was
caused or made worse by the COVID–19
public health emergency. While
economic impacts may either be
immediate or delayed, assistance or aid
to individuals or businesses that did not
experience a negative economic impact
from the public health emergency
would not be an eligible use under this
category.
In addition, the eligible use must
‘‘respond to’’ the identified negative
economic impact. Responses must be
related and reasonably proportional to
the extent and type of harm
experienced; uses that bear no relation
or are grossly disproportionate to the
type or extent of harm experienced
would not be eligible uses. Where there
has been a negative economic impact
resulting from the public health
emergency, States, local, and Tribal
governments have broad latitude to
choose whether and how to use the
Fiscal Recovery Funds to respond to
and address the negative economic
impact. Sections 602(c)(1)(A) and
603(c)(1)(A) describe several types of
uses that would be eligible under this
category, including assistance to
households, small businesses, and
nonprofits and aid to impacted
industries such as tourism, travel, and
hospitality.
To facilitate implementation and use
of payments from the Fiscal Recovery
Funds, the interim final rule identifies
a non-exclusive list of eligible uses of
funding that respond to the negative
economic impacts of the public health
emergency. Consistent with the
discussion above, the eligible uses listed
below would respond directly to the
economic or financial harms resulting
from and or exacerbated by the public
health emergency.
•Assistance to Unemployed Workers.
This includes assistance to unemployed
workers, including services like job
training to accelerate rehiring of
unemployed workers; these services
may extend to workers unemployed due
to the pandemic or the resulting
recession, or who were already
unemployed when the pandemic began
and remain so due to the negative
economic impacts of the pandemic.
•State Unemployment Insurance
Trust Funds. Consistent with the
approach taken in the CRF, recipients
may make deposits into the state
account of the Unemployment Trust
Fund established under section 904 of
the Social Security Act (42 U.S.C. 1104)
up to the level needed to restore the pre-
pandemic balances of such account as of
January 27, 2020 or to pay back
advances received under Title XII of the
Social Security Act (42 U.S.C. 1321) for
the payment of benefits between January
27, 2020 and May 17, 2021, given the
close nexus between Unemployment
Trust Fund costs, solvency of
Unemployment Trust Fund systems,
and pandemic economic impacts.
Further, Unemployment Trust Fund
deposits can decrease fiscal strain on
Unemployment Insurance systems
impacted by the pandemic. States facing
a sharp increase in Unemployment
Insurance claims during the pandemic
may have drawn down positive
Unemployment Trust Fund balances
and, after exhausting the balance,
required advances to fund continuing
obligations to claimants. Because both
of these impacts were driven directly by
the need for assistance to unemployed
workers during the pandemic,
replenishing Unemployment Trust
Funds up to the pre-pandemic level
responds to the pandemic’s negative
economic impacts on unemployed
workers.
•Assistance to Households.
Assistance to households or populations
facing negative economic impacts due to
COVID–19 is also an eligible use. This
includes: Food assistance; rent,
mortgage, or utility assistance;
counseling and legal aid to prevent
eviction or homelessness; cash
assistance (discussed below); emergency
assistance for burials, home repairs,
weatherization, or other needs; internet
access or digital literacy assistance; or
job training to address negative
economic or public health impacts
experienced due to a worker’s
occupation or level of training. As
discussed above, in considering whether
a potential use is eligible under this
category, a recipient must consider
whether, and the extent to which, the
household has experienced a negative
economic impact from the pandemic. In
assessing whether a household or
population experienced economic harm
as a result of the pandemic, a recipient
may presume that a household or
population that experienced
unemployment or increased food or
housing insecurity or is low- or
moderate-income experienced negative
economic impacts resulting from the
pandemic. For example, a cash transfer
program may focus on unemployed
workers or low- and moderate-income
families, which have faced
disproportionate economic harms due to
the pandemic. Cash transfers must be
reasonably proportional to the negative
economic impact they are intended to
address. Cash transfers grossly in excess
of the amount needed to address the
negative economic impact identified by
the recipient would not be considered to
be a response to the COVID–19 public
health emergency or its negative
impacts. In particular, when considering
the appropriate size of permissible cash
transfers made in response to the
COVID–19 public health emergency,
State, local and Tribal governments may
consider and take guidance from the per
person amounts previously provided by
the Federal Government in response to
the COVID–19 crisis. Cash transfers that
are grossly in excess of such amounts
would be outside the scope of eligible
uses under sections 602(c)(1)(A) and
603(c)(1)(A) and could be subject to
recoupment. In addition, a recipient
could provide survivor’s benefits to
surviving family members of COVID–19
victims, or cash assistance to widows,
widowers, and dependents of eligible
COVID–19 victims.
•Expenses to Improve Efficacy of
Economic Relief Programs. State, local,
and Tribal governments may use
payments from the Fiscal Recovery
Funds to improve efficacy of programs
addressing negative economic impacts,
including through use of data analysis,
targeted consumer outreach,
improvements to data or technology
infrastructure, and impact evaluations.
•Small Businesses and Non-profits.
As discussed above, small businesses
and non-profits faced significant
challenges in covering payroll,
mortgages or rent, and other operating
costs as a result of the public health
emergency and measures taken to
contain the spread of the virus. State,
local, and Tribal governments may
provide assistance to small businesses
to adopt safer operating procedures,
weather periods of closure, or mitigate
financial hardship resulting from the
COVID–19 public health emergency,
including:
Æ Loans or grants to mitigate financial
hardship such as declines in revenues
or impacts of periods of business
closure, for example by supporting
payroll and benefits costs, costs to retain
employees, mortgage, rent, or utilities
costs, and other operating costs;
Æ Loans, grants, or in-kind assistance
to implement COVID–19 prevention or
mitigation tactics, such as physical
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87See Federal Reserve Bank of Cleveland, An
Uphill Battle: COVID–19’s Outsized Toll on
Minority-Owned Firms (Oct. 8, 2020), https://
www.clevelandfed.org/newsroom-and-events/
publications/community-development-briefs/db-
20201008-misera-report.aspx (discussing the
impact of COVID–19 on minority owned
businesses).
88U.S. Bureau of Labor Statistics, All Employees,
State Government [CES9092000001] and All
Employees, Local Government [CES9093000001],
retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/
CES9092000001 and https://fred.stlouisfed.org/
series/CES9093000001 (last visited May 8, 2021).
89From February 2020 to April 2021,
employment in ‘‘Leisure and hospitality’’ has fallen
by approximately 17 percent. See U.S. Bureau of
Labor Statistics, All Employees, Leisure and
Hospitality, retrieved from FRED, Federal Reserve
Bank of St. Louis, https://fred.stlouisfed.org/series/
USLAH (last visited May 8, 2021). From 2019Q4 to
2020Q4, gross output (e.g. revenue) in arts,
entertainment, recreation, accommodation, and
food services has fallen by approximately 24
percent. See Bureau of Economic Analysis, News
Release: Gross Domestic Product (Third Estimate),
Corporate Profits, and GDP by Industry, Fourth
Quarter and Year 2020 (Mar. 25, 2021), Table 17,
https://www.bea.gov/sites/default/files/2021-03/
gdp4q20_3rd.pdf.
90HUD, supra note 48.
91Stuart M. Butler & Jonathan Grabinsky,
Tackling the legacy of persistent urban inequality
and concentrated poverty, Brookings Institution
(Nov. 16, 2020), https://www.brookings.edu/blog/
up-front/2020/11/16/tackling-the-legacy-of-
Continued
plant changes to enable social
distancing, enhanced cleaning efforts,
barriers or partitions, or COVID–19
vaccination, testing, or contact tracing
programs; and
Æ Technical assistance, counseling, or
other services to assist with business
planning needs.
As discussed above, these services
should respond to the negative
economic impacts of COVID–19.
Recipients may consider additional
criteria to target assistance to businesses
in need, including small businesses.
Such criteria may include businesses
facing financial insecurity, substantial
declines in gross receipts (e.g.,
comparable to measures used to assess
eligibility for the Paycheck Protection
Program), or other economic harm due
to the pandemic, as well as businesses
with less capacity to weather financial
hardship, such as the smallest
businesses, those with less access to
credit, or those serving disadvantaged
communities. Recipients should
consider local economic conditions and
business data when establishing such
criteria.87
•Rehiring State, Local, and Tribal
Government Staff. State, local, and
Tribal governments continue to see
pandemic impacts in overall staffing
levels: State, local, and Tribal
government employment remains more
than 1 million jobs lower in April 2021
than prior to the pandemic.88
Employment losses decrease a state or
local government’s ability to effectively
administer services. Thus, the interim
final rule includes as an eligible use
payroll, covered benefits, and other
costs associated with rehiring public
sector staff, up to the pre-pandemic
staffing level of the government.
•Aid to Impacted Industries.
Sections 602(c)(1)(A) and 603(c)(1)(A)
recognize that certain industries, such
as tourism, travel, and hospitality, were
disproportionately and negatively
impacted by the COVID–19 public
health emergency. Aid provided to
tourism, travel, and hospitality
industries should respond to the
negative economic impacts of the
pandemic on those and similarly
impacted industries. For example, aid
may include assistance to implement
COVID–19 mitigation and infection
prevention measures to enable safe
resumption of tourism, travel, and
hospitality services, for example,
improvements to ventilation, physical
barriers or partitions, signage to
facilitate social distancing, provision of
masks or personal protective equipment,
or consultation with infection
prevention professionals to develop safe
reopening plans.
Aid may be considered responsive to
the negative economic impacts of the
pandemic if it supports businesses,
attractions, business districts, and Tribal
development districts operating prior to
the pandemic and affected by required
closures and other efforts to contain the
pandemic. For example, a recipient may
provide aid to support safe reopening of
businesses in the tourism, travel, and
hospitality industries and to business
districts that were closed during the
COVID–19 public health emergency, as
well as aid for a planned expansion or
upgrade of tourism, travel, and
hospitality facilities delayed due to the
pandemic.
When considering providing aid to
industries other than tourism, travel,
and hospitality, recipients should
consider the extent of the economic
impact as compared to tourism, travel,
and hospitality, the industries
enumerated in the statute. For example,
on net, the leisure and hospitality
industry has experienced an
approximately 24 percent decline in
revenue and approximately 17 percent
decline in employment nationwide due
to the COVID–19 public health
emergency.89 Recipients should also
consider whether impacts were due to
the COVID–19 pandemic, as opposed to
longer-term economic or industrial
trends unrelated to the pandemic.
To facilitate transparency and
accountability, the interim final rule
requires that State, local, and Tribal
governments publicly report assistance
provided to private-sector businesses
under this eligible use, including
tourism, travel, hospitality, and other
impacted industries, and its connection
to negative economic impacts of the
pandemic. Recipients also should
maintain records to support their
assessment of how businesses or
business districts receiving assistance
were affected by the negative economic
impacts of the pandemic and how the
aid provided responds to these impacts.
As discussed above, economic
disparities that existed prior to the
COVID–19 public health emergency
amplified the impact of the pandemic
among low-income and minority
groups. These families were more likely
to face housing, food, and financial
insecurity; are over-represented among
low-wage workers; and many have seen
their livelihoods deteriorate further
during the pandemic and economic
contraction. In recognition of the
disproportionate negative economic
impacts on certain communities and
populations, the interim final rule
identifies services and programs that
will be presumed to be responding to
the negative economic impacts of the
COVID–19 public health emergency
when provided in these communities.
Specifically, Treasury will presume
that certain types of services, outlined
below, are eligible uses when provided
in a QCT, to families and individuals
living in QCTs, or when these services
are provided by Tribal governments.90
Recipients may also provide these
services to other populations,
households, or geographic areas
disproportionately impacted by the
pandemic. In identifying these
disproportionately impacted
communities, recipients should be able
to support their determination that the
pandemic resulted in disproportionate
public health or economic outcomes to
the specific populations, households, or
geographic areas to be served. The
interim final rule identifies a non-
exclusive list of uses that address the
disproportionate negative economic
effects of the COVID–19 public health
emergency, including:
Æ Building Stronger Communities
through Investments in Housing and
Neighborhoods. The economic impacts
of COVID–19 have likely been most
acute in lower-income neighborhoods,
including concentrated areas of high
unemployment, limited economic
opportunity, and housing insecurity.91
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persistent-urban-inequality-and-concentrated-
poverty/.
92U.S. Department of Health and Human Services
(HHS), Office of Disease Prevention and Health
Promotion, Quality of Housing, https://
www.healthypeople.gov/2020/topics-objectives/
topic/social-determinants-health/interventions-
resources/quality-of-housing#11 (last visited Apr.
26, 2021).
93The Opportunity Atlas, https://
www.opportunityatlas.org/ (last visited Apr. 26,
2021); Raj Chetty & Nathaniel Hendren, The
Impacts of Neighborhoods on Intergenerational
Mobility I: Childhood Exposure Effects, Quarterly J.
of Econ. 133(3):1107–162 (2018), available at
https://opportunityinsights.org/paper/
neighborhoodsi/. 94See supra notes 52 and 84.
Services in this category alleviate the
immediate economic impacts of the
COVID–19 pandemic on housing
insecurity, while addressing conditions
that contributed to poor public health
and economic outcomes during the
pandemic, namely concentrated areas
with limited economic opportunity and
inadequate or poor-quality housing.92
Eligible services include:
D Services to address homelessness
such as supportive housing, and to
improve access to stable, affordable
housing among unhoused individuals;
D Affordable housing development to
increase supply of affordable and high-
quality living units; and
D Housing vouchers, residential
counseling, or housing navigation
assistance to facilitate household moves
to neighborhoods with high levels of
economic opportunity and mobility for
low-income residents, to help residents
increase their economic opportunity
and reduce concentrated areas of low
economic opportunity.93
Æ Addressing Educational Disparities.
As outlined above, school closures and
the transition to remote education raised
particular challenges for lower-income
students, potentially exacerbating
educational disparities, while increases
in economic hardship among families
could have long-lasting impacts on
children’s educational and economic
prospects. Services under this prong
would enhance educational supports to
help mitigate impacts of the pandemic.
Eligible services include:
D New, expanded, or enhanced early
learning services, including pre-
kindergarten, Head Start, or
partnerships between pre-kindergarten
programs and local education
authorities, or administration of those
services;
D Providing assistance to high-poverty
school districts to advance equitable
funding across districts and
geographies;
D Evidence-based educational
services and practices to address the
academic needs of students, including
tutoring, summer, afterschool, and other
extended learning and enrichment
programs; and
D Evidence-based practices to address
the social, emotional, and mental health
needs of students;
Æ Promoting Healthy Childhood
Environments. Children’s economic and
family circumstances have a long-term
impact on their future economic
outcomes.94 Increases in economic
hardship, material insecurity, and
parental stress and behavioral health
challenges all raise the risk of long-term
harms to today’s children due to the
pandemic. Eligible services to address
this challenge include:
D New or expanded high-quality
childcare to provide safe and supportive
care for children;
D Home visiting programs to provide
structured visits from health, parent
educators, and social service
professionals to pregnant women or
families with young children to offer
education and assistance navigating
resources for economic support, health
needs, or child development; and
D Enhanced services for child welfare-
involved families and foster youth to
provide support and training on child
development, positive parenting, coping
skills, or recovery for mental health and
substance use challenges.
State, local, and Tribal governments
are encouraged to use payments from
the Fiscal Recovery Funds to respond to
the direct and immediate needs of the
pandemic and its negative economic
impacts and, in particular, the needs of
households and businesses that were
disproportionately and negatively
impacted by the public health
emergency. As highlighted above, low-
income communities and workers and
people of color have faced more severe
health and economic outcomes during
the pandemic, with pre-existing social
vulnerabilities like low-wage or
insecure employment, concentrated
neighborhoods with less economic
opportunity, and pre-existing health
disparities likely contributing to the
magnified impact of the pandemic. The
Fiscal Recovery Funds provide
resources to not only respond to the
immediate harms of the pandemic but
also to mitigate its longer-term impact in
compounding the systemic public
health and economic challenges of
disproportionately impacted
populations. Treasury encourages
recipients to consider funding uses that
foster a strong, inclusive, and equitable
recovery, especially uses with long-term
benefits for health and economic
outcomes.
Uses Outside the Scope of this
Category. Certain uses would not be
within the scope of this eligible use
category, although may be eligible under
other eligible use categories. A general
infrastructure project, for example,
typically would not be included unless
the project responded to a specific
pandemic public health need (e.g.,
investments in facilities for the delivery
of vaccines) or a specific negative
economic impact like those described
above (e.g., affordable housing in a
QCT). The ARPA explicitly includes
infrastructure if it is ‘‘necessary’’ and in
water, sewer, or broadband. See Section
II.D of this SUPPLEMENTARY INFORMATION.
State, local, and Tribal governments also
may use the Fiscal Recovery Funds
under sections 602(c)(1)(C) or
603(c)(1)(C) to provide ‘‘government
services’’ broadly to the extent of their
reduction in revenue. See Section II.C of
this SUPPLEMENTARY INFORMATION.
This category of eligible uses also
would not include contributions to
rainy day funds, financial reserves, or
similar funds. Resources made available
under this eligible use category are
intended to help meet pandemic
response needs and provide relief for
households and businesses facing near-
and long-term negative economic
impacts. Contributions to rainy day
funds and similar financial reserves
would not address these needs or
respond to the COVID–19 public health
emergency but would rather constitute
savings for future spending needs.
Similarly, this eligible use category
would not include payment of interest
or principal on outstanding debt
instruments, including, for example,
short-term revenue or tax anticipation
notes, or other debt service costs. As
discussed below, payments from the
Fiscal Recovery Funds are intended to
be used prospectively and the interim
final rule precludes use of these funds
to cover the costs of debt incurred prior
to March 3, 2021. Fees or issuance costs
associated with the issuance of new
debt would also not be covered using
payments from the Fiscal Recovery
Funds because such costs would not
themselves have been incurred to
address the needs of pandemic response
or its negative economic impacts. The
purpose of the Fiscal Recovery Funds is
to provide fiscal relief that will permit
State, local, and Tribal governments to
continue to respond to the COVID–19
public health emergency.
For the same reasons, this category of
eligible uses would not include
satisfaction of any obligation arising
under or pursuant to a settlement
agreement, judgment, consent decree, or
judicially confirmed debt restructuring
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95Sections 602(c)(1)(B), 603(c)(1)(B) of the Act.
96See, e.g., Centers for Disease Control and
Prevention, COVID Data Tracker: Cases & Death
among Healthcare Personnel, https://covid.cdc.gov/
covid-data-tracker/#health-care-personnel (last
visited May 4, 2021); Centers for Disease Control
and Prevention, COVID Data Tracker: Confirmed
COVID–19 Cases and Deaths among Staff and Rate
per 1,000 Resident-Weeks in Nursing Homes, by
Week—United States, https://covid.cdc.gov/covid-
data-tracker/#nursing-home-staff (last visited May
4, 2021).
97See, e.g., The Lancet, The plight of essential
workers during the COVID–19 pandemic, Vol. 395,
Issue 10237:1587 (May 23, 2020), available at
https://www.thelancet.com/journals/lancet/article/
PIIS0140-6736%2820%2931200-9/fulltext.
98Id.
99Joanna Gaitens et al., Covid–19 and essential
workers: A narrative review of health outcomes and
moral injury, Int’l J. of Envtl. Research and Pub.
Health 18(4):1446 (Feb. 4, 2021), available at
https://pubmed.ncbi.nlm.nih.gov/33557075/; Tiana
N. Rogers et al., Racial Disparities in COVID–19
Mortality Among Essential Workers in the United
States, World Med. & Health policy 12(3):311–27
(Aug. 5, 2020), available at https://
onlinelibrary.wiley.com/doi/full/10.1002/wmh3.358
(finding that vulnerability to coronavirus exposure
was increased among non-Hispanic blacks, who
disproportionately occupied the top nine essential
occupations).
100Economic Policy Institute, Only 30% of those
working outside their home are receiving hazard
pay (June 16, 2020), https://www.epi.org/press/only-
30-of-those-working-outside-their-home-are-
receiving-hazard-pay-black-and-hispanic-workers-
are-most-concerned-about-bringing-the-
coronavirus-home/.
plan in a judicial, administrative, or
regulatory proceeding, except to the
extent the judgment or settlement
requires the provision of services that
would respond to the COVID–19 public
health emergency. That is, satisfaction
of a settlement or judgment would not
itself respond to COVID–19 with respect
to the public health emergency or its
negative economic impacts, unless the
settlement requires the provision of
services or aid that did directly respond
to these needs, as described above.
In addition, as described in Section
V.III of this SUPPLEMENTARY
INFORMATION, Treasury will establish
reporting and record keeping
requirements for uses within this
category, including enhanced reporting
requirements for certain types of uses.
Question 1: Are there other types of
services or costs that Treasury should
consider as eligible uses to respond to
the public health impacts of COVID–19?
Describe how these respond to the
COVID–19 public health emergency.
Question 2: The interim final rule
permits coverage of payroll and benefits
costs of public health and safety staff
primarily dedicated to COVID–19
response, as well as rehiring of public
sector staff up to pre-pandemic levels.
For how long should these measures
remain in place? What other measures
or presumptions might Treasury
consider to assess the extent to which
public sector staff are engaged in
COVID–19 response, and therefore
reimbursable, in an easily-administrable
manner?
Question 3: The interim final rule
permits rehiring of public sector staff up
to the government’s pre-pandemic
staffing level, which is measured based
on employment as of January 27, 2020.
Does this approach adequately measure
the pre-pandemic staffing level in a
manner that is both accurate and easily
administrable? Why or why not?
Question 4: The interim final rule
permits deposits to Unemployment
Insurance Trust Funds, or using funds
to pay back advances, up to the pre-
pandemic balance. What, if any,
conditions should be considered to
ensure that funds repair economic
impacts of the pandemic and strengthen
unemployment insurance systems?
Question 5: Are there other types of
services or costs that Treasury should
consider as eligible uses to respond to
the negative economic impacts of
COVID–19? Describe how these respond
to the COVID–19 public health
emergency.
Question 6: What other measures,
presumptions, or considerations could
be used to assess ‘‘impacted industries’’
affected by the COVID–19 public health
emergency?
Question 7: What are the advantages
and disadvantages of using Qualified
Census Tracts and services provided by
Tribal governments to delineate where a
broader range of eligible uses are
presumed to be responsive to the public
health and economic impacts of
COVID–19? What other measures might
Treasury consider? Are there other
populations or geographic areas that
were disproportionately impacted by the
pandemic that should be explicitly
included?
Question 8: Are there other services or
costs that Treasury should consider as
eligible uses to respond to the
disproportionate impacts of COVID–19
on low-income populations and
communities? Describe how these
respond to the COVID–19 public health
emergency or its negative economic
impacts, including its exacerbation of
pre-existing challenges in these areas.
Question 9: The interim final rule
includes eligible uses to support
affordable housing and stronger
neighborhoods in disproportionately-
impacted communities. Discuss the
advantages and disadvantages of
explicitly including other uses to
support affordable housing and stronger
neighborhoods, including rehabilitation
of blighted properties or demolition of
abandoned or vacant properties. In
what ways does, or does not, this
potential use address public health or
economic impacts of the pandemic?
What considerations, if any, could
support use of Fiscal Recovery Funds in
ways that do not result in resident
displacement or loss of affordable
housing units?
B. Premium Pay
Fiscal Recovery Funds payments may
be used by recipients to provide
premium pay to eligible workers
performing essential work during the
COVID–19 public health emergency or
to provide grants to third-party
employers with eligible workers
performing essential work.95 These are
workers who have been and continue to
be relied on to maintain continuity of
operations of essential critical
infrastructure sectors, including those
who are critical to protecting the health
and wellbeing of their communities.
Since the start of the COVID–19
public health emergency in January
2020, essential workers have put their
physical wellbeing at risk to meet the
daily needs of their communities and to
provide care for others. In the course of
this work, many essential workers have
contracted or died of COVID–19.96
Several examples reflect the severity of
the health impacts for essential workers.
Meat processing plants became
‘‘hotspots’’ for transmission, with 700
new cases reported at a single plant on
a single day in May 2020.97 In New York
City, 120 employees of the Metropolitan
Transit Authority were estimated to
have died due to COVID–19 by mid-May
2020, with nearly 4,000 testing positive
for the virus.98 Furthermore, many
essential workers are people of color or
low-wage workers.99 These workers, in
particular, have borne a
disproportionate share of the health and
economic impacts of the pandemic.
Such workers include:
•Staff at nursing homes, hospitals,
and home care settings;
•Workers at farms, food production
facilities, grocery stores, and
restaurants;
•Janitors and sanitation workers;
•Truck drivers, transit staff, and
warehouse workers;
•Public health and safety staff;
•Childcare workers, educators, and
other school staff; and
•Social service and human services
staff.
During the public health emergency,
employers’ policies on COVID–19-
related hazard pay have varied widely,
with many essential workers not yet
compensated for the heightened risks
they have faced and continue to face.100
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101McCormack, supra note 37.
102Id.
103Sections 602(g)(2), 603(g)(2) of the Act.
104The list of critical infrastructure sectors
provided in the interim final rule is based on the
list of essential workers under The Heroes Act, H.R.
6800, 116th Cong. (2020).
105County median annual wage is taken to be that
of the metropolitan or nonmetropolitan area that
includes the county. See U.S. Bureau of Labor
Statistics, State Occupational Employment and
Wage Estimates, https://www.bls.gov/oes/current/
oessrcst.htm (last visited May 1, 2021); U.S. Bureau
of Labor Statistics, May 2020 Metropolitan and
Nonmetropolitan Area Estimates listed by county or
town, https://www.bls.gov/oes/current/county_
links.htm (last visited May 1, 2021).
106Treasury performed this analysis with data
from the U.S. Census Bureau’s 2019 Annual Social
and Economic Supplement. In determining which
occupations to include in this analysis, Treasury
excluded management and supervisory positions, as
such positions may not necessarily involve regular
in-person interactions or physical handling of items
to the same extent as non-managerial positions.
107However, such compensation must be ‘‘in
addition to’’ remuneration or wages already
received. That is, employers may not reduce such
workers’ current pay and use Fiscal Recovery Funds
to compensate themselves for premium pay
previously provided to the worker.
Many of these workers earn lower wages
on average and live in
socioeconomically vulnerable
communities as compared to the general
population.101 A recent study found that
25 percent of essential workers were
estimated to have low household
income, with 13 percent in high-risk
households.102 The low pay of many
essential workers makes them less able
to cope with the financial consequences
of the pandemic or their work-related
health risks, including working hours
lost due to sickness or disruptions to
childcare and other daily routines, or
the likelihood of COVID–19 spread in
their households or communities. Thus,
the threats and costs involved with
maintaining the ongoing operation of
vital facilities and services have been,
and continue to be, borne by those that
are often the most vulnerable to the
pandemic. The added health risk to
essential workers is one prominent way
in which the pandemic has amplified
pre-existing socioeconomic inequities.
The Fiscal Recovery Funds will help
respond to the needs of essential
workers by allowing recipients to
remunerate essential workers for the
elevated health risks they have faced
and continue to face during the public
health emergency. To ensure that
premium pay is targeted to workers that
faced or face heightened risks due to the
character of their work, the interim final
rule defines essential work as work
involving regular in-person interactions
or regular physical handling of items
that were also handled by others. A
worker would not be engaged in
essential work and, accordingly may not
receive premium pay, for telework
performed from a residence.
Sections 602(g)(2) and 603(g)(2)
define eligible worker to mean ‘‘those
workers needed to maintain continuity
of operations of essential critical
infrastructure sectors and additional
sectors as each Governor of a State or
territory, or each Tribal government,
may designate as critical to protect the
health and well-being of the residents of
their State, territory, or Tribal
government.’’103 The rule incorporates
this definition and provides a list of
industries recognized as essential
critical infrastructure sectors.104 These
sectors include healthcare, public health
and safety, childcare, education,
sanitation, transportation, and food
production and services, among others
as noted above. As provided under
sections 602(g)(2) and 603(g)(2), the
chief executive of each recipient has
discretion to add additional sectors to
this list, so long as additional sectors are
deemed critical to protect the health and
well-being of residents.
In providing premium pay to essential
workers or grants to eligible employers,
a recipient must consider whether the
pay or grant would ‘‘respond to’’ to the
worker or workers performing essential
work. Premium pay or grants provided
under this section respond to workers
performing essential work if it addresses
the heightened risk to workers who
must be physically present at a jobsite
and, for many of whom, the costs
associated with illness were hardest to
bear financially. Many of the workers
performing critical essential services are
low- or moderate-income workers, such
as those described above. The ARPA
recognizes this by defining premium
pay to mean an amount up to $13 per
hour in addition to wages or
remuneration the worker otherwise
receives and in an aggregate amount not
to exceed $25,000 per eligible worker.
To ensure the provision is implemented
in a manner that compensates these
workers, the interim final rule provides
that any premium pay or grants
provided using the Fiscal Recovery
Funds should prioritize compensation
of those lower income eligible workers
that perform essential work.
As such, providing premium pay to
eligible workers responds to such
workers by helping address the
disparity between the critical services
and risks taken by essential workers and
the relatively low compensation they
tend to receive in exchange. If premium
pay would increase a worker’s total pay
above 150 percent of their residing
state’s average annual wage for all
occupations, as defined by the Bureau of
Labor Statistics’ Occupational
Employment and Wage Statistics, or
their residing county’s average annual
wage, as defined by the Bureau of Labor
Statistics’ Occupational Employment
and Wage Statistics, whichever is
higher, on an annual basis, the State,
local, or Tribal government must
provide Treasury and make publicly
available, whether for themselves or on
behalf of a grantee, a written
justification of how the premium pay or
grant is responsive to workers
performing essential worker during the
public health emergency.105
The threshold of 150 percent for
requiring additional written justification
is based on an analysis of the
distribution of labor income for a
sample of 20 occupations that generally
correspond to the essential workers as
defined in the interim final rule.106 For
these occupations, labor income for the
vast majority of workers was under 150
percent of average annual labor income
across all occupations. Treasury
anticipates that the threshold of 150
percent of the annual average wage will
be greater than the annual average wage
of the vast majority of eligible workers
performing essential work. These
enhanced reporting requirements help
to ensure grants are directed to essential
workers in critical infrastructure sectors
and responsive to the impacts of the
pandemic observed among essential
workers, namely the mis-alignment
between health risks and compensation.
Enhanced reporting also provides
transparency to the public. Finally,
using a localized measure reflects
differences in wages and cost of living
across the country, making this standard
administrable and reflective of essential
worker incomes across a diverse range
of geographic areas.
Furthermore, because premium pay is
intended to compensate essential
workers for heightened risk due to
COVID–19, it must be entirely additive
to a worker’s regular rate of wages and
other remuneration and may not be used
to reduce or substitute for a worker’s
normal earnings. The definition of
premium pay also clarifies that
premium pay may be provided
retrospectively for work performed at
any time since the start of the COVID–
19 public health emergency, where
those workers have yet to be
compensated adequately for work
previously performed.107 Treasury
encourages recipients to prioritize
providing retrospective premium pay
where possible, recognizing that many
essential workers have not yet received
additional compensation for work
conducted over the course of many
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26799 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
108ARPA, supra note 16.
109Major sources include personal income tax,
corporate income tax, sales tax, and property tax.
See Lucy Dadayan., States Reported Revenue
Growth in July–September Quarter, Reflecting
Revenue Shifts from the Prior Quarter, State Tax
and Econ. Rev. (Q. 3, 2020), available at https://
www.urban.org/sites/default/files/publication/
103938/state-tax-and-economic-review-2020-q3_
0.pdf.
110National League of Cities, City Fiscal
Conditions (2020), available at https://www.nlc.org/
wp-content/uploads/2020/08/City_Fiscal_
Conditions_2020_FINAL.pdf.
111Surveys conducted by the Center for Indian
Country Development at the Federal Reserve Bank
of Minneapolis in March, April, and September
2020. See Moreno & Sobrepena, supra note 73.
112See, e.g., Fitzpatrick, Haughwout & Setren,
Fiscal Drag from the State and Local Sector?,
Liberty Street Economics Blog, Federal Reserve
Bank of New York (June 27, 2012), https://
www.libertystreeteconomics.newyorkfed.org/2012/
06/fiscal-drag-from-the-state-and-local-sector.html;
Jiri Jonas, Great Recession and Fiscal Squeeze at
U.S. Subnational Government Level, IMF Working
Paper 12/184, (July 2012), available at https://
www.imf.org/external/pubs/ft/wp/2012/
wp12184.pdf; Gordon, supra note 9.
113State and local government general revenue
from own sources, adjusted for inflation using the
GDP price index. U.S. Census Bureau, Annual
Survey of State Government Finances and U.S.
Bureau of Economic Analysis, National Income and
Product Accounts.
114U.S. Bureau of Labor Statistics, All Employees,
State Government [CES9092000001] and All
Employees, Local Government [CES9093000001],
retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/
CES9092000001 and https://fred.stlouisfed.org/
series/CES9093000001 (last visited Apr. 27, 2021).
115U.S. Census Bureau, Annual Survey of State
and Local Government Finances, https://
www.census.gov/programs-surveys/gov-
finances.html (last visited Apr. 30, 2021).
116The interim final rule would define tax
revenue in a manner consistent with the Census
Bureau’s definition of tax revenue, with certain
changes (i.e., inclusion of revenue from liquor
stores and certain intergovernmental transfers).
Current charges are defined as ‘‘charges imposed for
providing current services or for the sale of
products in connection with general government
activities.’’ It includes revenues such as public
education institution, public hospital, and toll
revenues. Miscellaneous general revenue comprises
of all other general revenue of governments from
their own sources (i.e., other than liquor store,
utility, and insurance trust revenue), including
rents, royalties, lottery proceeds, and fines.
months. Essential workers who have
already earned premium pay for
essential work performed during the
COVID–19 public health emergency
remain eligible for additional payments,
and an essential worker may receive
both retrospective premium pay for
prior work as well as prospective
premium pay for current or ongoing
work.
To ensure any grants respond to the
needs of essential workers and are made
in a fair and transparent manner, the
rule imposes some additional reporting
requirements for grants to third-party
employers, including the public
disclosure of grants provided. See
Section VIII of this SUPPLEMENTARY
INFORMATION, discussing reporting
requirements. In responding to the
needs of essential workers, a grant to an
employer may provide premium pay to
eligible workers performing essential
work, as these terms are defined in the
interim final rule and discussed above.
A grant provided to an employer may
also be for essential work performed by
eligible workers pursuant to a contract.
For example, if a municipality contracts
with a third party to perform sanitation
work, the third-party contractor could
be eligible to receive a grant to provide
premium pay for these eligible workers.
Question 10: Are there additional
sectors beyond those listed in the
interim final rule that should be
considered essential critical
infrastructure sectors?
Question 11: What, if any, additional
criteria should Treasury consider to
ensure that premium pay responds to
essential workers?
Question 12: What consideration, if
any, should be given to the criteria on
salary threshold, including measure and
level, for requiring written justification?
C. Revenue Loss
Recipients may use payments from
the Fiscal Recovery Funds for the
provision of government services to the
extent of the reduction in revenue
experienced due to the COVID–19
public health emergency.108 Pursuant to
sections 602(c)(1)(C) and 603(c)(1)(C) of
the Act, a recipient’s reduction in
revenue is measured relative to the
revenue collected in the most recent full
fiscal year prior to the emergency.
Many State, local, and Tribal
governments are experiencing
significant budget shortfalls, which can
have a devastating impact on
communities. State government tax
revenue from major sources were down
4.3 percent in the six months ended
September 2020, relative to the same
period 2019.109 At the local level, nearly
90 percent of cities have reported being
less able to meet the fiscal needs of their
communities and, on average, cities
expect a double-digit decline in general
fund revenues in their fiscal year
2021.110 Similarly, surveys of Tribal
governments and Tribal enterprises
found majorities of respondents
reporting substantial cost increases and
revenue decreases, with Tribal
governments reporting reductions in
healthcare, housing, social services, and
economic development activities as a
result of reduced revenues.111 These
budget shortfalls are particularly
problematic in the current environment,
as State, local, and Tribal governments
work to mitigate and contain the
COVID–19 pandemic and help citizens
weather the economic downturn.
Further, State, local, and Tribal
government budgets affect the broader
economic recovery. During the period
following the 2007–2009 recession,
State and local government budget
pressures led to fiscal austerity that was
a significant drag on the overall
economic recovery.112 Inflation-
adjusted State and local government
revenue did not return to the previous
peak until 2013,113 while State, local,
and Tribal government employment did
not recover to its prior peak for over a
decade, until August 2019—just a few
months before the COVID–19 public
health emergency began.114
Sections 602(c)(1)(C) and 603(c)(1)(C)
of the Act allow recipients facing budget
shortfalls to use payments from the
Fiscal Recovery Funds to avoid cuts to
government services and, thus, enable
State, local, and Tribal governments to
continue to provide valuable services
and ensure that fiscal austerity measures
do not hamper the broader economic
recovery. The interim final rule
implements these provisions by
establishing a definition of ‘‘general
revenue’’ for purposes of calculating a
loss in revenue and by providing a
methodology for calculating revenue
lost due to the COVID–19 public health
emergency.
General Revenue. The interim final
rule adopts a definition of ‘‘general
revenue’’ based largely on the
components reported under ‘‘General
Revenue from Own Sources’’ in the
Census Bureau’s Annual Survey of State
and Local Government Finances, and for
purposes of this interim final rule, helps
to ensure that the components of general
revenue would be calculated in a
consistent manner.115 By relying on a
methodology that is both familiar and
comprehensive, this approach
minimizes burden to recipients and
provides consistency in the
measurement of general revenue across
a diverse set of recipients.
The interim final rule defines the term
‘‘general revenue’’ to include revenues
collected by a recipient and generated
from its underlying economy and would
capture a range of different types of tax
revenues, as well as other types of
revenue that are available to support
government services.116 In calculating
revenue, recipients should sum across
all revenue streams covered as general
revenue. This approach minimizes the
administrative burden for recipients,
provides for greater consistency across
recipients, and presents a more accurate
representation of the overall impact of
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26800 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
117Fund-oriented reporting, such as what is used
under the Governmental Accounting Standards
Board (GASB), focuses on the types of uses and
activities funded by the revenue, as opposed to the
economic activity from which the revenue is
sourced. See Governmental Accounting Standards
Series, Statement No. 54 of the Governmental
Accounting Standards Board: Fund Balance
Reporting and Governmental Fund Type
Definitions, No. 287–B (Feb. 2009).
118Supra note 116.
119U.S. Census Bureau, Government Finance and
Employment Classification Manual (Dec. 2000),
https://www2.census.gov/govs/class/classfull.pdf.
120For example, in 2018, state transfers to
localities accounted for approximately 27 percent of
local revenues. U.S. Census Bureau, Annual Survey
of State and Local Government Finances, Table 1
(2018), https://www.census.gov/data/datasets/2018/
econ/local/public-use-datasets.html.
121For example, following the 2007–09 recession,
local government property tax collections did not
begin to decline until 2011, suggesting that property
tax collection declines can lag downturns. See U.S.
Bureau of Economic Analysis, Personal current
taxes: State and local: Property taxes
[S210401A027NBEA], retrieved from Federal
Reserve Economic Data, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/graph/?g=r3YI (last
visited Apr. 22, 2021). Estimating the reduction in
revenue at points throughout the covered period
will allow for this type of lagged effect to be taken
into account during the covered period.
122Together with revenue from liquor stores from
2015 to 2018. This estimate does not include any
intergovernmental transfers. A recipient using the
three-year average to calculate their growth
adjustment must be based on the definition of
general revenue, including treatment of
intergovernmental transfers. 2015–2018 represents
the most recent available data. See U.S. Census
Bureau, State & Local Government Finance
Historical Datasets and Tables (2018), https://
www.census.gov/programs-surveys/gov-finances/
data/datasets.html.
the COVID–19 public health emergency
on a recipient’s revenue, rather than
relying on financial reporting prepared
by each recipient, which vary in
methodology used and which generally
aggregates revenue by purpose rather
than by source.117
Consistent with the Census Bureau’s
definition of ‘‘general revenue from own
sources,’’ the definition of general
revenue in the interim final rule would
exclude refunds and other correcting
transactions, proceeds from issuance of
debt or the sale of investments, and
agency or private trust transactions. The
definition of general revenue also would
exclude revenue generated by utilities
and insurance trusts. In this way, the
definition of general revenue focuses on
sources that are generated from
economic activity and are available to
fund government services, rather than a
fund or administrative unit established
to account for and control a particular
activity.118 For example, public utilities
typically require financial support from
the State, local, or Tribal government,
rather than providing revenue to such
government, and any revenue that is
generated by public utilities typically is
used to support the public utility’s
continued operation, rather than being
used as a source of revenue to support
government services generally.
The definition of general revenue
would include all revenue from Tribal
enterprises, as this revenue is generated
from economic activity and is available
to fund government services. Tribes are
not able to generate revenue through
taxes in the same manner as State and
local governments and, as a result,
Tribal enterprises are critical sources of
revenue for Tribal governments that
enable Tribal governments to provide a
range of services, including elder care,
health clinics, wastewater management,
and forestry.
Finally, the term ‘‘general revenue’’
includes intergovernmental transfers
between State and local governments,
but excludes intergovernmental
transfers from the Federal Government,
including Federal transfers made via a
State to a local government pursuant to
the CRF or as part of the Fiscal Recovery
Funds. States and local governments
often share or collect revenue on behalf
of one another, which results in
intergovernmental transfers. When
attributing revenue to a unit of
government, the Census Bureau’s
methodology considers which unit of
government imposes, collects, and
retains the revenue and assigns the
revenue to the unit of government that
meets at least two of those three
factors.119 For purposes of measuring
loss in general revenue due to the
COVID–19 public health emergency and
to better allow continued provision of
government services, the retention and
ability to use the revenue is a more
critical factor. Accordingly, and to better
measure the funds available for the
provision of government services, the
definition of general revenue would
include intergovernmental transfers
from States or local governments other
than funds transferred pursuant to
ARPA, CRF, or another Federal
program. This formulation recognizes
the importance of State transfers for
local government revenue.120
Calculation of Loss. In general,
recipients will compute the extent of the
reduction in revenue by comparing
actual revenue to a counterfactual trend
representing what could have been
expected to occur in the absence of the
pandemic. This approach measures
losses in revenue relative to the most
recent fiscal year prior to the COVID–19
public health emergency by using the
most recent pre-pandemic fiscal year as
the starting point for estimates of
revenue growth absent the pandemic. In
other words, the counterfactual trend
starts with the last full fiscal year prior
to the COVID–19 public health
emergency and then assumes growth at
a constant rate in the subsequent years.
Because recipients can estimate the
revenue shortfall at multiple points in
time throughout the covered period as
revenue is collected, this approach
accounts for variation across recipients
in the timing of pandemic impacts.121
Although revenue may decline for
reasons unrelated to the COVID–19
public health emergency, to minimize
the administrative burden on recipients
and taking into consideration the
devastating effects of the COVID–19
public health emergency, any
diminution in actual revenues relative
to the counterfactual pre-pandemic
trend would be presumed to have been
due to the COVID–19 public health
emergency.
For purposes 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
option of 4.1 percent represents the
average annual growth across all State
and local government ‘‘General Revenue
from Own Sources’’ in the most recent
three years of available data.122 This
approach provides recipients with a
standardized growth adjustment when
calculating the counterfactual revenue
trend and thus minimizes
administrative burden, while not
disadvantaging recipients with revenue
growth that exceeded the national
average prior to the COVID–19 public
health emergency by permitting these
recipients to use their own revenue
growth rate over the preceding three
years.
Recipients should calculate the extent
of the reduction in revenue as of four
points in time: December 31, 2020;
December 31, 2021; December 31, 2022;
and December 31, 2023. To calculate the
extent of the reduction in revenue at
each of these dates, recipients should
follow a four-step process:
•Step 1: Identify revenues collected
in the most recent full fiscal year prior
to the public health emergency (i.e., last
full fiscal year before January 27, 2020),
called the base year revenue.
•Step 2: Estimate counterfactual
revenue, which is equal to base year
revenue * [(1 + growth adjustment) ∧(n/
12)], where n is the number of months
elapsed since the end of the base year
to the calculation date, and growth
adjustment is the greater of 4.1 percent
and the recipient’s average annual
revenue growth in the three full fiscal
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26801 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
123Pay-go infrastructure funding refers to the
practice of funding capital projects with cash-on-
hand from taxes, fees, grants, and other sources,
rather than with borrowed sums.
years prior to the COVID–19 public
health emergency.
•Step 3: Identify actual revenue,
which equals revenues collected over
the past twelve months as of the
calculation date.
•Step 4: The extent of the reduction
in revenue is equal to counterfactual
revenue less actual revenue. If actual
revenue exceeds counterfactual revenue,
the extent of the reduction in revenue is
set to zero for that calculation date.
For illustration, consider a
hypothetical recipient with base year
revenue equal to 100. In Step 2, the
hypothetical recipient finds that 4.1
percent is greater than the recipient’s
average annual revenue growth in the
three full fiscal years prior to the public
health emergency. Furthermore, this
recipient’s base year ends June 30. In
this illustration, n (months elapsed) and
counterfactual revenue would be equal
to:
As of: 12/31/2020 12/31/2021 12/31/2022 12/31/2023
n (months elapsed) .......................................................................................... 18 30 42 54
Counterfactual revenue:.................................................................................. 106.2 110.6 115.1 119.8
The overall methodology for
calculating the reduction in revenue is
illustrated in the figure below:
Upon receiving Fiscal Recovery Fund
payments, recipients may immediately
calculate revenue loss for the period
ending December 31, 2020.
Sections 602(c)(1)(C) and 603(c)(1)(C)
of the Act provide recipients with broad
latitude to use the Fiscal Recovery
Funds for the provision of government
services. Government services can
include, but are not limited to,
maintenance or pay-go funded
building 123 of infrastructure, including
roads; modernization of cybersecurity,
including hardware, software, and
protection of critical infrastructure;
health services; environmental
remediation; school or educational
services; and the provision of police,
fire, and other public safety services.
However, expenses associated with
obligations under instruments
evidencing financial indebtedness for
borrowed money would not be
considered the provision of government
services, as these financing expenses do
not directly provide services or aid to
citizens. Specifically, government
services would not include interest or
principal on any outstanding debt
instrument, including, for example,
short-term revenue or tax anticipation
notes, or fees or issuance costs
associated with the issuance of new
debt. For the same reasons, government
services would not include satisfaction
of any obligation arising under or
pursuant to a settlement agreement,
judgment, consent decree, or judicially
confirmed debt restructuring in a
judicial, administrative, or regulatory
proceeding, except if the judgment or
settlement required the provision of
government services. That is,
satisfaction of a settlement or judgment
itself is not a government service, unless
the settlement required the provision of
government services. In addition,
replenishing financial reserves (e.g.,
rainy day or other reserve funds) would
not be considered provision of a
government service, since such
expenses do not directly relate to the
provision of government services.
Question 13: Are there sources of
revenue that either should or should not
be included in the interim final rule’s
measure of ‘‘general revenue’’ for
recipients? If so, discuss why these
sources either should or should not be
included.
Question 14: In the interim final rule,
recipients are expected to calculate the
reduction in revenue on an aggregate
basis. Discuss the advantages and
disadvantages of, and any potential
concerns with, this approach, including
circumstances in which it could be
necessary or appropriate to calculate
the reduction in revenue by source.
Question 15: Treasury is considering
whether to take into account other
factors, including actions taken by the
recipient as well as the expiration of the
COVID–19 public health emergency, in
determining whether to presume that
revenue losses are ‘‘due to’’ the COVID–
VerDate Sep<11>2014 19:28 May 14, 2021 Jkt 253001 PO 00000 Frm 00017 Fmt 4701 Sfmt 4700 E:\FR\FM\17MYR2.SGM 17MYR2 ER17MY21.002</GPH>140 c::::::::J Base year revenue
-Extent of reduction in revenue
130 -Actual revenue (last twelve months)
-+--Counterfactual revenue
120 ------------110 -------------
100 ---
90
80
"Q) ~ ~" ~'1, ~ ,:,-::f l1 rlf1 ,l1 0cJ Q Q Q Q
26
26802 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
124Treasury notes that using funds to support or
oppose collective bargaining would not be included
as part of ‘‘necessary investments in water, sewer,
or broadband infrastructure.’’
125Sections 602(c)(1)(D), 603(c)(1)(D) of the Act.
126Environmental Protection Agency, Drinking
Water State Revolving fund, https://www.epa.gov/
dwsrf (last visited Apr. 30, 2021); Environmental
Protection Agency, Clean Water State Revolving
Fund, https://www.epa.gov/cwsrf (last visited Apr.
30, 2021).
127Water Quality Act of 1987, Public Law 100–
4.
128Federal Water Pollution Control Act as
amended, codified at 33 U.S.C. 1251 et seq.,
common name (Clean Water Act). In 2009, the
American Recovery and Reinvestment Act created
the Green Project Reserve, which increased the
focus on green infrastructure, water and energy
efficient, and environmentally innovative projects.
Public Law 111–5. The CWA was amended by the
Water Resources Reform and Development Act of
2014 to further expand the CWSRF’s eligibilities.
Public Law 113–121. The CWSRF’s eligibilities were
further expanded in 2018 by the America’s Water
Infrastructure Act of 2018, Public Law 115–270.
129See Environmental Protection Agency, The
Drinking Water State Revolving Funds: Financing
America’s Drinking Water, EPA–816–R–00–023
(Nov. 2000), https://nepis.epa.gov/Exe/ZyPDF.cgi/
200024WB.PDF?Dockey=200024WB.PDF; See also
Environmental Protection Agency, Learn About the
Clean Water State Revolving Fund, https://
www.epa.gov/cwsrf/learn-about-clean-water-state-
revolving-fund-cwsrf (last visited Apr. 30, 2021).
13033 U.S.C. 1383(c). See also Environmental
Protection Agency, Overview of Clean Water State
Revolving Fund Eligibilities (May 2016), https://
www.epa.gov/sites/production/files/2016-07/
documents/overview_of_cwsrf_eligibilities_may_
2016.pdf; Claudia Copeland, Clean Water Act: A
Summary of the Law, Congressional Research
Service (Oct. 18, 2016), https://fas.org/sgp/crs/misc/
RL30030.pdf; Jonathan L Ramseur, Wastewater
Infrastructure: Overview, Funding, and Legislative
Developments, Congressional Research Service
(May 22, 2018), https://fas.org/sgp/crs/misc/
R44963.pdf.
13142 U.S.C. 300j–12.
132Environmental Protection Agency, Drinking
Water State Revolving Fund Eligibility Handbook,
(June 2017), https://www.epa.gov/sites/production/
files/2017-06/documents/dwsrf_eligibility_
handbook_june_13_2017_updated_508_version.pdf;
Environmental Protection Agency, Drinking Water
19 public health emergency. Discuss the
advantages and disadvantages of this
presumption, including when, if ever,
during the covered period it would be
appropriate to reevaluate the
presumption that all losses are
attributable to the COVID–19 public
health emergency.
Question 16: Do recipients anticipate
lagged revenue effects of the public
health emergency? If so, when would
these lagged effects be expected to
occur, and what can Treasury to do
support these recipients through its
implementation of the program?
Question 17: In the interim final rule,
paying interest or principal on
government debt is not considered
provision of a government service.
Discuss the advantages and
disadvantages of this approach,
including circumstances in which
paying interest or principal on
government debt could be considered
provision of a government service.
D. Investments in Infrastructure
To assist in meeting the critical need
for investments and improvements to
existing infrastructure in water, sewer,
and broadband, the Fiscal Recovery
Funds provide funds to State, local, and
Tribal governments to make necessary
investments in these sectors. The
interim final rule outlines eligible uses
within each category, allowing for a
broad range of necessary investments in
projects that improve access to clean
drinking water, improve wastewater and
stormwater infrastructure systems, and
provide access to high-quality
broadband service. Necessary
investments are designed to provide an
adequate minimum level of service and
are unlikely to be made using private
sources of funds. Necessary investments
include projects that are required to
maintain a level of service that, at least,
meets applicable health-based
standards, taking into account resilience
to climate change, or establishes or
improves broadband service to unserved
or underserved populations to reach an
adequate level to permit a household to
work or attend school, and that are
unlikely to be met with private sources
of funds.124
It is important that necessary
investments in water, sewer, or
broadband infrastructure be carried out
in ways that produce high-quality
infrastructure, avert disruptive and
costly delays, and promote efficiency.
Treasury encourages recipients to
ensure that water, sewer, and broadband
projects use strong labor standards,
including project labor agreements and
community benefits agreements that
offer wages at or above the prevailing
rate and include local hire provisions,
not only to promote effective and
efficient delivery of high-quality
infrastructure projects but also to
support the economic recovery through
strong employment opportunities for
workers. Using these practices in
construction projects may help to
ensure a reliable supply of skilled labor
that would minimize disruptions, such
as those associated with labor disputes
or workplace injuries.
To provide public transparency on
whether projects are using practices that
promote on-time and on-budget
delivery, Treasury will seek information
from recipients on their workforce plans
and practices related to water, sewer,
and broadband projects undertaken with
Fiscal Recovery Funds. Treasury will
provide additional guidance and
instructions on the reporting
requirements at a later date.
1. Water and Sewer Infrastructure
The ARPA provides funds to State,
local, and Tribal governments to make
necessary investments in water and
sewer infrastructure.125 By permitting
funds to be used for water and sewer
infrastructure needs, Congress
recognized the critical role that clean
drinking water and services for the
collection and treatment of wastewater
and stormwater play in protecting
public health. Understanding that State,
local, and Tribal governments have a
broad range of water and sewer
infrastructure needs, the interim final
rule provides these governments with
wide latitude to identify investments in
water and sewer infrastructure that are
of the highest priority for their own
communities, which may include
projects on privately-owned
infrastructure. The interim final rule
does this by aligning eligible uses of the
Fiscal Recovery Funds with the wide
range of types or categories of projects
that would be eligible to receive
financial assistance through the
Environmental Protection Agency’s
(EPA) Clean Water State Revolving
Fund (CWSRF) or Drinking Water State
Revolving Fund (DWSRF).126
Established by the 1987
amendments 127 to the Clean Water Act
(CWA),128 the CWSRF provides
financial assistance for a wide range of
water infrastructure projects to improve
water quality and address water
pollution in a way that enables each
State to address and prioritize the needs
of their populations. The types of
projects eligible for CWSRF assistance
include projects to construct, improve,
and repair wastewater treatment plants,
control non-point sources of pollution,
improve resilience of infrastructure to
severe weather events, create green
infrastructure, and protect waterbodies
from pollution.129 Each of the 51 State
programs established under the CWSRF
have the flexibility to direct funding to
their particular environmental needs,
and each State may also have its own
statutes, rules, and regulations that
guide project eligibility.130
The DWSRF was modeled on the
CWSRF and created as part of the 1996
amendments to the Safe Drinking Water
Act (SDWA),131 with the principal
objective of helping public water
systems obtain financing for
improvements necessary to protect
public health and comply with drinking
water regulations.132 Like the CWSRF,
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Infrastructure Needs Survey and Assessment: Sixth
Report to Congress (March 2018), https://
www.epa.gov/sites/production/files/2018-10/
documents/corrected_sixth_drinking_water_
infrastructure_needs_survey_and_assessment.pdf.
133Id.
134Id.
13542 U.S.C. 300j–12(b)(3)(A).
136Environmental Protection Agency, Learn
About the Clean Water State Revolving Fund,
https://www.epa.gov/cwsrf/learn-about-clean-water-
state-revolving-fund-cwsrf (last visited Apr. 30,
2021); 42 U.S.C. 300j–12.
137House Committee on the Budget, State and
Local Governments are in Dire Need of Federal
Relief (Aug. 19, 2020), https://budget.house.gov/
publications/report/state-and-local-governments-
are-dire-need-federal-relief.
138Environmental Protection Agency, Drinking
Water State Revolving Fund (Nov. 2019), https://
www.epa.gov/sites/production/files/2019-11/
documents/fact_sheet_-_dwsrf_overview_final_
0.pdf; Environmental Protection Agency, National
Benefits Analysis for Drinking Water Regulations,
https://www.epa.gov/sdwa/national-benefits-
analysis-drinking-water-regulations (last visited
Apr. 30, 2020).
the DWSRF provides States with the
flexibility to meet the needs of their
populations.133 The primary use of
DWSRF funds is to assist communities
in making water infrastructure capital
improvements, including the
installation and replacement of failing
treatment and distribution systems.134
In administering these programs, States
must give priority to projects that ensure
compliance with applicable health and
environmental safety requirements;
address the most serious risks to human
health; and assist systems most in need
on a per household basis according to
State affordability criteria.135
By aligning use of Fiscal Recovery
Funds with the categories or types of
eligible projects under the existing EPA
state revolving fund programs, the
interim final rule provides recipients
with the flexibility to respond to the
needs of their communities while
ensuring that investments in water and
sewer infrastructure made using Fiscal
Recovery Funds are necessary. As
discussed above, the CWSRF and
DWSRF were designed to provide
funding for projects that protect public
health and safety by ensuring
compliance with wastewater and
drinking water health standards.136 The
need to provide funding through the
state revolving funds suggests that these
projects are less likely to be addressed
with private sources of funding; for
example, by remediating failing or
inadequate infrastructure, much of
which is publicly owned, and by
addressing non-point sources of
pollution. This approach of aligning
with the EPA state revolving fund
programs also supports expedited
project identification and investment so
that needed relief for the people and
communities most affected by the
pandemic can deployed expeditiously
and have a positive impact on their
health and wellbeing as soon as
possible. Further, the interim final rule
is intended to preserve flexibility for
award recipients to direct funding to
their own particular needs and priorities
and would not preclude recipients from
applying their own additional project
eligibility criteria.
In addition, responding to the
immediate needs of the COVID–19
public health emergency may have
diverted both personnel and financial
resources from other State, local, and
Tribal priorities, including projects to
ensure compliance with applicable
water health and quality standards and
provide safe drinking and usable
water.137 Through sections 602(c)(1)(D)
and 603(c)(1)(D), the ARPA provides
resources to address these needs.
Moreover, using Fiscal Recovery Funds
in accordance with the priorities of the
CWA and SWDA to ‘‘assist systems
most in need on a per household basis
according to state affordability criteria’’
would also have the benefit of providing
vulnerable populations with safe
drinking water that is critical to their
health and, thus, their ability to work
and learn.138
Recipients may use Fiscal Recovery
Funds to invest in a broad range of
projects that improve drinking water
infrastructure, such as building or
upgrading facilities and transmission,
distribution, and storage systems,
including replacement of lead service
lines. Given the lifelong impacts of lead
exposure for children, and the
widespread nature of lead service lines,
Treasury encourages recipients to
consider projects to replace lead service
lines.
Fiscal Recovery Funds may also be
used to support the consolidation or
establishment of drinking water
systems. With respect to wastewater
infrastructure, recipients may use Fiscal
Recovery Funds to construct publicly
owned treatment infrastructure, manage
and treat stormwater or subsurface
drainage water, facilitate water reuse,
and secure publicly owned treatment
works, among other uses. Finally,
consistent with the CWSRF and
DWSRF, Fiscal Recovery Funds may be
used for cybersecurity needs to protect
water or sewer infrastructure, such as
developing effective cybersecurity
practices and measures at drinking
water systems and publicly owned
treatment works.
Many of the types of projects eligible
under either the CWSRF or DWSRF also
support efforts to address climate
change. For example, by taking steps to
manage potential sources of pollution
and preventing these sources from
reaching sources of drinking water,
projects eligible under the DWSRF and
the ARPA may reduce energy required
to treat drinking water. Similarly,
projects eligible under the CWSRF
include measures to conserve and reuse
water or reduce the energy consumption
of public water treatment facilities.
Treasury encourages recipients to
consider green infrastructure
investments and projects to improve
resilience to the effects of climate
change. For example, more frequent and
extreme precipitation events combined
with construction and development
trends have led to increased instances of
stormwater runoff, water pollution, and
flooding. Green infrastructure projects
that support stormwater system
resiliency could include rain gardens
that provide water storage and filtration
benefits, and green streets, where
vegetation, soil, and engineered systems
are combined to direct and filter
rainwater from impervious surfaces. In
cases of a natural disaster, recipients
may also use Fiscal Recovery Funds to
provide relief, such as interconnecting
water systems or rehabilitating existing
wells during an extended drought.
Question 18: What are the advantages
and disadvantages of aligning eligible
uses with the eligible project type
requirements of the DWSRF and
CWSRF? What other water or sewer
project categories, if any, should
Treasury consider in addition to DWSRF
and CWSRF eligible projects? Should
Treasury consider a broader general
category of water and sewer projects?
Question 19: What additional water
and sewer infrastructure categories, if
any, should Treasury consider to
address and respond to the needs of
unserved, undeserved, or rural
communities? How do these projects
differ from DWSFR and CWSRF eligible
projects?
Question 20: What new categories of
water and sewer infrastructure, if any,
should Treasury consider to support
State, local, and Tribal governments in
mitigating the negative impacts of
climate change? Discuss emerging
technologies and processes that support
resiliency of water and sewer
infrastructure. Discuss any challenges
faced by States and local governments
when pursuing or implementing climate
resilient infrastructure projects.
Question 21: Infrastructure projects
related to dams and reservoirs are
generally not eligible under the CWSRF
and DWSRF categories. Should Treasury
consider expanding eligible
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139See, e.g., https://www.ntia.gov/blog/2020/
more-half-american-households-used-internet-
health-related-activities-2019-ntia-data-show;
https://www.ntia.gov/blog/2020/nearly-third-
american-employees-worked-remotely-2019-ntia-
data-show; and generally, https://www.ntia.gov/
data/digital-nation-data-explorer.
140As an example, data from the Federal
Communications Commission shows that as of June
2020, 9.07 percent of the U.S. population had no
available cable or fiber broadband providers
providing greater than 25 Mbps download speeds
and 3 Mbps upload speeds. Availability was
significantly less for rural versus urban populations,
with 35.57 percent of the rural population lacking
such access, compared with 2.57 percent of the
urban population. Availability was also
significantly less for tribal versus non-tribal
populations, with 35.93 percent of the tribal
population lacking such access, compared with 8.74
of the non-tribal population. Federal
Communications Commission, Fixed Broadband
Deployment, https://broadbandmap.fcc.gov/#/ (last
visited May 9, 2021).
141How Do U.S. Internet Costs Compare To The
Rest Of The World?, BroadbandSearch Blog Post,
available at https://www.broadbandsearch.net/blog/
internet-costs-compared-worldwide.
142See, e.g., Federal Communications
Commission, Fourteenth Broadband Deployment
Report, available at https://docs.fcc.gov/public/
attachments/FCC-21-18A1.pdf.
143See, e.g., Illinois Department of Commerce &
Economic Opportunity, Broadband Grants, h (last
visited May 9, 2021), https://www2.illinois.gov/
dceo/ConnectIllinois/Pages/BroadbandGrants.aspx;
Kansas Office of Broadband Development,
Broadband Acceleration Grant, https://
www.kansascommerce.gov/wp-content/uploads/
2020/11/Broadband-Acceleration-Grant.pdf (last
visited May 9, 2021); New York State Association
of Counties, Universal Broadband: Deploying High
Speed Internet Access in NYS (Jul. 2017), https://
www.nysac.org/files/BroadbandUpdate
Report2017(1).pdf.
144This scalability threshold is consistent with
scalability requirements used in other jurisdictions.
Id.
145Federal Communications Commission,
Broadband Speed Guide, https://www.fcc.gov/
consumers/guides/broadband-speed-guide (last
visited Apr. 30, 2021).
146Letter from Lisa R. Youngers, President and
CEO of Fiber Broadband Association to FCC, WC
Docket No. 19–126 (filed Jan. 3, 2020), including an
Appendix with research from RVA LLC, Data
Review Of The Importance of Upload Speeds (Jan.
2020), and Ookla speed test data, available at
https://ecfsapi.fcc.gov/file/101030085118517/
FCC%20RDOF%20Jan%203%20
Ex%20Parte.pdf.Additional information on historic
growth in data usage is provided in Schools, Health
& Libraries Broadband Coalition, Common Sense
Solutions for Closing the Digital Divide, Apr. 29,
2021.
147Id. See also United States’s Mobile and
Broadband internet Speeds—Speedtest Global
Index, available at https://www.speedtest.net/
global-index/united-states#fixed.
infrastructure under the interim final
rule to include dam and reservoir
projects? Discuss public health,
environmental, climate, or equity
benefits and costs in expanding the
eligibility to include these types of
projects.
2. Broadband Infrastructure
The COVID–19 public health
emergency has underscored the
importance of universally available,
high-speed, reliable, and affordable
broadband coverage as millions of
Americans rely on the internet to
participate in, among critical activities,
remote school, healthcare, and work.
Recognizing the need for such
connectivity, the ARPA provides funds
to State, territorial, local, and Tribal
governments to make necessary
investments in broadband
infrastructure.
The National Telecommunications
and Information Administration (NTIA)
highlighted the growing necessity of
broadband in daily lives through its
analysis of NTIA Internet Use Survey
data, noting that Americans turn to
broadband internet access service for
every facet of daily life including work,
study, and healthcare.139 With increased
use of technology for daily activities and
the movement by many businesses and
schools to operating remotely during the
pandemic, broadband has become even
more critical for people across the
country to carry out their daily lives.
By at least one measure, however,
tens of millions of Americans live in
areas where there is no broadband
infrastructure that provides download
speeds greater than 25 Mbps and upload
speeds of 3 Mbps.140 By contrast, as
noted below, many households use
upload and download speeds of 100
Mbps to meet their daily needs. Even in
areas where broadband infrastructure
exists, broadband access may be out of
reach for millions of Americans because
it is unaffordable, as the United States
has some of the highest broadband
prices in the Organisation for Economic
Co-operation and Development
(OECD).141 There are disparities in
availability as well; historically,
Americans living in territories and
Tribal lands as well as rural areas have
disproportionately lacked sufficient
broadband infrastructure.142 Moreover,
rapidly growing demand has, and will
likely continue to, quickly outpace
infrastructure capacity, a phenomenon
acknowledged by various states around
the country that have set scalability
requirements to account for this
anticipated growth in demand.143
The interim final rule provides that
eligible investments in broadband are
those that are designed to provide
services meeting adequate speeds and
are provided to unserved and
underserved households and
businesses. Understanding that States,
territories, localities, and Tribal
governments have a wide range of
varied broadband infrastructure needs,
the interim final rule provides award
recipients with flexibility to identify the
specific locations within their
communities to be served and to
otherwise design the project.
Under the interim final rule, eligible
projects are expected to be designed to
deliver, upon project completion,
service that reliably meets or exceeds
symmetrical upload and download
speeds of 100 Mbps. There may be
instances in which it would not be
practicable for a project to deliver such
service speeds because of the geography,
topography, or excessive costs
associated with such a project. In these
instances, the affected project would be
expected to be designed to deliver, upon
project completion, service that reliably
meets or exceeds 100 Mbps download
and between at least 20 Mbps and 100
Mbps upload speeds and be scalable to
a minimum of 100 Mbps symmetrical
for download and upload speeds.144 In
setting these standards, Treasury
identified speeds necessary to ensure
that broadband infrastructure is
sufficient to enable users to generally
meet household needs, including the
ability to support the simultaneous use
of work, education, and health
applications, and also sufficiently
robust to meet increasing household
demands for bandwidth. Treasury also
recognizes that different communities
and their members may have a broad
range of internet needs and that those
needs may change over time.
In considering the appropriate speed
requirements for eligible projects,
Treasury considered estimates of typical
households demands during the
pandemic. Using the Federal
Communication Commission’s (FCC)
Broadband Speed Guide, for example, a
household with two telecommuters and
two to three remote learners today are
estimated to need 100 Mbps download
to work simultaneously.145 In
households with more members, the
demands may be greater, and in
households with fewer members, the
demands may be less.
In considering the appropriate speed
requirements for eligible projects,
Treasury also considered data usage
patterns and how bandwidth needs have
changed over time for U.S. households
and businesses as people’s use of
technology in their daily lives has
evolved. In the few years preceding the
pandemic, market research data showed
that average upload speeds in the
United States surpassed over 10 Mbps
in 2017 146 and continued to increase
significantly, with the average upload
speed as of November, 2019 increasing
to 48.41 Mbps,147 attributable, in part to
a shift to using broadband and the
internet by individuals and businesses
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148Id.
149One high definition Zoom meeting or class
requires approximately 3.8 Mbps/3.0 Mbps (up/
down).
150See, e.g., Zoom, System Requirements for
Windows, macOS, and Linux, https://
support.zoom.us/hc/en-us/articles/201362023-
System-requirements-for-Windows-macOS-and-
Linux#h_d278c327-e03d-4896-b19a-96a8f3c0c69c
(last visited May 8, 2021).
151By one estimate, to upload a one gigabit video
file to YouTube would take 15 minutes at an upload
speed of 10 Mbps compared with 1 minute, 30
seconds at an upload speed of 100 Mbps, and 30
seconds at an upload speed of 300 Mbps.
Reviews.org: What is Symmetrical internet? (March
2020).
152OVBI: Covid-19 Drove 15 percent Increase in
Broadband Traffic in 2020, OpenVault, Quarterly
Advisory, (Feb. 10, 2021), available at https://
openvault.com/ovbi-covid-19-drove-51-increase-in-
broadband-traffic-in-2020; See OpenVault’s data set
incorporates information on usage by subscribers
across multiple continents, including North
America and Europe. Additional data and detail on
increases in the amount of data users consume and
the broadband speeds they are using is provided in
OpenVault Broadband Insights Report Q4,
Quarterly Advisory (Feb. 10, 2021), available at
https://openvault.com/complimentary-report-4q20/.
153OVBI Special Report: 202 Upstream Growth
Nearly 4X of Pre-Pandemic Years, OpenVault,
Quarterly Advisory, (April 1, 20201), available at
https://openvault.com/ovbi-special-report-2020-
upstream-growth-rate-nearly-4x-of-pre-pandemic-
years/; Additional data is provided in OpenVault
Broadband Insights Pandemic Impact on Upstream
Broadband Usage and Network Capacity, available
at https://openvault.com/upstream-whitepaper/.
154Organisation for Economic Co-operation and
Development, Fixed broadband subscriptions per
100 inhabitants, per speed tiers (June 2020), https://
www.oecd.org/sti/broadband/5.1-FixedBB-
SpeedTiers-2020-06.xls www.oecd.org/sti/
broadband/broadband-statistics.
155Rural Digital Opportunity Fund, Report and
Order, 35 FCC Rcd 686, 690, para. 9 (2020),
available at https://www.fcc.gov/document/fcc-
launches-20-billion-rural-digital-opportunity-fund-
0.
156The BIPP was authorized by the Consolidated
Appropriations Act, 2021, Section 905, Public Law
116–260, 134 Stat. 1182 (Dec. 27, 2020).
157Section 905(d)(4) of the Consolidated
Appropriations Act, 2021.
158Deployment Report, supra note 142.
159Rural Digital Opportunity Fund, supra note
156.
to create and share content using video
sharing, video conferencing, and other
applications.148
The increasing use of data accelerated
markedly during the pandemic as
households across the country became
increasingly reliant on tools and
applications that require greater internet
capacity, both to download data but also
to upload data. Sending information
became as important as receiving it. A
video consultation with a healthcare
provider or participation by a child in
a live classroom with a teacher and
fellow students requires video to be sent
and received simultaneously.149 As an
example, some video conferencing
technology platforms indicate that
download and upload speeds should be
roughly equal to support two-way,
interactive video meetings.150 For both
work and school, client materials or
completed school assignments, which
may be in the form of PDF files, videos,
or graphic files, also need to be shared
with others. This is often done by
uploading materials to a collaboration
site, and the upload speed available to
a user can have a significant impact on
the time it takes for the content to be
shared with others. 151 These activities
require significant capacity from home
internet connections to both download
and upload data, especially when there
are multiple individuals in one
household engaging in these activities
simultaneously.
This need for increased broadband
capacity during the pandemic was
reflected in increased usage patterns
seen over the last year. As OpenVault
noted in recent advisories, the
pandemic significantly increased the
amount of data users consume. Among
data users observed by OpenVault, per-
subscriber average data usage for the
fourth quarter of 2020 was 482.6
gigabytes per month, representing a 40
percent increase over the 344 gigabytes
consumed in the fourth quarter of 2019
and a 26 percent increase over the third
quarter 2020 average of 383.8
gigabytes.152 OpenVault also noted
significant increases in upstream usage
among the data users it observed, with
upstream data usage growing 63
percent—from 19 gigabytes to 31
gigabytes—between December, 2019 and
December, 2020.153 According to an
OECD Broadband statistic from June
2020, the largest percentage of U.S.
broadband subscribers have services
providing speeds between 100 Mbps
and 1 Gbps.154
Jurisdictions and Federal programs
are increasingly responding to the
growing demands of their communities
for both heightened download and
upload speeds. For example, Illinois
now requires 100 Mbps symmetrical
service as the construction standard for
its state broadband grant programs. This
standard is also consistent with speed
levels, particularly download speed
levels, prioritized by other Federal
programs supporting broadband
projects. Bids submitted as part of the
FCC in its Rural Digital Opportunity
Fund (RDOF), established to support the
construction of broadband networks in
rural communities across the country,
are given priority if they offer faster
service, with the service offerings of 100
Mbps download and 20 Mbps upload
being included in the ‘‘above baseline’’
performance tier set by the FCC.155 The
Broadband Infrastructure Program
(BBIP)156 of the Department of
Commerce, which provides Federal
funding to deploy broadband
infrastructure to eligible service areas of
the country also prioritizes projects
designed to provide broadband service
with a download speed of not less than
100 Mbps and an upload speed of not
less than 20 Mbps.157
The 100 Mbps upload and download
speeds will support the increased and
growing needs of households and
businesses. Recognizing that, in some
instances, 100 Mbps upload speed may
be impracticable due to geographical,
topographical, or financial constraints,
the interim final rule permits upload
speeds of between at least 20 Mbps and
100 Mbps in such instances. To provide
for investments that will accommodate
technologies requiring symmetry in
download and upload speeds, as noted
above, eligible projects that are not
designed to deliver, upon project
completion, service that reliably meets
or exceeds symmetrical speeds of 100
Mbps because it would be impracticable
to do so should be designed so that they
can be scalable to such speeds.
Recipients are also encouraged to
prioritize investments in fiber optic
infrastructure where feasible, as such
advanced technology enables the next
generation of application solutions for
all communities.
Under the interim final rule, eligible
projects are expected to focus on
locations that are unserved or
underserved. The interim final rule
treats users as being unserved or
underserved if they lack access to a
wireline connection capable of reliably
delivering at least minimum speeds of
25 Mbps download and 3 Mbps upload
as households and businesses lacking
this level of access are generally not
viewed as being able to originate and
receive high-quality voice, data,
graphics, and video
telecommunications. This threshold is
consistent with the FCC’s benchmark for
an ‘‘advanced telecommunications
capability.’’158 This threshold is also
consistent with thresholds used in other
Federal programs to identify eligible
areas to be served by programs to
improve broadband services. For
example, in the FCC’s RDOF program,
eligible areas include those without
current (or already funded) access to
terrestrial broadband service providing
25 Mbps download and 3 Mbps upload
speeds.159 The Department of
Commerce’s BBIP also considers
households to be ‘‘unserved’’ generally
if they lack access to broadband service
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with a download speed of not less than
25 Mbps download and 3 Mbps upload,
among other conditions. In selecting an
area to be served by a project, recipients
are encouraged to avoid investing in
locations that have existing agreements
to build reliable wireline service with
minimum speeds of 100 Mbps
download and 20 Mbps upload by
December 31, 2024, in order to avoid
duplication of efforts and resources.
Recipients are also encouraged to
consider ways to integrate affordability
options into their program design. To
meet the immediate needs of unserved
and underserved households and
businesses, recipients are encouraged to
focus on projects that deliver a physical
broadband connection by prioritizing
projects that achieve last mile-
connections. Treasury also encourages
recipients to prioritize support for
broadband networks owned, operated
by, or affiliated with local governments,
non-profits, and co-operatives—
providers with less pressure to turn
profits and with a commitment to
serving entire communities.
Under sections 602(c)(1)(A) and
603(c)(1)(A), assistance to households
facing negative economic impacts due to
COVID–19 is also an eligible use,
including internet access or digital
literacy assistance. As discussed above,
in considering whether a potential use
is eligible under this category, a
recipient must consider whether, and
the extent to which, the household has
experienced a negative economic impact
from the pandemic.
Question 22: What are the advantages
and disadvantages of setting minimum
symmetrical download and upload
speeds of 100 Mbps? What other
minimum standards would be
appropriate and why?
Question 23: Would setting such a
minimum be impractical for particular
types of projects? If so, where and on
what basis should those projects be
identified? How could such a standard
be set while also taking into account the
practicality of using this standard in
particular types of projects? In addition
to topography, geography, and financial
factors, what other constraints, if any,
are relevant to considering whether an
investment is impracticable?
Question 24: What are the advantages
and disadvantages of setting a
minimum level of service at 100 Mbps
download and 20 Mbps upload in
projects where it is impracticable to set
minimum symmetrical download and
upload speeds of 100 Mbps? What are
the advantages and disadvantages of
setting a scalability requirement in these
cases? What other minimum standards
would be appropriate and why?
Question 25: What are the advantages
and disadvantages of focusing these
investments on those without access to
a wireline connection that reliably
delivers 25 Mbps download by 3 Mbps
upload? Would another threshold be
appropriate and why?
Question 26: What are the advantages
and disadvantages of setting any
particular threshold for identifying
unserved or underserved areas,
minimum speed standards or scalability
minimum? Are there other standards
that should be set (e.g., latency)? If so,
why and how? How can such threshold,
standards, or minimum be set in a way
that balances the public’s interest in
making sure that reliable broadband
services meeting the daily needs of all
Americans are available throughout the
country with the providing recipients
flexibility to meet the varied needs of
their communities?
III. Restrictions on Use
As discussed above, recipients have
considerable flexibility to use Fiscal
Recovery Funds to address the diverse
needs of their communities. To ensure
that payments from the Fiscal Recovery
Funds are used for these congressionally
permitted purposes, the ARPA includes
two provisions that further define the
boundaries of the statute’s eligible uses.
Section 602(c)(2)(A) of the Act provides
that States and territories may not ‘‘use
the funds . . . to either directly or
indirectly offset a reduction in . . . net
tax revenue . . . resulting from a change
in law, regulation, or administrative
interpretation during the covered period
that reduces any tax . . . or delays the
imposition of any tax or tax increase.’’
In addition, sections 602(c)(2)(B) and
603(c)(2) prohibit any recipient,
including cities, nonentitlement units of
government, and counties, from using
Fiscal Recovery Funds for deposit into
any pension fund. These restrictions
support the use of funds for the
congressionally permitted purposes
described in Section II of this
Supplementary Information by
providing a backstop against the use of
funds for purposes outside of the
eligible use categories.
These provisions give force to
Congress’s clear intent that Fiscal
Recovery Funds be spent within the
four eligible uses identified in the
statute—(1) to respond to the public
health emergency and its negative
economic impacts, (2) to provide
premium pay to essential workers, (3) to
provide government services to the
extent of eligible governments’ revenue
losses, and (4) to make necessary water,
sewer, and broadband infrastructure
investments—and not otherwise. These
four eligible uses reflect Congress’s
judgment that the Fiscal Recovery
Funds should be expended in particular
ways that support recovery from the
COVID–19 public health emergency.
The further restrictions reflect
Congress’s judgment that tax cuts and
pension deposits do not fall within
these eligible uses. The interim final
rule describes how Treasury will
identify when such uses have occurred
and how it will recoup funds put
toward these impermissible uses and, as
discussed in Section VIII of this
SUPPLEMENTARY INFORMATION, establishes
a reporting framework for monitoring
the use of Fiscal Recovery Funds for
eligible uses.
A. Deposit Into Pension Funds
The statute provides that recipients
may not use Fiscal Recovery Funds for
‘‘deposit into any pension fund.’’ For
the reasons discussed below, Treasury
interprets ‘‘deposit’’ in this context to
refer to an extraordinary payment into a
pension fund for the purpose of
reducing an accrued, unfunded liability.
More specifically, the interim final rule
does not permit this assistance to be
used to make a payment into a pension
fund if both:
1. The payment reduces a liability
incurred prior to the start of the COVID–
19 public health emergency, and
2. the payment occurs outside the
recipient’s regular timing for making
such payments.
Under this interpretation, a ‘‘deposit’’
is distinct from a ‘‘payroll
contribution,’’ which occurs when
employers make payments into pension
funds on regular intervals, with
contribution amounts based on a pre-
determined percentage of employees’
wages and salaries.
As discussed above, eligible uses for
premium pay and responding to the
negative economic impacts of the
COVID–19 public health emergency
include hiring and compensating public
sector employees. Interpreting the scope
of ‘‘deposit’’ to exclude contributions
that are part of payroll contributions is
more consistent with these eligible uses
and would reduce administrative
burden for recipients. Accordingly, if an
employee’s wages and salaries are an
eligible use of Fiscal Recovery Funds,
recipients may treat the employee’s
covered benefits as an eligible use of
Fiscal Recovery Funds. For purposes of
the Fiscal Recovery Funds, covered
benefits include costs of all types of
leave (vacation, family-related, sick,
military, bereavement, sabbatical, jury
duty), employee insurance (health, life,
dental, vision), retirement (pensions,
401(k)), unemployment benefit plans
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160In this sub-section, ‘‘recipient governments’’
refers only to States and territories. In other
sections, ‘‘recipient governments’’ refers more
broadly to eligible governments receiving funding
from the Fiscal Recovery Funds.
161For brevity, referred to as ‘‘changes in law,
regulation, or interpretation’’ for the remainder of
this preamble.
(Federal and State), workers’
compensation insurance, and Federal
Insurance Contributions Act taxes
(which includes Social Security and
Medicare taxes).
Treasury anticipates that this
approach to employees’ covered benefits
will be comprehensive and, for
employees whose wage and salary costs
are eligible expenses, will allow all
covered benefits listed in the previous
paragraph to be eligible under the Fiscal
Recovery Funds. Treasury expects that
this will minimize the administrative
burden on recipients by treating all the
specified covered benefit types as
eligible expenses, for employees whose
wage and salary costs are eligible
expenses.
Question 27: Beyond a ‘‘deposit’’ and
a ‘‘payroll contribution,’’ are there other
types of payments into a pension fund
that Treasury should consider?
B. Offset a Reduction in Net Tax
Revenue
For States and territories (recipient
governments160), section 602(c)(2)(A)—
the offset provision—prohibits the use
of Fiscal Recovery Funds to directly or
indirectly offset a reduction in net tax
revenue resulting from a change in law,
regulation, or administrative
interpretation 161 during the covered
period. If a State or territory uses Fiscal
Recovery Funds to offset a reduction in
net tax revenue, the ARPA provides that
the State or territory must repay to the
Treasury an amount equal to the lesser
of (i) the amount of the applicable
reduction attributable to the
impermissible offset and (ii) the amount
received by the State or territory under
the ARPA. See Section IV of this
SUPPLEMENTARY INFORMATION. As
discussed below Section IV of this
SUPPLEMENTARY INFORMATION, a State or
territory that chooses to use Fiscal
Recovery Funds to offset a reduction in
net tax revenue does not forfeit its entire
allocation of Fiscal Recovery Funds
(unless it misused the full allocation to
offset a reduction in net tax revenue) or
any non-ARPA funding received.
The interim final rule implements
these conditions by establishing a
framework for States and territories to
determine the cost of changes in law,
regulation, or interpretation that reduce
tax revenue and to identify and value
the sources of funds that will offset—
i.e., cover the cost of—any reduction in
net tax revenue resulting from such
changes. A recipient government would
only be considered to have used Fiscal
Recovery Funds to offset a reduction in
net tax revenue resulting from changes
in law, regulation, or interpretation if,
and to the extent that, the recipient
government could not identify sufficient
funds from sources other than the Fiscal
Recovery Funds to offset the reduction
in net tax revenue. If sufficient funds
from other sources cannot be identified
to cover the full cost of the reduction in
net tax revenue resulting from changes
in law, regulation, or interpretation, the
remaining amount not covered by these
sources will be considered to have been
offset by Fiscal Recovery Funds, in
contravention of the offset provision.
The interim final rule recognizes three
sources of funds that may offset a
reduction in net tax revenue other than
Fiscal Recovery Funds—organic growth,
increases in revenue (e.g., an increase in
a tax rate), and certain cuts in spending.
In order to reduce burden, the interim
final rule’s approach also incorporates
the types of information and modeling
already used by States and territories in
their own fiscal and budgeting
processes. By incorporating existing
budgeting processes and capabilities,
States and territories will be able to
assess and evaluate the relationship of
tax and budget decisions to uses of the
Fiscal Recovery Funds based on
information they likely have or can
obtain. This approach ensures that
recipient governments have the
information they need to understand the
implications of their decisions regarding
the use of the Fiscal Recovery Funds—
and, in particular, whether they are
using the funds to directly or indirectly
offset a reduction in net tax revenue,
making them potentially subject to
recoupment.
Reporting on both the eligible uses
and on a State’s or territory’s covered
tax changes that would reduce tax
revenue will enable identification of,
and recoupment for, use of Fiscal
Recovery Funds to directly offset
reductions in tax revenue resulting from
tax relief. Moreover, this approach
recognizes that, because money is
fungible, even if Fiscal Recovery Funds
are not explicitly or directly used to
cover the costs of changes that reduce
net tax revenue, those funds may be
used in a manner inconsistent with the
statute by indirectly being used to
substitute for the State’s or territory’s
funds that would otherwise have been
needed to cover the costs of the
reduction. By focusing on the cost of
changes that reduce net tax revenue—
and how a recipient government is
offsetting those reductions in
constructing its budget over the covered
period—the framework prevents efforts
to use Fiscal Recovery Funds to
indirectly offset reductions in net tax
revenue for which the recipient
government has not identified other
offsetting sources of funding.
As discussed in greater detail below
in this preamble, the framework set
forth in the interim final rule establishes
a step-by-step process for determining
whether, and the extent to which, Fiscal
Recovery Funds have been used to offset
a reduction in net tax revenue. Based on
information reported annually by the
recipient government:
•First, each year, each recipient
government will identify and value the
changes in law, regulation, or
interpretation that would result in a
reduction in net tax revenue, as it would
in the ordinary course of its budgeting
process. The sum of these values in the
year for which the government is
reporting is the amount it needs to ‘‘pay
for’’ with sources other than Fiscal
Recovery Funds (total value of revenue
reducing changes).
•Second, the interim final rule
recognizes that it may be difficult to
predict how a change would affect net
tax revenue in future years and,
accordingly, provides that if the total
value of the changes in the year for
which the recipient government is
reporting is below a de minimis level,
as discussed below, the recipient
government need not identify any
sources of funding to pay for revenue
reducing changes and will not be
subject to recoupment.
•Third, a recipient government will
consider the amount of actual tax
revenue recorded in the year for which
they are reporting. If the recipient
government’s actual tax revenue is
greater than the amount of tax revenue
received by the recipient for the fiscal
year ending 2019, adjusted annually for
inflation, the recipient government will
not be considered to have violated the
offset provision because there will not
have been a reduction in net tax
revenue.
•Fourth, if the recipient
government’s actual tax revenue is less
than the amount of tax revenue received
by the recipient government for the
fiscal year ending 2019, adjusted
annually for inflation, in the reporting
year the recipient government will
identify any sources of funds that have
been used to permissibly offset the total
value of covered tax changes other than
Fiscal Recovery Funds. These are:
Æ State or territory tax changes that
would increase any source of general
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162See, e.g., Tax Policy Center, How do state
earned income tax credits work?, https://
www.taxpolicycenter.org/briefing-book/how-do-
state-earned-income-tax-credits-work/ (last visited
May 9, 2021).
163U.S. Department of Commerce, Bureau of
Economic Analysis, GDP Price Deflator, https://
www.bea.gov/data/prices-inflation/gdp-price-
deflator (last visited May 9, 2021).
164Using Fiscal Year 2019 is consistent with
section 602 as Congress provided for using that
baseline for determining the impact of revenue loss
affecting the provision of government services. See
section 602(c)(1)(C).
165Congressional Budget Office, An Overview of
the Economic Outlook: 2021 to 2031 (February 1,
2021), available at https://www.cbo.gov/
publication/56965.
166U.S. Census Bureau, Annual Survey of State
and Local Government Finances Glossary, https://
www.census.gov/programs-surveys/state/about/
glossary.html (last visited Apr. 30, 2021).
fund revenue, such as a change that
would increase a tax rate; and
Æ Spending cuts in areas not being
replaced by Fiscal Recovery Funds.
The recipient government will
calculate the value of revenue reduction
remaining after applying these sources
of offsetting funding to the total value of
revenue reducing changes—that, is, how
much of the tax change has not been
paid for. The recipient government will
then compare that value to the
difference between the baseline and
actual tax revenue. A recipient
government will not be required to
repay to the Treasury an amount that is
greater than the recipient government’s
actual tax revenue shortfall relative to
the baseline (i.e., fiscal year 2019 tax
revenue adjusted for inflation). This
‘‘revenue reduction cap,’’ together with
Step 3, ensures that recipient
governments can use organic revenue
growth to offset the cost of revenue
reductions.
•Finally, if there are any amounts
that could be subject to recoupment,
Treasury will provide notice to the
recipient government of such amounts.
This process is discussed in greater
detail in Section IV of this
SUPPLEMENTARY INFORMATION.
Together, these steps allow Treasury
to identify the amount of reduction in
net tax revenue that both is attributable
to covered changes and has been
directly or indirectly offset with Fiscal
Recovery Funds. This process ensures
Fiscal Recovery Funds are used in a
manner consistent with the statute’s
defined eligible uses and the offset
provision’s limitation on these eligible
uses, while avoiding undue interference
with State and territory decisions
regarding tax and spending policies.
The interim final rule also
implements a process for recouping
Fiscal Recovery Funds that were used to
offset reductions in net tax revenue,
including the calculation of any
amounts that may be subject to
recoupment, a process for a recipient
government to respond to a notice of
recoupment, and clarification regarding
amounts excluded from recoupment.
See Section IV of this SUPPLEMENTARY
INFORMATION.
The interim final rule includes several
definitions that are applicable to the
implementation of the offset provision.
Covered change. The offset provision
is triggered by a reduction in net tax
revenue resulting from ‘‘a change in
law, regulation, or administrative
interpretation.’’ A covered change
includes any final legislative or
regulatory action, a new or changed
administrative interpretation, and the
phase-in or taking effect of any statute
or rule where the phase-in or taking
effect was not prescribed prior to the
start of the covered period. Changed
administrative interpretations would
not include corrections to replace prior
inaccurate interpretations; such
corrections would instead be treated as
changes implementing legislation
enacted or regulations issued prior to
the covered period; the operative change
in those circumstances is the underlying
legislation or regulation that occurred
prior to the covered period. Moreover,
only the changes within the control of
the State or territory are considered
covered changes. Covered changes do
not include a change in rate that is
triggered automatically and based on
statutory or regulatory criteria in effect
prior to the covered period. For
example, a state law that sets its earned
income tax credit (EITC) at a fixed
percentage of the Federal EITC will see
its EITC payments automatically
increase—and thus its tax revenue
reduced—because of the Federal
Government’s expansion of the EITC in
the ARPA.162 This would not be
considered a covered change. In
addition, the offset provision applies
only to actions for which the change in
policy occurs during the covered period;
it excludes regulations or other actions
that implement a change or law
substantively enacted prior to March 3,
2021. Finally, Treasury has determined
and previously announced that income
tax changes—even those made during
the covered period—that simply
conform with recent changes in Federal
law (including those to conform to
recent changes in Federal taxation of
unemployment insurance benefits and
taxation of loan forgiveness under the
Paycheck Protection Program) are
permissible under the offset provision.
Baseline. For purposes of measuring a
reduction in net tax revenue, the interim
final rule measures actual changes in tax
revenue relative to a revenue baseline
(baseline). The baseline will be
calculated as fiscal year 2019 (FY 2019)
tax revenue indexed for inflation in
each year of the covered period, with
inflation calculated using the Bureau of
Economic Analysis’s Implicit Price
Deflator.163
FY 2019 was chosen as the starting
year for the baseline because it is the
last full fiscal year prior to the COVID–
19 public health emergency.164 This
baseline year is consistent with the
approach directed by the ARPA in
sections 602(c)(1)(C) and 603(c)(1)(C),
which identify the ‘‘most recent full
fiscal year of the [State, territory, or
Tribal government] prior to the
emergency’’ as the comparator for
measuring revenue loss. U.S. gross
domestic product is projected to
rebound to pre-pandemic levels in
2021,165 suggesting that an FY 2019 pre-
pandemic baseline is a reasonable
comparator for future revenue levels.
The FY 2019 baseline revenue will be
adjusted annually for inflation to allow
for direct comparison of actual tax
revenue in each year (reported in
nominal terms) to baseline revenue in
common units of measurement; without
inflation adjustment, each dollar of
reported actual tax revenue would be
worth less than each dollar of baseline
revenue expressed in 2019 terms.
Reporting year. The interim final rule
defines ‘‘reporting year’’ as a single year
within the covered period, aligned to
the current fiscal year of the recipient
government during the covered period,
for which a recipient government
reports the value of covered changes
and any sources of offsetting revenue
increases (‘‘in-year’’ value), regardless of
when those changes were enacted. For
the fiscal years ending in 2021 or 2025
(partial years), the term ‘‘reporting year’’
refers to the portion of the year falling
within the covered period. For example,
the reporting year for a fiscal year
beginning July 2020 and ending June
2021 would be from March 3, 2021 to
July 2021.
Tax revenue. The interim final rule’s
definition of ‘‘tax revenue’’ is based on
the Census Bureau’s definition of taxes,
used for its Annual Survey of State
Government Finances.166 It provides a
consistent, well-established definition
with which States and territories will be
familiar and is consistent with the
approach taken in Section II.C of this
SUPPLEMENTARY INFORMATION describing
the implementation of sections
602(c)(1)(C) and 603(c)(1)(C) of the Act,
regarding revenue loss. Consistent with
the approach described in Section II.C
of this SUPPLEMENTARY INFORMATION, tax
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167See, e.g., Megan Randall & Kim Rueben, Tax
Policy Center, Sustainable Budgeting in the States:
Evidence on State Budget Institutions and Practices
(Nov. 2017), available at https://
www.taxpolicycenter.org/sites/default/files/
publication/149186/sustainable-budgeting-in-the-
states_1.pdf.
168Data provided by the Urban-Brookings Tax
Policy Center for state-level EITC changes for 2004–
2017.
revenue does not include revenue taxed
and collected by a different unit of
government (e.g., revenue from taxes
levied by a local government and
transferred to a recipient government).
Framework. The interim final rule
provides a step-by-step framework, to be
used in each reporting year, to calculate
whether the offset provision applies to
a State’s or territory’s use of Fiscal
Recovery Funds:
(1) Covered changes that reduce tax
revenue. For each reporting year, a
recipient government will identify and
value covered changes that the recipient
government predicts will have the effect
of reducing tax revenue in a given
reporting year, similar to the way it
would in the ordinary course of its
budgeting process. The value of these
covered changes may be reported based
on estimated values produced by a
budget model, incorporating reasonable
assumptions, that aligns with the
recipient government’s existing
approach for measuring the effects of
fiscal policies, and that measures
relative to a current law baseline. The
covered changes may also be reported
based on actual values using a statistical
methodology to isolate the change in
year-over-year revenue attributable to
the covered change(s), relative to the
current law baseline prior to the
change(s). Further, estimation
approaches should not use dynamic
methodologies that incorporate the
projected effects of macroeconomic
growth because macroeconomic growth
is accounted for separately in the
framework. Relative to these dynamic
scoring methodologies, scoring
methodologies that do not incorporate
projected effects of macroeconomic
growth rely on fewer assumptions and
thus provide greater consistency among
States and territories. Dynamic scoring
that incorporates macroeconomic
growth may also increase the likelihood
of underestimation of the cost of a
reduction in tax revenue.
In general and where possible,
reporting should be produced by the
agency of the recipient government
responsible for estimating the costs and
effects of fiscal policy changes. This
approach offers recipient governments
the flexibility to determine their
reporting methodology based on their
existing budget scoring practices and
capabilities. In addition, the approach of
using the projected value of changes in
law that enact fiscal policies to estimate
the net effect of such policies is
consistent with the way many States
and territories already consider tax
changes.167
(2) In excess of the de minimis. The
recipient government will next calculate
the total value of all covered changes in
the reporting year resulting in revenue
reductions, identified in Step 1. If the
total value of the revenue reductions
resulting from these changes is below
the de minimis level, the recipient
government will be deemed not to have
any revenue-reducing changes for the
purpose of determining the recognized
net reduction. If the total is above the de
minimis level, the recipient government
must identify sources of in-year revenue
to cover the full costs of changes that
reduce tax revenue.
The de minimis level is calculated as
1 percent of the reporting year’s
baseline. Treasury recognizes that,
pursuant to their taxing authority, States
and territories may make many small
changes to alter the composition of their
tax revenues or implement other
policies with marginal effects on tax
revenues. They may also make changes
based on projected revenue effects that
turn out to differ from actual effects,
unintentionally resulting in minor
revenue changes that are not fairly
described as ‘‘resulting from’’ tax law
changes. The de minimis level
recognizes the inherent challenges and
uncertainties that recipient governments
face, and thus allows relatively small
reductions in tax revenue without
consequence. Treasury determined the 1
percent level by assessing the historical
effects of state-level tax policy changes
in state EITCs implemented to effect
policy goals other than reducing net tax
revenues.168 The 1 percent de minimis
level reflects the historical reductions in
revenue due to minor changes in state
fiscal policies.
(3) Safe harbor. The recipient
government will then compare the
reporting year’s actual tax revenue to
the baseline. If actual tax revenue is
greater than the baseline, Treasury will
deem the recipient government not to
have any recognized net reduction for
the reporting year, and therefore to be in
a safe harbor and outside the ambit of
the offset provision. This approach is
consistent with the ARPA, which
contemplates recoupment of Fiscal
Recovery Funds only in the event that
such funds are used to offset a reduction
in net tax revenue. If net tax revenue has
not been reduced, this provision does
not apply. In the event that actual tax
revenue is above the baseline, the
organic revenue growth that has
occurred, plus any other revenue-raising
changes, by definition must have been
enough to offset the in-year costs of the
covered changes.
(4) Consideration of other sources of
funding. Next, the recipient government
will identify and calculate the total
value of changes that could pay for
revenue reduction due to covered
changes and sum these items. This
amount can be used to pay for up to the
total value of revenue-reducing changes
in the reporting year. These changes
consist of two categories:
(a) Tax and other increases in
revenue. The recipient government must
identify and consider covered changes
in policy that the recipient government
predicts will have the effect of
increasing general revenue in a given
reporting year. As when identifying and
valuing covered changes that reduce tax
revenue, the value of revenue-raising
changes may be reported based on
estimated values produced by a budget
model, incorporating reasonable
assumptions, aligned with the recipient
government’s existing approach for
measuring the effects of fiscal policies,
and measured relative to a current law
baseline, or based on actual values using
a statistical methodology to isolate the
change in year-over-year revenue
attributable to the covered change(s).
Further, and as discussed above,
estimation approaches should not use
dynamic scoring methodologies that
incorporate the effects of
macroeconomic growth because growth
is accounted for separately under the
interim final rule. In general and where
possible, reporting should be produced
by the agency of the recipient
government responsible for estimating
the costs and effects of fiscal policy
changes. This approach offers recipient
governments the flexibility to determine
their reporting methodology based on
their existing budget scoring practices
and capabilities.
(b) Covered spending cuts. A recipient
government also may cut spending in
certain areas to pay for covered changes
that reduce tax revenue, up to the
amount of the recipient government’s
net reduction in total spending as
described below. These changes must be
reductions in government outlays not in
an area where the recipient government
has spent Fiscal Recovery Funds. To
better align with existing reporting and
accounting, the interim final rule
considers the department, agency, or
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169This cap is applied in §35.8(c) of the interim
final rule, calculating the amount of funds used in
violation of the tax offset provision.
authority from which spending has been
cut and whether the recipient
government has spent Fiscal Recovery
Funds on that same department, agency,
or authority. This approach was selected
to allow recipient governments to report
how Fiscal Recovery Funds have been
spent using reporting units already
incorporated into their budgeting
process. If they have not spent Fiscal
Recovery Funds in a department,
agency, or authority, the full amount of
the reduction in spending counts as a
covered spending cut, up to the
recipient government’s net reduction in
total spending. If they have, the Fiscal
Recovery Funds generally would be
deemed to have replaced the amount of
spending cut and only reductions in
spending above the amount of Fiscal
Recovery Funds spent on the
department, agency, or authority would
count.
To calculate the amount of spending
cuts that are available to offset a
reduction in tax revenue, the recipient
government must first consider whether
there has been a reduction in total net
spending, excluding Fiscal Recovery
Funds (net reduction in total spending).
This approach ensures that reported
spending cuts actually create fiscal
space, rather than simply offsetting
other spending increases. A net
reduction in total spending is measured
as the difference between total spending
in each reporting year, excluding Fiscal
Recovery Funds spent, relative to total
spending for the recipient’s fiscal year
ending in 2019, adjusted for inflation.
Measuring reductions in spending
relative to 2019 reflects the fact that the
fiscal space created by a spending cut
persists so long as spending remains
below its original level, even if it does
not decline further, relative to the same
amount of revenue. Measuring spending
cuts from year to year would, by
contrast, not recognize any available
funds to offset revenue reductions
unless spending continued to decline,
failing to reflect the actual availability of
funds created by a persistent change and
limiting the discretion of States and
territories. In general and where
possible, reporting should be produced
by the agency of the recipient
government responsible for estimating
the costs and effects of fiscal policy
changes. Treasury chose this approach
because while many recipient
governments may score budget
legislation using projections, spending
cuts are readily observable using actual
values.
This approach—allowing only
spending reductions in areas where the
recipient government has not spent
Fiscal Recovery Funds to be used as an
offset for a reduction in net tax
revenue—aims to prevent recipient
governments from using Fiscal Recovery
Funds to supplant State or territory
funding in the eligible use areas, and
then use those State or territory funds to
offset tax cuts. Such an approach helps
ensure that Fiscal Recovery Funds are
not used to ‘‘indirectly’’ offset revenue
reductions due to covered changes.
In order to help ensure recipient
governments use Fiscal Recovery Funds
in a manner consistent with the
prescribed eligible uses and do not use
Fiscal Recovery Funds to indirectly
offset a reduction in net tax revenue
resulting from a covered change,
Treasury will monitor changes in
spending throughout the covered
period. If, over the course of the covered
period, a spending cut is subsequently
replaced with Fiscal Recovery Funds
and used to indirectly offset a reduction
in net tax revenue resulting from a
covered change, Treasury may consider
such change to be an evasion of the
restrictions of the offset provision and
seek recoupment of such amounts.
(5) Identification of amounts subject
to recoupment. If a recipient
government (i) reports covered changes
that reduce tax revenue (Step 1); (ii) to
a degree greater than the de minimis
(Step 2); (iii) has experienced a
reduction in net tax revenue (Step 3);
and (iv) lacks sufficient revenue from
other, permissible sources to pay for the
entirety of the reduction (Step 4), then
the recipient government will be
considered to have used Fiscal Recovery
Funds to offset a reduction in net tax
revenue, up to the amount that revenue
has actually declined. That is, the
maximum value of reduction in revenue
due to covered changes which a
recipient government must cover is
capped at the difference between the
baseline and actual tax revenue.169 In
the event that the baseline is above
actual tax revenue and the difference
between them is less than the sum of
revenue reducing changes that are not
paid for with other, permissible sources,
organic revenue growth has implicitly
offset a portion of the reduction. For
example, if a recipient government
reduces tax revenue by $1 billion,
makes no other changes, and
experiences revenue growth driven by
organic economic growth worth $500
million, it need only pay for the
remaining $500 million with sources
other than Fiscal Recovery Funds. The
revenue reduction cap implements this
approach for permitting organic revenue
growth to cover the cost of tax cuts.
Finally, as discussed further in
Section IV of this SUPPLEMENTARY
INFORMATION, a recipient government
may request reconsideration of any
amounts identified as subject to
recoupment under this framework. This
process ensures that all relevant facts
and circumstances, including
information regarding planned spending
cuts and budgeting assumptions, are
considered prior to a determination that
an amount must be repaid. Amounts
subject to recoupment are calculated on
an annual basis; amounts recouped in
one year cannot be returned if the State
or territory subsequently reports an
increase in net tax revenue.
To facilitate the implementation of
the framework above, and in addition to
reporting required on eligible uses, in
each year of the reporting period, each
State and territory will report to
Treasury the following items:
•Actual net tax revenue for the
reporting year;
•Each revenue-reducing change
made to date during the covered period
and the in-year value of each change;
•Each revenue-raising change made
to date during the covered period and
the in-year value of each change;
•Each covered spending cut made to
date during the covered period, the in-
year value of each cut, and
documentation demonstrating that each
spending cut is covered as prescribed
under the interim final rule;
Treasury will provide additional
guidance and instructions the reporting
requirements at a later date.
Question 28: Does the interim final
rule’s definition of tax revenue accord
with existing State and territorial
practice and, if not, are there other
definitions or elements Treasury should
consider? Discuss why or why not.
Question 29: The interim final rule
permits certain spending cuts to cover
the costs of reductions in tax revenue,
including cuts in a department, agency,
or authority in which the recipient
government is not using Fiscal Recovery
Funds. How should Treasury and
recipient governments consider the
scope of a department, agency, or
authority for the use of funds to ensure
spending cuts are not being substituted
with Fiscal Recovery Funds while also
avoiding an overbroad definition of that
captures spending that is, in fact,
distinct?
Question 30: Discuss the budget
scoring methodologies currently used by
States and territories. How should the
interim final rule take into
consideration differences in
approaches? Please discuss the use of
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170See 42 CFR 433.51 and 45 CFR 75.306.
171Section 1001 of Division N of the Consolidated
Appropriations Act, 2021 amended section
601(d)(3) of the Act by extending the end of the
covered period for CRF expenditures from
December 30, 2020 to December 31, 2021.
172Sections 602(a), 603(a), 602(c)(1) and 603(c)(1)
of the Act.
173Given the nature of this program, recipients
will not be permitted to use funds to cover pre-
award costs, i.e., those incurred prior to March 3,
2021.
174Sections 602(e) and 603(e) of the Act.
practices including but not limited to
macrodynamic scoring, microdynamic
scoring, and length of budget windows.
Question 31: If a recipient government
has a balanced budget requirement, how
will that requirement impact its use of
Fiscal Recovery Funds and ability to
implement this framework?
Question 32: To implement the
framework described above, the interim
final rule establishes certain reporting
requirements. To what extent do
recipient governments already produce
this information and on what timeline?
Discuss ways that Treasury and
recipient governments may better rely
on information already produced, while
ensuring a consistent application of the
framework.
Question 33: Discuss States’ and
territories’ ability to produce the figures
and numbers required for reporting
under the interim final rule. What
additional reporting tools, such as a
standardized template, would facilitate
States’ and territories’ ability to
complete the reporting required under
the interim final rule?
C. Other Restrictions on Use
Payments from the Fiscal Recovery
Funds are also subject to pre-existing
limitations provided in other Federal
statutes and regulations and may not be
used as non-Federal match for other
Federal programs whose statute or
regulations bar the use of Federal funds
to meet matching requirements. For
example, payments from the Fiscal
Recovery Funds may not be used to
satisfy the State share of Medicaid.170
As provided for in the award terms,
payments from the Fiscal Recovery
Funds as a general matter will be subject
to the provisions of the Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards (2 CFR part 200) (the
Uniform Guidance), including the cost
principles and restrictions on general
provisions for selected items of cost.
D. Timeline for Use of Fiscal Recovery
Funds
Section 602(c)(1) and section 603(c)(1)
require that payments from the Fiscal
Recovery Funds be used only to cover
costs incurred by the State, territory,
Tribal government, or local government
by December 31, 2024. Similarly, the
CARES Act provided that payments
from the CRF be used to cover costs
incurred by December 31, 2021.171 The
definition of ‘‘incurred’’ does not have
a clear meaning. With respect to the
CARES Act, on the understanding that
the CRF was intended to be used to
meet relatively short-term needs,
Treasury interpreted this requirement to
mean that, for a cost to be considered to
have been incurred, performance of the
service or delivery of the goods acquired
must occur by December 31, 2021. In
contrast, the ARPA, passed at a different
stage of the COVID–19 public health
emergency, was intended to provide
more general fiscal relief over a broader
timeline. In addition, the ARPA
expressly permits the use of Fiscal
Recovery Funds for improvements to
water, sewer, and broadband
infrastructure, which entail a longer
timeframe. In recognition of this,
Treasury is interpreting the requirement
in section 602 and section 603 that costs
be incurred by December 31, 2024, to
require only that recipients have
obligated the Fiscal Recovery Funds by
such date. The interim final rule adopts
a definition of ‘‘obligation’’ that is based
on the definition used for purposes of
the Uniform Guidance, which will allow
for uniform administration of this
requirement and is a definition with
which most recipients will be familiar.
Payments from the Fiscal Recovery
Funds are grants provided to recipients
to mitigate the fiscal effects of the
COVID–19 public health emergency and
to respond to the public health
emergency, consistent with the eligible
uses enumerated in sections 602(c)(1)
and 603(c)(1).172 As such, these funds
are intended to provide economic
stimulus in areas still recovering from
the economic effects of the pandemic. In
implementing and interpreting these
provisions, including what it means to
‘‘respond to’’ the COVID–19 public
health emergency, Treasury takes into
consideration pre-pandemic facts and
circumstances (e.g., average revenue
growth prior to the pandemic) as well as
impact of the pandemic that predate the
enactment of the ARPA (e.g.,
replenishing Unemployment Trust
balances drawn during the pandemic).
While assessing the effects of the
COVID–19 public health emergency
necessarily takes into consideration the
facts and circumstances that predate the
ARPA, use of Fiscal Recovery Funds is
forward looking.
As discussed above, recipients are
permitted to use payments from the
Fiscal Recovery Funds to respond to the
public health emergency, to respond to
workers performing essential work by
providing premium pay or providing
grants to eligible employers, and to
make necessary investments in water,
sewer, or broadband infrastructure,
which all relate to prospective uses. In
addition, sections 602(c)(1)(C) and
603(c)(1)(C) permit recipients to use
Fiscal Recovery Funds for the provision
of government services. This clause
provides that the amount of funds that
may be used for this purpose is
measured by reference to the reduction
in revenue due to the public health
emergency relative to revenues collected
in the most recent full fiscal year, but
this reference does not relate to the
period during which recipients may use
the funds, which instead refers to
prospective uses, consistent with the
other eligible uses.
Although as discussed above the
eligible uses of payments from the
Fiscal Recovery Funds are all
prospective in nature, Treasury
considers the beginning of the covered
period for purposes of determining
compliance with section 602(c)(2)(A) to
be the relevant reference point for this
purpose. The interim final rule thus
permits funds to be used to cover costs
incurred beginning on March 3, 2021.
This aligns the period for use of Fiscal
Recovery Funds with the period during
which these funds may not be used to
offset reductions in net tax revenue.
Permitting Fiscal Recovery Funds to be
used to cover costs incurred beginning
on this date will also mean that
recipients that began incurring costs in
the anticipation of enactment of the
ARPA and in advance of the issuance of
this rule and receipt of payment from
the Fiscal Recovery Funds would be
able to cover them using these
payments.173
As set forth in the award terms, the
period of performance will run until
December 31, 2026, which will provide
recipients a reasonable amount of time
to complete projects funded with
payments from the Fiscal Recovery
Funds.
IV. Recoupment Process
Under the ARPA, failure to comply
with the restrictions on use contained in
sections 602(c) and 603(c) of the Act
may result in recoupment of funds.174
The interim final rule implements these
provisions by establishing a process for
recoupment.
Identification and Notice of
Violations. Failure to comply with the
restrictions on use will be identified
based on reporting provided by the
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26812 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
175The interim final rule also provides that
Treasury may extend any deadlines.
176With respect to Federal financial assistance
more generally, States are subject to the
requirements of the Cash Management
Improvement Act (CMIA), under which Federal
funds are drawn upon only on an as needed basis
and States are required to remit interest on unused
balances to Treasury. Given the statutory
requirement for Treasury to make payments to
States within a certain period, these requirements
of the CMIA and Treasury’s implementing
regulations at 31 CFR part 205 will not apply to
payments from the Fiscal Recovery Funds.
Providing funding in two tranches to the majority
of States reflects, to the maximum extent permitted
by section 602 of the Act, the general principles of
Federal cash management and stewardship of
Federal funding, yet will be much less restrictive
than the usual requirements to which States are
subject.
177The potential course of the virus, and its
impact on the economy, has contributed to a
heightened degree of uncertainty relative to prior
periods. See, e.g., Dave Altig et al., Economic
uncertainty before and during the COVID–19
pandemic, J. of Public Econ. (Nov. 2020), available
at https://www.sciencedirect.com/science/article/
abs/pii/S0047272720301389.
recipient. As discussed further in
Sections III.B and VIII of this
SUPPLEMENTARY INFORMATION, Treasury
will collect information regarding
eligible uses on a quarterly basis and on
the tax offset provision on an annual
basis. Treasury also may consider other
information in identifying a violation,
such as information provided by
members of the public. If Treasury
identifies a violation, it will provide
written notice to the recipient along
with an explanation of such amounts.
Request for Reconsideration. Under
the interim final rule, a recipient may
submit a request for reconsideration of
any amounts identified in the notice
provided by Treasury. This
reconsideration process provides a
recipient the opportunity to submit
additional information it believes
supports its request in light of the notice
of recoupment, including, for example,
additional information regarding the
recipient’s use of Fiscal Recovery Funds
or its tax revenues. The process also
provides the Secretary with an
opportunity to consider all information
relevant to whether a violation has
occurred, and if so, the appropriate
amount for recoupment.
The interim final rule also establishes
requirements for the timing of a request
for reconsideration. Specifically, if a
recipient wishes to request
reconsideration of any amounts
identified in the notice, the recipient
must submit a written request for
reconsideration to the Secretary within
60 calendar days of receipt of such
notice. The request must include an
explanation of why the recipient
believes that the finding of a violation
or recoupable amount identified in the
notice of recoupment should be
reconsidered. To facilitate the
Secretary’s review of a recipient’s
request for reconsideration, the request
should identify all supporting reasons
for the request. Within 60 calendar days
of receipt of the recipient’s request for
reconsideration, the recipient will be
notified of the Secretary’s decision to
affirm, withdraw, or modify the notice
of recoupment. Such notification will
include an explanation of the decision,
including responses to the recipient’s
supporting reasons and consideration of
additional information provided.
The process and timeline established
by the interim final rule are intended to
provide the recipient with an adequate
opportunity to fully present any issues
or arguments in response to the notice
of recoupment.175 This process will
allow the Secretary to respond to the
issues and considerations raised in the
request for reconsideration taking into
account the information and arguments
presented by the recipient along with
any other relevant information.
Repayment. Finally, the interim final
rule provides that any amounts subject
to recoupment must be repaid within
120 calendar days of receipt of any final
notice of recoupment or, if the recipient
has not requested reconsideration,
within 120 calendar days of the initial
notice provided by the Secretary.
Question 34: Discuss the timeline for
requesting reconsideration under the
interim final rule. What, if any,
challenges does this timeline present?
V. Payments in Tranches to Local
Governments and Certain States
Section 603 of the Act provides that
the Secretary will make payments to
local governments in two tranches, with
the second tranche being paid twelve
months after the first payment. In
addition, section 602(b)(6)(A)(ii)
provides that the Secretary may
withhold payment of up to 50 percent
of the amount allocated to each State
and territory for a period of up to twelve
months from the date on which the
State or territory provides its
certification to the Secretary. Any such
withholding for a State or territory is
required to be based on the
unemployment rate in the State or
territory as of the date of the
certification.
The Secretary has determined to
provide in this interim final rule for
withholding of 50 percent of the amount
of Fiscal Recovery Funds allocated to all
States (and the District of Columbia)
other than those with an unemployment
rate that is 2.0 percentage points or
more above its pre-pandemic (i.e.,
February 2020) level. The Secretary will
refer to the latest available monthly data
from the Bureau of Labor Statistics as of
the date the certification is provided.
Based on data available at the time of
public release of this interim final rule,
this threshold would result in a majority
of States being paid in two tranches.
Splitting payments for the majority of
States is consistent with the
requirement in section 603 of the Act to
make payments from the Coronavirus
Local Fiscal Recovery Fund to local
governments in two tranches.176
Splitting payments to States into two
tranches will help encourage recipients
to adapt, as necessary, to new
developments that could arise over the
coming twelve months, including
potential changes to the nature of the
public health emergency and its
negative economic impacts. While the
U.S. economy has been recovering and
adding jobs in aggregate, there is still
considerable uncertainty in the
economic outlook and the interaction
between the pandemic and the
economy.177 For these reasons, Treasury
believes it will be appropriate for a
majority of recipients to adapt their
plans as the recovery evolves. For
example, a faster-than-expected
economic recovery in 2021 could lead a
recipient to dedicate more Fiscal
Recovery Funds to longer-term
investments starting in 2022. In
contrast, a slower-than-expected
economic recovery in 2021 could lead a
recipient to use additional funds for
near-term stimulus in 2022.
At the same time, the statute
contemplates the possibility that
elevated unemployment in certain
States could justify a single payment.
Elevated unemployment is indicative of
a greater need to assist unemployed
workers and stimulate a faster economic
recovery. For this reason, the interim
final rule provides that States and
territories with an increase in their
unemployment rate over a specified
threshold may receive a single payment,
with the expectation that a single
tranche will better enable these States
and territories to take additional
immediate action to aid the unemployed
and strengthen their economies.
Following the initial pandemic-
related spike in unemployment in 2020,
States’ unemployment rates have been
trending back towards pre-pandemic
levels. However, some States’ labor
markets are healing more slowly than
others. Moreover, States varied widely
in their pre-pandemic levels of
unemployment, and some States remain
substantially further from their pre-
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178Includes the period during and immediately
following recessions, as defined by the National
Bureau of Economic Research. National Bureau of
Economic Research, US Business Cycle Expansions
and Contractions, https://www.nber.org/research/
data/us-business-cycle-expansions-and-
contractions (last visited Apr. 27, 2021). Based on
data from U.S. Bureau of Labor Statistics,
Unemployment Rate [UNRATE], retrieved from
FRED, Federal Reserve Bank of St. Louis, https://
fred.stlouisfed.org/series/UNRATE (last visited Apr.
27, 2021).
179U.S. Bureau of Labor Statistics, Economic
News Release—Table 1. Civilian labor force and
unemployment by state and selected area,
seasonally adjusted, https://www.bls.gov/
news.release/laus.t01.htm (last visited Apr. 30,
2021). 180Section 602(c)(3) of the Act.
pandemic starting point. Consequently,
Treasury is delineating States with
significant remaining elevation in the
unemployment rate, based on the net
difference to pre-pandemic levels.
Treasury has established that
significant remaining elevation in the
unemployment rate is a net change in
the unemployment rate of 2.0
percentage points or more relative to
pre-pandemic levels. In the four
previous recessions going back to the
early 1980s, the national unemployment
rate rose by 3.6, 2.3, 2.0, and 5.0
percentage points, as measured from the
start of the recession to the eventual
peak during or immediately following
the recession.178 Each of these increases
can therefore represent a recession’s
impact on unemployment. To identify
States with significant remaining
elevation in unemployment, Treasury
took the lowest of these four increases,
2.0 percentage points, to indicate states
where, despite improvement in the
unemployment rate, current labor
market conditions are consistent still
with a historical benchmark for a
recession.
No U.S. territory will be subject to
withholding of its payment from the
Fiscal Recovery Funds. For Puerto Rico,
the Secretary has determined that the
current level of the unemployment rate
(8.8 percent, as of March 2021179) is
sufficiently high such that Treasury
should not withhold any portion of its
payment from the Fiscal Recovery
Funds regardless of its change in
unemployment rate relative to its pre-
pandemic level. For U.S. territories that
are not included in the Bureau of Labor
Statistics’ monthly unemployment rate
data, the Secretary will not exercise the
authority to withhold amounts from the
Fiscal Recovery Funds.
VI. Transfer
The statute authorizes State,
territorial, and Tribal governments;
counties; metropolitan cities; and
nonentitlement units of local
government (counties, metropolitan
cities, and nonentitlement units of local
government are collectively referred to
as ‘‘local governments’’) to transfer
amounts paid from the Fiscal Recovery
Funds to a number of specified entities.
By permitting these transfers, Congress
recognized the importance of providing
flexibility to governments seeking to
achieve the greatest impact with their
funds, including by working with other
levels or units of government or private
entities to assist recipient governments
in carrying out their programs. This
includes special-purpose districts that
perform specific functions in the
community, such as fire, water, sewer,
or mosquito abatement districts.
Specifically, under section 602(c)(3), a
State, territory, or Tribal government
may transfer funds to a ‘‘private
nonprofit organization . . . a Tribal
organization . . . a public benefit
corporation involved in the
transportation of passengers or cargo, or
a special-purpose unit of State or local
government.’’180 Similarly, section
603(c)(3) authorizes a local government
to transfer funds to the same entities
(other than Tribal organizations).
The interim final rule clarifies that the
lists of transferees in sections 602(c)(3)
and 603(c)(3) are not exclusive. The
interim final rule permits State,
territorial, and Tribal governments to
transfer Fiscal Recovery Funds to other
constituent units of government or
private entities beyond those specified
in the statute. Similarly, local
governments are authorized to transfer
Fiscal Recovery Funds to other
constituent units of government (e.g., a
county is able to transfer Fiscal
Recovery Funds to a city, town, or
school district within it) or to private
entities. This approach is intended to
help provide funding to local
governments with needs that may
exceed the allocation provided under
the statutory formula.
State, local, territorial, and Tribal
governments that receive a Federal
award directly from a Federal awarding
agency, such as Treasury, are
‘‘recipients.’’ A transferee receiving a
transfer from a recipient under sections
602(c)(3) and 603(c)(3) will be a
subrecipient. Subrecipients are entities
that receive a subaward from a recipient
to carry out a program or project on
behalf of the recipient with the
recipient’s Federal award funding. The
recipient remains responsible for
monitoring and overseeing the
subrecipient’s use of Fiscal Recovery
Funds and other activities related to the
award to ensure that the subrecipient
complies with the statutory and
regulatory requirements and the terms
and conditions of the award. Recipients
also remain responsible for reporting to
Treasury on their subrecipients’ use of
payments from the Fiscal Recovery
Funds for the duration of the award.
Transfers under sections 602(c)(3) and
603(c)(3) must qualify as an eligible use
of Fiscal Recovery Funds by the
transferor. Once Fiscal Recovery Funds
are received, the transferee must abide
by the restrictions on use applicable to
the transferor under the ARPA and other
applicable law and program guidance.
For example, if a county transferred
Fiscal Recovery Funds to a town within
its borders to respond to the COVID–19
public health emergency, the town
would be bound by the eligible use
requirements applicable to the county in
carrying out the county’s goal. This also
means that county A may not transfer
Fiscal Recovery Funds to county B for
use in county B because such a transfer
would not, from the perspective of the
transferor (county A), be an eligible use
in county A.
Section 603(c)(4) separately provides
for transfers by a local government to its
State or territory. A transfer under
section 603(c)(4) will not make the State
a subrecipient of the local government,
and such Fiscal Recovery Funds may be
used by the State for any purpose
permitted under section 602(c). A
transfer under section 603(c)(4) will
result in a cancellation or termination of
the award on the part of the transferor
local government and a modification of
the award to the transferee State or
territory. The transferor must provide
notice of the transfer to Treasury in a
format specified by Treasury. If the local
government does not provide such
notice, it will remain legally obligated to
Treasury under the award and remain
responsible for ensuring that the
awarded Fiscal Recovery Funds are
being used in accordance with the
statute and program guidance and for
reporting on such uses to Treasury. A
State that receives a transfer from a local
government under section 603(c)(4) will
be bound by all of the use restrictions
set forth in section 602(c) with respect
to the use of those Fiscal Recovery
Funds, including the prohibitions on
use of such Fiscal Recovery Funds to
offset certain reductions in taxes or to
make deposits into pension funds.
Question 35: What are the advantages
and disadvantages of treating the list of
transferees in sections 602(c)(3) and
603(c)(3) as nonexclusive, allowing
States and localities to transfer funds to
entities outside of the list?
Question 36: Are there alternative
ways of defining ‘‘special-purpose unit
of State or local government’’ and
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‘‘public benefit corporation’’ that would
better further the aims of the Funds?
VII. Nonentitlement Units of
Government
The Fiscal Recovery Funds provides
for $19.53 billion in payments to be
made to States and territories which
will distribute the funds to
nonentitlement units of local
government (NEUs); local governments
which generally have populations below
50,000. These local governments have
not yet received direct fiscal relief from
the Federal Government during the
COVID–19 public health emergency,
making Fiscal Recovery Funds
payments an important source of
support for their public health and
economic responses. Section 603
requires Treasury to allocate and pay
Fiscal Recovery Funds to the States and
territories and requires the States and
territories to distribute Fiscal Recovery
Funds to NEUs based on population
within 30 days of receipt unless an
extension is granted by the Secretary.
The interim final rule clarifies certain
aspects regarding the distribution of
Fiscal Recovery by States and territories
to NEUs, as well as requirements around
timely payments from the Fiscal
Recovery Funds.
The ARPA requires that States and
territories allocate funding to NEUs in
an amount that bears the same
proportion as the population of the NEU
bears to the total population of all NEUs
in the State or territory, subject to a cap
(described below). Because the statute
requires States and territories to make
distributions based on population,
States and territories may not place
additional conditions or requirements
on distributions to NEUs, beyond those
required by the ARPA and Treasury’s
implementing regulations and guidance.
For example, a State may not impose
stricter limitations than permitted by
statute or Treasury regulations or
guidance on an NEU’s use of Fiscal
Recovery Funds based on the NEU’s
proposed spending plan or other
policies. States and territories are also
not permitted to offset any debt owed by
the NEU against the NEU’s distribution.
Further, States and territories may not
provide funding on a reimbursement
basis—e.g., requiring NEUs to pay for
project costs up front before being
reimbursed with Fiscal Recovery Funds
payments—because this funding model
would not comport with the statutory
requirement that States and territories
make distributions to NEUs within the
statutory timeframe.
Similarly, States and territories
distributing Fiscal Recovery Funds
payments to NEUs are responsible for
complying with the Fiscal Recovery
Funds statutory requirement that
distributions to NEUs not exceed 75
percent of the NEU’s most recent
budget. The most recent budget is
defined as the NEU’s most recent annual
total operating budget, including its
general fund and other funds, as of
January 27, 2020. Amounts in excess of
such cap and therefore not distributed
to the NEU must be returned to Treasury
by the State or territory. States and
territories may rely for this
determination on a certified top-line
budget total from the NEU.
Under the interim final rule, the total
allocation and distribution to an NEU,
including the sum of both the first and
second tranches of funding, cannot
exceed the 75 percent cap. States and
territories must permit NEUs without
formal budgets as of January 27, 2020 to
self-certify their most recent annual
expenditures as of January 27, 2020 for
the purpose of calculating the cap. This
approach will provide an administrable
means to implement the cap for small
local governments that do not adopt a
formal budget.
Section 603(b)(3) of the Social
Security Act provides for Treasury to
make payments to counties but provides
that, in the case of an amount to be paid
to a county that is not a unit of general
local government, the amount shall
instead be paid to the State in which
such county is located, and such State
shall distribute such amount to each
unit of general local government within
such county in an amount that bears the
same proportion to the amount to be
paid to such county as the population
of such units of general local
government bears to the total population
of such county. As with NEUs, States
may not place additional conditions or
requirements on distributions to such
units of general local government,
beyond those required by the ARPA and
Treasury’s implementing regulations
and guidance.
In the case of consolidated
governments, section 603(b)(4) allows
consolidated governments (e.g., a city-
county consolidated government) to
receive payments under each allocation
based on the respective formulas. In the
case of a consolidated government,
Treasury interprets the budget cap to
apply to the consolidated government’s
NEU allocation under section 603(b)(2)
but not to the consolidated
government’s county allocation under
section 603(b)(3).
If necessary, States and territories may
use the Fiscal Recovery Funds under
section 602(c)(1)(A) to fund expenses
related to administering payments to
NEUs and units of general local
government, as disbursing these funds
itself is a response to the public health
emergency and its negative economic
impacts. If a State or territory requires
more time to disburse Fiscal Recovery
Funds to NEUs than the allotted 30
days, Treasury will grant extensions of
not more than 30 days for States and
territories that submit a certification in
writing in accordance with section
603(b)(2)(C)(ii)(I). Additional extensions
may be granted at the discretion of the
Secretary.
Question 37: What are alternative
ways for States and territories to enforce
the 75 percent cap while reducing the
administrative burden on them?
Question 38: What criteria should
Treasury consider in assessing requests
for extensions for further time to
distribute NEU payments?
VIII. Reporting
States (defined to include the District
of Columbia), territories, metropolitan
cities, counties, and Tribal governments
will be required to submit one interim
report and thereafter quarterly Project
and Expenditure reports through the
end of the award period on December
31, 2026. The interim report will
include a recipient’s expenditures by
category at the summary level from the
date of award to July 31, 2021 and, for
States and territories, information
related to distributions to
nonentitlement units. Recipients must
submit their interim report to Treasury
by August 31, 2021. Nonentitlement
units of local government are not
required to submit an interim report.
The quarterly Project and Expenditure
reports will include financial data,
information on contracts and subawards
over $50,000, types of projects funded,
and other information regarding a
recipient’s utilization of the award
funds. The reports will include the same
general data (e.g., on obligations,
expenditures, contracts, grants, and sub-
awards) as those submitted by recipients
of the CRF, with some modifications.
Modifications will include updates to
the expenditure categories and the
addition of data elements related to
specific eligible uses, including some of
the reporting elements described in
sections above. The initial quarterly
Project and Expenditure report will
cover two calendar quarters from the
date of award to September 30, 2021,
and must be submitted to Treasury by
October 31, 2021. The subsequent
quarterly reports will cover one
calendar quarter and must be submitted
to Treasury within 30 days after the end
of each calendar quarter.
Nonentitlement units of local
government will be required to submit
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26815 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
1815 U.S.C. 553(a)(2).
1825 U.S.C. 553(b)(3)(B); see also 5 U.S.C.
553(d)(3) (creating an exception to the requirement
of a 30-day delay before the effective date of a rule
‘‘for good cause found and published with the
rule’’).
annual Project and Expenditure reports
until the end of the award period on
December 31, 2026. The initial annual
Project and Expenditure report for
nonentitlement units of local
government will cover activity from the
date of award to September 30, 2021
and must be submitted to Treasury by
October 31, 2021. The subsequent
annual reports must be submitted to
Treasury by October 31 each year.
States, territories, metropolitan cities,
and counties with a population that
exceeds 250,000 residents will also be
required to submit an annual Recovery
Plan Performance report to Treasury.
The Recovery Plan Performance report
will provide the public and Treasury
information on the projects that
recipients are undertaking with program
funding and how they are planning to
ensure project outcomes are achieved in
an effective, efficient, and equitable
manner. Each jurisdiction will have
some flexibility in terms of the form and
content of the Recovery Plan
Performance report, as long as it
includes the minimum information
required by Treasury. The Recovery
Plan Performance report will include
key performance indicators identified
by the recipient and some mandatory
indicators identified by Treasury, as
well as programmatic data in specific
eligible use categories and the specific
reporting requirements described in the
sections above. The initial Recovery
Plan Performance report will cover the
period from the date of award to July 31,
2021 and must be submitted to Treasury
by August 31, 2021. Thereafter,
Recovery Plan Performance reports will
cover a 12-month period, and recipients
will be required to submit the report to
Treasury within 30 days after the end of
the 12-month period. The second
Recovery Plan Performance report will
cover the period from July 1, 2021 to
June 30, 2022, and must be submitted to
Treasury by July 31, 2022. Each annual
Recovery Plan Performance report must
be posted on the public-facing website
of the recipient. Local governments with
fewer than 250,000 residents, Tribal
governments, and nonentitlement units
of local government are not required to
develop a Recovery Plan Performance
report.
Treasury will provide additional
guidance and instructions on the
reporting requirements outlined above
for the Fiscal Recovery Funds at a later
date.
IX. Comments and Effective Date
This interim final rule is being issued
without advance notice and public
comment to allow for immediate
implementation of this program. As
discussed below, the requirements of
advance notice and public comment do
not apply ‘‘to the extent that there is
involved . . . a matter relating to agency
. . . grants.’’
181 The interim final rule
implements statutory conditions on the
eligible uses of the Fiscal Recovery
Funds grants, and addresses the
payment of those funds, the reporting
on uses of funds, and potential
consequences of ineligible uses. In
addition and as discussed below, the
Administrative Procedure Act also
provides an exception to ordinary
notice-and-comment procedures ‘‘when
the agency for good cause finds (and
incorporates the finding and a brief
statement of reasons therefor in the
rules issued) that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.’’182 This good cause
justification also supports waiver of the
60-day delayed effective date for major
rules under the Congressional Review
Act at 5 U.S.C. 808(2). Although this
interim final rule is effective
immediately, comments are solicited
from interested members of the public
and from recipient governments on all
aspects of the interim final rule.
These comments must be submitted
on or before July 16, 2021.
X. Regulatory Analyses
Executive Orders 12866 and 13563
This interim final rule is
economically significant for the
purposes of Executive Orders 12866 and
13563. Treasury, however, is proceeding
under the emergency provision at
Executive Order 12866 section 6(a)(3)(D)
based on the need to act expeditiously
to mitigate the current economic
conditions arising from the COVID–19
public health emergency. The rule has
been reviewed by the Office of
Management and Budget (OMB) in
accordance with Executive Order 12866.
This rule is necessary to implement the
ARPA in order to provide economic
relief to State, local, and Tribal
governments adversely impacted by the
COVID–19 public health emergency.
Under Executive Order 12866, OMB
must determine whether this regulatory
action is ‘‘significant’’ and, therefore,
subject to the requirements of the
Executive Order and subject to review
by OMB. Section 3(f) of Executive Order
12866 defines a significant regulatory
action as an action likely to result in a
rule that may:
(1) Have an annual effect on the
economy of $100 million or more, or
adversely affect a sector of the economy;
productivity; competition; jobs; the
environment; public health or safety; or
State, local, or Tribal governments or
communities in a material way (also
referred to as ‘‘economically significant’’
regulations);
(2) Create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impacts of entitlements, grants, user
fees, or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
stated in the Executive order.
This regulatory action is an
economically significant regulatory
action subject to review by OMB under
section 3(f) of Executive Order 12866.
Treasury has also reviewed these
regulations under Executive Order
13563, which supplements and
explicitly reaffirms the principles,
structures, and definitions governing
regulatory review established in
Executive Order 12866. To the extent
permitted by law, section 1(b) of
Executive Order 13563 requires that an
agency:
(1) Propose or adopt regulations only
upon a reasoned determination that
their benefits justify their costs
(recognizing that some benefits and
costs are difficult to quantify);
(2) Tailor its regulations to impose the
least burden on society, consistent with
obtaining regulatory objectives taking
into account, among other things, and to
the extent practicable, the costs of
cumulative regulations;
(3) Select, in choosing among
alternative regulatory approaches, those
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety,
and other advantages; distributive
impacts; and equity);
(4) To the extent feasible, specify
performance objectives, rather than the
behavior or manner of compliance a
regulated entity must adopt; and
(5) Identify and assess available
alternatives to direct regulation,
including providing economic
incentives—such as user fees or
marketable permits—to encourage the
desired behavior, or providing
information that enables the public to
make choices.
Executive Order 13563 also requires
an agency ‘‘to use the best available
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26816 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
183Gabriel Chodorow-Reich et al., Does State
Fiscal Relief during Recessions Increase
Employment? Evidence from the American
Recovery and Reinvestment Act, American Econ. J.:
Econ. Policy, 4:3 118–45 (Aug. 2012), available at
https://www.aeaweb.org/articles?id=10.1257/
pol.4.3.118.
184See, e.g., Fitzpatrick, Haughwout & Setren,
Fiscal Drag from the State and Local Sector?,
Liberty Street Economics Blog, Federal Reserve
Bank of New York (June 27, 2012), https://
www.libertystreeteconomics.newyorkfed.org/2012/
06/fiscal-drag-from-the-state-and-local-sector.html;
Jiri Jonas, Great Recession and Fiscal Squeeze at
U.S. Subnational Government Level, IMF Working
Paper 12/184, (July 2012), available at https://
www.imf.org/external/pubs/ft/wp/2012/
wp12184.pdf; Gordon, supra note 9.
techniques to quantify anticipated
present and future benefits and costs as
accurately as possible.’’ OMB’s Office of
Information and Regulatory Affairs
(OIRA) has emphasized that these
techniques may include ‘‘identifying
changing future compliance costs that
might result from technological
innovation or anticipated behavioral
changes.’’
Treasury has assessed the potential
costs and benefits, both quantitative and
qualitative, of this regulatory action, and
is issuing this interim final rule only on
a reasoned determination that the
benefits exceed the costs. In choosing
among alternative regulatory
approaches, Treasury selected those
approaches that would maximize net
benefits. Based on the analysis that
follows and the reasons stated
elsewhere in this document, Treasury
believes that this interim final rule is
consistent with the principles set forth
in Executive Order 13563.
Treasury also has determined that this
regulatory action does not unduly
interfere with States, territories, Tribal
governments, and localities in the
exercise of their governmental
functions.
This Regulatory Impact Analysis
discusses the need for regulatory action,
the potential benefits, and the potential
costs.
Need for Regulatory Action. This
interim final rule implements the $350
billion Fiscal Recovery Funds of the
ARPA, which Congress passed to help
States, territories, Tribal governments,
and localities respond to the ongoing
COVID–19 public health emergency and
its economic impacts. As the agency
charged with execution of these
programs, Treasury has concluded that
this interim final rule is needed to
ensure that recipients of Fiscal Recovery
Funds fully understand the
requirements and parameters of the
program as set forth in the statute and
deploy funds in a manner that best
reflects Congress’ mandate for targeted
fiscal relief.
This interim final rule is primarily a
transfer rule: It transfers $350 billion in
aid from the Federal Government to
states, territories, Tribal governments,
and localities, generating a significant
macroeconomic effect on the U.S.
economy. In making this transfer,
Treasury has sought to implement the
program in ways that maximize its
potential benefits while minimizing its
costs. It has done so by aiming to target
relief in key areas according to the
congressional mandate; offering clarity
to States, territories, Tribal
governments, and localities while
maintaining their flexibility to respond
to local needs; and limiting
administrative burdens.
Analysis of Benefits. Relative to a pre-
statutory baseline, the Fiscal Recovery
Funds provide a combined $350 billion
to State, local, and Tribal governments
for fiscal relief and support for costs
incurred responding to the COVID–19
pandemic. Treasury believes that this
transfer will generate substantial
additional economic activity, although
given the flexibility accorded to
recipients in the use of funds, it is not
possible to precisely estimate the extent
to which this will occur and the timing
with which it will occur. Economic
research has demonstrated that state
fiscal relief is an efficient and effective
way to mitigate declines in jobs and
output during an economic
downturn.183 Absent such fiscal relief,
fiscal austerity among State, local, and
Tribal governments could exert a
prolonged drag on the overall economic
recovery, as occurred following the
2007–09 recession.184
This interim final rule provides
benefits across several areas by
implementing the four eligible funding
uses, as defined in statute:
Strengthening the response to the
COVID–19 public health emergency and
its economic impacts; easing fiscal
pressure on State, local, and Tribal
governments that might otherwise lead
to harmful cutbacks in employment or
government services; providing
premium pay to essential workers; and
making necessary investments in certain
types of infrastructure. In implementing
the ARPA, Treasury also sought to
support disadvantaged communities
that have been disproportionately
impacted by the pandemic. The Fiscal
Recovery Funds as implemented by the
interim final rule can be expected to
channel resources toward these uses in
order to achieve substantial near-term
economic and public health benefits, as
well as longer-term benefits arising from
the allowable investments in water,
sewer, and broadband infrastructure and
aid to families.
These benefits are achieved in the
interim final rule through a broadly
flexible approach that sets clear
guidelines on eligible uses of Fiscal
Recovery Funds and provides State,
local, and Tribal government officials
discretion within those eligible uses to
direct Fiscal Recovery Funds to areas of
greatest need within their jurisdiction.
While preserving recipients’ overall
flexibility, the interim final rule
includes several provisions that
implement statutory requirements and
will help support use of Fiscal Recovery
Funds to achieve the intended benefits.
The remainder of this section clarifies
how Treasury’s approach to key
provisions in the interim final rule will
contribute to greater realization of
benefits from the program.
•Revenue Loss: Recipients will
compute the extent of reduction in
revenue by comparing actual revenue to
a counterfactual trend representing what
could have plausibly been expected to
occur in the absence of the pandemic.
The counterfactual trend begins with
the last full fiscal year prior to the
public health emergency (as required by
statute) and projects forward with an
annualized growth adjustment.
Treasury’s decision to incorporate a
growth adjustment into the calculation
of revenue loss ensures that the formula
more fully captures revenue shortfalls
relative to recipients’ pre-pandemic
expectations. Moreover, recipients will
have the opportunity to re-calculate
revenue loss at several points
throughout the program, recognizing
that some recipients may experience
revenue effects with a lag. This option
to re-calculate revenue loss on an
ongoing basis should result in more
support for recipients to avoid harmful
cutbacks in future years. In calculating
revenue loss, recipients will look at
general revenue in the aggregate, rather
than on a source-by-source basis. Given
that recipients may have experienced
offsetting changes in revenues across
sources, Treasury’s approach provides a
more accurate representation of the
effect of the pandemic on overall
revenues.
•Premium Pay: Per the statute,
recipients have broad latitude to
designate critical infrastructure sectors
and make grants to third-party
employers for the purpose of providing
premium pay or otherwise respond to
essential workers. While the interim
final rule generally preserves the
flexibility in the statute, it does add a
requirement that recipients give written
justification in the case that premium
pay would increase a worker’s annual
pay above a certain threshold. To set
this threshold, Treasury analyzed data
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26817 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
185Executive Order on Advancing Racial Equity
and Support for Underserved Communities through
the Federal Government (Jan. 20, 2021) (86 FR 7009,
January 25, 2021), https://www.whitehouse.gov/
briefing-room/presidential-actions/2021/01/20/
executive-order-advancing-racial-equity-and-
support-for-underserved-communities-through-the-
federal-government/ (last visited May 9, 2021).
186David Cooper, Mary Gable & Algernon Austin,
Economic Policy Institute Briefing Paper, The
Public-Sector Jobs Crisis: Women and African
Americans hit hardest by job losses in state and
local governments, https://www.epi.org/
publication/bp339-public-sector-jobs-crisis (last
visited May 9, 2021).
from the Bureau of Labor Statistics to
determine a level that would not require
further justification for premium pay to
the vast majority of essential workers,
while requiring higher scrutiny for
provision of premium pay to higher-
earners who, even without premium
pay, would likely have greater personal
financial resources to cope with the
effects of the pandemic. Treasury
believes the threshold in the interim
final rule strikes the appropriate balance
between preserving flexibility and
helping encourage use of these
resources to help those in greatest need.
The interim final rule also requires that
eligible workers have regular in-person
interactions or regular physical
handling of items that were also
handled by others. This requirement
will also help encourage use of financial
resources for those who have endured
the heightened risk of performing
essential work.
•Withholding of Payments to
Recipients: Treasury believes that for
the vast majority of recipient entities, it
will be appropriate to receive funds in
two separate payments. As discussed
above, withholding of payments ensures
that recipients can adapt spending plans
to evolving economic conditions and
that at least some of the economic
benefits will be realized in 2022 or later.
However, consistent with authorities
granted to Treasury in the statute,
Treasury recognizes that a subset of
States with significant remaining
elevation in the unemployment rate
could face heightened additional near-
term needs to aid unemployed workers
and stimulate the recovery. Therefore,
for a subset of State governments,
Treasury will not withhold any funds
from the first payment. Treasury
believes that this approach strikes the
appropriate balance between the general
reasons to provide funds in two
payments and the heightened additional
near-term needs in specific States. As
discussed above, Treasury set a
threshold based on historical analysis of
unemployment rates in recessions.
•Hiring Public Sector Employees:
The interim final rule states explicitly
that recipients may use funds to restore
their workforces up to pre-pandemic
levels. Treasury believes that this
statement is beneficial because it
eliminates any uncertainty that could
cause delays or otherwise negatively
impact restoring public sector
workforces (which, at time of
publication, remain significantly below
pre-pandemic levels).
Finally, the interim final rule aims to
promote and streamline the provision of
assistance to individuals and
communities in greatest need,
particularly communities that have been
historically disadvantaged and have
experienced disproportionate impacts of
the COVID–19 crisis. Targeting relief is
in line with Executive Order 13985,
‘‘Advancing Racial Equity and Support
for Underserved Communities Through
the Federal Government,’’ which laid
out an Administration-wide priority to
support ‘‘equity for all, including people
of color and others who have been
historically underserved, marginalized,
and adversely affected by persistent
poverty and inequality.’’185 To this end,
the interim final rule enumerates a list
of services that may be provided using
Fiscal Recovery Funds in low-income
areas to address the disproportionate
impacts of the pandemic in these
communities; establishes the
characteristics of essential workers
eligible for premium pay and
encouragement to serve workers based
on financial need; provides that
recipients may use Fiscal Recovery
Funds to restore (to pre-pandemic
levels) state and local workforces, where
women and people of color are
disproportionately represented;186 and
targets investments in broadband
infrastructure to unserved and
underserved areas. Collectively, these
provisions will promote use of resources
to facilitate the provision of assistance
to individuals and communities with
the greatest need.
Analysis of Costs. This regulatory
action will generate administrative costs
relative to a pre-statutory baseline. This
includes, chiefly, costs required to
administer Fiscal Recovery Funds,
oversee subrecipients and beneficiaries,
and file periodic reports with Treasury.
It also requires States to allocate Fiscal
Recovery Funds to nonentitlement
units, which are smaller units of local
government that are statutorily required
to receive their funds through States.
Treasury expects that the
administrative burden associated with
this program will be moderate for a
grant program of its size. Treasury
expects that most recipients receive
direct or indirect funding from Federal
Government programs and that many
have familiarity with how to administer
and report on Federal funds or grant
funding provided by other entities. In
particular, States, territories, and large
localities will have received funds from
the CRF and Treasury expects them to
rely heavily on established processes
developed last year or through prior
grant funding, mitigating burden on
these governments.
Treasury expects to provide technical
assistance to defray the costs of
administration of Fiscal Recovery Funds
to further mitigate burden. In making
implementation choices, Treasury has
hosted numerous consultations with a
diverse range of direct recipients—
States, small cities, counties, and Tribal
governments—along with various
communities across the United States,
including those that are underserved.
Treasury lacks data to estimate the
precise extent to which this interim
final rule generates administrative
burden for State, local, and Tribal
governments, but seeks comment to
better estimate and account for these
costs, as well as on ways to lessen
administrative burdens.
Executive Order 13132
Executive Order 13132 (entitled
Federalism) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial, direct compliance costs on
State, local, and Tribal governments,
and is not required by statute, or
preempts state law, unless the agency
meets the consultation and funding
requirements of section 6 of the
Executive order. This interim final rule
does not have federalism implications
within the meaning of the Executive
order and does not impose substantial,
direct compliance costs on State, local,
and Tribal governments or preempt state
law within the meaning of the Executive
order. The compliance costs are
imposed on State, local, and Tribal
governments by sections 602 and 603 of
the Social Security Act, as enacted by
the ARPA. Notwithstanding the above,
Treasury has engaged in efforts to
consult and work cooperatively with
affected State, local, and Tribal
government officials and associations in
the process of developing the interim
final rule. Pursuant to the requirements
set forth in section 8(a) of Executive
Order 13132, Treasury certifies that it
has complied with the requirements of
Executive Order 13132.
Administrative Procedure Act
The Administrative Procedure Act
(APA), 5 U.S.C. 551 et seq., generally
requires public notice and an
opportunity for comment before a rule
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26818 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
becomes effective. However, the APA
provides that the requirements of 5
U.S.C. 553 do not apply ‘‘to the extent
that there is involved . . . a matter
relating to agency . . . grants.’’ The
interim final rule implements statutory
conditions on the eligible uses of the
Fiscal Recovery Funds grants, and
addresses the payment of those funds,
the reporting on uses of funds, and
potential consequences of ineligible
uses. The rule is thus ‘‘both clearly and
directly related to a federal grant
program.’’ National Wildlife Federation
v. Snow, 561 F.2d 227, 232 (D.C. Cir.
1976). The rule sets forth the ‘‘process
necessary to maintain state . . .
eligibility for federal funds,’’ id., as well
as the ‘‘method[s] by which states can
. . . qualify for federal aid,’’ and other
‘‘integral part[s] of the grant program,’’
Center for Auto Safety v. Tiemann, 414
F. Supp. 215, 222 (D.D.C. 1976). As a
result, the requirements of 5 U.S.C. 553
do not apply.
The APA also provides an exception
to ordinary notice-and-comment
procedures ‘‘when the agency for good
cause finds (and incorporates the
finding and a brief statement of reasons
therefor in the rules issued) that notice
and public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest.’’ 5 U.S.C.
553(b)(3)(B); see also 5 U.S.C. 553(d)(3)
(creating an exception to the
requirement of a 30-day delay before the
effective date of a rule ‘‘for good cause
found and published with the rule’’).
Assuming 5 U.S.C. 553 applied,
Treasury would still have good cause
under sections 553(b)(3)(B) and
553(d)(3) for not undertaking section
553’s requirements. The ARPA is a law
responding to a historic economic and
public health emergency; it is
‘‘extraordinary’’ legislation about which
‘‘both Congress and the President
articulated a profound sense of
‘urgency.’’’ Petry v. Block, 737 F.2d
1193, 1200 (D.C. Cir. 1984). Indeed,
several provisions implemented by this
interim final rule (sections 602(c)(1)(A)
and 603(c)(1)(A)) explicitly provide
funds to ‘‘respond to the public health
emergency,’’ and the urgency is further
exemplified by Congress’s command (in
sections 602(b)(6)(B) and 603(b)(7)(A))
that, ‘‘[t]o the extent practicable,’’ funds
must be provided to Tribes and cities
‘‘not later than 60 days after the date of
enactment.’’ See Philadelphia Citizens
in Action v. Schweiker, 669 F.2d 877,
884 (3d Cir. 1982) (finding good cause
under circumstances, including
statutory time limits, where APA
procedures would have been ‘‘virtually
impossible’’). Finally, there is an urgent
need for States to undertake the
planning necessary for sound fiscal
policymaking, which requires an
understanding of how funds provided
under the ARPA will augment and
interact with existing budgetary
resources and tax policies. Treasury
understands that many states require
immediate rules on which they can rely,
especially in light of the fact that the
ARPA ‘‘covered period’’ began on
March 3, 2021. The statutory urgency
and practical necessity are good cause to
forego the ordinary requirements of
notice-and-comment rulemaking.
Congressional Review Act
The Administrator of OIRA has
determined that this is a major rule for
purposes of Subtitle E of the Small
Business Regulatory Enforcement and
Fairness Act of 1996 (also known as the
Congressional Review Act or CRA) (5
U.S.C. 804(2) et seq.). Under the CRA,
a major rule takes effect 60 days after
the rule is published in the Federal
Register. 5 U.S.C. 801(a)(3).
Notwithstanding this requirement, the
CRA allows agencies to dispense with
the requirements of section 801 when
the agency for good cause finds that
such procedure would be impracticable,
unnecessary, or contrary to the public
interest and the rule shall take effect at
such time as the agency promulgating
the rule determines. 5 U.S.C. 808(2).
Pursuant to section 808(2), for the
reasons discussed above, Treasury for
good cause finds that a 60-day delay to
provide public notice is impracticable
and contrary to the public interest.
Paperwork Reduction Act
The information collections
associated with State, territory, local,
and Tribal government applications
materials necessary to receive Fiscal
Recovery Funds (e.g., payment
information collection and acceptance
of award terms) have been reviewed and
approved by OMB pursuant to the
Paperwork Reduction Act (44 U.S.C.
chapter 35) (PRA) emergency processing
procedures and assigned control
number 1505–0271. The information
collections related to ongoing reporting
requirements, as discussed in this
interim final rule, will be submitted to
OMB for emergency processing in the
near future. Under the PRA, an agency
may not conduct or sponsor and a
respondent is not required to respond
to, an information collection unless it
displays a valid OMB control number.
Estimates of hourly burden under this
program are set forth in the table below.
Burden estimates below are preliminary.
Reporting
Number of
respondents
(estimated)
Number of
responses per
respondent
Total responses Hours per
response
Total burden
in hours
Cost to respondent
($48.80 per hour*)
Recipient Payment Form .....................5,050 1 .....................5,050 .25 (15 minutes) ...1,262.5 $61,610
Acceptance of Award Terms ...............5,050 1 .....................5,050 .25 (15 minutes) ...1,262.5 61,610
Title VI Assurances .............................5,050 1 .....................5,050 .50 (30 minutes) ...2,525 123,220
Quarterly Project and Expenditure Re-
port.
5,050 4*** ................. 20,200 25 ......................... 505,000 24,644,000
Annual Project and Expenditure Re-
port from NEUs.
TBD 1 per year ....... †20,000–40,000 15 ......................... 300,000–600,000 14,640,000–29,280,000
Annual Recovery Plan Performance
report.
418 1 per year ....... 418 100 ....................... 41,800 2,039,840
Total ..............................................(**) N/A ................. 55,768–75,768 141 ....................... 851,850–1,151,850 41,570,280–56,210,280
*Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Accountants and Auditors, on the internet at https://www.bls.gov/ooh/busi-
ness-and-financial/accountants-and-auditors.htm (visited March 28, 2020). Base wage of $33.89/hour increased by 44 percent to account for fully loaded employer
cost of employee compensation (benefits, etc.) for a fully loaded wage rate of $48.80.
**5,050–TBD.
***Per year after first year.
†(Estimate only).
Periodic reporting is required by
section 602(c) of Section VI of the Social
Security Act and under the interim final
rule.
As discussed in Section VIII of this
SUPPLEMENTARY INFORMATION, recipients
of Fiscal Recovery Funds will be
required to submit one interim report
and thereafter quarterly Project and
Expenditure reports until the end of the
award period. Recipients must submit
interim reports to Treasury by August
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26819 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
31, 2021. The quarterly Project and
Expenditure reports will include
financial data, information on contracts
and subawards over $50,000, types of
projects funded, and other information
regarding a recipient’s utilization of the
award funds.
Nonentitlement unit recipients will be
required to submit annual Project and
Expenditure reports until the end of the
award period. The initial annual Project
and Expenditure report for
Nonentitlement unit recipients must be
submitted to Treasury by October 31,
2021. The subsequent annual reports
must be submitted to Treasury by
October 31 each year. States, territories,
metropolitan cities, and counties with a
population that exceeds 250,000
residents will also be required to submit
an annual Recovery Plan Performance
report to Treasury. The Recovery Plan
Performance report will include
descriptions of the projects funded and
information on the performance
indicators and objectives of the award.
Each annual Recovery Plan Performance
report must be posted on the public-
facing website of the recipient. Treasury
will provide additional guidance and
instructions on the all the reporting
requirements outlined above for the
Fiscal Recovery Funds program at a
later date.
These and related periodic reporting
requirements are under consideration
and will be submitted to OMB for
approval under the PRA emergency
provisions in the near future.
Treasury invites comments on all
aspects of the reporting and
recordkeeping requirements including:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information has practical utility; (b) the
accuracy of the estimate of the burden
of the collection of information; (c) ways
to enhance the quality, utility, and
clarity of the information to be
collected; (d) ways to minimize the
burden of the collection of information;
and (e) estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information. Comments
should be sent by the comment deadline
to the www.regulations.gov docket with
a copy to the Office of Information and
Regulatory Affairs, U.S. Office of
Management and Budget, 725 17th
Street NW, Washington, DC 20503; or
email to oira_submission@omb.eop.gov.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act (RFA)
generally requires that when an agency
issues a proposed rule, or a final rule
pursuant to section 553(b) of the
Administrative Procedure Act or
another law, the agency must prepare a
regulatory flexibility analysis that meets
the requirements of the RFA and
publish such analysis in the Federal
Register. 5 U.S.C. 603, 604.
Rules that are exempt from notice and
comment under the APA are also
exempt from the RFA requirements,
including the requirement to conduct a
regulatory flexibility analysis, when
among other things the agency for good
cause finds that notice and public
procedure are impracticable,
unnecessary, or contrary to the public
interest. Since this rule is exempt from
the notice and comment requirements of
the APA, Treasury is not required to
conduct a regulatory flexibility analysis.
List of Subjects in 31 CFR Part 35
Executive compensation, Public
health emergency, State and local
governments, Tribal governments.
For the reasons stated in the
preamble, the Department of the
Treasury amends 31 CFR part 35 as
follows:
PART 35—PANDEMIC RELIEF
PROGRAMS
■1. The authority citation for part 35 is
revised to read as follows:
Authority: 42 U.S.C. 802(f); 42 U.S.C.
803(f); 31 U.S.C. 321; Division N, Title V,
Subtitle B, Pub. L. 116–260, 134 Stat. 1182;
Section 104A, Pub. L. 103–325, 108 Stat.
2160, as amended (12 U.S.C. 4701 et seq.);
Pub. L. 117–2, 135 Stat. 4 (42 U.S.C. 802 et
seq.).
■2. Revise the part heading to read as
set forth above.
■3. Add subpart A to read as follows:
Subpart A—Coronavirus State and
Local Fiscal Recovery Funds
Sec.
35.1 Purpose.
35.2 Applicability.
35.3 Definitions.
35.4 Reservation of authority, reporting.
35.5 Use of funds.
35.6 Eligible uses.
35.7 Pensions.
35.8 Tax.
35.9 Compliance with applicable laws.
35.10 Recoupment.
35.11 Payments to States.
35.12 Distributions to nonentitlement units
of local government and units of general
local government.
§35.1 Purpose.
This subpart implements section 9901
of the American Rescue Plan Act
(Subtitle M of Title IX of Pub. L.
117–2), which amends Title VI of the
Social Security Act (42 U.S.C. 801 et
seq.) by adding sections 602 and 603 to
establish the Coronavirus State Fiscal
Recovery Fund and Coronavirus Local
Fiscal Recovery Fund.
§35.2 Applicability.
This subpart applies to States,
territories, Tribal governments,
metropolitan cities, nonentitlement
units of local government, counties, and
units of general local government that
accept a payment or transfer of funds
made under section 602 or 603 of the
Social Security Act.
§35.3 Definitions.
As used in this subpart:
Baseline means tax revenue of the
recipient for its fiscal year ending in
2019, adjusted for inflation in each
reporting year using the Bureau of
Economic Analysis’s Implicit Price
Deflator for the gross domestic product
of the United States.
County means a county, parish, or
other equivalent county division (as
defined by the Census Bureau).
Covered benefits include, but are not
limited to, the costs of all types of leave
(vacation, family-related, sick, military,
bereavement, sabbatical, jury duty),
employee insurance (health, life, dental,
vision), retirement (pensions, 401(k)),
unemployment benefit plans (Federal
and State), workers’ compensation
insurance, and Federal Insurance
Contributions Act taxes (which includes
Social Security and Medicare taxes).
Covered change means a change in
law, regulation, or administrative
interpretation. A change in law includes
any final legislative or regulatory action,
a new or changed administrative
interpretation, and the phase-in or
taking effect of any statute or rule if the
phase-in or taking effect was not
prescribed prior to the start of the
covered period.
Covered period means, with respect to
a State, Territory, or Tribal government,
the period that:
(1) Begins on March 3, 2021; and
(2) Ends on the last day of the fiscal
year of such State, Territory, or Tribal
government in which all funds received
by the State, Territory, or Tribal
government from a payment made
under section 602 or 603 of the Social
Security Act have been expended or
returned to, or recovered by, the
Secretary.
COVID–19 means the Coronavirus
Disease 2019.
COVID–19 public health emergency
means the period beginning on January
27, 2020 and until the termination of the
national emergency concerning the
COVID–19 outbreak declared pursuant
to the National Emergencies Act (50
U.S.C. 1601 et seq.).
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26820 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
Deposit means an extraordinary
payment of an accrued, unfunded
liability. The term deposit does not refer
to routine contributions made by an
employer to pension funds as part of the
employer’s obligations related to
payroll, such as either a pension
contribution consisting of a normal cost
component related to current employees
or a component addressing the
amortization of unfunded liabilities
calculated by reference to the
employer’s payroll costs.
Eligible employer means an employer
of an eligible worker who performs
essential work.
Eligible workers means workers
needed to maintain continuity of
operations of essential critical
infrastructure sectors, including health
care; emergency response; sanitation,
disinfection, and cleaning work;
maintenance work; grocery stores,
restaurants, food production, and food
delivery; pharmacy; biomedical
research; behavioral health work;
medical testing and diagnostics; home-
and community-based health care or
assistance with activities of daily living;
family or child care; social services
work; public health work; vital services
to Tribes; any work performed by an
employee of a State, local, or Tribal
government; educational work, school
nutrition work, and other work required
to operate a school facility; laundry
work; elections work; solid waste or
hazardous materials management,
response, and cleanup work; work
requiring physical interaction with
patients; dental care work;
transportation and warehousing; work at
hotel and commercial lodging facilities
that are used for COVID–19 mitigation
and containment; work in a mortuary;
work in critical clinical research,
development, and testing necessary for
COVID–19 response.
(1) With respect to a recipient that is
a metropolitan city, nonentitlement unit
of local government, or county, workers
in any additional sectors as each chief
executive officer of such recipient may
designate as critical to protect the health
and well-being of the residents of their
metropolitan city, nonentitlement unit
of local government, or county; or
(2) With respect to a State, Territory,
or Tribal government, workers in any
additional sectors as each Governor of a
State or Territory, or each Tribal
government, may designate as critical to
protect the health and well-being of the
residents of their State, Territory, or
Tribal government.
Essential work means work that:
(1) Is not performed while
teleworking from a residence; and
(2) Involves:
(i) Regular in-person interactions with
patients, the public, or coworkers of the
individual that is performing the work;
or
(ii) Regular physical handling of items
that were handled by, or are to be
handled by patients, the public, or
coworkers of the individual that is
performing the work.
Funds means, with respect to a
recipient, amounts provided to the
recipient pursuant to a payment made
under section 602(b) or 603(b) of the
Social Security Act or transferred to the
recipient pursuant to section 603(c)(4)
of the Social Security Act.
General revenue means money that is
received from tax revenue, current
charges, and miscellaneous general
revenue, excluding refunds and other
correcting transactions, proceeds from
issuance of debt or the sale of
investments, agency or private trust
transactions, and intergovernmental
transfers from the Federal Government,
including transfers made pursuant to
section 9901 of the American Rescue
Plan Act. General revenue does not
include revenues from utilities. Revenue
from Tribal business enterprises must be
included in general revenue.
Intergovernmental transfers means
money received from other
governments, including grants and
shared taxes.
Metropolitan city has the meaning
given that term in section 102(a)(4) of
the Housing and Community
Development Act of 1974 (42 U.S.C.
5302(a)(4)) and includes cities that
relinquish or defer their status as a
metropolitan city for purposes of
receiving allocations under section 106
of such Act (42 U.S.C. 5306) for fiscal
year 2021.
Net reduction in total spending is
measured as the State or Territory’s total
spending for a given reporting year
excluding its spending of funds,
subtracted from its total spending for its
fiscal year ending in 2019, adjusted for
inflation using the Bureau of Economic
Analysis’s Implicit Price Deflator for the
gross domestic product of the United
States.
Nonentitlement unit of local
government means a ‘‘city,’’ as that term
is defined in section 102(a)(5) of the
Housing and Community Development
Act of 1974 (42 U.S.C. 5302(a)(5)), that
is not a metropolitan city.
Nonprofit means a nonprofit
organization that is exempt from Federal
income taxation and that is described in
section 501(c)(3) of the Internal Revenue
Code.
Obligation means an order placed for
property and services and entering into
contracts, subawards, and similar
transactions that require payment.
Pension fund means a defined benefit
plan and does not include a defined
contribution plan.
Premium pay means an amount of up
to $13 per hour that is paid to an
eligible worker, in addition to wages or
remuneration the eligible worker
otherwise receives, for all work
performed by the eligible worker during
the COVID–19 public health emergency.
Such amount may not exceed $25,000
with respect to any single eligible
worker. Premium pay will be
considered to be in addition to wages or
remuneration the eligible worker
otherwise receives if, as measured on an
hourly rate, the premium pay is:
(1) With regard to work that the
eligible worker previously performed,
pay and remuneration equal to the sum
of all wages and remuneration
previously received plus up to $13 per
hour with no reduction, substitution,
offset, or other diminishment of the
eligible worker’s previous, current, or
prospective wages or remuneration; or
(2) With regard to work that the
eligible worker continues to perform,
pay of up to $13 that is in addition to
the eligible worker’s regular rate of
wages or remuneration, with no
reduction, substitution, offset, or other
diminishment of the workers’ current
and prospective wages or remuneration.
Qualified census tract has the same
meaning given in 26 U.S.C.
42(d)(5)(B)(ii)(I).
Recipient means a State, Territory,
Tribal government, metropolitan city,
nonentitlement unit of local
government, county, or unit of general
local government that receives a
payment made under section 602(b) or
603(b) of the Social Security Act or
transfer pursuant to section 603(c)(4) of
the Social Security Act.
Reporting year means a single year or
partial year within the covered period,
aligned to the current fiscal year of the
State or Territory during the covered
period.
Secretary means the Secretary of the
Treasury.
State means each of the 50 States and
the District of Columbia.
Small business means a business
concern or other organization that:
(1) Has no more than 500 employees,
or if applicable, the size standard in
number of employees established by the
Administrator of the Small Business
Administration for the industry in
which the business concern or
organization operates; and
(2) Is a small business concern as
defined in section 3 of the Small
Business Act (15 U.S.C. 632).
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Tax revenue means revenue received
from a compulsory contribution that is
exacted by a government for public
purposes excluding refunds and
corrections and, for purposes of §35.8,
intergovernmental transfers. Tax
revenue does not include payments for
a special privilege granted or service
rendered, employee or employer
assessments and contributions to
finance retirement and social insurance
trust systems, or special assessments to
pay for capital improvements.
Territory means the Commonwealth
of Puerto Rico, the United States Virgin
Islands, Guam, the Commonwealth of
the Northern Mariana Islands, or
American Samoa.
Tribal enterprise means a business
concern:
(1) That is wholly owned by one or
more Tribal governments, or by a
corporation that is wholly owned by one
or more Tribal governments; or
(2) That is owned in part by one or
more Tribal governments, or by a
corporation that is wholly owned by one
or more Tribal governments, if all other
owners are either United States citizens
or small business concerns, as these
terms are used and consistent with the
definitions in 15 U.S.C. 657a(b)(2)(D).
Tribal government means the
recognized governing body of any
Indian or Alaska Native tribe, band,
nation, pueblo, village, community,
component band, or component
reservation, individually identified
(including parenthetically) in the list
published by the Bureau of Indian
Affairs on January 29, 2021, pursuant to
section 104 of the Federally Recognized
Indian Tribe List Act of 1994 (25 U.S.C.
5131).
Unemployment rate means the U–3
unemployment rate provided by the
Bureau of Labor Statistics as part of the
Local Area Unemployment Statistics
program, measured as total
unemployment as a percentage of the
civilian labor force.
Unemployment trust fund means an
unemployment trust fund established
under section 904 of the Social Security
Act (42 U.S.C. 1104).
Unit of general local government has
the meaning given to that term in
section 102(a)(1) of the Housing and
Community Development Act of 1974
(42 U.S.C. 5302(a)(1)).
Unserved and underserved
households or businesses means one or
more households or businesses that are
not currently served by a wireline
connection that reliably delivers at least
25 Mbps download speed and 3 Mbps
of upload speed.
§35.4 Reservation of authority, reporting.
(a) Reservation of authority. Nothing
in this subpart shall limit the authority
of the Secretary to take action to enforce
conditions or violations of law,
including actions necessary to prevent
evasions of this subpart.
(b) Extensions or accelerations of
timing. The Secretary may extend or
accelerate any deadline or compliance
date of this subpart, including reporting
requirements that implement this
subpart, if the Secretary determines that
such extension or acceleration is
appropriate. In determining whether an
extension or acceleration is appropriate,
the Secretary will consider the period of
time that would be extended or
accelerated and how the modified
timeline would facilitate compliance
with this subpart.
(c) Reporting and requests for other
information. During the covered period,
recipients shall provide to the Secretary
periodic reports providing detailed
accounting of the uses of funds, all
modifications to a State or Territory’s
tax revenue sources, and such other
information as the Secretary may
require for the administration of this
section. In addition to regular reporting
requirements, the Secretary may request
other additional information as may be
necessary or appropriate, including as
may be necessary to prevent evasions of
the requirements of this subpart. False
statements or claims made to the
Secretary may result in criminal, civil,
or administrative sanctions, including
fines, imprisonment, civil damages and
penalties, debarment from participating
in Federal awards or contracts, and/or
any other remedy available by law.
§35.5 Use of funds.
(a) In general. A recipient may only
use funds to cover costs incurred during
the period beginning March 3, 2021, and
ending December 31, 2024, for one or
more of the purposes enumerated in
sections 602(c)(1) and 603(c)(1) of the
Social Security Act, as applicable,
including those enumerated in section
§35.6, subject to the restrictions set
forth in sections 602(c)(2) and 603(c)(2)
of the Social Security Act, as applicable.
(b) Costs incurred. A cost shall be
considered to have been incurred for
purposes of paragraph (a) of this section
if the recipient has incurred an
obligation with respect to such cost by
December 31, 2024.
(c) Return of funds. A recipient must
return any funds not obligated by
December 31, 2024, and any funds not
expended to cover such obligations by
December 31, 2026.
§35.6 Eligible uses.
(a) In general. Subject to §§35.7 and
35.8, a recipient may use funds for one
or more of the purposes described in
paragraphs (b) through (e) of this section
(b) Responding to the public health
emergency or its negative economic
impacts. A recipient may use funds to
respond to the public health emergency
or its negative economic impacts,
including for one or more of the
following purposes:
(1) COVID–19 response and
prevention. Expenditures for the
mitigation and prevention of COVID–19,
including:
(i) Expenses related to COVID–19
vaccination programs and sites,
including staffing, acquisition of
equipment or supplies, facilities costs,
and information technology or other
administrative expenses;
(ii) COVID–19-related expenses of
public hospitals, clinics, and similar
facilities;
(iii) COVID–19 related expenses in
congregate living facilities, including
skilled nursing facilities, long-term care
facilities, incarceration settings,
homeless shelters, residential foster care
facilities, residential behavioral health
treatment, and other group living
facilities;
(iv) Expenses of establishing
temporary public medical facilities and
other measures to increase COVID–19
treatment capacity, including related
construction costs and other capital
investments in public facilities to meet
COVID–19-related operational needs;
(v) Expenses of establishing
temporary public medical facilities and
other measures to increase COVID–19
treatment capacity, including related
construction costs and other capital
investments in public facilities to meet
COVID–19-related operational needs;
(vi) Costs of providing COVID–19
testing and monitoring, contact tracing,
and monitoring of case trends and
genomic sequencing for variants;
(vii) Emergency medical response
expenses, including emergency medical
transportation, related to COVID–19;
(viii) Expenses for establishing and
operating public telemedicine
capabilities for COVID–19-related
treatment;
(ix) Expenses for communication
related to COVID–19 vaccination
programs and communication or
enforcement by recipients of public
health orders related to COVID–19;
(x) Expenses for acquisition and
distribution of medical and protective
supplies, including sanitizing products
and personal protective equipment;
(xi) Expenses for disinfection of
public areas and other facilities in
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response to the COVID–19 public health
emergency;
(xii) Expenses for technical assistance
to local authorities or other entities on
mitigation of COVID–19-related threats
to public health and safety;
(xiii) Expenses for quarantining or
isolation of individuals;
(xiv) Expenses of providing paid sick
and paid family and medical leave to
public employees to enable compliance
with COVID–19 public health
precautions;
(xv) Expenses for treatment of the
long-term symptoms or effects of
COVID–19, including post-intensive
care syndrome;
(xvi) Expenses for the improvement of
ventilation systems in congregate
settings, public health facilities, or other
public facilities;
(xvii) Expenses related to establishing
or enhancing public health data
systems; and
(xviii) Mental health treatment,
substance misuse treatment, and other
behavioral health services.
(2) Public health and safety staff.
Payroll and covered benefit expenses for
public safety, public health, health care,
human services, and similar employees
to the extent that the employee’s time is
spent mitigating or responding to the
COVID–19 public health emergency.
(3) Hiring State and local government
staff. Payroll, covered benefit, and other
costs associated with the recipient
increasing the number of its employees
up to the number of employees that it
employed on January 27, 2020.
(4) Assistance to unemployed
workers. Assistance, including job
training, for individuals who want and
are available for work, including those
who have looked for work sometime in
the past 12 months or who are
employed part time but who want and
are available for full-time work.
(5) Contributions to State
unemployment insurance trust funds.
Contributions to an unemployment trust
fund up to the level required to restore
the unemployment trust fund to its
balance on January 27, 2020 or to pay
back advances received under Title XII
of the Social Security Act (42 U.S.C.
1321) for the payment of benefits
between January 27, 2020 and May 17,
2021.
(6) Small businesses. Assistance to
small businesses, including loans,
grants, in-kind assistance, technical
assistance or other services, that
responds to the negative economic
impacts of the COVID–19 public health
emergency.
(7) Nonprofits. Assistance to nonprofit
organizations, including loans, grants,
in-kind assistance, technical assistance
or other services, that responds to the
negative economic impacts of the
COVID–19 public health emergency.
(8) Assistance to households.
Assistance programs, including cash
assistance programs, that respond to the
COVID–19 public health emergency.
(9) Aid to impacted industries. Aid to
tourism, travel, hospitality, and other
impacted industries that responds to the
negative economic impacts of the
COVID–19 public health emergency.
(10) Expenses to improve efficacy of
public health or economic relief
programs. Administrative costs
associated with the recipient’s COVID–
19 public health emergency assistance
programs, including services responding
to the COVID–19 public health
emergency or its negative economic
impacts, that are not federally funded.
(11) Survivor’s benefits. Benefits for
the surviving family members of
individuals who have died from
COVID–19, including cash assistance to
widows, widowers, or dependents of
individuals who died of COVID–19.
(12) Disproportionately impacted
populations and communities. A
program, service, or other assistance
that is provided in a qualified census
tract, that is provided to households and
populations living in a qualified census
tract, that is provided by a Tribal
government, or that is provided to other
households, businesses, or populations
disproportionately impacted by the
COVID–19 public health emergency,
such as:
(i) Programs or services that facilitate
access to health and social services,
including:
(A) Assistance accessing or applying
for public benefits or services;
(B) Remediation of lead paint or other
lead hazards; and
(C) Community violence intervention
programs;
(ii) Programs or services that address
housing insecurity, lack of affordable
housing, or homelessness, including:
(A) Supportive housing or other
programs or services to improve access
to stable, affordable housing among
individuals who are homeless;
(B) Development of affordable
housing to increase supply of affordable
and high-quality living units; and
(C) Housing vouchers and assistance
relocating to neighborhoods with higher
levels of economic opportunity and to
reduce concentrated areas of low
economic opportunity;
(iii) Programs or services that address
or mitigate the impacts of the COVID–
19 public health emergency on
education, including:
(A) New or expanded early learning
services;
(B) Assistance to high-poverty school
districts to advance equitable funding
across districts and geographies; and
(C) Educational and evidence-based
services to address the academic, social,
emotional, and mental health needs of
students; and
(iv) Programs or services that address
or mitigate the impacts of the COVID–
19 public health emergency on
childhood health or welfare, including:
(A) New or expanded childcare;
(B) Programs to provide home visits
by health professionals, parent
educators, and social service
professionals to individuals with young
children to provide education and
assistance for economic support, health
needs, or child development; and
(C) Services for child welfare-
involved families and foster youth to
provide support and education on child
development, positive parenting, coping
skills, or recovery for mental health and
substance use.
(c) Providing premium pay to eligible
workers. A recipient may use funds to
provide premium pay to eligible
workers of the recipient who perform
essential work or to provide grants to
eligible employers, provided that any
premium pay or grants provided under
this paragraph (c) must respond to
eligible workers performing essential
work during the COVID–19 public
health emergency. A recipient uses
premium pay or grants provided under
this paragraph (c) to respond to eligible
workers performing essential work
during the COVID–19 public health
emergency if it prioritizes low- and
moderate-income persons. The recipient
must provide, whether for themselves or
on behalf of a grantee, a written
justification to the Secretary of how the
premium pay or grant provided under
this paragraph (c) responds to eligible
workers performing essential work if the
premium pay or grant would increase an
eligible worker’s total wages and
remuneration above 150 percent of such
eligible worker’s residing State’s average
annual wage for all occupations or their
residing county’s average annual wage,
whichever is higher.
(d) Providing government services. For
the provision of government services to
the extent of a reduction in the
recipient’s general revenue, calculated
according to paragraphs (d)(1) and (2) of
this section.
(1) Frequency. A recipient must
calculate the reduction in its general
revenue using information as-of
December 31, 2020, December 31, 2021,
December 31, 2022, and December 31,
2023 (each, a calculation date) and
following each calculation date.
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26823 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
(2) Calculation. A reduction in a
recipient’s general revenue equals:
Where:
Base Year Revenue is the recipient’s general
revenue for the most recent full fiscal
year prior to the COVD–19 public health
emergency;
Growth Adjustment is equal to the greater of
4.1 percent (or 0.041) and the recipient’s
average annual revenue growth over the
three full fiscal years prior to the
COVID–19 public health emergency.
n equals the number of months elapsed from
the end of the base year to the
calculation date.
Actual General Revenue is a recipient’s
actual general revenue collected during
12-month period ending on each
calculation date;
Subscript t denotes the specific calculation
date.
(e) To make necessary investments in
infrastructure. A recipient may use
funds to make investments in:
(1) Clean Water State Revolving Fund
and Drinking Water State Revolving
Fund investments. Projects or activities
of the type that would be eligible under
section 603(c) of the Federal Water
Pollution Control Act (33 U.S.C.
1383(c)) or section 1452 of the Safe
Drinking Water Act (42 U.S.C. 300j–12);
or,
(2) Broadband. Broadband
infrastructure that is designed to
provide service to unserved or
underserved households and businesses
and that is designed to, upon
completion:
(i) Reliably meet or exceed
symmetrical 100 Mbps download speed
and upload speeds; or
(ii) In cases where it is not
practicable, because of the excessive
cost of the project or geography or
topography of the area to be served by
the project, to provide service meeting
the standards set forth in paragraph
(e)(2)(i) of this section:
(A) Reliably meet or exceed 100 Mbps
download speed and between at least 20
Mbps and 100 Mbps upload speed; and
(B) Be scalable to a minimum of 100
Mbps download speed and 100 Mbps
upload speed.
§35.7 Pensions.
A recipient may not use funds for
deposit into any pension fund.
§35.8 Tax.
(a) Restriction. A State or Territory
shall not use funds to either directly or
indirectly offset a reduction in the net
tax revenue of the State or Territory
resulting from a covered change during
the covered period.
(b) Violation. Treasury will consider a
State or Territory to have used funds to
offset a reduction in net tax revenue if,
during a reporting year:
(1) Covered change. The State or
Territory has made a covered change
that, either based on a reasonable
statistical methodology to isolate the
impact of the covered change in actual
revenue or based on projections that use
reasonable assumptions and do not
incorporate the effects of
macroeconomic growth to reduce or
increase the projected impact of the
covered change, the State or Territory
assesses has had or predicts to have the
effect of reducing tax revenue relative to
current law;
(2) Exceeds the de minimis threshold.
The aggregate amount of the measured
or predicted reductions in tax revenue
caused by covered changes identified
under paragraph (b)(1) of this section, in
the aggregate, exceeds 1 percent of the
State’s or Territory’s baseline;
(3) Reduction in net tax revenue. The
State or Territory reports a reduction in
net tax revenue, measured as the
difference between actual tax revenue
and the State’s or Territory’s baseline,
each measured as of the end of the
reporting year; and
(4) Consideration of other changes.
The aggregate amount of measured or
predicted reductions in tax revenue
caused by covered changes is greater
than the sum of the following, in each
case, as calculated for the reporting
year:
(i) The aggregate amount of the
expected increases in tax revenue
caused by one or more covered changes
that, either based on a reasonable
statistical methodology to isolate the
impact of the covered change in actual
revenue or based on projections that use
reasonable assumptions and do not
incorporate the effects of
macroeconomic growth to reduce or
increase the projected impact of the
covered change, the State or Territory
assesses has had or predicts to have the
effect of increasing tax revenue; and
(ii) Reductions in spending, up to the
amount of the State’s or Territory’s net
reduction in total spending, that are in:
(A) Departments, agencies, or
authorities in which the State or
Territory is not using funds; and
(B) Departments, agencies, or
authorities in which the State or
Territory is using funds, in an amount
equal to the value of the spending cuts
in those departments, agencies, or
authorities, minus funds used.
(c) Amount and revenue reduction
cap. If a State or Territory is considered
to be in violation pursuant to paragraph
(b) of this section, the amount used in
violation of paragraph (a) of this section
is equal to the lesser of:
(1) The reduction in net tax revenue
of the State or Territory for the reporting
year, measured as the difference
between the State’s or Territory’s
baseline and its actual tax revenue, each
measured as of the end of the reporting
year; and,
(2) The aggregate amount of the
reductions in tax revenues caused by
covered changes identified in paragraph
(b)(1) of this section, minus the sum of
the amounts in identified in paragraphs
(b)(4)(i) and (ii).
§35.9 Compliance with applicable laws.
A recipient must comply with all
other applicable Federal statutes,
regulations, and Executive orders, and a
recipient shall provide for compliance
with the American Rescue Plan Act, this
subpart, and any interpretive guidance
by other parties in any agreements it
enters into with other parties relating to
these funds.
§35.10 Recoupment.
(a) Identification of violations—(1) In
general. Any amount used in violation
of §35.5, §35.6, or §35.7 may be
identified at any time prior to December
31, 2026.
(2) Annual reporting of amounts of
violations. On an annual basis, a
recipient that is a State or Territory
must calculate and report any amounts
used in violation of §35.8.
(b) Calculation of amounts subject to
recoupment—(1) In general. Except as
provided in paragraph (b)(2) of this
section, Treasury will calculate any
amounts subject to recoupment
resulting from a violation of §35.5,
§35.6, or §35.7 as the amounts used in
violation of such restrictions.
(2) Violations of §35.8. Treasury will
calculate any amounts subject to
recoupment resulting from a violation of
§35.8, equal to the lesser of:
(i) The amount set forth in §35.8(c);
and,
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48
26824 Federal Register /Vol. 86, No. 93/Monday, May 17, 2021/Rules and Regulations
(ii) The amount of funds received by
such recipient.
(c) Notice. If Treasury calculates an
amount subject to recoupment under
paragraph (b) of this section, Treasury
will provide the recipient a written
notice of the amount subject to
recoupment along with an explanation
of such amounts.
(d) Request for reconsideration.
Unless Treasury extends the time
period, within 60 calendar days of
receipt of a notice of recoupment
provided under paragraph (c) of this
section, a recipient may submit a
written request to Treasury requesting
reconsideration of any amounts subject
to recoupment under paragraph (b) of
this section. To request reconsideration
of any amounts subject to recoupment,
a recipient must submit to Treasury a
written request that includes:
(1) An explanation of why the
recipient believes all or some of the
amount should not be subject to
recoupment; and
(2) A discussion of supporting
reasons, along with any additional
information.
(e) Final amount subject to
recoupment. Unless Treasury extends
the time period, within 60 calendar days
of receipt of the recipient’s request for
reconsideration provided pursuant to
paragraph (d) of this section, the
recipient will be notified of the
Secretary’s decision to affirm, withdraw,
or modify the notice of recoupment.
Such notification will include an
explanation of the decision, including
responses to the recipient’s supporting
reasons and consideration of additional
information provided.
(f) Repayment of funds. Unless
Treasury extends the time period, a
recipient shall repay to the Secretary
any amounts subject to recoupment in
accordance with instructions provided
by Treasury:
(1) Within 120 calendar days of
receipt of the notice of recoupment
provided under paragraph (c) of this
section, in the case of a recipient that
does not submit a request for
reconsideration in accordance with the
requirements of paragraph (d) of this
section; or
(2) Within 120 calendar days of
receipt of the Secretary’s decision under
paragraph (e) of this section, in the case
of a recipient that submits a request for
reconsideration in accordance with the
requirements of paragraph (d) of this
section.
§35.11 Payments to States.
(a) In general. With respect to any
State or Territory that has an
unemployment rate as of the date that
it submits an initial certification for
payment of funds pursuant to section
602(d)(1) of the Social Security Act that
is less than two percentage points above
its unemployment rate in February
2020, the Secretary will withhold 50
percent of the amount of funds allocated
under section 602(b) of the Social
Security Act to such State or territory
until the date that is twelve months
from the date such initial certification is
provided to the Secretary.
(b) Payment of withheld amount. In
order to receive the amount withheld
under paragraph (a) of this section, the
State or Territory must submit to the
Secretary at least 30 days prior to the
date referenced in paragraph (a) the
following information:
(1) A certification, in the form
provided by the Secretary, that such
State or Territory requires the payment
to carry out the activities specified in
section 602(c) of the Social Security Act
and will use the payment in compliance
with section 602(c) of the Social
Security Act; and,
(2) Any reports required to be filed by
that date pursuant to this subpart that
have not yet been filed.
§35.12 Distributions to nonentitlement
units of local government and units of
general local government.
(a) Nonentitlement units of local
government. Each State or Territory that
receives a payment from Treasury
pursuant to section 603(b)(2)(B) of the
Social Security Act shall distribute the
amount of the payment to
nonentitlement units of government in
such State or Territory in accordance
with the requirements set forth in
section 603(b)(2)(C) of the Social
Security Act and without offsetting any
debt owed by such nonentitlement units
of local governments against such
payments.
(b) Budget cap. A State or Territory
may not make a payment to a
nonentitlement unit of local government
pursuant to section 603(b)(2)(C) of the
Social Security Act and paragraph (a) of
this section in excess of the amount
equal to 75 percent of the most recent
budget for the nonentitlement unit of
local government as of January 27, 2020.
A State or Territory shall permit a
nonentitlement unit of local government
without a formal budget as of January
27, 2020, to provide a certification from
an authorized officer of the
nonentitlement unit of local government
of its most recent annual expenditures
as of January 27, 2020, and a State or
Territory may rely on such certification
for purposes of complying with this
paragraph (b).
(c) Units of general local government.
Each State or Territory that receives a
payment from Treasury pursuant to
section 603(b)(3)(B)(ii) of the Social
Security Act, in the case of an amount
to be paid to a county that is not a unit
of general local government, shall
distribute the amount of the payment to
units of general local government within
such county in accordance with the
requirements set forth in section
603(b)(3)(B)(ii) of the Social Security
Act and without offsetting any debt
owed by such units of general local
government against such payments.
(d) Additional conditions. A State or
Territory may not place additional
conditions or requirements on
distributions to nonentitlement units of
local government or units of general
local government beyond those required
by section 603 of the Social Security Act
or this subpart.
Laurie Schaffer,
Acting General Counsel.
[FR Doc. 2021–10283 Filed 5–13–21; 11:15 am]
BILLING CODE 4810–AK–P
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CONSENT AGENDA ITEM 300
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Appointment of City of Winter Springs representative to the South Seminole
and North Orange County Wastewater Transmission Authority (SSNOCWTA).
SUMMARY
On April 13, 2018, the City Commission appointed the city's previous mayor to
fill a vacancy for a City of Winter Springs representative to the South Seminole
and North Orange County Wastewater Transmission Authority (SSNOCWTA).
Staff recommends that the Commission appoint Mayor Kevin McCann as the
City of Winter Springs representative to the governing board of the South
Seminole and North Orange County County Wastewater Transmission
Authority (SSNOCWTA) retroactively effective April 12, 2021.
RECOMMENDATION
Staff recommends that the Commission appoint Mayor Kevin McCann as the
City of Winter Springs representative to the governing board of the South
Seminole and North Orange County County Wastewater Transmission
Authority (SSNOCWTA) retroactively effective April 12, 2021.
50
CONSENT AGENDA ITEM 301
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Seminole Crossing Townhomes (WS Town Center) Site Acceptance
SUMMARY
The approved (12/09/2019) residential single-family home (attached) project
is within the Winter Springs Town Center District, located on the northeast
corner of Michael Blake Boulevard and Tree Swallow Drive, the north side of E
SR 434 and east of Tuskawilla Rd. on ~8.33 acres of land. The project includes
the construction of 114-unit townhome subdivision and a single story cabana
with a swimming pool.
The proposed development will include a connection on Tree Swallow Drive
from Michael Blake Blvd., stormwater is master planned into The Blake Apts.
retention pond, utilities infrastructure w/ water & sewer facilities, perimeter
landscaping, irrigation, etc.
This agenda item is for the conditional acceptance of the site improvements.
The site work has been constructed in substantial compliance with the Final
Engineering Plans approved by the City Commission, except as noted on the
attached punch-list, Exhibit A.
RECOMMENDATION
Staff recommends the City Commission validate the Staff recommendation
finding the site work to be built in substantial accordance with the Final
Engineering plans, subject to satisfactory completion of the remaining open
punch-list item(s).
51
2021/06/04 – Exhibit A Page 1 of 1
CITY OF WINTER SPRINGS COMMUNITY DEVELOPMENT DEPARTMENT 1126 East State Road 434 Winter Springs, Florida 32708 customerservice@winterspringsfl.org
Project Closeout List for City Commission Final Site Acceptance
PROJECT: Seminole Crossing Townhomes–Northeast corner of Michael Blake Blvd & Tree Swallow Dr.
1. Complete all site work and pass the final engineering inspection. Contact Rachel Gironella at 407-327- 5973 or email RGironella@WinterSpringsFL.org to schedule a preliminary and/or final engineering inspection. The final inspection will occur after receipt of the record drawings from the engineer-of- record.
• Construction Site Walk-through completed on February 2021
2. Submit a Bill of Sale for all infrastructure being turned over to the City for ownership and maintenance (streets, utilities, sidewalks, etc.). Use the City’s standard Bill of Sale form. Submit final document to the Finance Department. This includes the cost sheet with Engineer of Record’s certification.
3. Submit 2-Year Maintenance Bond, Letter of Credit, or Cash Escrow Deposit (10% of the value of the improvements to be owned and maintained by the City, as listed on the Bill of Sale) to the Finance Department.
4. Obtain Approvals from all City Departments and Seminole County Fire Department. 5. Submit FDOT Permit Certification and provide City copy of FDOT approval. 6. Submit a copy of the FDEP Water Permit Approvals to the City.
Notes:
• City Commission site acceptance (in the form of a consent agenda item at a regularly scheduled City Commission meeting) is required before a certificate of occupancy can be issued for any buildings
• Agenda items for City Commission meetings must be prepared approximately two weeks prior to the meeting date.
• If there are any questions, please call Rachel Gironella at 407-327-5973 or email
RGironella@WinterSpringsFL.org
• Additional items to be completed prior to closeout (this is not a complete punch list):
1. Final lift of asphalt
2. Final striping
3. Complete signage installation
4. Complete street lighting installation
52
CONSENT AGENDA ITEM 302
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Revised Public Input Form
SUMMARY
Section 2-28(k), Winter Springs City Code requires the City Clerk to create and
maintain a short public input form, subject to the City Commission's approval.
The last revision was approved in 2017. The proposed public input form
removes "Guidelines on When to Speak," "Guidelines on How to Address the
Mayor and City Commission," and "Notes." The Commission has routinely had
the Mayor, or presiding Commissioner, read a short script before each Public
Input section which presents this information. Name, address, contact
information, a statement on allotted time, and a notice that the form is a
public record remain unchanged.
Both the current and proposed form are attached to this item for your
review.
RECOMMENDATION
Staff is requesting the City Commission review and approve the revised Public
Input Form
53
Revised 11/13/2017 For important information, please see other side - thank you for your input!
CITY OF WINTER SPRINGS, FLORIDA
PUBLIC INPUT FORM – REQUEST TO SPEAK
Please complete this form if you wish to address the Mayor and City Commission on any subject.
ADDRESSING THE MAYOR AND CITY COMMISSION
Please print clearly and neatly!
Date:
Name:
Address:
City: State/Zip Code:
Email address:
Phone number (optional):
GUIDELINES ON WHEN TO SPEAK:
Consent (300’s) and Regular (500’s) Agenda Items and miscellaneous matters not on the Agenda should be
addressed during the 1st Round of Public Input
Public Hearings (400’s) Agenda Items have separate and dedicated Public Input and any Public Input must
be given during the applicable Public Hearing Agenda Item
Miscellaneous comments may be made during the 2nd optional Round of Public Input, if time permits.
Would you like to address a topic that IS on this Agenda?
1. Which Agenda Item do you wish to comment on?
2. For the Record, regarding the Agenda Item above, are you IN FAVOR OR OPPOSED ?
3.a) Do you wish to verbally address the Mayor and City Commission on this Agenda Item?
YES OR NO*
3.b) If you said NO* to 3.a), but wish to submit a brief statement for the record of the meeting, please use
the space below to note your comments (please print clearly):
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
Would you like to address a topic that is NOT on this Agenda?
Please use the space below for your comments (please print clearly):
__________________________________________________________________________________
__________________________________________________________________________________
54
Revised 11/13/2017 To complete this form, please see other side - thank you for your input!
GUIDELINES ON HOW TO ADDRESS
THE MAYOR AND CITY COMMISSION:
In accordance with "Roberts Rules of Order"
civility and respect should be afforded to all.
NOTES:
- Please address all comments to the Mayor or the presiding officer, even if you wish to ask a specific question
to someone else. All comments are channeled through the presiding officer.
- If you are showing ANY documents, photographs, maps, etc. to anyone on the dais, please note that the
"Original" or a duplicate copy will be considered a public record and will be kept as part of the Record.
- If you are presenting ANY documents, photographs, maps, etc. to the City Commission at the meeting,
please note that nine (9) copies should be provided to the City Clerk so each person on the dais is afforded
a copy to review.
Should you need additional space for any other written comments, please use the below area –
(please print clearly):
____________________________________________________________________________________
____________________________________________________________________________________
PLEASE BE ADVISED THAT THIS PUBLIC RECORD FORM IS A PUBLIC RECORD AND IS SUBJECT
TO PUBLIC DISCLOSURE UNDER FLORIDA LAW. FURTHER, THE CITY COMMISSION MEETINGS ARE
SUBJECT TO APPLICABLE LAWS AND THE RULES AND PROCEDURES ADOPTED BY THE CITY
COMMISSION INCLUDING, BUT NOT LIMITED TO, CHAPTER 2, ARTICLE II OF THE WINTER SPRINGS
CITY CODE.
1. Please complete this form and present it to the City Clerk BEFORE the Meeting
begins; then be seated.
2. When your name is called, please promptly approach the podium, and using
the microphone, clearly state your name and address for the Record.
3. Individual comments must be limited to 3 minutes, and persons representing a
recognized group or organization will be limited to 5 minutes, unless otherwise
provided under City Commission Rules and Procedures.
4. If you are speaking on behalf of a group or organization, please state the name
of the group or organization for the record.
5. If you are representing a company or organization, it would be very helpful if
you could please provide to the City a business card for the Record.
6. If you have a written statement, please provide that to the City Clerk for the
Record.
55
Revised DATETHIS FORM IS A PUBLIC RECORD. Individuals comments are limited to 3 minutes and persons representing a group or organization are limited to 5 minutes, unless otherwise determined by the City Commission
Revised 05/06/2021THIS FORM IS A PUBLIC RECORD. Individuals comments are limited to 3 minutes and
persons representing a group or organization are limited to 5 minutes, unless otherwise
determined by the City Commission
CITY OF WINTER SPRINGS, FLORIDA - PUBLIC INPUT FORM Please print clearly and neatly Date: _________________ Name: ______________________________________________________________ Address: ____________________________________________________________________________________ Email: _________________________________________ Phone # (optional): _________________________ Do you wish to verbally address the Commission with regard to an issue? ☐ Yes ☐ No If you mark ‘No’ above, the Mayor or presiding Commissioner will indicate your noted support or opposition for the record but will not call you forward to speak. On the Agenda ☐ Item Number: ____________________________________________________________ For the record, regarding this agenda item, are you IN FAVOR ☐ or OPPOSED ☐ Not on the Agenda ☐ Subject: ______________________________________________________________
CITY OF WINTER SPRINGS, FLORIDA - PUBLIC INPUT FORM
Please print clearly and neatly
Date: _________________ Name: ______________________________________________________________
Address: ____________________________________________________________________________________
Email: _________________________________________Phone # (optional): _________________________
Do you wish to address the Commission with regard to an issue: ☐Yes ☐No
If you mark ‘No’ above, the Mayor or presiding Commissioner will indicate your noted support or
opposition for the record but will not call you forward to speak.
On the Agenda ☐Item Number: ____________________________________________________________
For the record, regarding this agenda item, are you IN FAVOR ☐or OPPOSED ☐
Not on the Agenda ☐Subject:______________________________________________________________
56
CONSENT AGENDA ITEM 303
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
FY 2020-2021 Mid-Year Budget Amendment
SUMMARY
The City Manager is requesting that the City Commission consider approval of
Resolution 2021-03 amending the Fiscal Year 2020-2021 Budget.
This agenda item is needed to amend the Fiscal Year 2020-2021 budget for
those funds which vary from the originally adopted budget. The vast majority
of the amendments are necessary for one of the following reasons:
accrual of revenues and expenses in the appropriate fiscal period
variations between budgeted (estimated) and actual expenditures and
revenues
2020-2021 agenda items with fiscal impact
The City Charter provides that the Commission may amend the budget by
resolution. Please note that only those funds requiring budget adjustment are
included herein.
Part of the normal course of operations at fiscal year-end is the accrual of
revenues and expenses. The accruals are necessary for aligning revenues and
expenses with the fiscal period to which they relate. It is also typical for some
variances between actual and budgeted expenses and revenues to require
budget adjustments. Furthermore, over the course of the fiscal year, various
agenda items are approved by the Commission. In some cases, those
approved agenda items lack specific language to amend the expenditure
budget or the appropriation to or from fund balance. This resolution
formalizes the fiscal impact of those actions.
Shown in Attachment 1 and 2 of the Resolution are the budgeted ending fund
balances for all funds requiring amendment for the 2020-2021 fiscal year.
Please note: these are budgeted figures only, not to be confused with audited
financial statements which will be available in March of 2022. State statute
requires that the final budget amendment be formalized by November 29,
2021.
57
RECOMMENDATION
Staff recommends the City Commission approve Resolution 2021-03
amending the FY 2020-2021 budget.
58
City of Winter Springs, Florida
Resolution 2021-03
Page 1 of 2
RESOLUTION 2021-03
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS FLORIDA, AMENDING THE FISCAL YEAR
2020-2021 BUDGET; PROVIDING FOR SEVERABILITY, REPEAL
OF PRIOR INCONSISTENT RESOLUTIONS, AND AN
EFFECTIVE DATE.
WHEREAS, Section 7.05 of the City Charter provides that the annual City budget
may be amended by Resolution duly adopted by the Commission; and
WHEREAS, the City Commission of the City of Winter Springs deems that this
Resolution is in the best interests of the public health, safety, and welfare of the citizens of
Winter Springs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS
FOLLOWS:
Section 1. Incorporation of Recitals. The foregoing recitals are deemed true and
correct and are hereby fully incorporated by this reference.
Section 2. That the Fiscal Year 2020-2021 City Budgets are amended as provided in
Attachments 1 and 2 attached hereto.
Section 3. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts
of resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, word,
or portion of this Resolution is for any reason held invalid or unconstitutional by any court
of competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portion hereto.
Section 5. Effective Date. This Resolution shall become effective immediately upon
adoption by the City Commission of the City of Winter Springs, Florida.
RESOLVED by the City Commission of the City of Winter Springs, Florida, in a
regular meeting assembled on the 14th day of June, 2021.
__________________________________________
KEVIN McCANN, Mayor
59
City of Winter Springs, Florida
Resolution 2021-03
Page 2 of 2
ATTEST:
_____________________________________
CHRISTIAN GOWAN, City Clerk
Approved as to legal form and sufficiency for
the City of Winter Springs only:
_____________________________________
ANTHONY A. GARGANESE, City Attorney
60
Attachment 1 - Budget Amendment Detail
Resolution 2021-003
General Fund
Funds not included in this summary do not require budget amendment
HELPFUL TOOLS: Comprehensive Annual Financial Report for the year ended September 30, 2020 as approved by City
Commission on 04/26/2021 Regular 501;
Fiscal Year 2020-2021 Original Budget as approved by City Commission on 9/28/2020 Public Hearing 401.
Difference in Beg
Fund Bal
Projected to
Actual
Actual Beg Fund
Balance 9/30/20
CAFR
General Fund #001:
As approved by City Commission on 9/28/20 Public Hearing Item 401:
10/1/20 Budgeted Beginning Fund Balance $8,824,620 $110,774 $8,935,394
FY 2021 Budgeted Appropriation to (FROM ) Fund Balance $0
9/30/21 Budgeted Ending Fund Balance $8,824,620
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $110,774
Fiscal Year 2021 Purchase Order/Budget Rollovers:
Recognize revenue budget - Misc. Rev.$1,437
PO rollover - PO#20-1280 - Doors for Senior Center bathrooms ($1,437)
$0
Revenue Neutral:
Grants/Donations:
Recognize revenue budget - Misc Rev. $9,200
Recognize expenditure budget - Police Chief - vehicle striping ($9,200)
Recognize revenue budget - Insurance settlement $10,707
Recognize expenditure - General Government - Replacement vehicle purchase ($10,707)
Recognize revenue budget - CARES Act - PW vehicle purchase $144,235
Consent 301; 1/21/21 - CARES Act - PW vehicle purchase (4110) ($144,235)
Consent 301; 1/21/21 - CARES Act - Scale Computing Hardware & Service (1600) $145,059
Recognize revenue budget - CARES Act - Scale Computing Hardware & Service ($145,059)
$0
Community Events:
Recognize revenue budget - drive-in movie nights $10,411
Recognize expenditure budget - drive-in movie nights (7400) ($10,411)
Recognize revenue budget - facility upgrade from Florida Kraze Krush soccer team $3,000
Recognize expenditure budget - facility upgrade(7220) ($3,000)
$0
Revisions to Original Budgeted Appropriation to (FROM ) Fund Balance $0
REVISED 9/30/21 Budgeted Ending Fund Balance $8,935,394
FY 21 Mid-Year Budget Amendment
Attachment 1 61
Attachment 1 - Budget Amendment Detail
Resolution 2021-003
Other Governmental Funds
HELPFUL TOOLS: Comprehensive Annual Financial Report for the year ended September 30, 2020 as approved by City
Commission on 04/26/2021 Regular 501;
Fiscal Year 2020-2021 Original Budget as approved by City Commission on 9/28/2020 Public Hearing 401.
Difference in Beg
Fund Bal
Projected to
Actual
Actual Beg Fund
Balance 9/30/20
CAFR
Police Education Fund #101
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $19,550 ($4,141)$15,409
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($100)
9/30/21 Budgeted Ending Fund Balance $19,450
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR ($4,141)
Increase SPI and simulation training training expenditure budget ($7,000)
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance ($11,141)
REVISED 9/30/21 Budgeted Ending Fund Balance $8,309
Special Law Enforcement Fund - Local #102
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $9,605 $3,943 $13,548
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($7,550)
9/30/21 Budgeted Ending Fund Balance $2,055
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $3,943
Defer legal fees for local forfeiture $3,000
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $6,943
REVISED 9/30/21 Budgeted Ending Fund Balance $8,998
Special Law Enforcement Fund - Federal #103
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $44,600 $1,111 $45,711
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($38,743)
9/30/21 Budgeted Ending Fund Balance $5,857
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $1,111
Align fines revenue budget with YTD actuals fine revenues $9,070
Increase small tool expenditure budget ($9,070)
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $1,111
REVISED 9/30/21 Budgeted Ending Fund Balance $6,968
FY 21 Mid-Year Budget Amendment
Attachment 1 62
Attachment 1 - Budget Amendment Detail
Resolution 2021-003
Other Governmental Funds
HELPFUL TOOLS: Comprehensive Annual Financial Report for the year ended September 30, 2020 as approved by City
Commission on 04/26/2021 Regular 501;
Fiscal Year 2020-2021 Original Budget as approved by City Commission on 9/28/2020 Public Hearing 401.
Difference in Beg
Fund Bal
Projected to
Actual
Actual Beg Fund
Balance 9/30/20
CAFR
Transportation Improvement Fund #120
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $1,278,976 $162,040 $1,441,016
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($543,610)
9/30/21 Budgeted Ending Fund Balance $735,366
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $162,040
Defer Winding Hollow Turn Lane project to FY2022 $400,000
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $562,040
REVISED 9/30/21 Budgeted Ending Fund Balance $1,297,406
Infrastructure Surtax Fund #121 (2nd & 3rd Generation)
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $9,537,802 $579,291 $10,117,093
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($4,004,646)
9/30/21 Budgeted Ending Fund Balance $5,533,156
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $579,291
Defer bridge infrastructure budget (3rd Gen)$475,000
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $1,054,291
REVISED 9/30/21 Budgeted Ending Fund Balance $6,587,447
Transportation Impact Fee Fund #150
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $1,661,453 $122,054 $1,783,507
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($838,000)
9/30/21 Budgeted Ending Fund Balance $823,453
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $122,054
Defer MBB/SR424 traffic signal construction $425,000
Defer Integra/SR424 traffic signal construction $350,000
Align impact fee revenue with YTD actuals $94,000
City wide traffic study to determine current and future construction impact ($94,000)
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $897,054
REVISED 9/30/21 Budgeted Ending Fund Balance $1,720,507
FY 21 Mid-Year Budget Amendment
Attachment 1 63
Attachment 1 - Budget Amendment Detail
Resolution 2021-003
Other Governmental Funds
HELPFUL TOOLS: Comprehensive Annual Financial Report for the year ended September 30, 2020 as approved by City
Commission on 04/26/2021 Regular 501;
Fiscal Year 2020-2021 Original Budget as approved by City Commission on 9/28/2020 Public Hearing 401.
Difference in Beg
Fund Bal
Projected to
Actual
Actual Beg Fund
Balance 9/30/20
CAFR
TLBD Maintenance Fund #160
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $169,575 $63,870 $233,445
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($39,403)
9/30/21 Budgeted Ending Fund Balance $130,172
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $63,870
Recognize Misc Private Contribution / Donations $3,000
Increase Christmas decorations expenditure budget ($3,000)
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $63,870
REVISED 9/30/21 Budgeted Ending Fund Balance $194,042
TLBD I Capital/Debt Service Fund #261
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $58,701 $1,368 $60,069
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($21,487)
9/30/21 Budgeted Ending Fund Balance $37,214
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $1,368
Defer Pond rejuvenation project to FY 2022 budget $25,000
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $26,368
REVISED 9/30/21 Budgeted Ending Fund Balance $63,582
Excellence in Customer Service Initiative CP Fund #305
As approved by City Commission on 9/28/20 Public Hearing 401
10/1/20 Budgeted Beginning Fund Balance $514,752 $345,911 $860,663
FY 2021 Budgeted Appropriation TO (FROM) Fund Balance ($177,000)
9/30/21 Budgeted Ending Fund Balance $337,752
Amendments to be approved tonight to Original FY 2020-2021 Budget (as approved on 9/28/20):
Difference in Beginning Fund Balance FROM projected to actual as shown in 9/30/20 CAFR $345,911
Eliminate New Backup system project $150,000
Revisions to Original Budgeted Appropriation TO (FROM) Fund Balance $495,911
REVISED 9/30/21 Budgeted Ending Fund Balance $833,663
FY 21 Mid-Year Budget Amendment
Attachment 1 64
Attachment 2 - General Fund Budget Amendment Summary
Resolution 2021-003
FY 21 FY 21
Original Revenue Intra Amended
Annual PO/Budget Neutral Departmental Annual
Division #Budget Rollovers Changes Transfers Budget
General Fund Revenues & Transfers:$16,883,194 $16,883,194
Recognize revenue budget - movie nights donations 10,411$ 10,411$
Recognize revenue budget - facility upgrade from FKK 3,000$ 3,000$
Recognize revenue budget - CARES Act - PW vehicle purchase $144,235 144,235$
Recognize revenue budget - CARES Act - Scale Computing Hardware & Service $145,059 145,059$
Recognize revenue budget - Misc. Rev.$1,437 $9,200 10,637$
Recognize revenue budget - Insurance settlement $10,707 10,707$
General Fund Revenues & Transfers 16,883,194$ 1,437$ 322,612$ -$ 17,207,243$
General Fund Expenditures:
City Commission 1100 117,112$ 117,112$
City Manager 1200 318,751$ 318,751$
City Clerk 1210 181,222$ 181,222$
Finance - General 1300 617,291$ 617,291$
Finance - Utility Billing 1360 603,958$ 603,958$
Comm Development - Administration 1500 138,475$ 138,475$
Comm Development - Planning 1510 88,957$ 88,957$
Comm Development - Urban Beautification 1520 700,783$ 700,783$
Comm Development - Street lighting 1530 521,627$ 521,627$
IS & General Services - Human Resources 1315 308,638$ (3,000)$ 305,638$
IS & General Services - General 1600 774,020$ 145,059$ 919,079$
IS & General Services - City Hall 1910 26,526$ 26,526$
IS & General Services - Risk Management 1925 605,300$ 605,300$
IS & General Services - Facilities Maintenance 1935 277,413$ 3,000$ 280,413$
IS & General Services - Marketing & Events 7415 169,502$ 10,411$ 179,913$
Recognize revenue budget - facility upgrade from Florida Kraze Krush soccer team 1400 265,420$ 265,420$
General Government - General 1900 1,138,941$ 10,707$ 1,149,648$
Police - Chief 2100 6,049,437$ 9,200$ 6,058,637$
Police - Criminal Investigations 2110 31,015$ 31,015$
Police - Community Services 2120 13,665$ 13,665$
Police - Operations 2130 111,630$ 111,630$
Police - Support Services 2140 603,869$ 603,869$
Police - Code Enforcement 2150 9,180$ 9,180$
Fire - Operations 2200 278,694$ 278,694$
Public Works - Fleet 1940 188,363$ 188,363$
Public Works - Administration 4100 95,085$ 95,085$
Public Works - Roads & ROW 4110 589,556$ 144,235$ 733,791$
P&R - Administration 7200 226,031$ 226,031$
P&R - Athletics 7210 2,906$ 2,906$
P&R - Athletics Partnerships 7220 5,800$ 3,000$ 6,386$ 15,186$
P&R - Parks & Grounds 7230 1,386,548$ (28,466)$ 1,358,082$
P&R - Programs 7240 115,301$ 115,301$
P&R - Seniors 7250 322,178$ 1,437$ 22,080$ 345,695$
General Fund Expenditures 16,883,194 1,437 322,612$ -$ 17,207,243
Budgeted Approp TO (FROM) Fund Balance -$ -$ 0$ -$ 0$
HELPFUL TOOLS: Comprehensive Annual Financial Report for the year ended September 30, 2020 as approved by City
Commission on 04/26/2021 Regular 501;
Fiscal Year 2020-2021 Original Budget as approved by City Commission on 9/28/2020 Public Hearing 401.
FY 21 Mid-Year Budget Amendment
Attachment 2 65
CONSENT AGENDA ITEM 304
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Resolution 2021-07 for a lot split located at 815 W. State Road 434.
SUMMARY
The applicant, Ned Voska is requesting approval of Resolution 2021-07 for a
lot split of real property located at 815 W. State Road 434. The applicant
wishes to divide an existing 1.01 acre lot into two (2) lots; one 0.51 acre lot
facing W. State Road 434 and one 0.52 acre lot W. State Road 434. Both sites
have a Future Land Use of Commercial and a zoning designation of General
Commercial (C-2). The proposed lot split is consistent with all of the criteria
set forth in the City Code of Ordinances, Sec. 9-11 - Lot Splits. The exhibits will
be changed prior to recording to ensure legibility.
RECOMMENDATION
Staff Recommends the City Commission approve Resolution 2021-07 for a
proposed lot split at 815 W. State Road 434.
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City of Winter Springs Resolution No. 2021-07 Page 1 of 8
RESOLUTION NO. 2021-07
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA; PROVIDING FOR THE DIVISION AND AGGREGATION OF THREE ORIGINALLY PLATTED LOTS OWNED BY NED ANTHONY VOSKA, TRUSTEE OF
THE NED ANTHONY VOSKA FAMILY TRUST DATED AUGUST 20, 1996, AND LOCATED AT 815 W. STATE ROAD 434, WINTER SPRINGS, FLORIDA (EXISTING PARCEL ID. 04-21-30-511-0B00-0040) INTO TWO (2) RESULTING LOTS OF RECORD; PROVIDING FOR REPEAL OF PRIOR
INCONSISTENT RESOLUTIONS, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State
Constitution, to exercise any power for municipal purposes, except when expressly prohibited by
law; and WHEREAS, section 9-3 of the City Code allows an owner of a single lot of sufficient size that satisfies zoning bulk regulations, except in a platted area of a planned unit development, to
divide an originally platted single lot; and
WHEREAS, section 9-11 of the City Code authorizes the City Commission to approve such division, generally referred to as a “lot split,” by resolution, and sets forth the prerequisites and application process for lot splits; and
WHEREAS, Ned Anthony Voska, as Trustee of the Ned Anthony Voska Family Trust dated August 20, 1996, (hereinafter “Owner”) is the owner of certain real property located at 815 W. State Road 434 in Winter Springs, Florida, more particularly depicted and legally described in Exhibit A, attached hereto and fully incorporated herein by this reference, (hereinafter the
“Affected Property”); and
WHEREAS, Owner has petitioned the City, pursuant to section 9-11 of the City Code, to divide said Affected Property and to create two (2) resulting separate lots; and
WHEREAS, said resulting lots are more particularly depicted and legally described
herein; and WHEREAS, specifically, the Affected Property consists of three platted lots, which have historically been used for various residential and commercial purposes, and several of the
commercial buildings and structures on said lots straddle the lot lines of the individually platted
lots without regard to the boundaries of such lots; and
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City of Winter Springs Resolution No. 2021-07 Page 2 of 8
WHEREAS, the Affected Property has been assigned a single tax parcel identification
number, has been under the common ownership of the Voska family since October 1964, and appears to have been generally used as a single parcel during such time; and WHEREAS, the Owner proposes to divide existing Lot 5 of Block B, Johnson’s Poultry
Farm subdivision, as recorded in Plat Book 6, Page 8, and to combine or aggregate each resulting
portions of Lot 5 with the respective Lots 4 and 6 on either side of existing Lot 5 to create two resulting lots; and WHEREAS, the City Commission finds that Owner has satisfied all of the requirements
for lot splits set forth in section 9-11 of the City Code and that the Owner’s proposal reduces
existing nonconformities on the Affected Property; and WHEREAS, the City Commission of the City of Winter Springs finds that this Resolution is in the best interests of the public health, safety, and welfare of the citizens of Winter Springs.
NOW THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS HEREBY RESOLVES, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are deemed true and correct and are hereby fully
incorporated by this reference.
Section 2. Approval of Lot Split and Subsequent Aggregation.
(a) Subject to the conditions stated below, the City Commission hereby approves, pursuant to section 9-11 of the City Code, the division of Lot 5 of Block B,
Johnson’s Poultry Farm subdivision, as recorded in Plat Book 6, Page 8, located at
815 W. State Road 434 (which is a portion of Parcel number: 04-21-30-511-0B00-0040), into two (2) separate lots. Said separate lots are more particularly depicted in Exhibit B, attached hereto and fully incorporated herein by this reference.
(b) In addition and subject to the conditions stated below, the City Commission hereby approves the aggregation of each respective separate portion of Lot 5 of Block B, Johnson’s Poultry Farm subdivision, as recorded in Plat Book 6, Page 8, with adjacent Lots 4 and 6, respectively, of the same subdivision, creating two resulting separate lots. Said separate lots are more particularly depicted and legally
described in Exhibit B (hereinafter the “Resulting Lots” or, individually, a “Resulting Lot”).
(c) Conditions of Approval. The conditions of approval for such lot split and aggregation are as follows:
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City of Winter Springs Resolution No. 2021-07 Page 3 of 8
1. Prior to recordation of this Resolution, Owner shall be required to remove the portion of the graveled parking area located on the southern portion of the Affected Property which would encroach into the newly created Lot 4; and
2. Owner further agrees to not sell, convey, or assign any interest in either
Resulting Lot, which would cause the loss of unity of ownership or title of each Resulting Lot, without first obtaining the written consent of the City of Winter Springs. Nothing herein is intended to prohibit or restrict the Owner from selling, conveying or assigning each Resulting Lot as a unified parcel of land or encumbering each Resulting Lot with easements or other interests in land
that do not cause loss of unity of ownership of title. Owner, as a condition of the approval of this Resolution, agrees and consents that this requirement shall be binding upon the heirs, personal representatives, successors and assigns of the Owner and shall run with the Affected Property; and
3. The Owner is aware that it is currently using for parking purposes the unimproved and unopened right-of-way, called David Drive, which is located
directly east and adjacent to the Affected Property and which was dedicated to
the public in the Johnson’s Poultry Farm plat. The City reserves the right to access and utilize the David Drive right-of-way for any and all public purposes consistent with the dedication in the future and in no way waives such right or interest by virtue of approval of this Resolution. Should the City desire to
utilize the David Drive right-of-way in the future for any public purpose
consistent with the dedication, the City shall retain the right to remove or prohibit any private uses interfering with such public use by any lawful means.
(d) Upon recordation of this Resolution in the Official Public Records of Seminole
County, Florida, said two (2) Resulting Lots, which shall consist of the split
portions of Lot 5 aggregated with each respective adjacent lot, shall each be deemed a lot of record for development purposes pursuant to applicable law.
Section 3. Repeal of Prior Inconsistent Resolutions. All prior inconsistent resolutions adopted by the City Commission, or parts of prior resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Resolution.
Section 5. Instructions to Staff. Pursuant to section 9-11(b)(2) of the City Code, the City
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City of Winter Springs Resolution No. 2021-07 Page 4 of 8
Attorney is hereby directed to record this Resolution in the Official Public Records of Seminole
County, Florida at such time as the conditions of approval herein have been satisfied. At such
time, the Community Development Department is hereby directed to modify city maps and documents to reflect the lot split and aggregation upon recordation of this Resolution. Section 6. Effective Date. This Resolution shall become effective immediately upon
adoption by the City Commission of the City of Winter Springs. However, the Resolution shall
not be binding upon the Affected Property until recorded by the City in accordance with the requirements of this Resolution.
ADOPTED by the City Commission of the City of Winter Springs, Florida, this _____ day of ________________, 2021.
________________________________
Kevin McCann, Mayor ATTEST (City Seal):
________________________________ Christian Gowan, City Clerk
Approved as to legal form and sufficiency for
the City of Winter Springs only:
_______________________________________ ANTHONY A. GARGANESE, City Attorney
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City of Winter Springs Resolution No. 2021-07 Page 5 of 8
EXHIBIT A
AFFECTED PROPERTY Lots 4, 5, and 6, Block B Johnson’s Poultry Farm, according to the plat thereof, as recorded in Plat Book 6, Page 8 of the Public Records of Seminole County, Florida.
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City of Winter Springs Resolution No. 2021-07 Page 6 of 8
EXHIBIT B
DEPCTION AND LEGAL DESCRIPTION OF RESULTING LOTS
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CONSENT AGENDA ITEM 305
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Award of the Water Treatment Plant No. 1 Electrical Improvements ITB #02-
21 DS
SUMMARY
The City of Winter Springs has a need for electrical improvements to Water
Treatment Plant no. 2. This construction project is for the installation and
connection of a City provided generator at the Water Plant.
RECOMMENDATION
Staff recommends the City Commission approve the award of bid to install
the generator at Water Treatment Plant No. 2 to Cain Enterprises LLC dba
Engineering Solutions International in the amount of $234,265.55 with a contract
time of 120 days. It is also requested that the City Manager is authorized to
execute the contract with Cain Enterprises LLC dba Engineering Solutions
International.
77
CONSENT AGENDA ITEM 301
COMMISSION AGENDA | MARCH 22, 2021 REGULAR MEETING
Award of the Water Treatment Plant No. 1 Electrical Improvements ITB
#02-21 DS
SUMMARY
The City of Winter Springs has a need for electrical improvements to
Water Treatment Plant no. 2. This construction project is for the
installation and connection of a City provided generator at the Water
Plant. An Invitation to Bid was published on DemandStar, the City’s
website, and the message board at City Hall. A total of 4 bids were
received by the May 21, 2021 deadline. The bids were tabulated and then
reviewed for responsiveness. The lowest most responsive bidder Cain
Enterprises LLC dba Engineering Solutions International. Their low bid
was $234,265.55.
The following is the list of all the bidders and their bids.
Firm Total Bid
Cain Enterprises LLC dba
Engineering
Solutions International
$234,265.55
SGS Contracting Services
Inc.
$238,700.00
The New Florida Industrial
Electric, Inc.
$246,287.00
Eau Gallie Electric, Inc $268,000.00
Funding for this construction is from the City’s Capital Improvement
Program.
78
RECOMMENDATION
Staff recommends the City Commission approve the award of bid to
install the generator at Water Treatment Plant No. 2 to Cain Enterprises
LLC dba Engineering Solutions International in the amount of $234,265.55
with a contract time of 120 days. It is also requested that the City
Manager is authorized to execute the contract with Cain Enterprises LLC
dba Engineering Solutions International.
79
CONSENT AGENDA ITEM 306
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Loan and/or Grant Acquisition and Compliance Services Contract
SUMMARY
The Public Works and Utilities Department is seeking the non-exclusive services of a
Loan and/or Grant Acquisition and Compliance Services professional to provide
training, planning, solicitation assistance, documentation, monitoring, and other
related services pertaining to the administration of Federal, State, or other potential
loans and grants i.e. state revolving funds (SRF) or loans.
RECOMMENDATION
Staff recommends the City Commission authorize the City Manager and City Attorney
to prepare and execute any all applicable documents for Angie Brewer and Associates
to provide Loan and Grant Acquisition and Compliance Services.
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CONSENT AGENDA ITEM 301
CITY COMMISSION AGENDA | MARCH 22, 2021 REGULAR MEETING
Loan and/or Grant Acquisition and Compliance Services Contract
SUMMARY
The Public Works and Utilities Department is seeking the non-exclusive services of a Loan and/or Grant
Acquisition and Compliance Services professional to provide training, planning, solicitation assistance,
documentation, monitoring, and other related services pertaining to the administration of Federal, State,
or other potential loans and grants i.e. state revolving funds (SRF) or loans.Staff has meet with Angie
Brewer and Associates (ABA) to discuss these services and would like to enter into a contract with ABBA.
We feel ABA has the ability to assist Winter Springs as we move forward with our proposed al expansion
plans in leveraging the City’s funds with available grants and loans. The firm has the following attributes.
•ABA is a certified Women’s Business Enterprise (WBE).
•ABA has the experience and capacity to serve the needs of Winter Springs with over
$7 Billion in loan and grant experience spanning more than 31 years.
•ABA has successfully provided loan and grant services listed in this RFP to more than
50 communities utilizing federal, state, local and private funding sources. In our
entire history, we have had a 97.1% application success rate as well as no audit
findings on any of the projects with which we have been involved.
ABA entered into an agreement with Collier County Collier to provide Loan and Grant
Acquisition and Compliance Services in June 2020. The City's purchase orders with ABA will
piggyback off the Collier County Agreement. It is anticipated that ABA will provide services for all
City Departments and each task will be negotiated and authorized by separate purchase orders.
RECOMMENDATION
Staff recommends the City Commission authorize the City Manager and City Attorney to prepare
and execute any all applicable documents for ABA to provide Loan and Grant Acquisition and
Compliance Services.
116
Piggyback Rider
City of Winter Springs and Angie Brewer & Associates, L.C.
Page 1 of 4
PIGGYBACK RIDER – ANGIE BREWER & ASSOCIATES, L.C.
THIS “PIGGYBACK” RIDER AGREEMENT (“Agreement”) is made and entered into this _______
day of May, 2021, between the CITY OF WINTER SPRINGS, a Florida municipal corporation (“City”) and
ANGIE BREWER & ASSOCIATES, L.C., a Florida limited corporation with principal offices located at 9080
58th Drive East, Suite 200, Bradenton, Florida 34202, (“Contractor”). The City and the Contractor agree as
follows:
1.The Purchasing Policies of the City of Winter Springs allow for “piggybacking” contracts.
Pursuant to this procedure, the City is allowed to piggyback an existing government contract, and there is
no need to obtain formal or informal quotations, proposals or bids. The parties agree that the Contractor
has entered into a contract with Collier County, Florida, said contract being identified as: Fixed-Fee
Professional Service Agreement #20-7690 for Loan and/or Grant Acquisition and Compliance Services,
dated June 9, 2020, and the First Amendment to Agreement #20-7690 for Loan and/or Grant Acquisition
and Compliance Services, dated July 24, 2020 (said original contract being referred to as the “Original
Government Contract”).
2.The Original Government Contract, including all associated Contract Documents and
Exhibits as defined in the Original Government Contract, is incorporated herein by reference and is
attached as Exhibit “1” to this Agreement. All of the terms and conditions set forth in the Original
Government Contract (Exhibit “1”) are fully binding on the parties and said terms and conditions are
incorporated herein except to the extent expressly modified herein.
3.Notwithstanding the requirements that the Original Government Contract is fully binding
on the parties, the parties have agreed to modify certain provisions of the Original Government Contract
as applied to this Agreement between the Contractorand the City of Winter Springs, as follows:
a)Notwithstanding anything in Exhibit “1” to the contrary, the following terms shall be
substituted throughout the Original Government Contract: Collier County or County = City of Winter
Springs. All references to the County Manager shall = City of Winter Spring’s City Manager.
b)Notwithstanding anything in Exhibit “1” to the contrary, the term of this Agreement with
the City of Winter Springs shall take effect on the date of its execution of the City and Contractor and
continue for a period of three (3) years or until all outstanding Purchase Order(s) issued prior to the
expiration of the Agreement have been completed or terminated. Upon mutual agreement of the Parties,
this Agreement may be renewed, subject to the same terms and conditions contained herein, for two (2)
successive periods not to exceed one (1) year each.
c)Section 6 – Notices – of the Original Government Contract shall be amended to provide
that Notices to the City shall be delivered to:
City Manager
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, FL 32708
117
Piggyback Rider
City of Winter Springs and Angie Brewer & Associates, L.C.
Page 2 of 4
Any Notice given as provided herein shall be deemed received as follows: if delivered by personal service,
on the date so delivered; if delivered to an overnight courier service, on the business day immediately
following delivery to such service; and if mailed, on the third business day after mailing.
d)Section 13 – Indemnification – of the Original Government Contract shall be amended to
additionally require that, for purposes of Contractor’s indemnification obligation only, Contractor shall
indemnify the City forclaims made by the employees of Contractor against the City, and Contractorhereby
waives its entitlement, if any, to immunity under Section 440.11, Florida Statutes. This waiver has been
specifically and mutually negotiated by the parties.
e)Section 14 – Agreement Administration- of the Original Government Contract is stricken
in its entirety.
f)Section 20 – Compliance with Laws – of the Original Government Contract is amended to
additionally require that if Contractor fails to comply with this Section, and the City must enforce this
Article, or the Citysuffers a third party award of attorney’s fees and/or damages for violating Chapter 119,
Florida Statutes, due to Contractor’s failure to comply with this Section, the City shall collect from
Contractor prevailing partyattorney’s fees and costs, and any damages incurred by the City, for enforcing
this Section against Contractor. And, if applicable, the City shall also be entitled to reimbursement of all
attorneys’ fees and damages which the City had to pay a third party because of the Contractor’s failure to
comply with this Article.
IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA
STATUTES, TO ITS DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE
CUSTODIAN OF PUBLIC RECORDS AT: City Clerk, City of Winter Springs, 1126 East State Road 434, Winter
Springs, FL 32708 or City-Clerk-Department@winterspringsfl.org or (407) 327-6560.
g)Section 25 –Venue – of the Original Government Contract shall be amended to provide
that the venue for all legal action necessary to enforce this Agreement shall be held in Seminole County,
Florida for state court actions and Orlando, Florida for federal court actions.
h)Section 27 – Order of Precedence – of the Original Government Contract shall be
amended to additionally provide that this Agreement (Piggyback Rider) shall control in the event of a
conflict with any of the Original Government Contract Documents.
i)A new Section 30 - E-Verify Registration and Use – Is hereby included as follows:
A. Pursuant to section 448.095, Florida Statutes, beginning January 1, 2021, Contractor shall register
with and use the U.S. Department of Homeland Security’s E-Verify system,https://e-
verify.uscis.gov/emp, to verify the work authorization status of all employees hired on and after January
1, 2021.
B. Subcontractors
(i) Contractor shall also require all subcontractors performing work under this Agreement
to use the E-Verify system for any employees they may hire during the term of this Agreement.
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City of Winter Springs and Angie Brewer & Associates, L.C.
Page 3 of 4
(ii) Contractor shall obtain from all such subcontractors an affidavit stating the
subcontractor does not employ, contract with, or subcontract with an unauthorized alien, as
defined in section 448.095, Florida Statutes.
(iii) Contractor shall provide a copy of all subcontractor affidavits to the City upon receipt
and shall maintain a copy for the duration of the Agreement.
C. Contractor must provide evidence of compliance with section 448.095, Florida Statutes. Evidence
shall consist of an affidavit from the Contractor stating all employees hired on and after January 1, 2021
have had their work authorization status verified through the E-Verify system and a copy of their proof of
registration in the E-Verify system.
D. Failure to comply with this provision is a material breach of the Agreement, and shall result in the
immediate termination of the Agreement without penalty to the City. Contractor shall be liable for all
costs incurred by the City securing a replacement Agreement, including but not limited to, any increased
costs for the same services, any costs due to delay, and rebidding costs, if applicable.
j)A new Section 31 – Sovereign Immunity – is hereby included as follows:
The City intends to avail itself of the benefits of Section 768.28, Florida Statutes and any other statutes
and common law governing sovereign immunity to the fullest extent possible. Neither this provision nor
any other provision of this Agreement shall be construed as a waiver of the City’s right to sovereign
immunity under Section 768.28, Florida Statutes, or other limitations imposed on the City’s potential
liability under state or federal law. Contractor agrees that City shall not be liable under this Agreement
for punitive damages or interest for the period before judgment. Further, City shall not be liable for any
claim or judgment, or portion thereof, to any one person for over two hundred thousand dollars
($200,000.00), or any claim or judgment, or portion thereof, which, when totaled with all other claims or
judgments paid by the State or its agencies and subdivisions arising out of the same incident or
occurrence, exceeds three hundred thousand dollars ($300,000.00). Nothing in this Agreement is
intended to inure to the benefit of any third party for the purpose of allowing any claim which would
otherwise be barred under the doctrine of sovereign immunity or by operation of law. This paragraph
shall survive termination of this Agreement.
k)A new Section 32 – Attorney’s Fees – is hereby included as follows:
Should either party bring an action to enforce any of the terms of this Agreement, each party shall bear
its own costs and expenses of such action including, but not limited to, reasonable attorney’s fees,
whether at settlement, trial or on appeal.
[SIGNATURE PAGE TO FOLLOW]
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City of Winter Springs and Angie Brewer & Associates, L.C.
Page 4 of 4
IN WITNESS WHEREOF, authorized representatives of the CITY and the CONTRACTOR have
executed this Piggyback Rider to the Original Government Contract on the day and year below noted:
CITY:ANGIE BREWER & ASSOCIATES, L.C.
_______________________________________________________________________________
Shawn Boyle, City Manager
Printed Name and Title: _____________________
Date: __________________________________
________________________________________
ATTEST:Date:___________________________________
_______________________________________
Christian Gowan, City Clerk
120
CONSENT AGENDA ITEM 307
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
FY21-22 Budget Workshop
SUMMARY
Staff is required by State Statute to provide a copy of the Proposed Budget to
the governing body by July 1st of each year. In years past, prior to the
regularly scheduled meeting in July, Commissioners were then directly briefed
by Staff in separate meetings in preparation for the formal budget
presentation at the July meeting. Detailed discussions with Staff regarding
the budget, the millage rate cap, and other pertinent matters would be
addressed ahead of that meeting. In recent years, the Commission has not
elected to have a formal budget workshop outside the regularly scheduled
Commission meeting.
RECOMMENDATION
Staff recommends the Commission utilize a Regular agenda item to discuss
the 2022 budget at the July 12th meeting.
121
CITY COMMISSION
REGULAR MEETING
MINUTES
MONDAY, MAY 10, 2021 AT 6:30 PM
CITY HALL - COMMISSION CHAMBERS
1126 EAST STATE ROAD 434, WINTER SPRINGS, FLORIDA
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CALL TO ORDER
Mayor Kevin McCann called the Regular Meeting of Monday, May 10, 2021 of the City
Commission to order at 6:31 p.m. in the Commission Chambers of the Municipal
Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708).
Roll Call:
Mayor Kevin McCann, present
Deputy Mayor Ted Johnson, present
Commissioner Matt Benton, present
Commissioner Kevin Cannon, present
Commissioner TiAnna Hale, present
Commissioner Rob Elliott, present
City Manager Shawn Boyle, present
City Attorney Anthony A. Garganese, present
City Clerk Christian Gowan, present
Commissioner Rob Elliott provided the Invocation and Mayor McCann then led the
Pledge of Allegiance.
Commissioner Cannon asked that an Item be added to the agenda titled “New
Business.” No objections were noted to these changes and the agenda was adopted
with the addition.
AWARDS AND PRESENTATIONS
100) Don Gilmore Community Service Award for 2021
Cover Page
Dr. Kurt Miericke reviewed the history of the award and presented Mr. Arnie
Nussbaum with the 2021 Don Gilmore Community Service Award.
INFORMATIONAL AGENDA
200) Current Development Projects Summary
Cover Page
Projects Summary
This item was not discussed.
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PUBLIC INPUT
Ms. Bronwyn, Hearts Helping Others of Central Florida, 1555 Belle Avenue, Suite 140,
Winter Springs, Florida spoke about concerns regarding a code enforcement case
and asked about next steps.
Mr. Maurice Kaprow PO Box 195233, Winter Springs, Florida shared concerns about
the spread of misinformation and referenced a posting that went out in an attempt
to scare people with water issues. Continuing, Mr. Kaprow spoke about Veolia’s
responsibilities for fines, commended staff and the Commission for conducting
open business, and noted he was upset that people were disparaging the City.
Mr. Matt Morgan, 1678 Grange Circle, Longwood, Florida commended the
Commission for the way they ran their meetings and spoke briefly in support of the
nonprofit organization.
Mr. Paul Partyka, 404 Park Lake Drive, Winter Springs, Florida offered
commendations all around and noted surprise about Item 503, discussion on
removal of Mayor position. Mr. Partyka reviewed the Mayor's role, thought it offered
stability, and was not in favor of eliminating the position of Mayor.
Mr. Kevin Cannon, PO Box 195698, Winter Springs, Florida spoke about the City
needing to do more to combat disinformation and promote the work the City is
doing to address water and wastewater. Thought the City had been taking the
wrong approach in terms of communication.
Commissioner Kevin Cannon left the meeting at 6:57 P.M.
Mr. Jeff Crandall, 1239 Stone Harbour Road, Winter Springs, Florida congratulated
Mayor McCann, commended the Commission, and noted he saw no benefit in
eliminating the Mayor’s position.
CONSENT AGENDA
300) Donation of Fishing Poles for Fish Winter Springs
Cover Page
301) Wendy’s (WS Town Center) Site Acceptance
Cover Page
Wendys Exhibit A Site Acceptance Punchlist
302) Minutes from the Monday, April 26, 2021 City Commission Regular Meeting
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Minutes
"MOTION TO APPROVE CONSENT AGENDA." MOTION BY COMMISSIONER HALE.
SECONDED BY DEPUTY MAYOR JOHNSON. DISCUSSION.
VOTE:
COMMISSIONER BENTON: AYE
COMMISSIONER HALE: AYE
COMMISSIONER ELLIOTT: AYE
DEPUTY MAYOR JOHNSON: AYE
MOTION CARRIED.
PUBLIC HEARINGS AGENDA
400) Waste Pro Contract Addendum and Second Reading of Ordinance 2021-03
Cover Page
Waste Pro Sixth Addendum to Solid Waste Agmt
Ordinance 2021-03 Adopt Solid Waste Franchise SIXTH Addendum
Legal Ad
Attorney Garganese read Ordinance 2021-03 by title only.
Mayor McCann opened Public Input for Item 400
Ms. Marie Cashion, 1529 Woodsglen Drive, Winter Springs, Florida supported
keeping Waste Pro and spoke highly of Waste Pro workers and service.
Mayor McCann closed Public Input for Item 400
"MOTION TO APPROVE ORDINANCE 2021-03 RENEWING THE EXISTING FRANCHISE
AGREEMENT AND EXTENDING THE TERM OF THE EXISTING SOLID WASTE
AGREEMENT WITH WASTE PRO OF FLORIDA, INC. THROUGH FEBRUARY 28, 2027
EFFECTIVE UPON EXECUTION.." MOTION BY COMMISSIONER HALE. SECONDED BY
COMMISSIONER BENTON. DISCUSSION.
VOTE:
COMMISSIONER BENTON: AYE
COMMISSIONER ELLIOTT: AYE
DEPUTY MAYOR JOHNSON: AYE
COMMISSIONER HALE: AYE
MOTION CARRIED.
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401) Second Reading of Ordinance 2021-04 Amending the City of Winter Springs
Code of Ordinances, Section 2-27 regarding City Commission Rules And
Procedures; Providing amendments related to agenda items and reports;
providing for the repeal of prior inconsistent ordinances and resolutions;
incorporation into the Code; severability and an effective date.
Cover Page
Ordinance 2021-04 Amending Commission Rules Agenda Items and Reports
Legal Ad
Attorney Garganese read Ordinance 2021-04 by title only.
Mayor McCann opened the Public Hearing for Item 401
No one spoke
Mayor McCann closed the Public Hearing for Item 401
"MOTION TO APPROVE ORDINANCE 2021-04." MOTION BY COMMISSIONER HALE.
SECONDED BY DEPUTY MAYOR JOHNSON. DISCUSSION.
VOTE:
DEPUTY MAYOR JOHNSON: AYE
COMMISSIONER HALE: AYE
COMMISSIONER BENTON: AYE
COMMISSIONER ELLIOTT: AYE
MOTION CARRIED.
REGULAR AGENDA
500) Non-Binding Preliminary Review for Pulte Homes.
Cover Page
Non Binding Preliminary Review Genius Signed Notarized 8 31 20
Vicinity Map
Genius Foundation Legal Description
Genius Survey 24x36
SIA Letter Genius Property
Genius Presentation 20210510
Genius Product_20200826
Mr. Christopher Schmidt, Director, Community Development Department
introduced the item and the applicant.
Ms. Rebecca Wilson on behalf of the owner, Genius Property presented on current
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use, proposed development, and a request to remove the GID and instead develop
as low density residential, approximately 200 units, traditional single-family lots,
bungalows, and townhomes.
Ms. Wilson then reviewed GID requirements and why she thought the parcel in
question was not appropriate for this designation.
Discussion followed on density requirements, the future land use, the intricacies of
the GID, the need for flood insurance, and potential consumptive use permit (CUP)
impacts.
501) Economic Development Proposals
Cover Page
2021-03 ECFRPC EcDev Retail Market Proposal
2021-04 Gibbs EcDev Retail Market Proposal
2021-04 Kimley Horn EcDev Retail Market Proposal
Mr. Schmidt noted the economic development plan came out of the 2030 and
Beyond survey and reviewed three plans from potential providers.
Brief discussion followed with Deputy Mayor Johnson and Commissioner Hale
noting Gibbs was their preference.
No action was taken.
502) Resolution 2021-04 to Establish An Auditor Selection Committee
Cover Page
Resolution 2021-04 Auditor Selection Committee
State of Florida Auditor General - Auditor Selection Committee Guidance Sept
2020
*AGENDA NOTE: THE RESOLUTION DISCUSSED WAS RESOLUTION 2021-06. THE
AGENDA AND ITEM TITLE INCORRECTLY LISTED THIS AS RESOLUTION 2021-04.*
Ms. Maria Sonksen, Director, Finance Department noted the recent completion of
the 2020 audit and new guidance requiring an auditor selection committee,
without staff, to select the next auditor. Ms. Sonksen reviewed requirements of the
three members noting a Commissioner would be the chair of the committee and
two residents would be selected by the City Manager.
Attorney Garganese reviewed the history and role of the Committee.
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Discussion followed on previous committees with staff and it was confirmed that
staff could still act in an advisory capacity to the Committee.
"MOTION TO APPROVE RESOLUTION 2021-04*." MOTION BY COMMISSIONER
BENTON. SECONDED BY DEPUTY MAYOR JOHNSON. DISCUSSION.
VOTE:
COMMISSIONER ELLIOTT
DEPUTY MAYOR JOHNSON: AYE
COMMISSIONER BENTON: AYE
COMMISSIONER ELLIOTT: AYE
MOTION CARRIED.
DM Johnson noted he was willing to serve. Commissioner Elliott noted his interest
as well. DM Johnson was happy to let Commissioner Elliott serve.
"MOTION TO APPROVE APPOINT COMMISIONER ELLIOTT CHAIR OF AUDITOR
SELECTION COMMITTEE." MOTION BY COMMISSIONER HALE. SECONDED BY
DEPUTY MAYOR JOHNSON. DISCUSSION.
VOTE:
DEPUTY MAYOR JOHNSON: AYE
COMMISSIONER HALE: AYE
COMMISSIONER ELLIOTT: AYE
COMMISSIONER BENTON: AYE
MOTION CARRIED.
503) Discussion on Proposing a City Charter Amendment to Eliminate the Mayor’s
Position
Cover Page
Mayor McCann clarified that the Commission was not seeking to eliminate the role
of Mayor, rather a discussion was going to be focused on rotating the position
among five (5) elected officials. Mayor McCann reviewed the current system and
noted a Charter amendment would be required, to be approved by voters, before a
change could occur.
Discussion followed on other municipalities in Seminole County.
Deputy Mayor Johnson noted that he had placed the item on the agenda and
spoke about concerns with people using the Office of Mayor as a powerbroker,
noted efforts to improve the City and make it a model for surrounding cities.
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Commissioners Benton, Elliott, and Hale noted they were not currently in favor of
the idea and asked that a Workshop be scheduled to further discuss and hear from
residents.
Further discussion followed on proposals to change the form of government to a
strong mayor, the desire to hear from residents, what staff should bring to the
proposed Workshop, potentials changes that could be considered, and some
concerns about inconsistent representation.
Staff was asked to look at potential costs and deadlines for submitting ballot
language.
Attorney Garganese referenced the Model Charter, noted the City’s currently
different approach of the non-voting Mayor, and summarized that if the
Commission wanted to propose a referendum it would be either to continue direct
election of the mayor or eliminate the non-voting Mayor position and give the
Commission the opportunity to select among its members.
The Charter Amendment Workshop regarding the Mayor’s Position was scheduled
for Thursday, June 10, 2021 at 6:30 P.M.
504) Appointment Opportunities for City Boards and Committees
Cover Page
No appointments were made.
ADD ON ITEM - 505 - New Business
Deputy Mayor Johnson noted that Manager Boyle addressed the Rotary Club
earlier and thought he did an excellent job.
Discussion followed on social media issues, the spread of misinformation, review of
the plant conditions, and the need for the City to better communicate the progress
being made, potentially hiring outside public relations help.
Manager Boyle noted looking in to how to better get the message out, thought the
City was in a unique situation, talked about discussions with previous officeholders
and noted further issues that would be brought forward and that were being
addressed. Manager Boyle noted his goal, and that of all staff, was to leave the City
better than they found it.
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REPORTS
600) City Manager Shawn Boyle
Provided an update on the traffic light at Michael Blake Boulevard and 434,
noted the City was moving in the direction of creating the light for that
intersection.
Regarding upgrades at the East Water Plant, noted moving ahead with
original 3 phase plan to address taste and smell.
Asked Ms. Casey Howard, Director, Operations Department to provide update
on the Celebration of Freedom 4th of July festivities
o Ms. Howard noted the City was still planning on holding the event and
asked for direction from the Commission.
o Discussion followed on safety concerns, other City’s cancelling their
events, different iterations the event could look like, and the possibility
of cancelling the Celebration of Freedom. After lengthy discussion, the
consensus was to hold the event as normal.
601) City Attorney Anthony A. Garganese
No report
602) City Clerk Christian Gowan
No report
603) Seat Four Commissioner TiAnna Hale
Asked how many lift stations were online with a generator
o Mr. Smith noted there were 59 backup pumps and 5 or 6 generators
ready to be deployed
Reminded everyone that hurricane season was coming upon us and to be
prepared.
Noted that Fish Winter Springs was amazing.
604) Seat Five Commissioner Rob Elliott
Echoed Commissioner Hale saying Fish Winter Springs event was fun
Noted the Marketplace was going well and briefly discussed a potential
donation to assist with trees.
Asked about the possibility of an employee recognition celebration
Suggested summer meeting dress code be adjusted for the Commission to
be more casual. Commission agreed.
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605) Mayor Kevin McCann
Noted participated in MetroPlan virtual meeting
Spoke about bills passed and signed into law and the attack on home rule
Asked about looking into public relations help
606) Seat One Commissioner Matt Benton
Noted that he recently attended Institute for Elected Municpal Officials
training and learned a lot.
607) Seat Two Commissioner Kevin Cannon
Not present
608) Seat Three Commissioner/Deputy Mayor Ted Johnson
Noted upcoming CALNO meeting and asked who would be attending
Asked for outside group meetings and events to be included on the calendar
that is distributed at meetings
PUBLIC INPUT
Ms. Loretta Ames, 150 Third Street, Winter Springs, Florida spoke against the
addition of additional townhomes, apartments, and Pulte homes.
Ms. Dorothy Pehowic, 609 Anhinga Road, Winter Springs, Florida spoke about
concerns of Greenspointe residents regarding odors from wastewater plants.
Mayor McCann - maybe missing communication
ADJOURNMENT
Mayor McCann adjourned the meeting at 10:00 PM.
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RESPECTFULLY SUBMITTED:
____________________________________
CHRISTIAN GOWAN
CITY CLERK
APPROVED:
____________________________________
MAYOR KEVIN MCCANN
NOTE: These Minutes were approved at the _________________, 2021 City Commission Regular Meeting.
132
CITY COMMISSION
SPECIAL MEETING
MINUTES
TUESDAY, JUNE 1, 2021 AT 6:30 PM
CITY HALL - COMMISSION CHAMBERS
1126 EAST STATE ROAD 434, WINTER SPRINGS, FLORIDA
133
CITY COMMISSION MINUTES | SPECIAL MEETING | TUESDAY, JUNE 1 , 2021 | PAGE 2 OF 5
CALL TO ORDER
Mayor Kevin McCann called the Special Meeting of Tuesday, June 1, 2021 of the City
Commission to order at 6:32 p.m. in the Commission Chambers of the Municipal
Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708).
Roll Call:
Mayor Kevin McCann, present
Deputy Mayor Ted Johnson, present
Commissioner Matt Benton, present
Commissioner Kevin Cannon, present
Commissioner TiAnna Hale, present
Commissioner Rob Elliott, absent
City Manager Shawn Boyle, present
City Attorney Anthony A. Garganese, present via telephone. Arrived on dais at 7:16 p.m.
City Clerk Christian Gowan, present
AWARDS AND PRESENTATIONS
100. Not Used
INFORMATIONAL AGENDA
200. Not Used
PUBLIC INPUT
No one spoke.
CONSENT AGENDA
300. Not Used
PUBLIC HEARINGS AGENDA
400. Not Used
REGULAR AGENDA
500) Consider and Take Appropriate Action Regarding the Deputy
Mayor’s Declaration and any Water Shortage Issue
Emergency Declaration - Temporary Irrigation Restrictions
Chapter 19, Article VI - Water Shortage Conditions and Shortages, City Code
Commissioner Cannon asked the manager or attorney to provide some
background on the emergency declaration and the procedural requirements that
were to be followed.
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CITY COMMISSION MINUTES | SPECIAL MEETING | TUESDAY, JUNE 1 , 2021 | PAGE 3 OF 5
Manager Boyle explained that Mr. Dale Smith, Director, Public Works and Utilities
Department identified a water shortage last week, the Mayor was unavailable and
staff contacted the Deputy Mayor to issue the emergency order. Manager Boyle
reviewed the time period to extend or sunset the emergency declaration.
Attorney Garganese confirmed the Commission's role was to consider the
declaration and determine if it should be extended or allow it to lapse.
Manager Boyle introduced Mr. Rob Nicholas, Veolia and Mr. Dale Smith
Mr. Smith reviewed the discovery of low water levels, noted he contacted the
Manager and Attorney and provided notice of conditions requiring the emergency
declaration. Continuing, Mr. Smith noted that the City physically shut irrigation
water off last week in response to the emergency declaration.
Mr. Nicholas reviewed the Water Works program and projects, reviewed trends of
increasing water usage, and Consumptive Use Permit (CUP) non-compliance.
Continuing, Mr. Nicholas reviewed the status of various water projects including
construction, line replacements, treatment improvements, reuse expansion, power
reliability improvements, and long-term plans for connectivity between East and
West plants. Mr. Nicholas noted that the City was currently at 76% capacity of the
entire water system and that irrigation was the biggest issue with 15% of customers
accounting for 50% of use.
Mr. Smith reviewed a heat map for irrigation showing where the highest use of
water was occurring.
Mr. Smith then went on to explain proper water levels in the water treatment plants
and the fact that there were seven (7) days in May when the tank fell below the
warning level of seven (7) feet. Continuing, Mr. Smith noted all low level events
occurred on irrigation days and the problem was on the East side of the City. Mr.
Smith noted it is not uncommon around the state to put restrictions on watering
days in place.
Discussion followed on conservation and enforcement efforts, the number of
projects planned and currently underway, the possibility of requiring drought-
tolerant sod and landscaping in developments, including HOAs in future
discussions, and impacts on fire suppression abilities.
Manager Boyle noted at no time were resident in danger of not having sufficient
pressure.
135
CITY COMMISSION MINUTES | SPECIAL MEETING | TUESDAY, JUNE 1 , 2021 | PAGE 4 OF 5
Further discussion followed on the timeline for reuse extension and connection into
Tuskawilla Crossing and potentially considering a more permanent change to
watering days based on rainfall data.
Attorney Garganese noted that the current process, including the emergency order
and meeting, were required by City Code but that a policy change could be
considered if a problem is anticipated in the future.
Discussion followed on reviewing and potentially changing the watering schedules,
past indications that the City was doing fine with the CUP, the responsible
management of growth, and commending Manager Boyle for bringing the issue to
the attention of the Commission.
Can we make condition that CM can rescind sooner if rainfall warrants
Conditions - if PW Utilities director certifierd to CM that water condition that
necessitated declaration of emergency in water supply shortage report no longer
exists
"MOTION TO APPROVE EXTENDING EMERGENCY DECLARATION ON IRRIGATION
RESTRICTIONS THRU 10PM JULY 12, 2021 AND AUTHORIZE CITY MANAGER ABILITY
TO RESCIND UPON RECEIPT PW UTILITIES DIRECTOR CERTIFIES TO CM THAT
WATER CONDITION THAT NECESSITATED DECLARATION OF EMERGENCY IN
WATER SUPPLY SHORTAGE REPORT NO LONGER EXISTS." MOTION BY KEVIN
CANNON. SECONDED BY TIANNA HALE. DISCUSSION.
VOTE:
TED JOHNSON: AYE
MATT BENTON: AYE
KEVIN CANNON: AYE
TIANNA HALE: AYE
MOTION CARRIED.
PUBLIC INPUT
No one spoke.
ADJOURNMENT
Mayor McCann adjourned the meeting at 10:00 PM.
RESPECTFULLY SUBMITTED:
136
CITY COMMISSION MINUTES | SPECIAL MEETING | TUESDAY, JUNE 1 , 2021 | PAGE 5 OF 5
____________________________________
CHRISTIAN GOWAN
CITY CLERK
APPROVED:
____________________________________
MAYOR KEVIN MCCANN
NOTE: These Minutes were approved at the _________________, 2021 City Commission Regular Meeting.
137
REGULAR AGENDA ITEM 500
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
City of Winter Springs Commission consideration of recognition of Father John
Bluet for more than three decades of community service to the citizens of
Winter Springs and Seminole County.
SUMMARY
RECOMMENDATION
Commission is to consider the information provided during the discussion
and direct staff on actions they may deem appropriate.
138
REGULAR AGENDA ITEM 501
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Appointment Opportunities for City Boards and Committees
SUMMARY
The City Clerk Department wishes to inform the City Commission of the
following vacancies:
Per Section 2-41(e) of the City Code, "If any commissioner fails to appoint a
member within thirty (30) days after a vacancy occurs or a term expires, that
seat shall be filled by a majority vote of the commission."
CURRENT VACANCIES:
Oak Forest Wall and Beautification District Advisory Committee
Seat Five - Commissioner Elliott
Term Expires: August 2023
Parks and Recreation Advisory Committee
Seat Two - Commissioner Cannon
Term Expires: November 1, 2023
Youth Council
Mayor - Two (2) appointments remaining
Seat One - One (1) appointment remaining
Seat Five - One (1) appointment remaining
UPCOMING VACANCIES:
Code Enforcement Board - the following terms end July 31, 2021.
Seat Three - Deputy Mayor Johnson (Current member, Ms. Carole
Giltz, has met her term limit)
At-Large Appointment (Current member, Mr. Dennis Robinson,
interested in reappointment)
RECOMMENDATION
Staff recommends the City Commission make any appointments they deem
pertinent.
139
REGULAR AGENDA ITEM 502
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
Body-worn camera (BWC) system discussion
SUMMARY
The topic of police body-worn camera (BWC) systems has been at the
forefront of many law enforcement-related discussions for decades. During
the evolution of these systems, and their implementation in police agencies in
various sizes across the country, it has become apparent to police
administrators that a "what's best" approach applied to each jurisdiction in
the United States is simply not applicable. The individual needs of the
community served by the police officers who will ultimately wear these BWC
systems will determine how best to proceed. Implementation of a BWC
program cannot be a knee jerk reaction- it must be done so with purposeful
deliberation and deep consideration to several factors within the community
considering them.
Police administrators and public officials must closely examine the cost-to-
benefit analysis of a BWC system. Based on staff's experience, for these
systems to be beneficial to transparency and effectiveness and for the system
to make the most impact it should not be implemented in pieces. Should a
jurisdiction decide to pursue a BWC system, implementation of the desired
system and features is best done all at once. Equipping officers with these
tools must be uniform and there should be ample units on hand to equip
every officer assigned to patrol duty, not just some. Estimated program costs
for hardware alone combining updated integrated Taser 7 units with BWC
units is $740,000. Reoccurring personnel costs required to adequately
operate and administer this program are approximately $140,000.
The consideration of the desires of the public served by its police department
is vital. In short, is there a desire or demand by the public based on police
mistrust or a pattern of abuse by police against its residents to justify the
implementation over the uniquely vast costs of the system? In larger, more
densely populated areas there may be more demand from the public than in
a city the size and composition of Winter Springs. This factor is not meant to
convey that BWC systems are not applicable in a city our size but cost-to-
140
benefit analysis weighs heavily in this discussion. Florida Statutes Chapter 943
outlines BWC policy framework for Florida police departments.
Another consideration in BWC discussions that is not widely discussed among
most agencies considering them relates to privacy concerns. Across the
country, laws have been enacted to address privacy concerns created by BWC
systems when officers wear them inside private residences during the course
of duty or they otherwise encounter people experiencing certain situations
where intrusion is a legitimate concern. These laws are not consistent from
state to state and while they are currently intended to protect citizens from
unnecessary intrusion, these laws can be amended as quickly as they were
created, potentially negating these protections. There are strong
considerations needed in this area related to BWC use, as legislative changes
could widely impact public record release protections. Video footage could
then be released to anyone requesting it pursuant to Chapter 119 of Florida
Statutes.
Staff is prepared to discuss this project with the Commission to determine the
best path forward for our community.
RECOMMENDATION
The staff recommends the commission review information presented and
engage in preliminary dialogue concerning police body-worn cameras.
141
Winter Springs Police Dept. -FL
ISSUED
4/29/2021
AXON SALES REPRESENTATIVE
Ted Megremis
tmegremis@axon.com
Q-284438-44315.581WS
1 142
Payment Terms: Net 30
Delivery Method: Fedex -Ground
Q-284438-44315.581WS
Year 1
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Axon Plans & Packages
20248 TASER 7 EVIDENCE.COM ACCESS LICENSE 60 1 0.00 0.00 0.00
73746 PROFESSIONAL EVIDENCE.COM LICENSE 60 55 0.00 0.00 0.00
73686 EVIDENCE.COM UNLIMITED AXON DEVICE
STORAGE 60 55 0.00 0.00 0.00
73683 10 GB EVIDENCE.COM A-LA-CART STORAGE 60 1,650 0.00 0.00 0.00
73680 RESPOND DEVICE PLUS LICENSE 60 55 0.00 0.00 0.00
73681 AXON RECORDS FULL 60 55 0.00 0.00 0.00
73739 PERFORMANCE LICENSE 60 55 0.00 0.00 0.00
20248 TASER 7 EVIDENCE.COM ACCESS LICENSE 60 55 0.00 0.00 0.00
20246 TASER 7 DUTY CARTRIDGE REPLACEMENT
ACCESS LICENSE 60 55 0.00 0.00 0.00
73618 CITIZEN FOR COMMUNITIES USER ACCESS
LICENSE 60 55 0.00 0.00 0.00
73478 REDACTION ASSISTANT USER ACCESS
LICENSE 60 55 0.00 0.00 0.00
11642 THIRD-PARTY VIDEO SUPPORT LICENSE 60 55 0.00 0.00 0.00
73687 EVIDENCE.COM VIEWER LICENSE 60 1 0.00 0.00 0.00
73682 AUTO TAGGING LICENSE 60 55 0.00 0.00 0.00
Hardware
20160 TASER 7 HOLSTER -SAFARILAND, RH+CART
CARRIER 55 0.00 0.00 0.00
75015 SIGNAL SIDEARM KIT 55 0.00 0.00 0.00
Issued: 04/29/2021
Quote Expiration: 06/30/2021
Account Number: 145373
Axon Enterprise, Inc.
17800 N 85th St.
Scottsdale, Arizona 85255
United States
Phone: (800) 978-2737
Protect Life.
PRIMARY CONTACT
Nick Romano
Phone: (407) 327-7998
Email: nromano@winterspringsfl.org
BILL TO
Winter Springs Police Dept. -FL
300 N. MOSS ROAD
Winter Springs, FL 32708
US
SHIP TO
Nick Romano
Winter Springs Police Dept. -FL
300 N. MOSS ROAD
Winter Springs, FL 32708
US
SALES REPRESENTATIVE
Ted Megremis
Phone:
Email: tmegremis@axon.com
Fax:
Q-284438-44315.581WS
2 143
Year 1 (Continued)
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware (Continued)
20050 HOOK-AND-LOOP TRAINING (HALT) SUIT 1 0.00 0.00 0.00
20008 TASER 7 HANDLE, YLW, HIGH VISIBILITY
(GREEN LASER), CLASS 3R 55 0.00 0.00 0.00
20040 TASER 7 HANDLE WARRANTY, 4-YEAR 55 0.00 0.00 0.00
73202 AXON BODY 3 -NA10 55 699.00 699.00 38,445.00
22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5-
DEGREE) NS 165 0.00 0.00 0.00
22176 TASER 7 LIVE CARTRIDGE, CLOSE
QUARTERS (12-DEGREE) NS 165 0.00 0.00 0.00
71044 BATTERY, SIGNAL SIDEARM, CR2430
SINGLE PACK 110 0.00 0.00 0.00
22179 TASER 7 INERT CARTRIDGE, STANDOFF
(3.5-DEGREE) NS 50 0.00 0.00 0.00
22181 TASER 7 INERT CARTRIDGE, CLOSE
QUARTERS (12-DEGREE) NS 50 0.00 0.00 0.00
70033 WALL MOUNT BRACKET, ASSY,
EVIDENCE.COM DOCK 7 43.90 43.90 307.30
74210 AXON BODY 3 -8 BAY DOCK 7 1,495.00 1,495.00 10,465.00
22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5-
DEGREE) NS 110 0.00 0.00 0.00
22176 TASER 7 LIVE CARTRIDGE, CLOSE
QUARTERS (12-DEGREE) NS 110 0.00 0.00 0.00
22177 TASER 7 HOOK-AND-LOOP TRN (HALT)
CARTRIDGE, STANDOFF NS 110 0.00 0.00 0.00
22178 TASER 7 HOOK-AND-LOOP TRN (HALT)
CARTRIDGE, CLOSE QUART NS 110 0.00 0.00 0.00
20018 TASER 7 BATTERY PACK, TACTICAL 66 0.00 0.00 0.00
20041 TASER 7 BATTERY PACK WARRANTY, 4-
YEAR 66 0.00 0.00 0.00
20042 TASER 7 DOCK & CORE WARRANTY, 4-
YEAR 1 0.00 0.00 0.00
70033 WALL MOUNT BRACKET, ASSY,
EVIDENCE.COM DOCK 1 0.00 0.00 0.00
74200 TASER 7 6-BAY DOCK AND CORE 1 0.00 0.00 0.00
80090 TARGET FRAME, PROFESSIONAL, 27.5 IN. X
75 IN., TASER 7 1 0.00 0.00 0.00
11534 USB-C to USB-A CABLE FOR AB3 OR FLEX 2 55 0.00 0.00 0.00
71026 MAGNET MOUNT, FLEXIBLE REINFORCED,
RAPIDLOCK 60 0.00 0.00 0.00
Protect Life.Q-284438-44315.581WS
3 144
Year 1 (Continued)
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Other
73944 OFFICER SAFETY PLAN 7 PLUS BUNDLE
HEADER 60 55 0.00 0.00 0.00
73957 OFFICER SAFETY PLAN 7 PLUS PAYMENT 12 55 2,508.00 2,508.00 137,940.00
Not
Eligible/Cust
omer
Declined
Channel
Services
Not Eligible/Customer Declined Channel
Services 55 0.00 0.00 0.00
73827 AB3 CAMERA TAP WARRANTY 60 55 0.00 0.00 0.00
73828 AB3 8 BAY DOCK TAP WARRANTY 60 7 0.00 0.00 0.00
80087 TASER 7 TARGET, CONDUCTIVE,
PROFESSIONAL (RUGGEDIZED)1 0.00 0.00 0.00
71019 NORTH AMER POWER CORD FOR AB3 8-
BAY, AB2 1-BAY / 6-BAY DOCK 7 0.00 0.00 0.00
20120 TASER 7 INSTRUCTOR COURSE VOUCHER 1 0.00 0.00 0.00
20119 TASER 7 MASTER INSTRUCTOR SCHOOL
VOUCHER 1 0.00 0.00 0.00
Services
79999 AUTO TAGGING / PERFORMANCE
IMPLEMENTATION SERVICE 1 0.00 0.00 0.00
Subtotal 187,157.30
Estimated
Shipping 0.00
Estimated Tax 0.00
Total 187,157.30
Spares
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware
20008 TASER 7 HANDLE, YLW, HIGH VISIBILITY
(GREEN LASER), CLASS 3R 1 0.00 0.00 0.00
73202 AXON BODY 3 -NA10 1 0.00 0.00 0.00
20040 TASER 7 HANDLE WARRANTY, 4-YEAR 1 0.00 0.00 0.00
11534 USB-C to USB-A CABLE FOR AB3 OR FLEX 2 1 0.00 0.00 0.00
Protect Life.Q-284438-44315.581WS
4 145
Spares (Continued)
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware (Continued)
71026 MAGNET MOUNT, FLEXIBLE REINFORCED,
RAPIDLOCK 1 0.00 0.00 0.00
Other
73827 AB3 CAMERA TAP WARRANTY 60 1 0.00 0.00 0.00
Subtotal 0.00
Estimated Tax 0.00
Total 0.00
Year 2
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware
22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5-
DEGREE) NS 110 0.00 0.00 0.00
22176 TASER 7 LIVE CARTRIDGE, CLOSE
QUARTERS (12-DEGREE) NS 110 0.00 0.00 0.00
Other
73957 OFFICER SAFETY PLAN 7 PLUS PAYMENT 12 55 2,508.00 2,508.00 137,940.00
20120 TASER 7 INSTRUCTOR COURSE VOUCHER 1 0.00 0.00 0.00
20119 TASER 7 MASTER INSTRUCTOR SCHOOL
VOUCHER 1 0.00 0.00 0.00
Subtotal 137,940.00
Estimated Tax 0.00
Total 137,940.00
Year 3
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware
22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5-
DEGREE) NS 110 0.00 0.00 0.00
22176 TASER 7 LIVE CARTRIDGE, CLOSE
QUARTERS (12-DEGREE) NS 110 0.00 0.00 0.00
22177 TASER 7 HOOK-AND-LOOP TRN (HALT)
CARTRIDGE, STANDOFF NS 110 0.00 0.00 0.00
22178 TASER 7 HOOK-AND-LOOP TRN (HALT)
CARTRIDGE, CLOSE QUART NS 110 0.00 0.00 0.00
Protect Life.Q-284438-44315.581WS
5 146
Year 3 (Continued)
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Other
73957 OFFICER SAFETY PLAN 7 PLUS PAYMENT 12 55 2,508.00 2,508.00 137,940.00
73309 AXON CAMERA REFRESH ONE 55 0.00 0.00 0.00
73689 MULTI-BAY BWC DOCK 1ST REFRESH 7 0.00 0.00 0.00
73309 AXON CAMERA REFRESH ONE 1 0.00 0.00 0.00
20120 TASER 7 INSTRUCTOR COURSE VOUCHER 1 0.00 0.00 0.00
20119 TASER 7 MASTER INSTRUCTOR SCHOOL
VOUCHER 1 0.00 0.00 0.00
Subtotal 137,940.00
Estimated Tax 0.00
Total 137,940.00
Year 4
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware
22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5-
DEGREE) NS 110 0.00 0.00 0.00
22176 TASER 7 LIVE CARTRIDGE, CLOSE
QUARTERS (12-DEGREE) NS 110 0.00 0.00 0.00
Other
73957 OFFICER SAFETY PLAN 7 PLUS PAYMENT 12 55 2,508.00 2,508.00 137,940.00
20120 TASER 7 INSTRUCTOR COURSE VOUCHER 1 0.00 0.00 0.00
20119 TASER 7 MASTER INSTRUCTOR SCHOOL
VOUCHER 1 0.00 0.00 0.00
Subtotal 137,940.00
Estimated Tax 0.00
Total 137,940.00
Year 5
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware
22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5-
DEGREE) NS 110 0.00 0.00 0.00
Protect Life.Q-284438-44315.581WS
6 147
Year 5 (Continued)
Item Description Term
(Months)Quantity List Unit
Price Net Unit Price Total (USD)
Hardware (Continued)
22176 TASER 7 LIVE CARTRIDGE, CLOSE
QUARTERS (12-DEGREE) NS 110 0.00 0.00 0.00
Other
73957 OFFICER SAFETY PLAN 7 PLUS PAYMENT 12 55 2,508.00 2,508.00 137,940.00
73310 AXON CAMERA REFRESH TWO 55 0.00 0.00 0.00
73688 MULTI-BAY BWC DOCK 2ND REFRESH 7 0.00 0.00 0.00
73310 AXON CAMERA REFRESH TWO 1 0.00 0.00 0.00
20120 TASER 7 INSTRUCTOR COURSE VOUCHER 1 0.00 0.00 0.00
20119 TASER 7 MASTER INSTRUCTOR SCHOOL
VOUCHER 1 0.00 0.00 0.00
Subtotal 137,940.00
Estimated Tax 0.00
Total 137,940.00
Grand Total 738,917.30
Protect Life.Q-284438-44315.581WS
7 148
Summary of Payments
Payment Amount (USD)
Year 1 187,157.30
Spares 0.00
Year 2 137,940.00
Year 3 137,940.00
Year 4 137,940.00
Year 5 137,940.00
Grand Total 738,917.30
Protect Life.Q-284438-44315.581WS
8 149
Tax is subject to change at order processing with valid exemption.
Axon’s Sales Terms and Conditions
This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement
(posted at www.axon.com/legal/sales-terms-and-conditions) and the Axon Customer Experience Improvement Program Appendix, which includes
the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at
www.axon.com/legal/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room
purchase, if applicable. The Axon Customer Experience Improvement Program Appendix ONLY applies to Customers in the USA. In the event
you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it contemplates the
products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix.Any purchase order
issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully
able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality,or government agency for
whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote.
Signature:CustSIG Date:CustDate
Name (Print):CustName Title:CustTitle
PO# (Or write
N/A):CustPo
Please sign and email to Ted Megremis at tmegremis@axon.com or fax to
Thank you for being a valued Axon customer. For your convenience on your next order, please check out our online store buy.axon.com
The trademarks referenced above are the property of their respective owners.
Protect Life.Q-284438-44315.581WS
9
***Axon Internal UseOnly***
Review1 Review 2
SFDC Contract #:
Order Type:
RMA#:
Address Used:
SO#:
Comments:
150
REGULAR AGENDA ITEM 503
CITY COMMISSION AGENDA | JUNE 14, 2021 REGULAR MEETING
TITLE
CUP Presentation and Discussion on Potable Water Utilization
SUMMARY
RECOMMENDATION
Staff requests the Commission to receive the information provided and direct
staff on actions they may deem appropriate.
151
0
1
2
3
4
5
6
7
8
9
10
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
January February March April May June July August September October November December
CUP PRESENTATION
2020 Rain 2021 rain Average Rain
2020 Consumption 2021 Consumption CUP
Billed Water 2020 minus Tuskawilla Crossings
152