Five things to remember about ARPA report due April 30

The American Rescue Plan Act (ARPA) was a lifeline to many cities working to recover from the COVID-19 pandemic. The direct federal funding sent to cities provided leaders with funds to invest in critical projects and programs. And, as with all sources of funding, it’s time to submit the next round of reporting to Treasury.

Here are a few things you should remember as you enter the 2023 ARPA reporting period:

1. Reports are due Sunday, April 30
   April’s report marks the second time that all ARPA recipients must submit a report to Treasury. For most cities, the reporting period will cover activity that occurred between April 1, 2022, and March 30, 2023. You can confirm your city’s requirements by reviewing this chart published by Treasury.

We encourage cities to start the reporting process now to ensure that they can access the reporting portal and submit their reports on time. The number one reason that Washington cities were late in submitting reports last year was that they couldn’t access the reporting portal. If you are struggling to log into the portal, please reach out to Jacob Ewing at AWC as we may be able to provide you with information to access your account.

2. Revenue replacement is available to all cities and streamlines reporting
   Under the Final Rule published by Treasury in January 2022, Treasury expanded which jurisdictions were eligible to claim revenue replacement by introducing the standard allowance. With the standard allowance, all jurisdictions have the option to claim their full award up to $10 million as revenue replacement without needing to complete a revenue loss calculation.

But why would a city want to claim revenue replacement? Here are three reasons to consider:

1. Reduced reporting burden – Cities claiming the standard allowance benefit from reduced reporting requirements and a streamlined reporting process.
2. Increased flexibility – Cities claiming the standard allowance can use ARPA funds for all approved uses under the Final Rule as well as any general government service.
3. Exemption from some federal uniform guidance procurement standards – Treasury has explicitly excluded some Uniform Guidance procurement standards when recipients use the revenue loss eligible use category.

If you have questions about revenue replacement, please reach out to AWC for additional information.

3. Additional deadlines coming in 2024 and 2026
   In addition to periodic reports, cities should remember two other important deadlines:
   1. December 31, 2024 – Obligation deadline: By this date, jurisdictions must have obligated their full ARPA award.
   2. December 31, 2026 – Expenditure deadline: This is the last day that ARPA funds may be expended by a jurisdiction.

Cities that have unspent funds after December 31, 2026, will need to return those funds to Treasury.

4. Training and guidance resources are available
   There are several great resources available to cities as they work to complete their April 2023 report. Here are just a few:
   • Treasury April 2023 webinar: Project & expenditure simplified reporting: This is a 30-minute webinar published by Treasury in early April. The webinar provides an overview of how to complete the annual ARPA report if your jurisdiction is reporting projects under Expenditure Category (EC) 6 – Revenue Replacement.
   • Project & expenditure report user guide: This is a 150-page document that walks through each step of the reporting process. If you are reporting projects under EC 6 Revenue Replacement, you will find pages 16-31, 47-50, and Appendix A (pages 79- 85) most helpful.
   • ARPA Coronavirus State and Local Fiscal Recovery Funds Final Rule: Frequently asked questions: This FAQ document covers a wide range of issues and questions raised over the past few years. This is a great starting point if you have any questions or concerns about how you can use ARPA funds in your community.
5. You can see how other cities are using funds
   If your jurisdiction is still trying to determine how to spend ARPA funds, you may benefit from reviewing how other jurisdictions are using funds in Washington and around the country. Here are four resources with examples of ARPA-funded projects and programs:
   • How Washington cities are using ARPA funds to improve their communities: This two-page fact sheet provides a look at 10 ARPA-funded projects from around the state and their positive impact on communities.
   • Unlocking possibilities: How cities are using ARPA’s State and Local Fiscal Recovery Funds after two years: NLC recently published a new report on how cities around the country benefit from the infusion of federal funds during the COVID-19 pandemic.
   • Future unlocked: How Washington cities are leveraging ARPA funding to grow strong communities: Our Winter 2023 Cityvision magazine serves up several in-depth stories about how Washington communities used ARPA funds to improve their communities, support local businesses, and ensure the continuity of city operations during the pandemic.
   • Treasury ARPA state and local fiscal recovery fund dashboard: Treasury publishes a quarterly dashboard allowing the public an inside look at how ARPA funds are being spent by jurisdictions around the country.

ARPA funds have been transformative for communities in Washington. We greatly appreciate the work of city leaders and staff as you have navigated these new sources of federal funding.