Resources and Key Topics

Revenue Loss Calculator
 

One eligible use of ARP funds for cities and towns is the replacement of lost revenue.

The law, when listing eligible uses, reads: 

 

"For the provision of government services to the extent of the reduction in revenue of such metropolitan city, nonentitlement unit of local government, or county due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, nonentitlement unit of local government, or county prior to the emergency."

To determine the what would have happened in absence of the pandemic, cities, towns, and villages, will use a predetermined growth rate of 4.1% or the average annual growth rate over the three full fiscal years prior to the pandemic. 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.

Steps to Calculating Lost Revenue

  1. Identify the revenue collected in the most recent full fiscal year prior to the pandemic (i.e. Jan. 27, 2020). This is the base year.

  2. Estimate the growth rate your city, town, or village would have experienced using either 4.1% or the average annual revenue growth in the three full fiscal years prior to the public health emergency, whichever is higher.

  3. Identity actual revenue collected over the past 12 months.

  4. Lost revenue is equal to the expected growth rate less actuals. If actuals exceed expected, then set the figure to zero.

Calculator

To aid in this calculation process, two outlets have published detailed calculators to help local governments.

The most detailed calculator has been created by the Government Finance Officers Association, which can be viewed here. Additionally, NLC has published a Revenue Loss Calculator, which can be downloaded here

Sample Grant Project Ordinance
 

Updated June 23

The UNC School of Government has published a helpful Sample Grant Project Ordinance for the budgeting of American Rescue Plan funds. 

That template can be downloaded at the link below. Additional information on accepting funds, managing funds and budgeting funds can be found here

Key Provisions
 

As a leader in your community, you know best what is needed for your city or town. We are here to help by providing the resources and assistance needed.

Below, you will find a brief explainer on a number of topics critical to cities and towns

  • Small Business Relief

  • Broadband

  • Water and Wastewater

  • Local Investment

  • Mental Health and Substance Abuse

  • Unemployment

  • Transit

  • Affordable Housing

  • Emergency Rental Assistance

For a full list of ARP provisions, you can read the NCSL's summary here.

Mebane.jpg

Small Business Relief

What the ARP Provides:

  • $10 billion for the SSBCI to help states support small businesses as they recover from the pandemic

  • $15 billion in new funding for Targeted EIDL grants

  • $28.6 billion in direct relief to the restaurant industry

  • $1.25 billion for the Shuttered Venue Operators Grant Program

  • PPP eligibility is expanded, as is the Employee Retention Tax Credit (ERTC)

NC broadband map.png

Broadband

What the ARP Provides:

  • Funds provided directly to municipalities can be used for expenses related to broadband.

  • Additionally, the ARP provides more than $7 billion to the Federal Communications Commission to help schools and libraries ensure that students can fully participate in remote learning.

resilience vid.png

Water and Wastewater

What the ARP Provides:

  • Funds provided directly to municipalities can be used for water and wastewater expenses.

  • Additionally, the law includes $4.5 billion for the Low Income Home Energy Assistance Program (LIHEAP), and $500 million for low-income water assistance.

legislative update.jpg

Local Investments

What the ARP Provides:

  • Local, direct fiscal relief funds from the ARP can be used for local economic recovery purposes, including:

    • Assistance to households, small businesses and nonprofits

    • Assistance to hard-hit industries like tourism, travel, and hospitality

    • Infrastructure investment

Mental Health and Substance Abuse

What the ARP Provides:

  • $3.88 billion to expand on the investments made in the year-end 2020 package to increase availability of treatment

shutterstock_188334569.jpg

Unemployment

What the ARP Provides:

  • Extension of the federal unemployment insurance bump that is added to all unemployment benefits at the current law amount of $300 

  • Extensions of program that expands unemployment eligibility for the self-employed, gig workers, freelancers and others in non-traditional employment

  • Makes additional weeks of benefits available to workers who exhaust their state benefits

city worker.jpg

Transit

What the ARP Provides:

  • $30.4 billion of relief funding to transit agencies to prevent layoffs of transit workers and prevent severe cuts to transit services (provided as formula grants based on operating costs) 

  • Additional funding to support ongoing transit construction projects

  • Additional funding to preserve intercity bus service

Mooresville.jpg

Affordable Housing

What the ARP Provides:

  • $100 million in housing counseling

  • $5 billion for assistance for people experiencing homelessness

  • $5 billion for emergency housing vouchers

  • $100 million for rural rental assistance

  • $9.9 billion for mortgage and utility assistance

  • Additional funding for fair housing organizations

surf1.jpg

Emergency Rental Assistance

What the ARP Provides:

  • $21.55 billion in Emergency Rental Assistance to augment $25 billion in funding provided to states, localities, and territories in December 2020 relief package