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9 <br /> resources. The ARPA funds that were designated for this purpose will be available for other <br /> community needs. <br /> • Ineligible American Rescue Plan Act(ARPA) Expenditures-$2.2 million <br /> As the interim spending rules on ARPA funds continue to evolve, some of the proposed expenditures <br /> contained in the first recommended County allocation are clearly eligible expenditures. For example, <br /> the FY2021-22 Budget applied ARPA funds to deficits in the Visitors Bureau and Sportsplex Funds. <br /> Given the federal eligibility framework that was in place at the time, covering revenue shortfalls <br /> appeared to be an eligible use of funds. However, as the guidance has evolved, the measurement <br /> that is being used to determine a revenue shortfall is on an organization wide basis, not an individual <br /> fund basis. As a result, $1.35 million proposed to cover the deficits in the Visitors Bureau and <br /> Sportsplex funds are ineligible uses. <br /> Likewise, prior federal guidance on information technology related expenditures cast a wide net of <br /> eligible uses. However, the ARPA guidance restricts the use of funds for technology to those related <br /> to the direct COVID-19 response or supporting residents negatively impacted by the pandemic, not to <br /> other organizational expenses related to transitioning to remote work. As a result, $878,629 in <br /> information technology software and equipment that would have been eligible under prior federal <br /> COVID-19 programs is not eligible under the ARPA rules. <br /> • Federal Emergency Management Agency Reimbursement Backstop-$407,543 <br /> The County expended a total of approximately$2,840,015 on non-congregate housing for individuals <br /> experiencing homelessness during the height of the pandemic. To date,the County has only received <br /> $638,956 in reimbursements for that housing,despite the many assurances provided by the State that <br /> reimbursement was certain. As the County continues its reimbursement claim for the balance of <br /> funds, this proposal recommends setting aside $407,543 in an Emergency Recovery Fund for the <br /> purposes of offsetting unrealized reimbursements. In the event that reimbursement is received, <br /> these funds would be available for repurposing. <br /> • Crisis Diversion Facility Design Funds-$250,000 <br /> The Behavioral Health Task Force has outlined the business case for a Crisis Diversion Facility that <br /> would offer a therapeutic alternative to either the Detention Center or the Emergency Room for <br /> residents experiencing a behavioral health crisis. The team has defined programming needs through <br /> a variety of stakeholder engagements and will be in a position to proceed with conceptual design in <br /> 2022. This proposal recommends allocating$250,000 to support that conceptual design.Any funding <br /> remaining from the conceptual design phase could be applied to architectural work later in the project <br /> if it proceeds or could be repurposed for other capital needs if it does not proceed. <br /> • Transfer Funds to Capital Reserve-$4 million <br /> Finally, this proposal recommends transferring the one-time unassigned fund balance surplus to a <br /> capital reserve fund for uses to be determined at a later date. For example,these funds could be used <br /> to substitute cash for future borrowing thereby reducing pressure on the County's debt service costs. <br /> If all $4 million were applied to next year's Capital Budget in this way, it would eliminate the need for <br /> a projected tax increase until 2024. Alternatively, the Board could authorize additional, one-time <br /> capital spending for school or County capital needs without incurring additional debt service expense <br /> in the future. <br /> 4 <br />