American Rescue Plan Act

The City of Edina has been allocated more than $4.9 million as part of the federal American Rescue Plan (ARPA). The money is meant to provide relief from the COVID-19 pandemic to cities across the nation and boost the economy. The first half of the funding, $2.6 million, was received in 2021 and after community engagement sessions in May and June of 2021, a Phase 1 Spending Plan was approved by the City Council July 21, 2022. After more community engagement sessions in 2022, the Council approved the $2.3 million Phase 2 Spending Plan at the Nov. 15, 2022, meeting. See below for details about ARPA, City's two-phase spending plan, and comparisons to other cities.

There are many eligible uses of the funding. The U.S. Treasury Department requires recipients to use the dollars to meet local needs within the following four categories:

• Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue lost due to the pandemic
• Respond to the far-reaching public health and negative economic impacts of the pandemic, by supporting the health of communities, and helping households, small businesses, impacted industries, nonprofits, and the public sector recover from economic impacts
• Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors
• Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet

You can read a detailed overview of the eligible uses from the U.S. Treasury Department here.

ARPA funds must be expended by the City and its grant recipients by the end of 2024. City staff will present an annual report to the City Council in November 2023-2025 to report on the status of the funds and the programs it went to support.

EDINA'S SPENDING PLANS COMPARED TO OTHER COMMUNITIES

Edina’s Phase 1 ARPA spending plan was diverse and distinctive when compared to other Twin Cities suburban communities. According to data from the Greater MSP ARPA Tracker, participant cities allocated their ARPA spending to the following categories:

• Government Operations 32%
• Housing 24%
• Public Health 12%
• Economic and Workforce Development 12%
• Infrastructure 10%
• Public Safety 6%
• Community Aid 2%

Edina’s Phase 1 spending plan focused on a different set of priorities:

• Community Aid 30%
• Public Health 30%
• Economic and Workforce Development 15%
• Infrastructure 11%
• Housing 11%

The biggest difference between Edina’s ARPA spending plan and the ARPA spending plan of our comparable cities is the level of spending dedicated externally to the community and the level dedicated to internal needs as depicted in the spending category Government Operations. This is what Edina’s Government Operations Phase 1 spending looks like compared to other Greater MSP participant cities:

• Edina 0%
• Minnetonka 84%
• Eden Prairie 100%
• Eagan 100%
• Maple Grove 100%
• Burnsville 100%

Other notable ARPA spending preferences include the following:

• Woodbury 100% on Infrastructure
• Brooklyn Park 42% on Public Safety
• Lakeville 51% on Infrastructure

PHASE 2 FUNDED PROGRAMS AND INITIATIVES

The City Council approved the following spending plan for the City’s ARPA Phase 2 allocation:

• $300,000 to Edina Education Fund for support of the Edina LTRS program, which is dedicated to helping students who are struggling with literacy issues connected with the pandemic. This program has the support of the School District.
• $150,000 to the Edina Chamber of Commerce’s “Innovation Lab” program. The Council has previously received a presentation on this program from the Chamber staff and board members.
• $100,000 to continue the City’s Internal Essentials program with Comcast. This is continuation of this program from the phase 1 spending plan. This funding will support current operations through 2025.
• $150,000 to the NextGen Trees program, a City initiative to plant 1,000 new trees in areas of the City that lack trees. This is the second phase of this program. The Council previously allocated $100,000 to this program in 2021’s Phase 1 spending plan.
• $300,000 to a community surveillance camera network pilot project at 50^th & France. The purpose of this pilot program is to increase levels of public safety through technology resources that deter crime and provide high-quality information to the Police to apprehend criminals faster.
• $20,000 for Edina Give & Go to facilitate their mission within the Edina Schools system
• $100,000 for VEAP to support their emergency rental assistance program for Edina residents
• $80,000 to support the creation of a new affordable housing financing program. Staff are working on the development of a new long-term financing vehicle for future affordable housing development. These funds would support legal, financial and consulting costs to evaluate and create the program.
• $200,000 to continue the expansion of the City’s broadband network to City utility facilities. This allocation funds the second half of a $300,000 allocation in the Phase 1 spending plan to connect the City’s various utilities facilities to our municipal broadband network.
• $500,000 to public-facing capital improvements at City recreation enterprises at Centennial Lakes Park (CLP) and Edinborough Park (EP) to benefit user experiences. This includes:
  • $65,000 – Interior and exterior public furniture amenities at CLP and EP. This replacement of and update to outdoor and indoor public facing furniture at these two locations will benefit users and visitors to each location. Many of the amenities are outdated, mismatched, and have no draw to users. This would encourage public gathering and place making to our system. Includes $40,000 for CLP and $25,000 for EP.
  • $280,000 – User amenities at CLP and EP. This would include enhancements to Adventure Peak play area, Great Hall new apparatus and toys, pool updates and concert sound system updates and paddleboat and other rental equipment replacement at CLP. Includes $40,000 for CLP and $240,000 for EP.
  • $155,000 – Wayfinding and entry signage at CLP and EP. Wayfinding signage updates have been targeted for CLP as part of the Race & Equity Work Plan and as a capital replacement need. The project continues to stall as it relates to infrastructure funding availability. This project would move forward to ensure that our users consistently can be informed and welcomed at both locations. Over 1,000,000 visitors patronize these two locations annually. Includes $125,000 for CLP and $30,000 for EP.
• $1.1 million on Government Operations, primarily employee compensation, training, support and operations.

PHASE 1 FUNDED PROGRAMS AND INITIATIVES

Below is a table to show the progress with the first round of funding. If you have specific questions on any of the projects send in a question to staff here.

	Technical Assistance Program (TAP): Small Business Support
	Free Internet
	VEAP: Rental Assistance
	VEAP: Food Assistance
	Education Fund: Heal Together Campaign
	Police Department Social Worker
	NextGen Trees
	Chamber of Commerce: Business Support
	50th & France: Business Support
	Edina Theater
	City Utility Broadband Connections
	Public Health: Software Update

In 2020, federal CARES Act dollars were used in Edina to provide emergency rental assistance and small business loans, purchase personal protective equipment for employees, and outfit employees to work from home, and other things.