LTC 105-2021 AMERICAN RESCUE PLAN ACT OF 2021DocuSign Envelope ID: 9FCE09E9-1FD4-44A9-9F3C-8804D6D05C1F
OFFICE OF THE CITY MANAGER
NO. LTC # 105-2021 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Raul J. Aguila, Interim City Manager
DATE: March 12, 2021
SUBJECT: American Rescue Plan Act of 2021
The purpose of this Letter to Commission is to notify the Mayor and City Commission that on
March 11, 2021, President Biden signed the $1.9 Trillion American Rescue Plan Act of 2021. I
am happy to report that Miami Beach is projected to receive in excess of $20 million in one-time
federal dollars from the American Rescue Plan Act. These funds will help materially address
projected revenue shortfalls in the FY 2022 budget currently estimated between $21 to 26 million.
Background
The City of Miami Beach has led the way forward through the unprecedented public health crisis
of COVID-19. The City has had to enact difficult and fiscally challenging emergency measures to
slow the coronavirus epidemic and prevent the worst economic outcomes for residents and small
businesses. Miami Beach has spent considerable funds to protect public health and the economy
in this extraordinary time.
The measures that our City has taken and is continuing to take to protect our residents are costly.
The City’s Revenue losses for Fiscal Year 2020 amounted to $71.6 million and projected Revenue
losses for this Fiscal Year, 2021 total $92.8 million.
In the past, the City was not eligible to receive direct COVID relief funding from previous
allocations because of a minimum population requirement of 500,000. However, we have worked
with our congressional leadership to advocate for financial relief for local governments with
resident populations less than 500,000, to help address the financial impacts we have suffered
from the COVID-19 pandemic. As a result of this advocacy from Miami Beach and other cities
across the country, funds are now available to Miami Beach and other cities with similar resident
populations.
Funding Formula
The funding amounts are based on a formula. The bill creates a Coronavirus Local Fiscal
Recovery Fund, $45.57 billion of which would be allocated for metropolitan cities, distributed
pursuant to the formula used to administer the Community Development Block Grant (CDBG).
Permitted Uses of the Funds
The City will be permitted to use funds to replace revenue lost, delayed, or decreased as a result
of the COVID-19 emergency, as determined based on revenue projections as of January 27,
2020. Funds may also be used to respond to or mitigate the COVID-19 emergency or its negative
economic impacts; to cover costs incurred as a result of the emergency; or to address the negative
economic impacts of the emergency.
DocuSign Envelope ID: 9FCE09E9-1FD4-44A9-9F3C-8804D6D05C1F
LTC – American Rescue Plan Act of 2021
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Timing
To receive the funds, the City must provide the Secretary of the Treasury a certification specifying
that Miami Beach requires the federal assistance to effectively carry out pandemic response and
mitigation activities consistent with the requirements of the permitted uses of the funds. The
Secretary of the Treasury would be required to make payments within 60 days of receiving a
certification from the City.
Financial
Based on a projected funding computation provided by the Chair of the House Committee on
Oversight and Reform, Miami Beach is projected to receive in excess of $20 million in federal
dollars from the American Rescue Plan Act. The funds will help materially address projected
revenue shortfalls in the FY 2022 budget currently estimated between $21 to 26 million as we
transition to a full economic recovery from the impacts of COVID-19.
Additional updates will be provided when the final allocation amount is awarded. If you have any
questions, please feel free to contact Judy Hoanshelt, Grants & Intergovernmental Affairs
Director.
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