Agenda - Council Work Session - 03/08/2022

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Adllbk U.S. DEPARTMENT OF THE TREASURY CAPITAL EXPENDITURES As described above the final rule clarifies that recipients may use funds for programs, services, and capital expenditures that respond to the public health and negative economic impacts of the pandemic. Any use of funds in this category for a capital expenditure must comply with the capital expenditure requirements, in addition to other standards for uses offunds. Capital expenditures are subject to the same eligibility standard as other eligible uses to respond to the pandemic's public health and economic impacts; specifically,they must be related and reasonably proportional to the pandemic impact identified and reasonably designed to benefit the impacted population orclass. For ease of administration,the final rule identifies enumerated types of capital expenditures that Treasury has identified as responding to the pandernic's impacts;these are listed in the applicable sub- category ofeUQib|euses (e.g, pubUchea|th, assistancetohouseho|ds, etc.). Recipientsmaya|soidentify other responsive capital expenditures. Similar to other eligible uses /n the SLFRF program, no pre- approval is required for capital expenditures. To guide recipients' analysis of whether a capital expenditure meets the eligibility standard, recipients (with the exception of Tribal governments) must complete and meet the requirements of a written justification for capital expenditures equal to or greater than $1 million. For large-scale capital expenditures,which have high costs and may require an extended length of time to complete, as well as most capital expenditures for non-enumerated uses of funds,Treasury requires recipients to submit their written justification os part of regular reporting. Specifically: If a project has and the use is enumerated by Treasury and the use is beyond those total capital as eligible,then enumerated by Treasury as eligible, expenditures then of Less than $1 No Written Justification required No Written Justification required million Greater than or equal to $1 Written Justification required but million, but recipients are not required to submit as less than $10 part of regular reporting to Treasury Written Justification required and million recipients must submit as part of regular $10 million or Written Justification required and reporting to Treasury more recipients must submit as part of regular reporting to Treasury A Written Justification includes: " Description of the harm or need to be addressed. Recipients should provide a description of the specific harm or need to be addressed and why the harm was exacerbated or caused by the public health emergency. Recipients may provide quantitative information on the extent and the type of harm, such as the number of individuals or entities affected. Coronavirus State&Local Fiscal Recovery Funds:Overview of the Final Rule