American Rescue Plan Act Interim Appropriations

Council Adopted, Projects

The City Council Adopted $15.3 million of new spending from the American Rescue Plan Act Fund on various dates between September and December, 2021.


American Rescue Plan Act Funding for Minneapolis

The American Rescue Plan Act (ARPA) was signed into law in March 2021, providing Minneapolis with $271 million through the Coronavirus State and Local Fiscal Recovery Fund. The Mayor's Recommendations for spending the remaining unobligated funds from this legislation are detailed below, in addition to a summary of the process and appropriations made to date.


ARPA funds can be used to cover costs incurred between March 3, 2021 and December 24, 2024. The U.S. Treasury has issued guidance on the eligible uses and intended goals for these funds:

  1. Fight the pandemic and support families and businesses struggling with its public health and economic impacts,
  2. Maintain vital public services, even amid declines in revenue, and
  3. Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity

Minneapolis has planned to direct some ARPA funds to specific proposals focused on Economic Recovery, Public Safety, Climate and Public Health, and Housing and Homelessness and the remaining funds on replacing lost City revenue. The three year plan for utilizing ARPA funds to replace lost revenue was adopted as a part of the Five Year Financial Direction in the 2022 Council Adopted Budget, and will be updated annually as revenue and spending projections are finalized.


Proposals to address the impacts of the pandemic and invest in an equitable recovery have been made in several steps:

  • Phase 1 in Summer 2021
  • Interim Appropriations in the Fall and Winter of 2021
  • Phase 2 in Spring 2022

Overview of ARPA Phases

Phase 1: Rescue and Restart

On July 2nd, 2021 the City Council Adopted a series of proposals to be funded with American Rescue Plan Act dollars in the first phase of decision-making. A record of the public comments was collected as a part of this decision-making.


At that time, it was recognized that tension existed between getting support funding into the community quickly and conducting robust engagement with residents and other jurisdictions. To balance those two interests Minneapolis chose to do two phases of decision-making on ARP spending. Proposals in the first phase focused on solving the following problems:

  • Housing instability;
  • Small business closures and financial stress;
  • Business, non-profit, and public organization's capacity and preparation for the lifting of social distancing measures; and
  • Responding to the nationwide increase in violent crime.

These proposals were authorized through a budget decision-making process that began with a Mayor recommendation in early June that utilized the work done by the subject matter experts and included input from Council and staff, and then went to City Council for amendments and adoption. A total of $101.966 million was approved to be spent in 2021-2024 in phase 1, less than half of the $271 million awarded to the City of Minneapolis. Spending in 2022-2024 is related to staffing costs associated with implementing programs funded in phase 1.


Phase 1.5

Several appropriations and actions were taken after phase 1 passed, but prior to phase 2. These include:

  • $11.5 million - In the fall of 2021, several projects needed funding prior to phase 2 allocations:
    • $6 million for shelter capital improvements (Including Simpson Shelter)
    • $3.2 million for Minneapolis Parks and Recreation Board Youth Investments,
    • $1.25 million for city capacity surrounding employee COVID-19 protection. and
    • $1 million for tenant eviction representation.
  • $3.75 million - As part of the 2022 City Budget, the City Council approved $3.75 million dollars for violence prevention.
  • $119 million - The 2022 City budget includes $47 million to make up for lost revenue, and the Mayor has recommended $72 million to make up for lost revenue in 2023-2024.

Phase 2

Phase 2 decision-making was an ongoing process beginning in the fall of 2021. The public was asked for input through a survey and the interactive American Rescue Plan Act Spending Public Survey Results were used to inform decision-making. Project proposals were collected from city staff and community organizations. Phase 1 projects implementation was monitored for feasibility and learning from the experiences of City staff implementing prior proposals. All of these pieces were used to evaluate and select proposals. Phase 2 appropriations also include reallocating $7.5 million in funding from three phase 1 Housing & Homelessness initiatives to new or expanded Housing & Homelessness initiatives in phase 2. Phase 2 projects had funding appropriated in May, 2022.

Summaries of Council Adopted appropriations for time-sensitive projects.

Employee COVID-19 Testing

Department

Human Resources


Goal Area

City Capacity and Performance


Amount

Total: $1,250,000


Staffing Needs

Up to 2 FTEs as needed


Previous ARPA Funding

No


Problem Statement

COVID-19 testing services in 2022 in order for the City to comply with the OSHA federal vaccine mandate and the City’s COVID-19 vaccination and testing policy which aligns with federal guidelines.


Proposed Action Summary

This appropriation provides funding for staff and testing kits


Proposed Action Detail

The appropriation will allow us to have test kits at City worksites so that unvaccinated employees can be tested on a weekly basis during work time. Costs were based on testing up to 1,000 employees per week. The City is able to order test kits through the Health Department’s contract with Hennepin Healthcare.



Simpson Housing Services Shelter Project

Department

Community Planning and Economic Development (CPED)


Goal Area

Housing and Homelessness


Amount

$3,500,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

The existing Simpson emergency shelter is operated at the Simpson United Methodist Church building at 2740 First Avenue South in Minneapolis. The building’s deteriorating condition will seriously affect Simpson’s ability to continue operating the shelter safely.


Proposed Action Summary

Simpson’s plan to re-develop the site will address these issues with a new 5-story building with a new shelter designed to support person-centered services for at least 70 individuals, 42 units of permanent supportive housing for persons who have experienced homelessness, and community and service space.


Proposed Action Detail

The new shelter will provide an invaluable resource for those experiencing homelessness, including people displaced because of the pandemic. It will have two components: permanent supportive housing and an emergency shelter. In alignment with CDC guidance on community health during the pandemic, the new facility will improve upon separation of sleeping spaces by doing away with bunk beds, adding space between sleeping areas, and reducing the number of guests sleeping in each room. These measures, along with the on-site health clinic, will result in safer and healthier shelter operations. Finally, Simpson will be able to build on their accomplishments in providing emergency shelter for adults experiencing homelessness and implement a safe, healthy, person-focused, and housing-focused program.

Minneapolis Park and Recreation Board Youth Investment

Department

Finance & Property Services (Minneapolis Park and Recreation Board)


Goal Area

Public Safety


Amount

$3,267,400


Staffing Needs

None (No City FTEs)


Previous ARPA Funding

No


Problem Statement

The MPRB has advocated for the needs of youth for several years as a frontline approach to enhancing the safety and wellbeing of Minneapolis youth. The pandemic has shined a light on the disinvestment and disenfranchisement of youth and has contributed to the unprecedented uptick in youth violence.


Proposed Action Summary

This funding will provide high-quality youth development programs that are a key protective factor against violence. It will provide the addition of 22 full-time employees that will provide consistent, dedicated engagement of youth in safe environments and expose them to experiences that can enhance and enrich their lives. The funding will be directed to youth programming, creation spaces, youth employment, nature based programming, and intergenerational programming.


Proposed Action Detail

The MPRB will greatly expand how we serve the youth of Minneapolis with quality, innovative programs, regardless of the youth’s ability to pay for services. The MPRB is uniquely positioned to have the solutions and places to enrich the lives of Minneapolis youth. Through the culmination of significant work and collaboration with the Mayor and City staff, the Superintendent’s Recommended 2022 Budget reflects a $2.6 million increase to youth investment. This investment in youth is provided through a $1.3 million increase in the MPRB property tax levy and a request to allocate $1.3 million in American Rescue Plan Act (ARPA) funding to the MPRB in 2022. The Mayor also provides for an ongoing commitment of gradual annual increases ($260,000) to the MPRB property tax levy from 2023 through 2027 to meet the full $2.6 million in youth investment requested by the Board as well as an ongoing commitment of ARPA funding for 2023 and 2024 ($1,092,000 and $875,400, respectively). The total ARPA funding request is $3,247,400. The funding will provide staffing, material/supplies, contractual services, and capital outlay for high-quality youth development programs including imagine-your-future; Creation Spaces - innovative youth-centered dedicated spaces for creative self-expression, learning, and exposure to careers and industry professionals to fully understand the business and careers behind the art, technology, music, science, and innovation; re-imagined and enhanced career pathway youth employment programs; and nature-based and intergenerational programming.


Racial Equity Impact

The COVID-19 pandemic has disporoportionately impacted populations that reside within Minneapolis that are designated Areas of Concentrated Poverty(ACP) and Areas of Concentrated Proverty with more than 50% resident of color (ACP50). The impact on youth with closure of youth facilities, impacts of distant learning and isolation from mentors and caring adults have been greatly felt in these communities. The need for consistent dedicated engagement of youth in safe environments regardless of the ability to pay is especially important and the focus of the youth investment being funded through this proposal and request.


Results

Increase the number of youth ages 10 to 24 years, especially BIPOC youth living in higher-violence areas participating in high-quality youth development programs directly offered through the MPRB. The MPRB utilizes registration software that will allow for data to be collected regarding the programs offered and the increases in participation in those programs including demographic and geographic information.



Shelter Capital Improvements

Department

Community Planning and Economic Development (CPED)


Goal Area

Housing and Homelessness


Amount

$2,500,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

During the pandemic, the City of Minneapolis and Hennepin County have worked together to provide funding to allow shelters to remain open 24 hours per day, seven days per work, and to make updates to improve the health and safety of the emergency shelter system. Additional capital improvements are needed in emergency shelters to mitigate COVID-19 effects and to maintain the health and safety of the emergency shelter system.


Proposed Action Summary

This funding would contribute City funds toward a joint pool with Hennepin

County to fund necessary modifications to and expenditures at emergency homeless shelters to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions.


Proposed Action Detail

Hennepin County has made up to $5 million available in ARPA funds for shelter capital improvements and capital improvements at Board and Lodge facilities. The City’s $2.5 million in funding will be used exclusively for shelter capital improvements in Minneapolis. The City and County will issue a joint Request for Proposal (RFP) and will include people with lived experience of homelessness and experience with the shelter system in the selection process.


Racial Equity Impact

Black, Indigenous and People of Color households experience homelessness at a rate that is disproportionate to their share of the population in Minneapolis and Hennepin County. According to the 2018 Wilder Research study on homelessness, 49% of single adults experiencing homelessness in Hennepin County identified as Black or African American, but only 13.8% of the population in Hennepin County is Black or African American according to the U.S. Census. Similarly, according to Wilder Research, 15% of people experiencing homelessness identified as American Indian, while only 1% of the population of Hennepin County identifies as American Indian.


Results

Hennepin County maintains regular data on shelter usage and exits from shelter into permanent housing.

Public Safety Budget Amendment

Department

Health, City Coordinator


Goal Area

Public Safety


Amount

Total: $3,750,000

  1. $3,500,000 to Health
  2. $250,000 to City Coordinator

Staffing Needs

None


Previous ARPA Funding

Yes, Phase 1


Problem Statement

In 2020 and 2021, the City experienced an increase in certain types of serious violence.


Proposed Action Summary

This budget amendment funds multiple ARPA projects; most of which are continuation of items funded in Phase 1.


Proposed Action Detail

Health Department - Office of Violence Prevention:
  • $250,000 to purchase and license a programs information system;
  • $250,000 to provide trauma, stress, and mental health and wellbeing for frontline violence prevention and intervention providers;
  • $1,000,000 to expand coverage of the MinneapolUS Strategic Outreach Initiative;
  • $350,000 to fund Adolescent-specific Group Violence Intervention;
  • $600,000 to supplement the Violence Prevention Fund;
  • $300,000 to support the Stabilization for High Risk Individuals;
  • $300,000 to support community members who have experienced trauma resulting from an exposure to violence through Community Trauma Response
  • $450,000 to develop the Violence Prevention Through Built Environment Changes pilot.

City Coordinator’s Office - Office of Performance and Innovation:

  • $250,000 for contractual services to continue prototyping, implementing and evaluating public safety initiatives by problem nature code.


Renter Eviction Representation

Department

Community Planning and Economic Development (CPED)


Goal Area

Housing and Homelessness


Amount

$1,000,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

The City has a current contract with Mid-Minnesota Legal Aid that runs through the end of Q1 2022 to provide renter legal services, including representation for renters facing eviction and for renters who ask property owners to make needed repairs to their rental properties in compliance with state laws and local ordinances. A total of $1 million in ARPA funds will enable the City to continue working with Mid-Minnesota Legal Aid to provide these services through December 31, 2022.


Proposed Action Summary

This request would utilize $1 million of the the City’s federal ARPA funding to cover renter legal services provided by Mid-Minnesota Legal Aid including support for renters facing eviction, and legal assistance for renters who ask their landlords to make needed repairs to their rental properties in compliance with state laws and local ordinances. The contract will also include additional outreach and coordination with other service providers, and support for community outreach efforts during a time when eviction filings are expected to increase due to the timed phaseout of Minnesota’s eviction moratorium.


Proposed Action Detail

  1. Habitability repair legal representation: Mid-Minnesota Legal Aid and a subcontractor, Volunteer Lawyer’s Network, will represent low-income Minneapolis tenants who ask their landlords to make needed repairs to their rental properties in compliance with state laws and local ordinances. Representation will be offered to individual tenants as well as more than one tenant in certain buildings and will consider at least two legal options found in Minnesota landlord-tenant laws: Tenant Remedies Actions under Minnesota Statutes § 5048.395 and Rent Escrow Actions under Minnesota Statutes § 5048.385.
  2. Legal representation for renters facing eviction: the City recently passed an Ordinance amending Title 7 of the Minneapolis Code of Ordinances relating to Civil Rights, adding a new Chapter 143 entitled "Right to Counsel" to create a right to counsel for tenants facing eviction. This funding will help ensure that a Right to Counsel is provided to renters facing eviction during a time in which evictions are expected to increase.
  3. Community outreach to renters and coordination with other service providers: an extension of the contract will enable Mid-Minnesota Legal Aid to continue to prepare and deploy a coordinated crisis response to the anticipated lapse of state and federal eviction moratoria; and to continue supporting the Hennepin County Tenant Resource Center. All renter legal services provided by Mid-Minnesota Legal Aid will be coordinated with Hennepin County’s Adult Representation Services Department, which recently began providing legal representation to low-income renters facing eviction. Coordination between the City’s service provider and the County’s Representation Services is critical to the City’s efforts to provide a Right to Counsel for renters facing eviction.

Racial Equity Impact

In Minneapolis, 51% of households are renters. When disaggregated by race, 80% of Black and American Indian, 75% of Latino, and 66% of Asian households are renters compared to 45% of white households that are renters. The adoption of this program will allow the City to reach BIPOC households, which are more likely to rent. Evictions disproportionately impact racially diversecommunities experiencing low incomes. In the absence of public support for renter legal services, low-wealth renters often lack legal representation. City support for renter legal services reduces evictionsand improves housing stability for racially-diverse communities experiencing low incomes.


Results

Eviction representation reports, delivered at least twice per year, will include aggregate data on eviction representation such as: number of tenants served; action types; outcomes including number of wins, settlements and losses and housing records cleared through expungement or caption change, estimated reduction in homelessness, estimated attorney hours spent, and estimated Writs of Recovery of Premises.Habitability representation reports, delivered at least twice per year, will include the number of tenants served, repairs made, families receiving compensation, demographics of tenants, geographic location of properties, and names of landlords.