The Newnan City Council will hear a request from the Coweta Community Foundation at their meeting on Tuesday for $167,756 in ARPA funds.
The request is the first heard by the Newnan City Council for ARPA funds. Last year, the city received its first tranche, or portion, of funds from the American Rescue Plan Act, worth $7.7 million.
According to documents from the city of Newnan, the Coweta Community Foundation is requesting the funds for revenue replacement from 2020, as their revenue in 2020 was much lower than expected due to the COVID-19 pandemic.
“The COVID-19 pandemic had a marked effect on our ability to hold fundraising events and on donors’ confidence in their long-term financial strength,” the CCF stated in their application. “Levels of donations and corporate sponsorships dropped drastically.”
The CCF’s revenue dropped from $264,068 in 2019 to $92,924 in 2020, according to the application.
The funds requested would be spent on a nonprofit summit to provide professional development and education for nonprofit leaders, to provide grant cycles to support and strengthen nonprofit agency services not related to the EF-4 tornado last March, and an administrative fee of 10 percent for CCF operations to facilitate and manage the activities.
The nonprofit summit would take place next month, and would feature speakers and workshops for leadership development, discussing topics such as ideas and activities for fundraising, grant writing, client services, raising community awareness and best practices, according to a supporting document supplied to the city of Newnan by the CCF.
The document also states that the grant cycles would finance new grant opportunities to “constituent concerns” in education, women and children, the fine arts, health and human services and animal welfare. Two competitive $10,000 grants would be offered during the second quarter of 2022 to organizations that took part in the February nonprofit summit.
Additional grants would be awarded in July, September and November.
Final rule replaces ‘interim’ final rule
During Tuesday’s meeting, the Newnan City Council will also review the U.S. Department of the Treasury’s final rule on how ARPA funds can be spent.
The Treasury Department unveiled the final rule earlier this month, and provides clarity on where the funds can be spent.
According to a release from the Treasury Department, the department has expanded its list of uses that recipients can use to respond to COVID-19 and economic impacts.
Specifically, the Treasury states that ARPA funds can be used for certain capital expenditures to respond to public health and economic impacts, and making services such as childcare, early education, addressing learning loss and affordable housing development available to all communities impacted by the pandemic.
The final rule also provides the Treasury with expanded support for public sector hiring and capacity, streamlined options to provide premium pay for essential workers, broadened eligible water, sewer and broadband infrastructure projects.
Previously, local governments such as the city of Newnan had been working on an “interim” final rule, which stated how the ARPA funds could be spent, their restrictions, how the funds will be distributed and the reporting requirements of the funds.
The rule states that local governments can spend their ARPA funds on a variety of items, such as supporting public health expenditures, for example, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare and certain public health and safety staff.
The funds can also be spent on addressing negative economic impacts caused by the pandemic, including economic harms to workers, households, small businesses, impacted industries and the public sector.
The funds can also replace lost public sector revenue, provide “premium” pay for essential workers and be used to invest in water, sewer and broadband infrastructure, which would allow local governments to make necessary investments to their water and wastewater systems, as well as expanding access to broadband internet.
According to the U.S. Department of the Treasury, the ARPA will deliver $350 billion to eligible state, local, territorial and Tribal governments to respond to the COVID-19 pandemic and to bring back jobs.
Governments receiving ARPA funds, such as the city of Newnan, are required to earmark them by Dec. 31, 2024, and the funds must be spent by Dec. 31, 2026.