OML UPDATE AT-A-GLANCE
Here are the top three things you need to know from this past week:
· The League has the initial results from the survey we sent to our members to gauge how many municipalities are applying for American Rescue Plan Act (ARPA) funds and how those municipalities plan to use those funds in their local communities. The League is collecting as much information as possible on how these dollars are being used in our communities so we can develop examples and “best practices” that other cities and villages across the state can access. This will help ensure that this critical funding can be used in the most effective and responsible manner. Read more about the initial survey results in the article below. If you have not already, please complete the short survey HERE.
· We want to remind our members that non-entitlement units of local government (NEUs) only have until Saturday, September 4 to apply for their American Rescue Plan Act (ARPA) allocation. The Ohio Office of Budget and Management (OBM) is reporting that more than $140 million in payments have already gone out to applicants that were processed and approved. However, NEUs that fail to respond before the September 4 deadline will not receive their allocation and will not be eligible to apply for funding from the second tranche of ARPA funds next year. Read more in the article below.
· Members should take note of two upcoming webinars covering the American Rescue Plan Act (ARPA) funds available to municipalities. The first is a webinar that will be held on Thursday, August 12 at 11 a.m. The webinar is entitled “American Rescue Plan Act – Local Fiscal Recovery Funds’ Dos and Don’ts: What’s Eligible and How Can You Buy It?” Register HERE. The second is a free webinar on Wednesday, August 18 at 11 a.m. featuring speakers from the Ohio Office of Budget and Management (OBM). The webinar is entitled “American Rescue Plan Act (ARPA) – Funding for Non-Entitlement Units of Local Government.” Register HERE. Learn more about both webinars in the article below.
RESULTS AVAILABLE FROM LEAGUE SURVEY ON AMERICAN RESCUE PLAN ACT (ARPA) FUNDS
The League has the initial results from the survey we sent to our members to gauge how many municipalities are applying for American Rescue Plan Act (ARPA) funds and how those municipalities plan to use those funds in their local communities.
The League is seeking to collect as much information as possible on how these dollars are being used in our communities so we can develop examples and “best practices” that other cities and villages across the state can access. This will help ensure that this critical funding can be used in the most effective and responsible manner.
According to the survey data:
· 97.8% of respondents said their municipality would be applying for ARPA funds, while 2% said they would not.
Respondents indicated their ARPA funds would be allocated for the following expenses:
· 43% - water and sewer infrastructure
· 20% - capital infrastructure (new projects or improvements)
· 12% - undecided
· 11% - revenue replacement
· 9% - employee wages
· 5% - broadband
Other expenses included:
· Assistance for small businesses and 510(c)(3) organizations
· Fire, police and EMS equipment
· Cleaning supplies and expenses
· Mortgage and rental assistance
· Municipal utility bill assistance to residents
· Food assistance
· Income tax software, other software and Wi-Fi
· Police MARCS radios
· Ventilation projects
· Public health
· Resident and community assistance
We want to thank everyone who participated in the survey thus far. This data will help ups understand the challenges that Ohio’s cities and villages are facing in the wake of the COVID-19 pandemic and how federal coronavirus relief funds are being used by municipalities to meet the needs of their community. We will continue to connect our members with webinars and other resources on ARPA local fiscal relief funds.
Please remember to complete the short survey if you have not already. You can access the survey HERE. We will update our members as we continue to receive survey results.
UPDATE ON ONEOHIO OPIOID SETTLEMENT
The League received an Opioid Settlement update yesterday. The proposed settlement is with three of the largest pharmaceutical companies. Johnson & Johnson has yet to settle. If Ohio settles, it is going to either be the first or second to settle. Both the Ohio Attorney General and the Governor are recommending the settlement. Time is of the essence with an August 13 deadline for the Attorneys to receive consents from municipalities, townships and counties over 10,000 in population.
The proposed settlement amount is approximately $804,000,000 divided among all municipalities, townships and counties including those under 10,000 in population, paid over 18 years according to a complicated formula. The guaranteed settlement amount is 55% of the gross settlement amount. If benchmarks are met, it can reach 100% of the settlement amount.
Municipalities, townships, and counties receive distribution in two ways—individually and on a regional basis. Counties may also distribute its moneys for the benefit of municipal programs. OML/OMAA General Counsel, Garry Hunter is recommending the settlement. As soon as the OML receives the participation agreement, settlement summary which shows the projected amount your municipality will receive directly, OneOhio form, OneOhio MOU, Case Management Order, FAQ, and draft Ordinance, it will be sent to you.
Garry Hunter is recommending the signing of the participation agreement be authorized by council action. Since time is of the essence, it is recommended you call a special council meeting next week and adopted the authorizing resolution with an emergency under suspension of the rules. Further information will be forth coming by Monday, August 2.
OHIO OFFICE OF BUDGET AND MANAGEMENT (OBM) RELEASES UPDATE ON ONGOING NON-ENTITLEMENT UNITS OF LOCAL GOVERNMENT (NEU) ALLOCATIONS
The Ohio Office of Budget and Management (OBM) has released updated information on the allocation of American Rescue Plan Act (ARPA) funds to non-entitlement units of local government (NEUs).
OBM has released a spreadsheet, which you can access HERE, showing which NEUs have applied for their allocation of ARPA dollars thus far. More than $140 million in payments have already gone out to applicants that were processed and approved. OBM is working with a small number of applicants that had missing or incorrect information in the portal to correct those mistakes so their payments can be processed. Additionally, no NEU that has already applied has hit the 75% of budget threshold that would require OBM to reduce their allocation.
As a reminder, the U.S. Treasury mandates a window of 60 days for the application process. NEU’s have until Saturday, September 4 to apply for ARPA funds. OBM has released a flow chart, which you can access HERE, that shows what happens to the funds if NEU’s decline funding or are unresponsive.
OBM will continue to provide updates as NEUs continue to apply for and receive their ARPA allocations.
UPCOMING WEBINARS ON AMERICAN RESCUE PLAN ACT (ARPA) FUNDS FOR MUNICIPALITIES
We want to make our members aware of a free webinar featuring speakers from the Ohio Office of Budget and Management (OBM) on Wednesday, August 18 at 11 a.m. The webinar is entitled “American Rescue Plan Act (ARPA) – Funding for Non-Entitlement Units of Local Government.” During the webinar, OBM will review the application process, discuss allowable uses, and walk through some of the rules and reporting that applies to this funding.
Learn more and register HERE.
The League will also be holding another webinar on ARPA funds on Thursday, August 12 at 11 a.m. The webinar is entitled “American Rescue Plan Act – Local Fiscal Recovery Funds’ Dos and Don’ts: What’s Eligible and How Can You Buy It?” The presentation will be given by speakers from Bricker & Eckler LLP and will cover the do's and don’ts of using ARPA coronavirus relief fund, from identifying which expenditures are allowable uses of these funds, to procuring vendors and contractors and administering contracts using these federal funds.
To learn more and register, click HERE. There will be a registration fee charged for this webinar.
VALUABLE RESOURCES AVAILABLE TO PEP MEMBERS
Did you know that the Public Entities Pool of Ohio is the premier public entity risk pool in the state of Ohio? Being a PEP member offers so much more than excellent coverage and stable pricing; it also means members are entitled to unparalleled benefits – benefits that will help municipalities serve their communities in the best ways possible.
Additionally, PEP offers an exclusive Resource eLibrary where Pool Members have access to thousands of resources to assist with risk management and risk control needs. Inside this library, employees can obtain training on a variety of categories including, but not limited to: emergency services, human resources and employment practices.
PEP membership also offers members a Cyber Resources section, information on how to build an employee handbook, and the opportunity to assign training to employees.
If your municipality is interested in learning more about PEP and how you can gain access to these resources and more, contact PEP HERE.
