ro 4 THE CITY OF NASHUA "The Gate City”
Office of Econonie Developnrent
TO: Board of Aldermen
FROM: Tim Cummings, Economic Development Director
Date: May 17" 2022
RE: ARPA Funding Framework
Request
| am writing to request a meeting to discuss and approve the enclosed framework for spending
based on the funding that came in through the American Recovery Plan Act (“ARPA”).
Background
Municipalities across the nation are the beneficiaries of a significant influx of federal funds via
the American Rescue Plan Act (*ARPA”). The City of Nashua will receive $16,138,777 in total
ARPA funds. The first of two installment payments of $8,069,388.50 was received in May of
2021. We anticipate receiving the second installment this month (May 2022). The Board of
Aldermen have already accepted and appropriated these funds through the adoption of R-21-167
at its meeting on November 9, 2021.
Over the past six months, the Office of Economic Development with the assistance of Financial
Services and the Office of the Mayor undertook a community outreach effort to discuss an
appropriate framework. We offered residents an opportunity to provide feedback on the draft
framework for spending ARPA funding and we first presented to the Board of Aldermen in
September of 2021.
Additionally, we brought on iParametrics to help guide our decision-making and to assist in the
compliance reporting.
Financing Mechanics
Based on the advice of our consultant it is their recommendation that the City use “revenue
replacement” for the ARPA funds. Revenue Replacement is a category a local government may
use to expend ARPA money on a board range of general government services. We anticipate that
the City of Nashua through the U.S Treasury guidance will be eligible to spend the entire ARPA
allocation through this method. As noted above, the City of Nashua accepted and appropriated
these funds as a grant. Accordingly, this grant will not lapse and the funds will be available for
the planned expenditures detailed in the enclosed attachment.
Thank you.
229 Main Street, Suite 234 » Nashua, New Hampshire 03060 * Phone (603) 589-3106
