September 7, 2021 GrantWorks Workshop

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The September 7, 2021 GrantWorks Workshop provided comprehensive instruction on American Rescue Plan Act funding, covering allocation mechanics, eligible use categories including public health response, premium pay, lost revenue, and infrastructure projects, as well as compliance and reporting requirements. The presentation addressed specific implementation challenges such as Texas constitutional constraints on retroactive pay, broadband and drainage project eligibility definitions, and registration deadlines for non-entitlement cities. Additional funding opportunities were outlined, including hazard mitigation grant programs and various Community Development Block Grant initiatives available through state and federal sources. GrantWorks presented its role as an administrative firm managing American Rescue Plan and other grant programs across North Texas, detailing fee structures and application processes for eligible jurisdictions.

• Welcome and introductionsThe workshop facilitator introduced the presenting team and workshop objectives.
• ARP legislation overview and lobbying effortsThe presenter outlined the American Rescue Plan Act tracking efforts and focus areas since early 2021.
• Government acronyms and funding streamsThe presenter explained key acronyms and how federal funds flow through different programs.
• Presentation organization and structureThe presenter outlined the framework for organizing the day's discussion.
• CARES Act, MARS, and American Jobs Act funding stagesThree successive COVID-relief bills addressed different phases of response and recovery.
• Section 603 direct allocations and fund distributionThe direct allocation section breaks funding into four categories based on entity type and population.
• State agency pass-through provisions and restrictionsTreasury limited state agency authority to prevent additional burdens on recipients.
• Allocation calculation methodologyCounty and city allocations determined by different factors; city amounts are calculated to the dollar.
• Discrete funding buckets and no flow-down provisionsEach entity type receives independent funding; no cross-category redistribution.
• The 75 percent rule and small-budget city constraintSmall cities with limited operating budgets face a cap on ARP fund retention.
• Fund disbursement timingAllocations distributed in two tranches split by one year.
• ID.me verification process for federal fundsTreasury implemented identity verification to prevent fraud despite initial recipient concerns.
• Two-factor authentication and filing communicationsTreasury uses two-part login and authentication codes for report submissions.
• Non-entitlement city funding process through TEASNon-entitlement cities access funds through state agency registration and application.
• Registration deadline and funding forfeiture riskTreasury set September 17 deadline for registration to access funds.
• Hood County and city-level allocationsCounty and municipal entities receive specific funding amounts based on formula.
• Eligible uses overview and four key provisionsARP funding has four broad categories of allowed spending.
• Public health emergency response requirements and examplesPublic health category requires structured programs with equity and documented need.
• Premium pay clause and Texas constitutional conflictFederal premium pay provision conflicts with Texas Constitution Article 3 Section 53 prohibition on retroactive pay.
• Premium pay thresholds and eligible recipientsPremium pay can increase wages up to $13/hour or $25,000/year with wage comparison limits.
• Government services and lost revenue definitionLost revenue provision expanded significantly, allowing broader spending authority once losses are documented.
• Lost revenue calculation process and four-year eligibilityEntities can calculate lost revenue annually for four years and spend proceeds more flexibly.
• Flexible spending after lost revenue categorizationLost revenue categorization permits spending on activities not explicitly in other ARP categories.
• Water, sewer, and broadband infrastructure eligibilityInfrastructure provision limits eligible projects to water, sewer, and broadband, excluding roads and bridges.
• Infrastructure category benefits and reduced red tapeARP infrastructure funding removes many standard federal compliance burdens.
• Water and sewer project eligibility frameworkTreasury tied eligibility to EPA state revolving loan fund rules to leverage existing expertise.
• Drainage project water quality requirementDrainage eligibility requires documented water quality improvement, not just increased capacity.
• Broadband eligibility and state revolving fund coordinationBroadband funding eligibility unclear due to lack of obvious connection to state revolving fund structures.
• Co-mingling funding sources and project phasing strategyStrategies for managing multiple funding sources and phasing projects to meet allocation deadlines.
• Broadband eligibility and infrastructure requirementsTreasury's definition of broadband eligibility and required infrastructure capacity standards.
• Water infrastructure improvements and lead and copper rule replacementsEligible water system improvements under American Rescue Plan funding.
• Premium pay provisions and retroactive payment risksGuidance on using American Rescue Plan funds for employee premium pay.
• Procurement and compliance requirementsFederal and state compliance requirements for ARP-funded projects.
• Accounting and documentation practicesInternal accounting procedures and record-keeping requirements for ARP funds.
• Best practices for project management and documentationDocumentation standards and governance practices for ARP-funded projects.
• Reporting requirements and frequency by entity typeReporting obligations to treasury based on entity classification.
• Quarterly reporting details and expenditure categoriesContent and submission requirements for county quarterly reports.
• Treasury reporting portal and IDME registrationRegistration and portal access procedures for submitting reports.
• Resource organizations and procurement guidanceOrganizations providing support and guidance for ARP project management.
• Flexible use of funds for emergency response vehiclesAlternative uses of ARP funds for first responder equipment and vehicles.
• Risk perception and sustainability of wage enhancementsChallenges and public perception issues with using ARP funds for employee pay increases.
• Mental health services and behavioral health eligibilityApplication of ARP funds to mental health and behavioral health programs.
• Hazard mitigation planning and eligibilityRequirements for participation in hazard mitigation grant programs.
• Winter storm Yuri hazard mitigation grant programOverview of the Winter Storm Yuri mitigation grant with application timeline and match requirements.
• Flood mitigation assistance programOverview of the Flood Mitigation Assistance program with allocation and timeline details.
• Building Resilient Infrastructure and Communities (BRIC) programOverview of BRIC program funding and requirements.
• Hazard Mitigation Grant Program and DR 4585 mitigation fundsOverview of HMGP and state mitigation funds from disaster declarations.
• Local Hazard Mitigation Plan Program and grant eligibility matrixAvailable mitigation programs and eligible project types by program.
• GrantWorks overview and federal-state partnershipsIntroduction to GrantWorks organization and its service capabilities.
• Community Development Block Grant (CDBG) programs overviewCDBG eligibility requirements and national objectives.
• Community Development (CD) Fund application and scoringDetails on the largest CDBG fund and competitive scoring criteria.
• Downtown Revitalization and Main Street ProgramDetails on downtown-focused CDBG funding.
• FAST Grant and specialized emergency vehicle fundingOverview of the Federal Emergency Management grant for first responder equipment.
• Colonias Fund and Planning and Capacity Building FundAdditional CDBG programs for border regions and planning services.
• State Urgent Need (SUN) FundOverview of the state urgent need program for emergency infrastructure situations.
• Rural Economic Development (RED) FundOverview of the RED Fund (formerly Texas Capital Fund) for economic development projects.
• Texas Parks and Wildlife programsParks
• Community development and infrastructure funding programsVarious federal and state funding sources support community infrastructure, economic development, and housing projects.
• HOME program for low-income housingThe HOME program enables cities under 3,000 population and counties under 20,000 population (after subtracting incorporated city population) to build new homes for low- to moderate-income residents with no local match requirement.
• Disaster recovery funding and property acquisition programsDisaster-related CDBG funds flow through the Texas General Land Office and support resilience through competitive or non-competitive distribution methods.
• Administrative roles and procurement requirementsGrantWorks operates as an administrative firm managing multiple grant programs; federal procurement rules require competitive bidding for all grant administrators and engineers.
• Program management fees and cost structureManagement fees for GrantWorks are calculated as a percentage of the allocation or grant amount and vary by program type and complexity.
• Application fees and GrantWorks track recordGrantWorks does not charge to write most applications; CDBG grants are free if funded, and fees are paid from recovered grant funds only.
• American Rescue Plan adoption and client managementGrantWorks is actively expanding American Rescue Plan management services across North Texas counties; staff is managing 84 current clients with high award rates.
• Procurement resources and ARCT membershipSample RFP documents and approved wording are available to jurisdictions through GrantWorks and the Association of Rural Communities in Texas (ARCT) website.
• Motion to table salary discussion and executive sessionThe meeting concluded with a motion to table discussion of salary matters pending executive session.