eNews January 7, 2022
Friday, January 07, 2022 - 05:32pm
In this issue:
- New episode of VML Voice podcast now available: “Board Check”
- VML now accepting entries for the 2022 “If I Were Mayor” essay contest for 7th graders
- Register now for Local Government Day happening February 3rd in Richmond
General Assembly
General Assembly begins January 12th, session 
preparations continue
With the General Assembly set to begin its 2022 Session on Wednesday, January 12, VML has been communicating with local government partners and legislators on legislation and budget items.
Last month VML Executive Director Michelle Gowdy sent a letter to incoming Governor Glenn Youngkin congratulating him and offering VML’s assistance with issues of importance to local governments. VML, the Virginia Association of Counties, and the Virginia Association of Planning District Commissions hope to have the new Governor address members at Local Government Legislative Day in early February.
On Friday, VML legislative staff was invited to participated in a Zoom meeting with the House Democratic leadership to review our priority issues for 2022. This included HB 599 funding, behavioral health funding and per diems for local and regional jails, broadband funding, amending the marijuana legislation to address town referenda, and FOIA.
VML staff have been working on budget amendments to address items not included in Governor Ralph Northam’s introduced budget. This includes HB 599 funding and increased administrative funding to local governments in the Children’s Services Act (CSA) program.
More information about the 2022 Session will be addressed in an E-News to be sent next week.
VML Contact: Janet Areson, jareson@vml.org
ARPA
Feds offer new SLRF guidance, more flexibility 
for American Rescue Plan lost revenue spending
The wait is over. Yesterday, the Treasury Department released the Final Rule and accompanying guidance documents for the Coronavirus State and Local Fiscal Recovery Funds (SLFRF), authorized by the American Rescue Plan Act of 2021. You can find an overview of the Final Rule on the Treasury website.
VML’s policy team and consultants have begun the work of analyzing the Final Rule and we will share additional guidance with you through upcoming editions of eNews and we will post links on our ARPA Resources page. Additionally, Treasury and the White House Office of Intergovernmental Affairs are hosting webinars with recipients and stakeholders to provide briefings and answer questions about the Final Rule. If you have trouble logging in or cannot attend a webinar, Treasury will post a webinar recording online next week that you can review at your convenience.
Webinars:
- January 10, 2022 at 4:00pm ET: register here >.
- January 12, 2022 at 1:00pm ET: register here >.
New flexibility for revenue loss
With funding broken into two tranche payments, ultimately $2.9 billion in ARPA SLFRF payments will reach Virginia’s localities by spring 2022. Since last year, VML, local governments, and the Commonwealth have been closely monitoring the federal rules for this funding as detailed by the May 2021 Interim Final Rule from Treasury. Yesterday’s Final Rule from Treasury is a big update.
The most important SLFRF rule to local governments from Treasury is the one governing lost public sector revenue. Or, to put it another way, it helps answer the question: How much SLFRF money can my local government spend on regular government services?
Under last year’s Interim Final Rule, Treasury required local governments to perform calculations to determine their lost revenue from the pandemic. Whatever estimate of lost revenue reached by those calculations would then become the maximum amount of SLFRF money that the locality could spend on regular government services under the lost public sector revenue provisions of the ARPA.
Under the Final Rule released yesterday, small localities received a huge amount of flexibility. Now, localities may choose between two methods of determining their lost revenue – drastically simplifying the process for smaller localities:
- Recipients may elect a “standard allowance” of $10 million to spend on government services through the period of performance. All recipients may elect to use this standard allowance instead of calculating lost revenue using the formula provided in the Final Rule, including those with SLFRF allocations of $10 million or less. Electing the standard allowance does not increase or decrease a recipient’s total allocation.
- Recipients may calculate their actual revenue loss according to the formula articulated in the Final Rule.
Under the Final Rule, these funds can be spent by governments on services that are traditionally provided by that government, unless Treasury has stated otherwise. For many of Virginia’s smaller localities, this is a much-welcomed grant of flexibility by the federal government that will help their communities recover faster.
Treasury’s Final Rule takes effect on April 1, 2022. However, recipients can choose to take advantage of the Final Rule’s flexibilities and simplifications now, ahead of the effective date. In its overview of the Final Rule, Treasury states that it will not take action to enforce the Interim Final Rule to the extent that a use of funds is consistent with the terms of the Final Rule, regardless of when the SLFRF funds were used.
VML Contact: Carter Hutchinson, chutchinson@vml.org
VML News
New episode of VML Voice podcast now available: 
“Board Check”
VML is able to do what we do thanks to the fantastic work done by the local officials and managers who serve on our committees and Board of Directors. In this episode we visit with some new and veteran Board members to find out what makes VML work and why folks might want to devote some of their time and energy to serving on VML’s Board and committees.
Subscribe to the VML Voice here >.
Participants include:
President Jon Stehle (Council Member, City of Fairfax), At-Large Member Robert C. Ike, Jr. (Council Member, City of Chesapeake), At-Large Member Derrick Wood (Mayor, Town of Dumfries), City Section Chair Randy C. Eads (City Manager, City of Bristol), Town Section Chair Steven Trivett (Mayor, Town of Ashland), Urban Section Chair Katie Cristol (Board Member, County of Arlington), and Immediate Past President Willie Greene (Mayor, City of Galax).
VML Contact: Rob Bullington, rbullington@vml.org
VML now accepting entries for the 2022 “If I 
Were Mayor” essay contest for 7th graders
The Virginia Municipal League (VML) invites all eligible Virginia 7th Graders to join its “If I were Mayor” essay contest.
Regional winners selected from around the state will each receive a $150 gift card and a plaque. One statewide winner chosen from the regional winners will receive a $250 gift card and a plaque. The runner-up from the region that receives the statewide award will become that region’s winner.
Winning essays will be featured in the May issue of VML’s magazine Virginia Town & City.
VML Contact: Rob Bullington, rbullington@vml.org
Register now for Local Government Day 
happening February 3rd in Richmond
VML, VACo and VAPDC will host the 2022 Local Government Day starting on Thursday, February 3rd at the Omni Hotel in Richmond. As in years past, this event will allow local government officials and staff to learn about the important issues being considered by their legislators and to advocate at the 2022 General Assembly Session.
Check-in begins at 11:00 AM with lunch available beginning at 11:30 AM. The afternoon will include briefings from staff and an opportunity to visit the Capitol to meet with legislators. The day will conclude with a reception at the Omni beginning at 5:30 PM.
Registration and additional details, including hotel reservation information, can be found here >.
VML Contact: Rob Bullington, rbullington@vml.org
Opportunities
VHCD now accepting applications for IRF Planning Grants
The Virginia Department of Housing and Community Development (VDHCD) has a new Planning Grant opportunity available this winter through its IRF program.
The Planning Grants are being offered to help bolster potential IRF projects by funding things like building surveys, market demand studies, proforma development, preliminary design concepts, etc. VHDCD has $1,000,000 in funding for the Planning Grants and can award up to $100,000 per project.
Applications opened on January 5th and the deadline is February 11, 2022.
The “How to Apply” webinar held on January 5th is now available online as well as the How to Apply Presentation and Program Guidelines. All these resources are also available on the IRF page under “Resources.”
VDHCD Contact: Community Revitalization Specialist Annie Arnest, annie.arnest@dhcd.virginia.gov
