During the COVID-19 pandemic, municipalities across the country had been tasked with adapting to new challenges, from maintaining public health to ensuring the continuity of essential services.

The American Rescue Plan Act was, and still is, a critical resource, providing much-needed funding to support these efforts. Among the various uses of ARPA funds, one of the most impactful is the development and enhancement of municipal websites.

As the digital front door to local government, a well-designed and accessible website is more crucial than ever, serving as a vital tool for communication, service delivery, and public engagement.

In this article, we'll explore what these funds are and how they can be utilized to strengthen your municipality's online presence.

ARPA: Scope, Validity, and Eligibility

The American Rescue Plan Act is a $1.9 trillion economic stimulus package passed by the U.S. Congress in March 2021 to aid the country’s recovery from the economic and health impacts of the COVID-19 pandemic.

These funds are allocated to various entities, including states, local, and tribal governments, to support their efforts, such as:

• Public health response
• Economic recovery
• Essential service continuity
• Replacing lost public sector revenue
• Providing premium pay for essential workers
• Investing in water, sewer, and broadband infrastructure

However, there are specific deadlines and guidelines for how and when these funds must be used. For instance, recipients generally have until December 31, 2024, to obligate the funds and until December 31, 2026, to spend them.

It’s important for municipalities and other recipients to adhere to these timelines to ensure they make the most of the available resources.

Using ARPA SLFRF Funds for Municipal Websites

The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), part of the American Rescue Plan Act, allow for a wide range of uses to support public health and economic recovery. This includes investments in technology and infrastructure that improve government services.

Upgrading or creating a municipal website can be considered an eligible expense under the category of improving public sector capacity and modernizing government services.

This can help ensure better communication with residents, provide essential information, and enhance the overall efficiency of municipal operations. You can use these funds can be used for various website-related projects, including:

• Website development: Creating or upgrading municipal websites to improve public access to government services and information.
• Hosting services: Covering the costs of website hosting, particularly if the site is used to deliver essential public health information or services.
• Digital tools integration: Implementing tools that facilitate online payments, form submissions, or public engagement, all of which are crucial for maintaining services during a pandemic.
• Accessibility enhancements: Ensuring that municipal websites are compliant with accessibility standards to better serve all residents, particularly in accessing COVID-related information.

Broader Uses and Other Noteworthy Conditions

Eligible uses include a broad range of activities that support the public health response and economic recovery, such as:

• Public health initiatives: The recovery fund can be used for efforts directly aimed at managing and mitigating the spread of COVID-19, including the dissemination of public health information via municipal websites.
• Infrastructure improvements: This includes investments in water, sewer, and broadband infrastructure, which can extend to improving digital infrastructure like municipal websites.
• Government services: Funds can be used to replace lost public sector revenue, allowing for the continued provision of government services, including those delivered online through municipal websites.

ARPA Approved Services by Town Web LLC

We recently engaged a reputable law firm in Wisconsin to determine whether ARPA State and Local Fiscal Recovery Funds (SLFRF) could be utilized for municipal website design and hosting.

The lead attorney, Lee Turonie, who has eight years of experience with the Wisconsin Towns Association (WTA), conducted a comprehensive review. Their findings confirm that the municipal website design, hosting, and email services provided by Town Web Design, LLC are indeed eligible for funding.

The Legal Inquiry

Question: Is the municipal government's purchase of internet website services from Town Web Design, LLC (“Town Web”) an eligible expenditure under the American Rescue Plan Act, Coronavirus State and Local Fiscal Recovery Funds (“ARPA”)? *1, 2

Answer: Yes. ARPA provides at least two avenues for services provided by Town Web to qualify as eligible expenditures:

1. Responding to the public health emergency or its negative economic impacts: The purchase of technical assistance by a local government to mitigate the spread of COVID-19 or its economic impacts is an eligible expenditure. Technical assistance involves providing targeted support to an organization with a specific need or problem. In this context, local governments are the organizations, COVID-19 is the problem, and enhanced internet utility through Town Web’s services can help mitigate the issue's spread and impact.
2. Providing government services: Governments may use these funds for the provision of services, limited to the extent of the revenue reduction caused by the COVID-19 public health emergency. This budget can cover virtually any municipal government service, including those offered by Town Web, regardless of whether it already has such services in place.

Additional Considerations

• Returning unused funds: Any unused funds must be returned to the Treasury.
• Paying for future services: Town Web’s services can be prepaid through December 31st, 2026. Many municipalities are locking in fixed pricing by using ARPA funds to cover three years of future services.
• Reporting requirements: Governments should maintain all relevant records and adopt a resolution of support for ARPA eligibility, which includes the necessary facts, analysis, and determination. This purpose category will be subject to enhanced reporting requirements to verify eligibility, making it crucial to establish a strong documentation record.

For a copy of the full legal memorandum, please email us, and we will provide the complete document for you to share with your board.

*1 There are various types of local governments, each operating under the laws of their specific type and state jurisdiction. Individual ones should consult with their municipal attorney regarding the appropriate use of ARPA funds.

*2 All information provided is based on a memo by Lee D. Turonie of Dempsey Law.

Concluding Thoughts

The American Rescue Plan Act of 2021 allocates stimulus money to all municipalities, regardless of size or population, including yours. Many larger municipalities have already leveraged CARES Act funding from 2020 to invest in technology during the pandemic.

Town Web Design has supported many of these municipalities by creating and updating websites that serve as essential communication platforms.

A municipal website is the most effective way to communicate with your residents, offering a reliable 24/7 platform for sharing vital information.

Make use of ARPA SLFRF funding by investing in a municipal website that meets your residents' needs and positions your community for future success.

If you’re interested in using these funds to pay for a new municipal website, contact us today, and we’ll provide detailed information from our legal partners.