How four communities approached accessing the American Rescue Plan lifeline

The American Rescue Plan (ARP) has presented a great opportunity for public sector entities and has provided $350 billion to help state and local governments make up revenue losses related to the COVID-19 pandemic. Baker Tilly’s practice hosted a webinar to discuss ARP reporting standards, funding for revenue loss allowances and to hear how the following four municipal leaders have maximized ARP funding for their communities.  

Listening, then deciding 
Tom Dermody, the mayor of La Porte, Indiana, is a man on a mission. Speaking during the webinar, Dermody noted that when he took office in 2016, half of the residents of La Porte, located an hour east of Chicago, lived in rental housing, managed by “landlords and slum lords who had been taking advantage of our community for far too long.” Ironically, the most impoverished city residents lived in aged housing located right next to city hall. “The living conditions were unacceptable,” he said. 

Members of Dermody’s administration, along with the city’s housing committee, set out to change the trajectory of the lives of their city’s poorest residents by improving the quality of their housing. Central to that effort was Dermody’s forward-looking approach to obtaining the necessary funds and his willingness to actively look for funding from new sources, including the American Rescue Plan (ARP), enacted in March 2021.  

Although ARP offers a vital financial lifeline, it involves substantial policy considerations and compliance requirements. Dermody told his La Porte constituents that although their opinions were welcome, he alone would make the final decisions about how the city would spend any funds they were able to obtain. “We looked at the ARP funds as one-time use funding for things we couldn’t do with our current budget,” the mayor recalled. “Instead of having 22,000 people give me their opinions of what to do with the money, I decided our council and I would come up with these target items then present them to the public. I told them if they have questions or concerns, we’ll listen, but you elected us to make decisions. So far, we’ve had great support from our community.” 

The mayor championed an effort to increase the population of LaPorte, which has held steady at around 22,000 for 45 years. To help attract new residents, the city is working to boost tourism by