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The Village of Clemmons can not use ARPA funds to offset a reduction in net tax revenue, make deposits into pension funds, pay for debt or replenish Village reserves, pay settlements and judgements, or for any use that undermine COVID-19 mitigation practices in line with CDC guidance and recommendations.
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US Treasury identified 4 general buckets for approved uses of the SLFRF funds. These are replace lost public sector revenue, respond to the far-reaching public health and negative economic impacts of the pandemic, provide premium pay for essential workers, and invest in water, sewer, and broadband infrastructure. However, all ARPA funds must also follow North Carolina law for approved expenditures for Towns which limits some of the provisions allowed by the Federal Government. Both US Treasury Rules and NC State laws must be followed for all of the awarded funds.