City of Minneapolis, Minnesota

Recovery Plan 

State and Local Fiscal Recovery 

Funds

August 31, 2021

Note: The Recovery Plan Performance Report will provide the public and Treasury information on the 

projects that recipients are undertaking with program funding and how they are planning to ensure 

program outcomes are achieved in an effective, efficient, and equitable manner. While this template

includes the minimum requirements for the Recovery Plan, each recipient is encouraged to add 

information to the plan that they feel is appropriate to provide information to their constituents on efforts 

they are taking to respond to the pandemic and promote an equitable economic recovery. 

Each jurisdiction may determine the general form and content of the Recovery Plan, as long as it 

meets the reporting requirements, and recipients are encouraged to tailor this template to best meet 

their needs. Use of infographics, tables, charts, pictures, case studies, and other explanatory elements 

are encouraged.
Minneapolis, MN 2021 Recovery Plan Performance Report 1

City of Minneapolis, Minnesota

2021 Recovery Plan

Contents

General Overview ..............................................................................................................................2

Executive Summary...................................................................................................................................2

Uses of Funds: Overview...........................................................................................................................3

Promoting Equitable Outcomes................................................................................................................5

Community Engagement ..........................................................................................................................5

Labor Practices..........................................................................................................................................6

Use of Evidence: Overview .......................................................................................................................6

Table of Expenses by Expenditure Category.............................................................................................7

Project Inventory (not required by U.S. Treasury until 10/31/2021 Project & Expenditure Report).....10
Minneapolis, MN 2021 Recovery Plan Performance Report 2

General Overview

Executive Summary 

The City of Minneapolis has been allocated a total of $271 million by U.S. Treasury through the 

Coronavirus State and Local Fiscal Recovery Fund section of the American Rescue Plan Act 

(ARPA). Tension exists between getting these funds into the community quickly and conducting 

robust engagement with residents and other jurisdictions. To balance those two interests, 

Minneapolis has engaged in two phases of decision-making on ARPA funds. On July 2nd, the 

City Council adopted a series of proposals that focus on solving the following problems in 

response to the COVID-19 pandemic: 

• Housing instability,

• Business closures and financial stress in small businesses,

• Business, non-profit, and public organization's capacity and preparation for the lifting of 

social distancing measures, and 

• Responding to the nationwide increase in violent crime.

The phase one decision-making process began with a Mayoral recommendation in early June 

that utilized the work done by subject matter experts at the City and included input from Council 

and Department Leaders. Proposals then went to City Council for public comment through two 

public hearings, amendments, and adoption. A total of just under $102 million was approved to 

be spent in phase one, less than half of the $271 million awarded to the City of Minneapolis. To 

date the funds in phase one have been allocated, but not distributed, obligated, or spent by City 

departments or subrecipients, though hiring and contracting processes are well underway.

Each proposal in phase one addresses a specific problem caused or exacerbated by the 

pandemic, proposes specific actions, analyzes equity impacts, and lists expected results. City 

staff will evaluate outcomes of each proposal as funds are distributed; specific funding has been 

allocated to assist with this evaluation effort. ARPA funds provide an opportunity to support 

disproportionately impacted communities and promote equitable outcomes and where possible, 

funds have been invested in alignment with the Strategic and Racial Equity Action Plan goals of 

the City of Minneapolis.

Now that phase one has been adopted, the City has turned to the annual budget process for 

2022 and adoption of ARPA phase two appropriations. The Mayor has proposed allocating 

nearly $119 million for revenue replacement in the 2022 budget to offset a portion of the $129 

million in revenue decline in 2020, calculated by comparing potential growth and actual receipts. 

The City will also build out a public engagement plan to collect feedback on priorities for 

spending in phase two and work with partners in neighboring jurisdictions to coordinate 

investments. The Mayor will make additional recommendations on spending for the remaining 

unallocated ARPA funds in Fall 2021 and the City Council will amend and adopt phase two 

allocations in late 2021.
Minneapolis, MN 2021 Recovery Plan Performance Report 3

Uses of Funds: Overview

The City of Minneapolis will be using the American Rescue Plan Act dollars, allocated through 

the Coronavirus State and Local Fiscal Recovery Funds (SLFRF), in a variety of ways to 

support a strong and equitable recovery from the COVID-19 pandemic and economic downturn. 

Departments across the City held discussions with community members, City leadership, and 

other key stakeholders to determine how best to respond to the recovery needs facing 

Minneapolis. From those discussions, departments submitted proposals for programs to support 

the focus of the first phase of recovery efforts. These proposals were grouped into five major 

categories of spending: Housing and Homelessness, Economic Rebuilding, Public Safety, 

Climate and Public Health, and City Capacity and Performance. 

In the first round of funding, there is a particular focus on providing support to underserved 

communities. These proposals target Black, Indigenous, People of Color (BIPOC)

homeownership, homelessness, support for small businesses, job training for low-income 

residents, support for arts organizations, trauma response for citizens feeling the impacts of 

increased violence resulting from the pandemic, and access to food and mental health services 

for the most vulnerable residents of our City. In targeting those communities and citizens most 

greatly impacted by the COVID-19 pandemic, the City can most efficiently utilize the funding 

available to respond to the greatest needs. In addition to targeting the external needs of 

recovery response, the City is investing internally with increased staffing and department 

support to manage the programs. The City is also providing economic relief to its own 

employees impacted by unpaid time off caused by budget reductions in 2020. 

Following is a breakdown of how the City is addressing the six expenditure categories 

specifically: 

Public Health (EC 1)

While no specific proposals are assigned to the expenditure category of Public Health, a 

significant number of the proposals will impact this critical response area. Under other 

categories, the City is eliminating childhood lead poisoning, investing in food support, and 

pioneering public safety strategies to protect our most at-risk populations. 

Negative Economic Impacts (EC 2)

The City’s economic recovery is critical to our pandemic response and represents the largest 

portion of investment in the first round of proposals. The City is investing in community food 

needs, providing funding to non-profit partners, and creating a funding pool for business to focus 

on economic recovery and green career training. Direct funding to non-profits will focus efforts 

on established community partners that can immediately deliver impactful resources to those 

most in need. Job training and low or no-interest loan programs will support job recovery where 

it’s most effective for long-term economic growth. 

Services to Disproportionately Impacted Communities (EC 3)

The second largest investment in the first round of funding is Services to Disproportionately 

Impacted Communities. In this category, the City is heavily focused on homeownership, 

stabilizing and repairing existing homes, and providing public safety solutions that work in 

communities where traditional approaches have historically fallen short. Innovative lending 
Minneapolis, MN 2021 Recovery Plan Performance Report 4

programs, trauma response teams, community partners, and already established programs will 

use expanded funding to target responses to the hardest hit communities. 

Premium Pay (EC 4)

The City did not establish any premium pay programs in the first round of proposed spending. 

Water, sewer, and broadband infrastructure (EC 5)

The City did not establish any water, sewer, or broadband infrastructure programs in the first 

round of proposed spending. 

Revenue Replacement (EC 6)

For the first round of funding, revenue replacement is targeted primarily to City staff. The City 

will use funds to pay staff for unpaid leave taken in 2020 as a reaction to revenue losses and 

budget cuts during the initial economic downturn. In addition, the City will expand access to 

mental health services for employees and support provide program evaluation on the Truth and 

Reconciliation Commission. The balance of revenue replacement will be used for general 

Government Services to be identified in future budgeting rounds. Such government services 

include, but are not limited to, maintenance or pay-go funded building of infrastructure; 

modernization of cybersecurity, including hardware, software, and protection of critical 

infrastructure; health services; environmental remediation; school or educational services; and 

provision of public safety services.

Other Federal Funding Sources

In addition to the SLFRF the City is receiving Federal funding through the Emergency Rental 

Assistance (ERA) program. The ERA funds are part of the Consolidated Appropriations Act, 

2021 which was enacted on December 27, 2020. The U.S. Treasury is responsible for 

administering the program. The City received its allocation of $12.9 million in January 2021. The 

American Rescue Plan Act of 2021 enacted on March 11, 2021 also managed through the U.S. 

Treasury provided the City with an additional $4.1 million of ERA phase two funding. Emergency 

Rental Assistance funds are used to help eligible households through existing or newly created 

rental assistance programs. This assistance will further help support the City’s recovery goals of 

equitable housing opportunities for its citizens.
Minneapolis, MN 2021 Recovery Plan Performance Report 5

Promoting Equitable Outcomes

The City of Minneapolis already integrates an analysis of equity impact into its annual budget 

process and legislative actions. In addition, the City’s elected leadership has adopted a 

Strategic Racial Equity Action Plan (SREAP), that calls out specific operational and policy goals 

to advance racial equity. These existing policies provided the foundation for generating, 

reviewing, and amending proposals and ultimately appropriating the first round of American 

Rescue Plan Funds by City Council in July.

Each proposal submitted for consideration in phase one of SLFRF decision-making included an 

equity impact statement. Implementing departments at the City were asked:

“What does data tell us about how solving this problem will impact constituents or staff from 

BIPOC communities?”

Responses to this question were utilized in the Mayor’s recommendation process, as well as by 

Council when they amended and then adopted final proposals. Answers to this question along 

with other proposal details were also made available to the public before and after the two 

public hearings that were held on phase one SLFRF appropriations. 

In addition to this equity analysis, proposals were reviewed by the City’s division of Race and 

Equity and flagged if they aligned with the Strategic Racial Equity Action Plan (SREAP). This 

analysis was considered in phase one decision-making. 

Specific projects include expected equity impacts of the activities funded. They range from 

increasing BIPOC homeownership, to preventing the closure of BIPOC and women-owned 

businesses, and improving lighting, street conditions and facades in BIPOC business districts. 

They address mental health service gaps in low-income schools, violence prevention and 

intervention efforts targeted at low-income communities that have borne the brunt of the nationwide rise in crime because of the pandemic.

Community Engagement

In the initial brainstorming of projects to address the goals of the American Rescue Plan Act, 

subject matter experts were asked to include any outreach that had been done and include any 

information and/or evidence about community attitudes on the topic. Departments consulted 

with their existing stakeholder groups to formulate the proposals that were considered in the first 

round of decision-making in the spring. 

On June 4th, the Mayor released his recommendations for phase one of SLFRF decisionmaking. These proposals were detailed on the City’s website as well as the Legislative 

Information Management System (LIMS). As City Council considered and amended the Mayor’s 

recommendations, two public hearings were held, and input was solicited from the public in 

written form as well. Links to the public feedback received during this process can be found on 

LIMS.

The City is planning further community engagement for the second round of decision-making on 

the remaining unallocated SLFRF funds.
Minneapolis, MN 2021 Recovery Plan Performance Report 6

City ARPA Summary website: 

https://stories.opengov.com/minneapolismn/published/70dMT89Qv

Legislative Information Management System (LIMS): https://lims.minneapolismn.gov/file/2021-

00651

Labor Practices

With the first allocation of SLFRF funding Minneapolis is not pursuing any infrastructure 

projects. However, the City has instituted several labor friendly ordinances reflected in city 

contracting practices and as an experienced recipient of federal transportation, housing, and 

community development funds, has developed robust monitoring and compliance tools in its 

Civil Rights Department through its Labor Standards Enforcement and Contract Compliance 

divisions.

Through ordinance the City of Minneapolis enforces federal (Davis-Bacon) prevailing wage 

rates on its construction projects over $50,000. The City requires payment to workers at least biweekly (unless the project is federally funded).

Additionally, City ordinances include enforcement provisions by the Labor Standards 

Enforcement Division related to labor friendly measures of Sick and Safe Time, Minimum Wage, 

and Wage Theft ordinances.

The Minimum Wage Ordinance sets a new hourly minimum wage standard for work performed 

in Minneapolis. The Sick and Safe Time Ordinance creates access to time off work for 

employees across the city. The Wage Theft Ordinance works with the state's wage theft law to 

protect employers and employees and to ensure people receive all wages and benefits to which 

they're entitled. 

Use of Evidence: Overview

The City of Minneapolis is in the process of reviewing the requirements of reporting on 

evidence-based interventions. Where appropriate, the City may use program evaluations or 

evidence-based reporting to demonstrate the effectiveness of the approved programs funded 

with ARPA SLFRF. Future versions of this Recovery Plan will include specific approaches for 

each program where appropriate and the City looks forward to robust programmatic reporting 

and evaluation.
Minneapolis, MN 2021 Recovery Plan Performance Report 7

Table of Expenses by Expenditure Category

Category Budget ($) Cumulative 

expenditures to 

date ($)

Amount 

spent since 

last Recovery 

Plan ($)

1 Expenditure Category: Public 

Health

$0

1.1 COVID-19 Vaccination

1.2 COVID-19 Testing

1.3 COVID-19 Contact Tracing

1.4 Prevention in Congregate 

Settings (Nursing Homes, 

Prisons/Jails, Dense Work Sites, 

Schools, etc.)

1.5 Personal Protective Equipment

1.6 Medical Expenses (including 

Alternative Care Facilities)

1.7 Capital Investments or Physical 

Plant Changes to Public Facilities 

that respond to the COVID-19 

public health emergency

1.8 Other COVID-19 Public Health 

Expenses (including 

Communications, Enforcement, 

Isolation/Quarantine)

1.9 Payroll Costs for Public Health, 

Safety, and Other Public Sector 

Staff Responding to COVID-19

1.10 Mental Health Services

1.11 Substance Use Services

1.12 Other Public Health Services

2 Expenditure Category: Negative 

Economic Impacts

$50,970,000

2.1 Household Assistance: Food 

Programs 

500,000 0 0

2.2 Household Assistance: Rent, 

Mortgage, and Utility Aid 

6,000,000 0 0

2.3 Household Assistance: Cash 

Transfers 

3,000,000 0 0

2.4 Household Assistance: Internet 

Access Programs

2,000,000 0 0

2.5 Household Assistance: Eviction 

Prevention

2.6 Unemployment Benefits or Cash 

Assistance to Unemployed 

Workers
Minneapolis, MN 2021 Recovery Plan Performance Report

8

2.7 Job Training Assistance (e.g., 

Sectoral job-training, Subsidized 

Employment, Employment 

Supports or Incentives)

1,760,00000

2.8 Contributions to UI Trust Funds*

2.9 Small Business Economic 

Assistance (General)

33,860,00000

2.10 Aid to nonprofit organizations 2,300,00000

2.11 Aid to Tourism, Travel, or 

Hospitality

1,050,00000

2.12 Aid to Other Impacted Industries 500,00000

2.13 Other Economic Support 

2.14 Rehiring Public Sector Staff 3 Expenditure Category: Services to 

Disproportionately Impacted 

Communities

$35,257,995

3.1 Education Assistance: Early 

Learning 

3.2 Education Assistance: Aid to 

High-Poverty Districts

3.3 Education Assistance: Academic 

Services 

3.4 Education Assistance: Social, 

Emotional, and Mental Health 

Services 

200,00000

3.5 Education Assistance: Other 

3.6 Healthy Childhood Environments: 

Child Care 

3.7 Healthy Childhood Environments: 

Home Visiting 

3.8 Healthy Childhood Environments: 

Services to Foster Youth or 

Families Involved in Child Welfare 

System 

3.9. Healthy Childhood Environments: 

Other 

3.10 Housing Support: Affordable 

Housing 

16,325,00000

3.11 Housing Support: Services for 

Unhoused persons 

6,000,00000

3.12 Housing Support: Other Housing 

Assistance 

3.13 Social Determinants of Health: 

Other 

800,00000

3.14 Social Determinants of Health: 

Community Health Workers or 

Benefits Navigators 

900,00000
Minneapolis, MN 2021 Recovery Plan Performance Report

9

3.15 Social Determinants of Health: 

Lead Remediation

749,99500

3.16 Social Determinants of Health: 

Community Violence Interventions 

10,283,00000

4 Expenditure Category: Premium 

Pay

$0

4.1 Public Sector Employees

4.2 Private Sector: Grants to other 

employers 

5 Expenditure Category: 

Infrastructure

$0

5.1 Clean Water: Centralized 

wastewater treatment

5.2 Clean Water: Centralized 

wastewater collection and 

conveyance

5.3 Clean Water: Decentralized 

wastewater

5.4 Clean Water: Combined sewer 

overflows

5.5 Clean Water: Other sewer 

infrastructure

5.6 Clean Water: Stormwater

5.7 Clean Water: Energy 

conservation

5.8 Clean Water: Water conservation

5.9 Clean Water: Nonpoint source 

5.10 Drinking water: Treatment

5.11 Drinking water: Transmission & 

distribution

5.12 Drinking water: Transmission & 

distribution: lead remediation

5.13 Drinking water: Source

5.14 Drinking water: Storage 

5.15 Drinking water: Other water 

infrastructure

5.16 Broadband: “Last Mile” projects

5.17 Broadband: Other projects 6 Expenditure Category: Revenue 

Replacement

$2,842,000

6.1 Provision of Government Services 2,842,00000

7 Administrative and Other $1,173,378

7.1 Administrative Expenses 1,023,37800

7.2 Evaluation and data analysis 150,00000

7.3 Transfers to Other Units of 

Government
Minneapolis, MN 2021 Recovery Plan Performance Report 10

7.4 Transfers to Non entitlement Units 

(States and Territories only)

Total $90,243,373 $0 $0

Unallocated from 1st Tranche $45,352,869

2

nd Tranche May 2022 $135,596,242

 Total $271,192,484 $0 $0

Project Inventory (not required by U.S. Treasury until 10/31/2021 

Project & Expenditure Report)

The City will be reporting on its Project Inventory in the October 31, 2021 Project and 

Expenditure Report. A listing of current projects is found at 

https://lims.minneapolismn.gov/file/2021-00651 .