City of Hermitage Strategic Funding Plan Process

The City of Hermitage intends to formulate a strategic funding plan that takes into consideration public engagement, establishes community priorities and aligns with the limited eligible uses of ARPA funding as defined by the U.S. Department of Treasury.


Furthermore, the city intends to take into consideration the Government Finance Officers Association (GFOA) ARPA Guiding Principle related to the “Temporary Nature of ARPA Funds”


ARPA funds are non-recurring so their use should be applied primarily to non-recurring expenditures.


  • Care should be taken to avoid creating new programs or add-ons to existing programs that require an ongoing financial commitment.
  • Use of ARPA funds to cover operating deficits caused by COVID-19 should be considered temporary and additional budget restraint may be necessary to achieve/maintain structural balance in future budgets.
  • Investment in critical infrastructure is particularly well-suited use of ARPA funds because it is a non-recurring expenditure that can be targeted to strategically important long- term assets that provide benefits over many years. However, care should be taken to assess any on-going operating costs that may be associated with the project.


The City will take into consideration public input and assess identified needs in determining the most effective use of ARPA funds to aid in the recovery from the budgetary, economic, and financial impacts of the pandemic. The City recognizes the importance of planning for the use of the ARPA funds prudently with an eye towards long-term financial stability. The ARPA funding provides local governments with a unique opportunity to make strategic investments in eligible expenses until economic conditions stabilize. 


The City has elected to utilize the Hermitage Community and Economic Development Commission to receive input and assess identified needs for the use of ARPA funds as the Commission was created to evaluate and assist in all economic development in the City of Hermitage, to review economic development projects and other projects having significant community impact and to advise the Hermitage Board of Commissioners regarding said development and projects. 


Potential projects and uses of ARPA funds will be discussed at public meetings and prioritized and submitted to the City of Hermitage Board of Commissioners for legislative approval.