View Agenda Item

5.9.

CC Regular Session

Meeting Date:: 12/08/2020
By:: Diana Lund, Finance

Information

Title

Adopt Resolution #20-312 Amending the Allocation of Cares Act Funds for Economic Recovery Activities and Resolution #20-313 Amending the Allocation of Cares Act Funds to Local Government Activities.

Purpose/Background:

The City has received $2,038,029 in CARES Act Funding from the Federal Government through the State of Minnesota in response to the COVID-19 Public Health Emergency. The CARES Act funds are considered Federal Assistance that is subject to Single Audit Requirements.

The CARES Act provides that payments from the Fund may only be used to cover costs that:
     1. Are necessary expenditures incurred due the the public health emergency with respect to the Coronavirus Disease 2019
          (COVID-19).
     2. Were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES
          Act) for the City; and
     3. Were incurred during the period that begins on March 1, 2020 and ends on November 15, 2020.

The City Council adopted three resolutions on July 28, 2020 in regard to the CARES funds and those adopted are as follows:
#20-157: Acceptance of the CARES Act Funds in the amount of $2,038,029

#20-158: Allocate $215,000 of CARES Act Funds to a Business Relief Grant Program

#20-159: Allocating $1,823,029 of Cares Act Funds to the Local Government for expenditures related to:
                Reimbursing City staff costs, facility modifications, telework support and other costs. The CARES Act Fund allows
                local government to reimburse themselves for costs that were not included in the most recent budget that was adopted
                 or that were budgeted but have been incurred for a substantially different use from what was intended as a result of the COVID-19 public health emergency. The CARES Act presumes for administrative convenience that the total payroll
                 costs for public health and public safety employees are payments for services substantially dedicated to mitigating
                 or responding to the COVID--19 public health emergency.

As noted above, the time frame for spending the Cares Act Funds was from March 1, 2020 - November 15, 2020. The city has been reporting monthly to the State of Minnesota's Management and Budget Office outlining the expenditures occurred to date. The final reporting to the state was sent in on November 24. A comparison of the eligible costs submitted to the state and the total eligible costs that the city could claim per the three guidelines above is attached. The city more than exceeded the amount of CARES funds received by almost $400,000 ($2,436,279.70 total eligible costs / $2,038,029 Cares Act Funds Received.

As the Cares Act Funds have all been spent, the resolutions that were adopted in July (noted above) need to be amended to reflect the actual amounts spent in each category. The amended Resolution will outline those categories used on the State Reporting Form:
Administrative Expenses (Related to Finance Director's time of reporting & administering funds: $ 6,597.43
Improve Telework Capabilities (Costs of telecommuting such as laptops, zoom meetings) $ 40,963.85
Payroll for Public Health Health and Safety Employees (Non-admin Police & Fire) $ 1,593,984.07
Personal Protective Equipment (Masks, gloves, sanitizing products) $ 11,410.66
Public Health Expenses (Cubicle dividers, sneeze guards, cleaning products) $ 59,687.52
Small Business Assistance (Grants to businesses and administration) $ 325,385.47
Total Cares Act Funds Expended $2,038,029.00

All of the numbers submitted to the state will be audited by the City's auditors of MMKR as part of the Single Audit Requirement.

Notification:

The City received the $2,038,029 In Cares Act Funding on July 2 2020.

Recommendation:

To amend the respective resolutions to reflect actual dollars spent in the respective authorized categories.

Action:

Motion to adopt Resolution #20-312 Amending the Allocation of Cares Act Funds for Economic Recovery Activities and
Motion to adopt Resolution #20-313 Amending the Allocation of Cares Act Funds to Local Government Activities

Attachments

Form Review

Inbox	Reviewed By	Date
Kurt Ulrich	Kurt Ulrich	12/03/2020 02:11 PM

Form Started By:: Diana Lund
Started On:: 11/12/2020 10:42 AM
Final Approval Date:: 12/03/2020