08-12-2020 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of the City Council FROM: Chris Heineman, City Administrator Brenda Malinowski, Finance Director DATE: August 3, 2020 RE: CARES Act Update ACTION TO BE CONSIDERED Council may provide further direction regarding the potential uses of CARES Act resources. BACKGROUND The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided federal funds to the State of Minnesota. The State Legislature and ultimately the Governor thereby distributed these funds to local governments throughout Minnesota to deal with the financial impacts of COVID-19. The City of Little Canada received CARES Act funds of $782,484 in July. Under current guidance, any unused funds as of November 15, 2020 will need to be returned. CARES Act funds are to be used to provide economic relief to the protect the American people from the public health and economic impacts of COVID-19. The United States Treasury has issued guidance related to the use of these funds and is periodically revising this guidance. The CARES Act provides that payments from the Fund may only be used to cover costs that are: 1. Necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); 2. Not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and 3. Incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. Per the guidance, these funds may not be used to replace lost revenues of the government. Eligible uses of the funds are as follows: • Medical Expenses • Public Health Expenses • Payroll Expense • Public Health Measures • Economic Support • Other