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STAFF REPORT <br />TO: <br />FROM: <br />DATE: <br />RE: <br />Mayor Keis and Members of the City Council <br />Chris Heineman, City Administrator <br />Brenda Malinowski, Finance Director <br />October 22, 2020 <br />CARES Act Funds <br />ACTIONS TO BE CONSIDERED <br />1. Approve Resolution to use CARES Act Funds for Public Safety payroll expenditures. <br />2.Approve Grant Agreement with Little Canada Fire Department for PPE expense reimbursement <br />in the amount of $3,376.27. <br />3. Accept October expenditure report submitted to MMB in the amount of $669,366.97. <br />BACKGROUND <br />The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided federal funds to the State <br />of Minnesota. The State Legislature and ultimately the Governor thereby distributed these funds to <br />local governments throughout Minnesota to deal with the financial impacts of COVID-19. The City of <br />Little Canada received CARES Act funds of $782,484 in July. Under current guidance, any unused <br />funds as of November 15, 2020 will need to be returned. <br />CARES Act funds are to be used to provide economic relief to the protect the American people from <br />the public health and economic impacts of COVID-19. <br />The United States Treasury has issued guidance related to the use of these funds and is periodically <br />revising this guidance. The CARES Act provides that payments from the Fund may only be used to <br />cover costs that are: <br />1. Necessary expenditures incurred due to the public health emergency with respect to the <br />Coronavirus Disease 2019 (COVID-19); <br />2. Not accounted for in the budget most recently approved as of March 27, 2020 (the date <br />of enactment of the CARES Act) for the State or government; and <br />3. Incurred during the period that begins on March 1, 2020, and ends on November 15, <br />2020. <br />Per the guidance, these funds may not be used to replace lost revenues of the government. <br />Additional guidance from the United State Department of Treasury provides specific details related to <br />payroll costs for public health and public safety employees even when accounted for in the most recent <br />budget. <br />1