07-27-2020 Council Special Work Session Packet

Home Search

WS – Item 1 WORK SESSION STAFF REPORT Special Work Session Item No. 1 Date: July 27, 2020 To: Mayor and City Council From: Sarah Cotton, City Administrator Re: Coronavirus Relief Funds Background The CARES Act provides assistance for State, Local, and Tribal Governments navigating the impacts of the COVID-19 pandemic through the Coronavirus Relief Fund. The City of Lino Lakes has submitted a certification form to the Minnesota Department of Revenue for its share of federal aid ($1,608,289). The City is expecting to receive these funds by the end of July. Staff has spent a considerable amount of time reviewing State and Federal Guidance to identify eligible expenditures and understand audit and reporting requirements. The CARES Act provides that payments from the Fund may only be used to cover costs that: 1. are necessary expenditures incurred due to the public health emergency with respect to COVID-19; 2. were not accounted for in the budget most recently approved for the government; 3. were or will be incurred during the period that begins on March 1, 2020, and ends on November 15, 2020. A cost is incurred when the local government has expended funds to cover the cost. It should be noted that the funds received by the City cannot be used for revenue replacement (i.e. lower than expected tax collections, reduced liquor license fees, waived utility late fees, etc.) or expenditures for which the City has or will receive other COVID- 19 funding. The City would be responsible for repayment of any funds that were used in a manner contrary to State or Federal Guidance. The City will be required to report expenditures from the Coronavirus Relief Fund to MN Management and Budget on a monthly basis and will be required to obtain a federal single audit if our expenditures of federal funds exceed $750,000 in a fiscal year. Any dollars remaining unexpended on November 15, 2020, will be sent to Anoka County. To-date staff has identified that the following expenditures already incurred meet the above requirements: