HomeMy WebLinkAbout#17 - CARES Funding Budget AllocationSTAFF REPORT
DATE: November 17, 2020
CONSENT
TO: Mayor and Council
AGENDA ITEM: Coronavirus Funding
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March
27, 2020. It provided $139 million to state governments based upon their population. Governor Walz
distributed $841 million of the state’s funding to counties, cities and townships in June. The distribution
was based on population. The City of Lake Elmo received $792,655 on July 3rd. The funds may be used
for COVID related costs incurred between March 1 and November 15, 2020. The U.S. Treasury has
provided guidance and FAQs (attached) on how the funds may be spent. Any of the city’s unspent funds
as of November 15, 2020 must be returned to Washington County. Staff has been tracking COVID related
purchases since March and have been analyzing payroll costs for consistency with the Treasury guidance.
ISSUE BEFORE COUNCIL:
Does Council approve of the proposed allocation of CARES Funding?
PROPOSAL DETAILS/ANALYSIS:
As discussed at the August work session, CARES Act funds may be used by the City if they meet the
following guidelines:
1. Expenditure is a necessary cost due to COVID-19
2. The expenditure was not budgeted or the cost is for a substantially different use than originally
intended
3. The expenditure is incurred between March 1 and November 15
Staff used these guidelines in determining eligible funds unless an expenditure met an exception provided
in the law such as the one for public safety personnel costs.
It has been recommended that the governing body adopt a resolution confirming the allocation of CARES
Act Funds. A resolution is included in your packet for Council consideration.
FISCAL IMPACT:
The city received $792,655 in July from the State of MN
Expenses:
COVID Leave Payroll Expenses: $ 25,134.80
Improve Telework Capabilities: $ 1,768.60
Payroll for Public Safety Employees: $ 711,075.85
Personal Protective Equipment: $ 3,013.54
Public Health Expenses: $ 1,042.20
Contracted Services: $ 7,964.50
TOTAL: $749,999.49
This would result in $42,655.51 being turned back to Washington County in order to remain under the
single audit limit.
OPTIONS:
1) Approve Resolution No 2020-095
2) Amend and then Approve Resolution No 2020-095
RECOMMENDATION:
“Motion to approve Resolution No 2020-095, A resolution appropriating CARES Funding.”
ATTACHMENT:
• CARES Funding Resolution
CITY OF LAKE ELMO
COUNTY OF
WASHINGTON STATE
OF MINNESOTA
RESOLUTION NO. 2020-095
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELMO
APPROPRIATING CARES FUNDING
WHEREAS, on March 27, 2020 the President of the United States signed into law the Coronavirus Aid,
Relief and Economic Security Act (Known as the CARES Act) that was passed by the U.S. Congress in
response to the COVID-19 Pandemic Outbreak; and,
WHEREAS, The CARES Act included $339.8 Billion in relief under the COVID-19 pandemic in the
United States dedicated for State and Local Governments; and,
WHEREAS, on June 25, 2020 the Governor of the State of Minnesota by Executive Order under the
current Emergency allowed for the distribution of $841 million in CARES Act Funds to counties and cities
within the State of Minnesota in accordance with the U.S. Treasury Guidance based on a per-capita basis;
and,
WHEREAS, the City of Lake Elmo could receive $792,655 in CARES Act Funding allocation; and,
WHEREAS, the CARES Act allows local governmental units to expend funds on costs that are necessary
expenditures related to the COVID-19 public health emergency; and,
WHEREAS, the CARES Act allows local governmental units to expend funds on costs that were not
included in the most recently adopted budget as of March 27, 2020, or were budgeted for but have been
incurred for a substantially different use from what was intended as a result of the COVID-19 public health
emergency; and,
WHEREAS, the CARES Act allows local governmental units to expend funds on costs that were incurred
during the covered period of March 1, 2020 – November 15, 2020.
NOW THEREFORE, BE IT RESOLVED by the City Council of Lake Elmo, Minnesota that it
allocates $749,999.49 of CARES Act funding as follows for the period of March 1-November 15:
COVID Leave Payroll Expenses: $ 25,134.80
Improve Telework Capabilities: $ 1,768.60
Payroll for Public Safety Employees: $ 711,075.85
Personal Protective Equipment: $ 3,013.54
Public Health Expenses: $ 1,042.20
Contracted Services: $ 7,964.50
TOTAL: $749,999.49
BE IT FURTHER RESOLVED by the City Council of Lake Elmo, Minnesota that $42,655.51, the
remaining CARES funding allocation to the City of Lake Elmo be sent to Washington County by
November 20, 2020.
APPROVED by the Lake Elmo City Council on this 17th day of November, 2020.
By: __________________________
Mike Pearson
Mayor
ATTEST:
________________________________
Julie Johnson
City Clerk