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Item No. 5.C. Meeting Date: August 10, 2020 Type of Business: Council Consent City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9296 Accepting and Allocating CARES Act Funding The City has received $1,004,135 in CARES Act grant funding. The funds need to be spent or disbursed by November 15 and any remaining funds will need to be returned to Ramsey County. City staff has been exploring the most efficient ways to utilize the CARES Act Grant, we have many small expenditures that would satisfy the grant requirements but there would be a balance remaining. Many cities with police departments have focused on U.S. Treasury guidance for public safety payroll to satisfy eligibility and fully utilize the grant funds. The City Council discussed the CARES Act funding at the August 3rd work session and based on staff’s recommendation the most cost effective way to utilize the grant funds is to use it for Public Safety payroll costs as provided for in the U.S. Treasury and League of Minnesota Cities guidance. The guidance provided by the U.S. Treasury indicates that “Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency”, would be eligible expenses. The Q&A provides further that Public Safety payroll expenditures “as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that 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.” The League of Minnesota Cities (LMC) has provided similar guidance on eligible public safety expenses. The League encourages cities to document the reasons the expenses were determined to satisfy the three-part test. These findings can be used later to explain decisions to auditors and show the council’s careful consideration. The attached resolution documents our reasons. Strategic Plan Strategy/Goal: Operate under a balanced budget that meets the needs and goals of the community. Financial Impact: $1,004,135 in grant funds to offset COVID-19 related expenditures.