CC 2020-10-13_11b Update on CARES Act 2020 Funding_PP Presentation
Consideration of an Update on CARES Act 2020 Funding and Direction and Authorization on the Use of Those Funds
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Today’s Purpose
Provide an update on the CARES Act 2020 funding
Council direction on allocation of the CARES Act funds
Option 1 – No Further Action
Option 2 – Allocate a portion of CARES Act funding to grant programs while retaining funds to reimburse the City for direct COVID-19 costs
Option 3 – Allocate the City’s CARES Act funding to other programs
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CARES Act 2020
The federal Coronavirus Aid, Relief and Economic Security Act (CARES Act) provides funding through the Coronavirus Relief Fund for State and local governments to pay costs incurred in
responding to the pandemic.
Five hundred million ($500M) allocated by Department of Finance to cities to cover COVID-19 costs
Cities with populations between 300,000 and 500,000 were allocated $225 million
Cities with populations under 300,000 were allocated $275 million based on population size
The City of Arroyo Grande was allocated $218,384 based on its population
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Funding Requirements
The CARES Act funding is available to cover costs that:
are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19);
were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act); and
were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020.
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Payment Cycle
The City has received the first, second, and third of the CARES Act payments of $36,397 each.
The State Controller's Office is expected to issue a final payment of the remaining balance of $109,191 sometime this month.
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Reporting Requirements
Cities are required to report their COVID-19 obligations and projections in order to receive funding.
The first reporting cycle was due September 4, 2020, through the State’s web portal.
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Reporting Requirements (cont.)
The Department of Finance (DOF) recommends that cities report all eligible COVID-19 expenditures incurred within the funding period, even if the amount exceeds the city’s allocated amount
of reimbursement.
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Eligible Expenditures Reported
First Reporting Period
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Allocation Options
Option 1. No Further Action
Would result in entire CARES Act used for expenditures already identified and reported to the State resulting in increase to the City’s Fund Balance Available (reserves) to be used as
a source in future funding requirements.
Would not create any new programs.
Other funding sources (ex. SB 1090, General Fund) would need to be used if Council’s would like to provide direct assistance to local businesses, etc.
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Allocation Options (cont.)
Option 2. Allocate Some CARES Act Revenue to Grant Programs While Retaining Funds to Reimburse the City for Direct Costs
Blend of reimbursement to the City for the outlay of direct COVID-19 expenses on the one hand and a few different grant programs on the other hand
Recognizes the significant impacts COVID-19 has had on both the City’s financial resources and the community of Arroyo Grande as a whole
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Allocation Options (cont.)
Option 3. Allocate the City’s CARES Act Revenue to Other Programs
Council may provide direction to staff to utilize the revenue for other uses not explicitly discussed in the staff report.
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Option 2
Reimbursement for the City’s COVID-19 expenditures
Approximately $125,384 in COVID-19 related expenditures, not including Public Safety salaries
Previously reported costs, plus anticipated costs
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City’s COVID-19 Expenditures
Anticipated Eligible Costs, Minus Category L
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City’s COVID-19 Expenditures
Protective Barrier Project at City Hall
$50,000 cost estimate includes
Plexiglass barrier across multi-level counters
Steel frame system for Plexiglass mounted to counters
Installation of new of ADA compliant internal door
Removal of existing break room door and infill with framing and drywall
Addition and relocation of new break room door
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City’s COVID-19 Expenditures
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Option 2
Small Business Assistance Program
Aim to assist between 10-15 small businesses with micro-grants of up to $5,000 in one-time financial assistance
Help meet immediate funding needs due to COVID-19 impacts
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Small Business Assistance Program - Potential Grant Requirements
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located in Arroyo Grande
valid business license
required to close completely or close indoor operations
no current code enforcement matters
submit a completed COVID-19 self-certification form
Option 2
priority for businesses that have not received other forms of aid
demonstrated need
identify how the funds will be spent
allowed uses of the grant funds:
Rent
costs associated with changes to business operations
technological needs
report and provide documentation of the use of the funds by December 15, 2020
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Option 2
Community Service Grant Program
Fiscal Year 2020-21 budget allocates $20,000 to the Community Service Grant Program
On August 25, 2020, Council directed that an additional $5,000 previously allocated to the Tourism Business Improvement District be redirected to the Community Service Grant Program
Many non-profit service organizations have been unable to conduct their regular fundraising events during COVID-19 crisis
CARES Act revenue may be directed to increase Community Service Grant fund
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Option 2
Holiday Lights in the Village
Arroyo Grande Strawberry Festival typically generates revenue used by former Village Improvement Association (VIA) to pay for holiday lighting in the Village
No Strawberry Festival occurred due to COVID-19
South County Chambers of Commerce will facilitate installation of the holiday lights and is requesting $8,000 from the City to provide sufficient funding
Total costs for this year’s lighting is $15,000
$7,000 contributed by former VIA
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Option 2
Sample Allocation
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Recommendation
It is recommended the City Council receive an update on the CARES Act 2020 funding and provide direction to staff on use of those funds, including consideration of an allocation of a
portion of the City’s CARES Act revenue to a business assistance grant program, the Community Service Grant program, and/or a grant for holiday lights in the Village.
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Questions?
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