WORKSHOP ITEM - Joe Huss, Finance Director
Title
CARES FUNDING UPDATE
Background
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was passed into law. The Act provides over $2.2 trillion in various economic relief and stimulus packages including $340 billion to state and local governments. On June 25, Governor Walz announced a plan to distribute $841 million of Minnesota’s share to local governmental units; included in that amount is $5,022,709 allocated to the City of Blaine. An application for these funds was sent to the Department of Revenue on July 9, and the funds were received on July 28.
The CARES Act requires that the payments from the Coronavirus Relief Fund only be used to cover expenses that are (1) necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); (2) were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and (3) were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. CARES funds are required to be spent by November 15, 2020 and any unused funds must be returned to the County.
Since the announcement of the local distribution, Blaine staff has been working diligently to understand the qualified use of CARES funds and has begun to compile a list of potential uses of the funds. One of these potential uses would be to establish a grant program for small businesses. A resolution to approve such a program will be brought forward for Council’s consideration at the regular City Council Meeting following this workshop. The city has retained the firm of Baker Tilly (BT) to assist in administering and providing guidance for the Small Business Grant Program.
The rules regarding spending are subject to federal regulations and audit guidelines. These regulations are lengthy and fairly complex and staff has requested a proposal from BT for additional services including assistance in establishing a spending plan and provide compliance monitoring.
Staff will be meeting with Baker Tilly in the near future and will provide any updates to this item after the meeting.
Recommendation
In the coming weeks, staff will be providing the Council with regular updates regarding the use of CARES funds and the status of CARES-funded programs.