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AGENDA ITEM – 1A <br /> <br />MEMORANDUM <br /> DATE: August 10, 2020 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />Mike Mrosla, Community Development Manager/City Planner <br />SUBJECT: Coronavirus Relief Funds discussion <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br /> <br />Council Should Consider <br />Receive information on the background, restrictions and opportunities of the Coronavirus Aid, <br />Relief, and Economic Security (CARES) Act funding now available to the City of Arden Hills and <br />provide feedback. <br /> <br />Background <br />On June 25 Governor Tim Walz announced a plan to distribute $853 million in federal funding to <br />Minnesota communities impacted by the COVID-19 pandemic. The funding was authorized by <br />the federal CARES Act. City funding was calculated on a formula of $75.34 per capita and the <br />amount allocated to the City of Arden Hills totals $745,040. The City submitted its certification <br />form for Coronavirus Relief Fund (CRF) monies on July 6. The funds are now available and the <br />City is required to expend all of its funds by November 15, 2020. Any aid amounts remaining <br />unexpended must be granted to Regions Hospital or another eligible hospital in the county’s <br />boundaries. Staff is still awaiting a response to the question of what constitutes an eligible hospital. <br /> <br />Discussion <br />The US Department of Treasury has issued its CRF guidance and FAQs which have, and will <br />continue to be updated over time. Copies of the most recent guidance and FAQs are attached <br />(Attachment A). <br /> <br />From the federal and state guidance we can determine: <br /> <br />• Funds cannot be used to cover revenue lost due to the COVID-19 pandemic. CARES funding <br />utilized by the City can only be used to offset expenses incurred due to the pandemic. <br />• Funds can be used to pay direct costs related to our COVID-19 public health emergency <br />response (e.g., PPE, Plexiglas barriers, sanitation supplies and services). <br />• To enable compliance with COVID-19 public health precautions, funds may be used to improve <br />telework capabilities for public employees.