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Page 1 of 2 CONSENT ITEM – 6F MEMORANDUM DATE: November 9, 2020 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: Allocating CARES Act Funds for Public Safety Payroll Costs Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The City Council is requested to consider adoption of Resolution 2020-056 allocating CARES Act funds for Public Safety payroll costs. Background On June 25 Governor Tim Walz announced a plan to distribute $853 million in federal funding to Minnesota communities impacted by the COVID-19 pandemic. The funding was authorized by the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. City funding was calculated on a formula of $75.34 per capita and the amount allocated to the City of Arden Hills totals $745,040. The City submitted its certification form for Coronavirus Relief Fund (CRF) monies on July 6. The funds are now available and the City is required to expend all of its funds by November 15, 2020. Discussion The Coronavirus Relief Fund (CRF) Guidance dated September 2, 2020, indicates that local governments “may presume that payroll costs for the public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise.” On September 21, 2020, the Department of the Treasury, Office of the Inspector General (OIG), released new guidance regarding documentation required for using CRF funds to cover payroll costs for public health and safety employees. Per the new OIG guidance, governments can presume that all 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.