Title
Authorizing the City of Saint Paul to budget $3,000 of interest and transfer $315,151 of Coronavirus Relief Fund aid between specific project accounts.
Body
WHEREAS, the CARES Act established the Coronavirus Relief Fund (CRF) and the U.S. Department of Treasury distributed $150 billion in aid to eligible units of government, including the State of Minnesota; and
WHEREAS, on July 7, 2020 the State of Minnesota allocated $23,582,254 of CRF funds to the City of Saint Paul and the Council accepted and amended the budget in RES PH 20-173; and
WHEREAS, according to the CARES Act and the State of Minnesota, CRF funds may be used for expenses that are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019, were not accounted for in the budget most recently approved as of March 27, 2020, and were incurred during the period that begins on March 1, 2020, and ends on November 15, 2020; and
WHEREAS, according to guidance from the U.S. Department of the Treasury, local governments are authorized to expend CRF funds for expenses including:
- medical expenses
- public health expenses
- payroll expenses for staff substantially dedicated to mitigating or responding to COVID-19
- expenses to facilitate compliance with COVID-19
- economic support
- any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the CRF eligibility criteria; and
WHEREAS, U.S. Treasury Department guidance on eligible CRF expenditures indicates that the work of firefighters, emergency medical responders, and police officers is presumed to be substantially dedicated to responding to the COVID-19 pandemic, and is therefore eligible for CRF reimbursement; and
WHEREAS, to facilitate its response to and mitigation of the COVID-19 public health emergency, the City identified the following areas of need, which the City finds are necessary expenditures incurred due to the public health emergency and which meet all CRF eligibility criteria, for a total of $318,151:
- Eligible payroll expenses for public safety employees: $228,721
- Bridge Fund payments to eligible small businesses: $89,430
WHEREAS, the Mayor, pursuant to Section 10.07.1 of the City Charter, certifies that there is available for appropriation $3,000 in CRF interest earned in excess of funds budgeted in the Grant Fund in 2020; and
WHEREAS, pursuant to Section 10.07.4 of the City Charter, the Mayor further recommends the transfer of CRF appropriations between departments, as outlined in the attached financial analysis, which is consistent with the City’s plan to shift CRF funds to project-specific accounts for spending; now therefore, be it
RESOLVED, that, upon recommendation of the Mayor, the City Council of Saint Paul does hereby authorize the City to budget $3,000 and transfer $315,151 between the CRF project-specific accounts as outlined in the attached financial analysis to adjust the budget for the specific purposes outlined in the attached financial analysis.
Financial Analysis
See attachment.