Agenda - Council Work Session - 07/14/2020

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CC Work Session 2.2. Meeting Date: 07/14/2020 Information Title: Review CARES Act Funding Allocations Purpose/Background: The purpose of this case is a very early introduction to a recent allocation from the Federal Government (passed through the State of Minnesota) for COVID-19 assistance for the City. 1. Review criteria and eligible reimbursable expenses at a high level (Staff will need additional time to determine a dollar amount that will be eligible) 2. As allowed by the Act, authorize 10% of the allocation (approximately $200,000) to be used for COVID Assistance Grants for Ramsey Businesses The City of Ramsey has received $2,038,000 under the recently released CARES Act funding for COVID-19 related expenditures. We believe that the funds can be used to fund most of the costs of public safety efforts, administration, and material and equipment costs associated with COVID19. A full accounting of these costs is being prepared. This program from the Federal Government is intended to offset unanticipated/unbudgeted expenses related to COVID-19. The funds are passed through the State of Minnesota and allocated to local governments. This program is not a replacement for lost revenue. Attached to the case is information for general guidance. Staff will be prepared to provide a more detailed overview at the meeting. The program also allows local municipalities to establish local business assistance programs. Staff is recommending allocation of 10% of the allocation (approximately $200,000) to be used for direct COVID Assistance Grants for Ramsey Businesses. This is the same per cent of funds that Anoka County is allocating toward business programs (note: counties are mandated to allocate 10% to business assistance and cities are not). Staff will be reviewing options for business assistance programs and forward a proposal to a future City Council Meeting after EDA review and recommendation. The EDA will be meeting on July 16 at which time the EDA will make a recommendation on total program amount, maximum assistance per business and qualifying business criteria. The hope is the EDA will have recommendations on these broad parameters in time for Council Approval on July 28. The City's Economic Development Manager has already begun researching existing models and preparing options for the EDA and City Council. Additionally, the guidance for this funding seems to indicate that the City could establish a program for residents to avoid foreclosures and evictions. Staff is exploring more detail on this topic. Timeframe: 15 Minutes Funding Source: This case is being handled as part of normal Staff duties. Funding for COVID-19 reimbursable expenses and business assistance as outlined above is made possible through the CARES Act approved by the US Congress and allocated to local units of government by Executive Order by Minnesota Governor Walz. Responsible Party(ies):