Subject:
Title
Set a public hearing for August 31 to amend the 2019-20 budget related to federal CARES Act spending
Body
EXPLANATION AND SUMMARY:
Due to the coronavirus pandemic in the spring of 2020, the federal government passed the CARES Act to provide direct funding to localities with populations greater than 500,000 for expenses that would help mitigate and prevent spread of the disease. CARES funds are for expenses only and are specifically designed not to provide revenue replacement for local governments.
Fairfax County was the only jurisdiction in Virginia with a population of more than 500,000. The county received CARES funding in April and passed on a share of $2.886 million, based on proportionate population, to the Town in late April.
The Town’s finance director and Town Attorney have been examining guidance issued by the US Treasury department as to appropriate uses of this funding. To ensure that the Town is in compliance with scant federal guidance, the finance director participates in weekly calls with Fairfax County, Herndon, and Clifton (other towns in Fairfax County), and weekly statewide finance calls that address proper uses of CARES funds.
Each department head was made aware of the funds and eligible uses and developed plans for CARES funds based on their efforts to prevent and mitigate the spread of the disease. Uses include purchasing adequate personal protective equipment (PPE), providing teleworking equipment to limit contact in Town buildings, purchasing and constructing barriers in Town buildings, hazard pay and select salaries for employees in direct contact with the public, and temporary worker salaries for additional monitoring of public gathering places and cleaning of public buildings. The Town also allocated $1 million for business relief, as administered through the Fairfax County RISE program, and an additional $100,000 to prevent eviction or foreclosure for residents. Staff currently is working to find the right partner to distribute residential grants.
The Town has spent approximately $1,070,860 CARES funds through June 30, 2020. Since this is greater than 1% of the Town’s 2019-20 operating budget, a public hearing is required.
We request that Council set a public hearing for August 31, 2020 to receive public input.
Strategic Plan Initiative: Vienna is a fiscally responsible community.
Departmental Recommendation: Recommend that Council set a public hearing to amend the FY 2019-20 budget for use of federal CARES funds.
Finance Recommendation: Recommend that Council set a public hearing to amend the FY 2019-20 budget for use of federal CARES funds.
Purchasing Recommendation: N/A
Town Attorney Recommendation: To account for receipt of federal CARES Act funding, the Town Attorney recommends that Town Council formally conduct a public hearing to acknowledge the required amendment to the Town’s budget.
Town Manager's Recommendation: I recommend the Town Council set a public hearing for August 31, 2020 to amend the fiscal year 2020 budget by the amount identified below, as presented.
Cost and Financing: $1,070,860
Account Number: Department 13150, as attached.
Decision Needed by This date: July 6, 2020
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to set a public hearing for August 31 to amend the fiscal year 2020 budget by $1,070,860 to account for use of CARES funds."
Or
Other action deemed necessary by Council.