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HomeMy WebLinkAbout2020-06-18; Federal Coronavirus Relief Funds for Cities; Haber, JasonTo the members of the: I PT}' COUNCIL Date ~CA v cc_.:!_ CM V ACM v' DCM (3).]{_ June 18, 2020 Council Memorandum To: Honorable Mayor Hall an From: Jason Haber, lntergovern Via: Scott Chadwick, City Mana e Re: FEDERAL CORONAVIRUS R {city of Carlsbad Memo ID# 2020127 This memorandum provides information related to pending federal legislation that would . provide funding to help cities respond to the negative economic impacts of COVID-19. Background During the City Council's June 9, 2019, discussion of Item 7 -COVID-19 Actions and Expenditures Report, staff committed to provide a written update in response to Council Member Schumacher's question regarding H.R. 6467 -The Coronavirus Community Relief Fund Act. Discussion According to legislative staff from Congressman Mike Levin's office, H.R. 6467 is not expected to advance further in the legislative process. H.R. 6800 -The Heroes Act, is the current legislative vehicle proposed to provide additional federal economic relief for cities. The details of the Heroes Act are attached to this memorandum and Congressman Levin's office estimates the following payments would be made under the Act, as proposed: State Coronavirus Relief Fund 2020 Allocation 2021 Allocation State of California $21,490,000,000 $25,929,000,000 Local Coronavirus Relief Fund 2020 Allocation 2021 Allocation San Diego County $1,237,226,601 $618,613,301 Local Coronavirus Relief Fund 2020 Allocation 2021 Allocation Carlsbad $25,662,341 $12,831,170 Next Steps The Heroes Act (H.R. 6800) passed in the U.S House of Representatives on May 15. The bill is awaiting introduction in the U.S. Senate. Staff is preparing a letter of support for H.R. 6800, consistent with the Legislative Platform and prior City Council direction concerning H.R. 6467. Attachment: The Heroes Act City Manager's Office Intergovernmental Affairs 1200 Carlsbad Village Dr. I Carlsbad, CA 92008 I 760-434-2820 t June 18, 2020 Page 2 cc: Geoff Patnoe, Chief Operations Officer Celia Brewer, City Attorney Attachment A Bold Response to the Coronavirus Pandemic and the Economic Collapse State and Local Corona virus Relief Funds The Heroes Act creates new State and Local Coronavirus Relief Funds through the Department of the Treasury to help first responders, frontline health workers, transit employees, teachers, and other workers providing vital services. Funds can be used for CO VID-related expenses, to replace foregone revenues not projected on January 31, 2020, or to respond to negative economic impacts of COVID. Funds are available until expended, providing flexibility over the next several years. States -$500 billion • $250 billion awarded within 30 days of enactment to the 50 states and DC o $51 billion divided equally among 50 states and DC o $49 billion awarded based on the state's share of COVID cases o $150 billion awarded based on the state's share of population • $250 billion awarded by May 3, 2021 to the 50 states and DC o $51 billion divided equally among 50 states and DC o $199 billion based on the state's share of unemployed individuals Local governments -$375 billion ■ $250 billion awarded within 30 days of enactment to all municipalities and counties o $125 billion to municipalities using a modified CDBG formula • $87.5 billion to entitlement municipalities (generally defined as those with populations of at least 50,000) • $37.5 billion to non-entitlement municipalities (generally defined as those with populations of less than 50,000). These funds will be awarded to states, which must make awards to non-entitlement cities based solely on population within 30 days of receipt. o $125 billion to counties based on population • $125 billion awarded one year after the date of enactment to all municipalities and counties o $62.5 billion to municipalities using a modified CDBG formula • $43.75 billion to entitlement municipalities (generally defined as those with populations of at least 50,000) • $18.75 billion to non-entitlement municipalities (generally defined as those with populations of less than 50,000). These funds will be awarded to states, which must make awards to non-entitlement cities based solely on population within 30 days of receipt. o $62.5 billion to counties based on population A Bold Response to the Coronavirus Pandemic and the Economic Collapse Territories -$20 billion • $10 billion divided equally among the five territories within 3 0 days of enactment • $10 billion awarded based on the territory's share of population within 3 0 days of enactment Tribes -$20 billion • Entire amount awarded within 3 0 days of enactment, based on the share of increased aggregate expenditures of each tribal government Oversight-$35 million for the Treasury Office of the Inspector General Improvements to the CARES Act Coronavirus Relief Fund: • Makes the District of Columbia whole by increasing its award so that it is treated as a state, not a territory • Clarifies that only federally recognized tribal governments are eligible for payments in CARES and the HEROES Act • Expands the use of funds to cover lost, delayed, or decreased revenue stemming from the COVID public health emergency 2