ITEM TITLE:
#20-24 - Amending the 2020 Budget by Transferring $2,890,600 from Permanent Fund Reserve to the Newly-created “Local Economic Assistance - COVID 19” Account, and Authorizing Expenditure There-from
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: $2,890,600
Unencumbered Balance: $2,890,600
Funding Source: Permanent Fund Reserve; 350-0607-55000
RECOMMENDATION:
Approve.
SUMMARY STATEMENT:
• This resolution allocates the annual 1.5% Permanent Fund appropriation to local households and businesses as part of Council’s economic assistance efforts in response to the Coronavirus emergency.
• Charter allows for up to 1.5% distribution from the Permanent Fund, based on the most-recent audited fund value.
• Based on the 2018 audit, the 2020 budget appropriation is $2,890,600
• Staff estimates a $1,800 payment per recipient.
• Finance will establish a cost code within the City’s “emergency” fund (fund 352), so as to track event-related costs, while keeping the economic assistance payment distinct from other event-related supplies and staff costs.
• Finance staff anticipates the following program timeline:
o Application procedure and communications and staffing plans to be completed by May 8.
o Open application from May 11 to May 22
o Checks issued May 29
• Staff will return to Council with a plan update at the May 6th Regular City Council meeting.
• Program payments will be made from the City’s central treasury. Finance staff will concurrently liquidate needed funds from Permanent Fund investments to reimburse the treasury, and in a manner that complies with investment allocation parameters articulated in the Investment Policy Statement.