ITEM TITLE:
#20-48 - Amending the 2020 Budget by Transferring $1,712,675.08 from Unassigned General Fund Balance to Emergency Preparedness Reserve Fund for COVID Related and 2020 Emergency Expenditures
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: $1.71MM
Unencumbered Balance: $55MM
Funding Source: unassigned general fund balance
RECOMMENDATION:
Approve
SUMMARY STATEMENT:
• The attached resolution proposes a replenishment of the Emergency Preparedness reserve fund using unassigned General Fund balances as a funding source.
• The City historically carries a $1MM balance in its Emergency Preparedness fund, and appropriates funds as needed upon adopting the annual budget. This fund is used for:
o emergency snow-shoveling temp wages during heavy snow events
o Flooding events
o Training and document preparation
o Other emergency events
o Related full-time wages
• Staff has exhausted the 2020 $1MM balance as follows:
o $826K to Unified Command expenses (apprx $240K remaining)
o $107K for Economic Relief shortfall (approx. $6K remaining)
o $47K in media and consulting unrelated to COVID
• The proposed transfer of $1.71MM represents $1.69MM of awarded CARES grant funds, plus $26K for previously booked costs unrelated to the COVID event. Transferred funds will be allocated as follows
o $26K for snow shoveler temp wages from March, 2020
o $600K for incurred ($300K) and anticipated ($300K) COVID-related wages and benefits
o $1.1MM to replenish Emergency Preparedness balance, and to fund future COVID-related costs as approved by Unified Command.
• Staff anticipates the following reimbursements upon the conclusion of the COVID event:
o $1.69MM CARES grant award
o 80% of approved ICS / Unified Command costs; reimbursement of current costs and encumbrances exceeds $600K
o CARES funding will partially ($350K) offset the $2.9MM Economic Relief program, and will also cover regular staff costs that do not qualify for ICS/FEMA reimbursement