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Home My WebLink About11-24-20 City Commission Packet Materials - A3. Res 5230 FY21 Budget Amend Gen Fund for COVID Relief Grants Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Anna Rosenberry, Assistant City Manager SUBJECT: Resolution 5230 Amending the Fiscal Year 2021 (FY21) General Fund Budget for the purpose of using CARES Act Reimbursement funds for COVID Relief grants. MEETING DATE: November 24, 2020 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve Resolution 5230 Amending the FY21 General Fund Budget for the purpose of using CARES Act Reimbursement funds for COVID Relief grants. STRATEGIC PLAN: SUGGESTED MOTION: I move to approve Resolution 5230 Amending the FY21 General Fund Budget for the purpose of using CARES Act Reimbursement funds for COVID Relief grants. BACKGROUND: The City has participated in the State of Montana’s COVID-19 local government reimbursement program. The program is called the Governor's Coronavirus Relief Fund (CRF program) and comes from the federal Coronavirus Aid, Relief, and Economic Security Act ("CARES Act".) Under the CRF program, we received our first reimbursement of $1,258,200 this past summer. The majority of the reimbursement related to salaries that were budgeted in Fiscal Year 2020 and was recorded in our financial statements in that same fiscal year. The money has been deposited into the General Fund, but because it was received after our current (FY21) budget was adopted, it has not been appropriated to any specific projects or programs. We estimate receiving over $5.4 Million in total from the CRF program. We have submitted our second reimbursement but have not received the money yet. Below is an estimate of the amounts we have received and expect to receive in the coming months. Table 1. Total Local COVID Program Revenue Projections Program Draw Date Time Frame Status Amount Received Estimated Amount Total Revenue Projection Jul-20 3/12/2020 - 6/30/2020 Received 1,258,200$ 1,258,200$ Sep-20 7/1/2020 - 8/31/2020 Received 1,460,250$ 1,460,250$ Nov-20 9/1/2020 - 10/31/2020 Pending 1,350,000$ 1,350,000$ Jan-21 11/1/2020 -12/31/20 1,350,000$ 1,350,000$ 5,418,450$ 243 In order to help our organization and community address the impacts of recovering from and becoming more resilient in light of this public health pandemic, we recommend that the City establish four new funding line items. Each funding area would receive a percentage of the current and future CRF reimbursements. Program Information: • COVID Reserve Fund – 10%: This is essentially a “rainy day” fund for COVID related items that are unknown at this time. • COVID Non-Profit Support Program – 50%: This program would run similar to how our existing non-profit requests are managed in the General Fund budget each year. We would utilize our city website’s form to gather requests from non-profits. The requests would be analyzed by the City Manager and a funding recommendation would be forwarded to the City Commission for approval. Funding recommendations would be based on community impact, the operational or funding difficulties brought on by the pandemic, organizational capacity within our community, and any other relevant criteria. Grant agreements would be developed and flow through the same approval processes as our regular grants to outside entities (which appear on the Commission Consent agenda.) • COVID Business Support Program – 20%: Our recently adopted contract with Prospera Business Network for administration of our Revolving Loan Fund included the possibility of Prospera assisting with the creating and administration of a Business Emergency Fund. We would activate this portion of the contract and work with Prospera to develop a program that could meet un-met needs in the business community to address COVID while also possibly furthering resiliency and other city goals. Once developed, the program parameters would come back to the City Commission for approval on the consent agenda. After approval, Prospera would administer the program. • COVID City Department Expenditures – 20%: City departments have requests for additional funding that could help meet needs of our citizens that have been highlighted Reserve for Future COVID Needs Allocate 10% Remains in City General Fund Estimated Total $541,845 COVID Non Profit Support Program Allocate 50% Request proposals, with recommendations forwarded on Commission Agenda. Estimated Total $2.7 Million COVID Business Support Program Allocate 20% Use existing contract with Prospera Business Network to develop and manage this fund. Estimated Total $1.08 Million COVID City Operations Program Allocate 20% City Manager would approve department proposals. Estimated Total $1.08 MIllion 244 our exacerbated by the COVID pandemic. This money would be allocated by the City Manager to department projects. Program Reporting: The City Manager would report to the City Commission on how each of the programs are being utilized and which projects have been funded. Budget Amendment Details: Our adopted FY21 budget did not contain any estimate of CRF funding; the program was still uncertain at the time our budget we developed and adopted. This budget amendment will approve increased spending for the four COVID program areas. The budget amendment will support that spending with both increased revenues and with cash on hand from prior CRF reimbursements. UNRESOLVED ISSUES: We have not received all of the amounts that we expect to be awarded under the CRF program. We intend to allocate dollars to the four programs when we receive reimbursement from the State, according to the percentages described. This will ensure that we make program awards for only the amounts the City has actually received. ALTERNATIVES: There are numerous alternatives: Don’t appropriate the money at this time; appropriate the money in different amounts; modify program elements, etc. FISCAL EFFECTS: This budget amendment and program adoption will result in the City’s General Fund spending up to $5.4 Million on COVID-related community needs, including allocating money to a COVID reserve. Expenditures would increase in the General Fund budget by up to $5.4 Million, spending down $1.25 Million in existing cash on hand and spending $4.16 Million in newly received revenues. Attachments: Resolution 5230 Report compiled on: 10/29/20 Table 3. Budget Amendment for Local COVID Programs Use of Funds:COVID Reserve Fund 541,845$ Non Profit Support 2,709,225$ Business Support 1,083,690$ City Operations 1,083,690$ Total Appropriations 5,418,450$ Source of Funds:Revenue Estimate for FY21 CRF funds 4,160,250$ Cash on Hand from FY20 CRF funds 1,258,200$ Total Revenue and Cash on Hand 5,418,450$ 245 RESOLUTION NO. 5230 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING THE CITY’S ANNUAL BUDGET TO INCREASE REVENUE ESTIMATES AND APPROPRIATIONS FOR LOCAL COVID-19 RELIEF PROGRAMS IN THE GENERAL FUND. WHEREAS, the City Commission did, on the 22nd day of June, 2020, after due and proper legal notice, conduct a public hearing and adopt a municipal budget for Fiscal Year 2020- 2021 (Fiscal Year 2021); and WHEREAS, the City Commission did, on the 10th day of November, 2020, after due and proper legal notice, conduct a public hearing on proposed amendments to the municipal budget. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 – Appropriation Additions The City Commission of the City of Bozeman, Montana, does hereby increase appropriations in the General Fund for COVID relief grant programs in the following amounts: Non Profit Support Program $2,709,225 Business Support Program $1,083,690 COVID City Operations Program $1,083,690 Reserve for Future COVID Needs $ 541,845 Total Appropriations Increase $5,418,450 246 Section 2 – Revenue Estimate The City Commission does hereby estimate additional revenues will be received in the General Fund from the State of Montana’s Governor’s Coronavirus Relief Fund in the amount of $4,160,250. These revenues will be used to support the appropriations for the above COVID relief grant programs. Section 3 - Use of Cash on Hand in the General Fund The City Commission does hereby allocate the use of $1,258,200 of existing cash-on- hand to support the above COVID relief grant programs. This cash-on-hand comes from the revenue received in the prior fiscal year under the State of Montana’s Governor’s Coronavirus Relief Fund. Section 4 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on July 1, 2020. Section 5 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 10th day of November, 2020. 247 ___________________________________ CYNDY ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 248