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REPORT ON EXPENDITURE OF STATE CARES ACT FUNDING
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RECOMMENDATION
This is an informational item to provide updates on programs and projects funded by the State CARES Act funding and its impact on the Stockton community.
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DISCUSSION
Background
The State of California Budget Act of 2020, Control Section 11.90, Coronavirus Relief Fund Allocations for Cities and Counties allocated $27,170,185 of its federal CARES Act funds to the City of Stockton to address the public health and safety impacts of COVID-19. On June 30, 2020, the State of California, Department of Finance (DOF) released its guidelines and self-certification application for Coronavirus Relief Funds (CRF). On July 1, 2020, the City of Stockton executed and returned its self-certification application to the DOF, and on July 14, 2020, under motion 2020-07-14-1405, the City Council approved a recommended distribution of funds between categories of need identified by the City Manager, authorized the City Manager to appropriate funds upon receipt, gave the authority to determine specific allocations of funding and identify community partners, and lastly gave the City Manager the authority to reallocate funds among approved priority goals and partners as needed to maximize the impact and benefit to the Stockton Community.
Funding is contingent on the counties’ adherence to federal guidance, the state’s stay-at-home requirements and other health requirements as directed in gubernatorial Executive Order N-33-20, any subsequent executive orders and statutes, and all California Department of Public Health orders, directives, and guidance issued in response to the COVID-19 public health emergency.
On March 17, 2020, Council redirected $1,235,000 of uncommitted funds to establish an Emergency Coronavirus Relief Fund. On March 24, 2020, under motion 2020-03-24-1403, Council approved the allocation of $500,000 to support Housing and Homelessness, $385,000 to support Community Well-Being, and $350,000 to provide Small Business Support. This appropriation from the City’s General Fund would later be offset by State CARES funds.
In July 2020 the State’s guidance provided that the DOF would be assessing each local recipient spending plan, on or around September 1, 2020, and reserves the authority to reallocate any funds not spent by October 1, 2020, or not reasonably anticipated to be spent by December 30, 2020. The first one-sixth distribution of the CRF Funds was expected to arrive in mid-July, with subsequent, equal distributions following during the first week of each month thereafter, until December 2020.
The first one-sixth distribution was received by the City on July 30th, with the second distribution arriving August 25th, the third one-sixth distribution arriving September 18th, until the final distribution of the remaining one-half arrived on October 15, 2020.
Present Situation
To better align with the State’s categories of spending, the City reorganized its initial spending plan, approved under motion 2020-07-14-1405, to include the following four categories: Community and Economic Support, Housing and Homelessness, Community Well-Being, and Management Response to COVID-19.
The attached impact report (Attachment A) contains information on how the City of Stockton expended the CARES Act funds received from the State. The City has fully obligated the funds and has started the project close process with the State which includes a full review conducted by the DOF.
FINANCIAL SUMMARY
This informational staff report has no direct financial impact to the City.
Attachment A - CARES Impact Report