Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
07.13.20 Work Session Packet
CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA July 13, 2020 6:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) 2021 Draft General Fund Budget (b) Liquor Store Profits (c) CARES Act Funding 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN CITY OF O 43o Third St„ Farmington, MN 55024 FARMINGTON © 651-28o-6800 ��® ® Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: 2021 Draft General Fund Budget DATE: July 13, 2020 INTRODUCTION The 2021 and 2022 General Fund budgets were developed with the intent of continuing to provide core city services, align with the city's long-term financial plan, and support the city council priorities. DISCUSSION Staff has worked diligently to create a financial plan for the city and continues to update it as we work to maintain and improve the city's financial health. A copy of this was provided to the city council earlier this year and is also attached to this memo. The financial plan was used as part of the creation of the draft budget. Staff began work on the draft budgets in April. The first draft of the General Fund tax levy represented a $3,128,033 or 29.12 percent increase over 2020.This included all of the projects that are in the financial plan. Those projects are a part of the operating transfers budget. An increase of that size is not feasible to the residents and businesses within Farmington. Department heads reviewed and revised the budgets for their respective departments. City Administrator McKnight and I reviewed and revised the operating transfers budget. All of the changes resulted in an overall increase to the draft General Fund tax levy of $1,380,785 or 12.85 percent over 2020. 2020 Budget 2021 Draft Increase Budget (Decrease) Revenues $3,411,161 $3,377,523 (0.99)% Expenditures 13,642,352 14,782,793 8.36 Fiscal Disparities 2,294,024 2,294,024 0.00 General Fund Levy 7,937,167 9,111,246 14.79 Debt Levy 2,805,387 3,012,093 7.37 Net Tax Levy $10,742,554 $12,123,339 12.85% Revenues COVI D-19 has created challenging times for many businesses but also the city. Many of the expenses incurred will be reimbursed through the CARES Act funding that the city has received. The greater challenge is the lost revenue that cannot be replaced using CARES Act funding. Property tax payments are typically due May 15th and October 15th. Dakota County has abated penalties for property taxes through July 15th. The city has already recognized a slight reduction in tax receipts for the first half.The largest impact will likely be recognized in the second half of tax receipts. Park and recreation, the Rambling River Center, liquor licensing, and building permits are some of the areas that have seen a reduction in revenue as a part of the General Fund. A reduction is predicted to continue into 2021 resulting in lower revenue receipts rather than the typical annual increase shown in the budget. Through conservative budgeting there is an anticipated decrease in revenue of roughly$33,000. The following explain the major changes: License and Permits The 2021 budget assumes $432,200 in revenue which is a reduction from the 2020 budget of$473,115. The majority of the decrease is in building permits. There is also a slight reduction in plumbing and heating permits, animal licenses, and liquor licenses. Sewer permit revenue has been moved to the sewer fund. At this time building permits have remained relatively stable for the city, but it is an ongoing concern. I ntergovernmental A reduction of$31,000 in MSA maintenance is anticipated for 2021. The remaining aid money received will likely remain stable depending on the continuation of COVI D-19. Charges for Services Fire charges have been increased slightly to account for an increase in the contract rates with the surrounding townships. Recreation fees and membership fees have been reduced to account for COVI D- 19. Fines and Forfeitures The fines and forfeitures revenues have decreased over the last few months, but are still anticipated to come in above budget for 2020. Using that information and conservative budgeting,the number should remain stable for 2021. I nvestment I ncome Investment income has been decreased based upon the city's portfolio. Using conservative budgeting, the city only accounts for investments that are non-callable in the next budget year.This amount is the General Fund's portion of the investment income and does not reflect all of the income received. Miscellaneous Revenue The rental income shows an increase in the 2021 budget to account for other items that may occur throughout the year and are unaccounted for in other areas. Transfers In A detailed break-down of the transfers in and out of the various funds is included in a separate exhibit in your packet. The transfers into the General Fund are from the enterprise funds to reimburse the General Fund for human resource and administrative costs which benefit the enterprise funds. Expenditures When compared to the 2020 amounts, the 2021 expenditure estimates have been increased$1,140,441. Of this amount$482,687 is attributed to human resource costs. The majority of the remainder of the difference, $625,351, can be accounted for in the transfers budget. Human Resource Costs All of the budgets include estimated human resource costs based on approved union contracts, an increase in health insurance, and estimates for employee benefits and worker's compensation premiums. The union contracts were approved for 2019 through 2021 and include a three percent wage increase each year. Staff has prepared an RFP process for the city with the intent to lower the overall cost of benefits. Transfers Out The transfers out are comprised of LGA and tax levy. A detailed break-down of the transfers has been included as a separate exhibit in your packet.This year you will see five additional line items that are a part of the General Fund transfers. They were identified separately to better represent those items that are additional in the financial plan. Rows 6 through 12 that start with 1000 are all a part of the transfers out of the General Fund. All are funded through tax levy with the exception of row 7 which is LGA. The tax levy and LGA on rows 6 and 7 are$45,351 higher than 2020. Those increases are$30,000 EDA, $24,000 general capital (police equipment), $14,175 sealcoat, $825 EAB, and $10,000 of the property insurance premium. The decreases include$30,000 trail maintenance and$3,649 building maintenance. Row 9 includes $200,000 for the extension of 202nd Street into Farmington from Lakeville at the north end of Farmington High School.The original number was $300,000. $100,000 of the original amount has been moved to T23 to use liquor store proceeds. Row 10 includes $380,000 for the city's fleet. There was also$100,000 for downtown sidewalks included on row 11, but it has been moved to T23 to use liquor store proceeds. There were additional items included such as a larger fleet amount, arena phase 2, and the Highway 3 backage road first year debt payment.Those items are a part of the financial plan, but have been moved to the future to reduce expenditures for 2021. The items in the financial plan are important for the city to continue, but there are several factors resulting in financial constraints. Fiscal Disparities This amount will be finalized in August.The current draft includes $2,294,024 which is the same as the 2020 budget. The city has historically seen an increase in fiscal disparity revenue each year, but is unknown if that will be the situation in 2021 due to COVI D-19. Debt Service Funds Levy The Debt Service Funds budget provides funding for scheduled debt principle and interest repayment obligations, as well as ongoing trustee, assessments, arbitrage, and post-issuance compliance fees related to the city's debt.The levy includes both General Obligation bonds and I nterfund loans. The net debt levy for 2021 reflects an increase of$206,706 from the 2020 budget. Ladder One accounts for$268,013 of the debt levy. The Ladder One costs are new expenditures for the 2021 budget. Additional Notes There are numerous factors that have brought the levy increase to 12.85 percent. Those include: • Decreased revenues due to COVI D-19. • Approved three-year union contracts that include wage increases. • Issuance of bonds for Ladder One with a debt levy of roughly$268,000 each year for five years. • Vehicles were not included in the 2020 tax levy. The fleet funding came from 2018 General Fund money above the 40 percent fund balance. This means that the vehicle costs are new expenditures for 2021. • General Fund money above the 40 percent fund balance was used to reduce the debt levy $150,000 in 2018 and $240,000 in 2019. The 2021 draft General Fund budget presented this evening has been reduced multiple times to come to a 12.85 levy increase. Staff understands that this increase will not be approved for the 2021 General Fund budget. Staff is requesting clear direction on where the city council is comfortable with a levy increase. BUDGET IMPACT All information is related to the development of the 2021 city budget and tax levy. The 2022 projected budget numbers have had minimal review. Staff will be reviewing those more in depth and bringing them back at a future work session with the other city budgets. ACTION REQUESTED Ask questions of the 2021 draft General Fund budget and provide staff with direction for revisions. ATTACHMENTS: Type Description D Backup Material General Fund Budget Summary D Backup Material General Fund Budget Revenues D Backup Material General Fund Budget Expenditures D Backup Material 2021 Operating Transfers D Backup Material Financial Plan City of Farmington Budget and Tax Levy 2020 Budget, 2021 Proposed and 2022 Proposed Company 2020 2021 Budget% 2022 Budget Budget Proposed Change Proposed Change /o Non-Property Tax Revenues Licenses and Permits 473,115 432,200 (8.65)% 453,600 4.95% Intergovernmental Revenue 922,294 886,967 (3.83)% 886,967 0.00% Charge for Service 565,802 551,197 (2.58)% 589,285 6.91% Fines and Forfeitures 49,000 49,000 0.00%' 49,000 0.00% Investment Income 38,800 24,100 (37.89)% 15,400 (36.10)% Miscellaneous 54,580 79,370 45.42% 53,170 (33.01)% Transfers In 1,307,570 1,354,689 3.60% 1,408,874 4.00% Total Revenues 3,411,161 3,377,523 (0.99)% 3,456,296 2.33% Expenditures Administration 907,162 887,565 (2.16)% 1,087,937 22.58% Human Resource 349,226 366,340 4.90% 391,753 6.94%0' Dakota Broadband 24,489 37,500 53.13% 40,500 8.00% Finance and Risk Mgmt 778,889 795,537 2.14% 827,984 4.08%' Police 4,677,813 4,931,183 5.42% 5,322,260 7.93% Fire 1,445,410 1,470,910 1.76% 1,573,664 6.99% Community Development 1,014,867 1,036,480 2.13% 1,103,387 6.46% Engineering 794,635 837,157 5.35% 884,052 5.60% Municipal Services 1,439,078 1,541,843 7.14% 1,630,813 5.77% Parks and Recreation 1,278,576 1,320,720 3.30% 1,453,287 10.04% Transfers Out 932,207 1,557,558 67.08% 3,381,534 117.10% Total Expenditures 13,642,352 14,782,793 8.36%' 17,697,171 19.71% Revenues Over(Under)Expenditures (10,231,191) (11,405,270) 11.48% (14,240,875); 24.86% Fiscal Disparities 2,294,024 2,294,024 0.00% 2,294,024 0.00%' General Fund Levy 7,937,167 9,111,246 14.79% 11,946,851 31.12% Debt Levy Bonds 2,222,950 2,444,840 9.98%' 2,099,788 (14.11)% 2005C Loan Repay-Storm Water Tr Adv 166,000 275,000 65.66% 166,000 (39.64)% 2010A Loan Repay-Storm Water Tr Adv 400,000 292,253 (26.94)% 0 (100.00)% 2010D Loan Repay-Storm Water Tr Adv 16,437 0 (100.00)% Total Debt Levy 2,805,387 3,012,093 7.37%'I 2,265,788 (24.78)% Use of Fund Balance to Lower Debt Levy 0 Net Debt Levy 2,805,387 3,012,093 7.37% 2,265,788 (24.78)%'. Farmington Net Tax Levy 10,742,554 12,123,339 12.85%'' 14,212,639' 17.23% General Fund Detailed Non-Property Tax Revenue Summary 2019 Budget,2020 Budget, 2021 Proposed and 2022 Proposed Object 2019 2020 2021 2022 Account Budget Budget Proposed Proposed LIQUOR LICENSES 42,000 41,700 40,000 37,000 BEER&WINE LICENSES 1,750 1,100 1,100 850 CLUB LICENSES 500 500 500 500 MASSAGE LICENSE 150 350 300 100 GAMBLING LICENSE/PERMIT 250 450 250 250 OTHER LICENSE&PERMIT 1,700 1,900 1,700 1,500 ANIMAL LICENSES 4,000 4,080 2,500 3,000' Licenses 50,350 50,080 46,350 43,200 BUILDING PERMITS 272,400 330,000 300,000 325,000 REINSPECTION FEES 1,000 1,000 1,500 1,000 CODE ENFORCEMENT FEES 1,000 2,600 1,500 1,500' PLUMBING&HEATING PERMITS 35,000 52,500 50,000 50,000 SEWER PERMITS 5,000 5,000 0 0' ELECTRIC PERMITS 18,000 16,000 16,000 16,000 ISTS PERMITS 250 300 300 300 UTILITY PERMITS 6,130 6,420 7,500 7,500' SIGN PERMITS 570 790 800 800 BURNING PERMITS 1,710 1,425 1,250 1,300 OTHER PERMITS 5,000 7,000 7,000 7,000 Permits 346,060 423,035 385,850 410,400 Licenses and Permits 396,410 473,115 432,200 453,600' FEDERAL GRANT 0 5,000 5,000 5,000 LOCAL GOVERNMENT AID 314,725 328,374 328,967 328,967 MSA MAINTENANCE 215,000 215,000 184,000 184,000 POLICE AID 196,000 198,500 198,000 198,000 POST TRAINING 15,160 15,160 15,160 15,160 FIRE AID 137,910 137,910 142,490 142,490 STATE GRANT 0 9,000 MARKET VALUE CREDIT 0 0 COUNTY MISCELLANEOUS 13,470 13,350 13,350 13,350 Intergovernmental 892,265 922,294 886,967 886,967 CUSTOMER SERVICE TAXABLE CUSTOMER SERVICES NONTAXABLE 250 200 210 210 ZONING&SUBDIVISION FEES 2,000 3,050 2,600 2,600 ADMINISTRATION FEES-PROJECTS 4,000' 4,500 4,000 4,000 FIRE CHARGES 225,780 237,172 239,227' 260,940 POLICE SERVICE CHARGES 77,000 78,030 78,810 80,385 ENGINEERING FEES-PROJECTS EROSION&SEDIMENT CONTROL 9,900 8,100 8,100 8,100 RECREATION FEES-GENERAL 90,000 85,000 75,000 85,000 RECREATION FEES-SENIOR CTR 18,000 19,000 15,000 18,000 MEMBERSHIP FEES-SENIOR CTR 9,000' 8,000 6,000 7,500 MOBILE MEALS-SENIOR CTR ADVERTISING 750 950 750' 750 ADVERTISING 2,200 1,800 1,500 1,800 FRANCHISE FEE 120,000 120,000 120,000 120,000' Charges For Services 558,880 565,802 551,197 589,285' COURT FINES 42,000 49,000 49,000' 49,000' CODE VIOLATIONS&ADMIN FINES 0' 0 Paae 1 of General Fund Detailed Non-Property Tax Revenue Summary 2019 Budget,2020 Budget, 2021 Proposed and 2022 Proposed Object 2019 2020 2021 2022 Account Budget Budget Proposed Proposed Fines&Forfeitures 42,000 49,000 49,000 49,000 INTEREST ON INVESTMENTS 21,900 38,800 24,100 15,400 GAIN/LOSS INVEST MKT VALUE Investment Income 21,900 38,800 24,100 15,400 MISCELLANEOUS REVENUE 5,000 1,500 31,700 1,500 CASH OVER&SHORT RENTAL INCOME-RRC 22,000 20,880 18,000 20,000 RENTAL INCOME 16,775 31,700 29,670 31,670 DONATIONS 0 500 DAKOTA BROADBAND HUMAN RESOURCE 0 Misc Revenue 43,775 54,580 79,370 53,170 OPERATING TRANSFERS 1,244,256 1,307,570 1,354,689 1,408,874 Transfers In 1,244,256 1,307,570 1,354,689 1,408,874 Total Revenues $3,199,486 $3,411,161 $3,377,523 $3,456,296 Paae 2 of General Fund Expenditure Detail Summary 2019 Budget,2020 Budget 2021 Proposed and 2022 Proposed Company 2019 2020 2021 2022 Budget Budget Proposed Proposed Expenditures Administration Legislative(1005) 96,447 87,772 89,494 89,642 Administration(1010) 295,214 302,068 313,155 454,412 Elections(1013) 35,867 44,124 10,351 47,454 Communications(1014) 99,650 108,537 117,042 124,249 City Hall(1015) 354,144 364,661 357,523 372,180 Administration 881,322 907,162 887,565 1,087,937 Human Resources 336,447 349,226 366,340 391,753 Human Resource(1011) 336,447 349,226 366,340 391,753 Human Resources 336,447 349,226 366,340 391,753 Dakota Broadband 24,489 37,500 40,500 Dakota Broadband 24,489 37,500 40,500 Dakota Broadband 24,489 37,500 40,500 Finance and Risk Management Finance(1021) 569,926 609,079 622,347 652,144 Risk Management(1022) 169,810 169,810 173,190 175,840 Finance and Risk Management 739,736 778,889 795,537 827,984' Police Police Administration(1050) 873,339 1,235,377 1,307,728 1,426,702 Patrol Services(1051) 2,738,524 2,538,727 2,670,089 2,880,486 Investigations(1052) 856,544 892,059 936,766 998,472 Emergency Management(1054) 11,650 11,650 16,600 16,600 Police 4,480,057 4,677,813 4,931,183 5,322,260 Fire Fire(1060) 1,267,885 1,445,410 1,470,910 1,573,664 Fire 1,267,885 1,445,410 1,470,910 1,573,664 Community Development 908,890 1,014,867 1,036,480 1,103,387 Planning(1030) 521,062 591,133 588,720 628,046 Building Inspection(1031) 387,828 423,734 447,760 475,341 Community Development 908,890 1,014,867 1,036,480 1,103,387 Engineering Engineering(1070) 624,587 665,173 702,427 744,243 Natural Resources(1076) 122,583 129,462 134,730 139,809 Engineering 747,170 794,635 837,157 884,052 Municipal Services Streets(1072) 1,146,492 1,197,200 1,289,488 1,367,910 Snow Removal(1073) 227,064 241,878 252,355 262,903 Municipal Services 1,373,556 ' 1,439,078 1,541,843 1,630,813 Parks and Recreation Park Maintenance(1090) 671,357 700,111 733,409 779,555 Rambling River Center(1093) 182,287 190,822 187,102 218,341 Park&Rec Admin(1094) 271,145 287,925 305,912 347,664 Recreation Programs(1095) 106,804 99,718 94,297 107,727 Parks and Recreation 1,231,593 1,278,576 1,320,720 1,453,287 Transfers Out 1,041,138 932,207 1,557,558 3,381,534 Transfers Out 1,041,138 932,207 1,557,558 3,381,534 Total Expenditures 13,007,794 13,642,352 14,782,793'' 17,697,171 B C D E F H M N O P Q R I S T U 1 2021 OPERATING TRANSFERS 2 TRANSFERS IN (5205) Capital General General General Equipment Capital Capital Storm Capital Fund Equip Fund Equip Fund General Water Arena Cap Equip Fund (Police (Police (Fire 3 Fund EDA Park Imp Trunk Pro'Fd Vehicles Vehicles) Equip) Equip Sealcoat Street Main Trail Main 5 Fund 1000 2000 " 2300 4400 4503 5600 5600.5 5600.5 5600.6 5701 5711 5721' 6 648,591 1000 Tax Levy 10,000 1,024 75,000 91,545 395,000 50,000 7 328,967 1000LGA 60,000 8,976 136,208 30,000 8 - 1000 Future Street CIP Debt _ 9 200,000 1000 Future Street CIP Cash 200,000 10 380,000 1000 Future Vehicle CIP Cash 380,000 11 _ 1000 Projects CIP Cash _ 12 1000 Projects CIP Debt _ 13 p^ - 2000 EDA 14 t' - 2500 Arena 15 IM 6,900 3094-2016A 6,900 16 292,253 3097-2010A 292,253 17 D _ 3099-2011 A 18 Q 275,000 3130-2005C 275,000 19 _ 3136-20168 20 w _ 3137-2016C 21 LL _ 3300-201 OD 22 Z 3139-2020A 23 340,410 6100 Admin(GF) 63,910 75,000 200,000 24 89,411 6202 Admin(GF) 86,911 25 243,692 6202 HR 236,880 26 87,411 6302 Admin(GF) 86,911 27 61,848 6302 HR 61,848 28 86,911 6402 Admin(GF) 86,911 29 315,665 6402 HR 308,853 30 86,911 6502 Admin(GF) 86,911 31 357,126 6502 HR 335,554 32 3,801,096 1,354,689 70,000 75,000 574,153 10,000 380,000 - 75,000 91,545 531,208 400,000 80,000 33 546,545 34 - - - - - - - - - Cell:S6 Comment:Teah Malecha: Reduced$400k 6/30/2020 Cell:U6 Comment:Teah Malecha: Reduced$40k 6/30/2020 Cell:Z6 Comment:Teah Malecha: Employer portion of T Daus's insurance premium Cell:AA6 Comment:Teah Malecha: Budgeted transfer for insurance deductible.Reduced by$10k 6/30/2020 Cell:W7 Comment:Teah Malecha: Reduced$60k to$82,958 6/30/2020 Cell:T8 Comment:Teah Malecha: debt payment for backage road-Moved$126k to 2022 Cell:T9 Comment:Teah Malecha: moved$350k to 2022,update to$300k per David 6/17/2020 202nd St.Move$100k to liquor store proceeds 6/30/2020 Cell:010 Comment:Teah Malecha: Reduced$100k 6/30/2020 Cell:T11 Comment:Teah Malecha: Sidewalks-reduced to$100k.Moved to liquor store proceeds 6/30/2020 Cell:N12 Comment:Teah Malecha: Arena Phase 2-moved$252k to 2022 Cell:M15 Comment:Teah Malecha: 2D1 6A interest pymt for interfund loan,attributed to 2010C,but to minimize special assessment prepayment risk for 2016A bonds Cell:M16 Comment:Teah Malecha: Represents annual debt service for 2010A which is used to repay Storm Water Trunk interfund loan. Actually doesn't flow through operating transfers,but is shown that way for budget purposes.Final pmt 2021 Cell:M18 Comment:Teah Malecha: Represents annual debt service for 2005C which is used to repay Storm Water Trunk interfund loan. Actually doesn't flow through operating transfers,but is shown that way for budget purposes. Cell:E23 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Budgeted transfer for insurance deductible-Insurance Deductible Spreadsheet Cell:E25 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:Y25 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:E26 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Cell:AA26 Comment:Teah Malecha: Budgeted transfer for insurance deductible-Insurance Deductible Spreadsheet Cell:E27 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:E28 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Cell:E29 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:Y29 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:E30 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Cell:E31 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:Y31 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution CITY OF FARMINGTON Five/Ten Year Financial Plan April 2020 The City of Farmington has been working to improve its financial health over the past decade. This work has produced positive results including meeting the city council General Fund balance goal, obtaining two bond-rating upgrades, the downward trend of the city tax rate since 2013 and the implementation of long and short-range capital improvement plans in a number of areas. This Five/Ten Year Financial Plan is meant to be a framework for the city council to track all of the important financial information in a summary form that city staff is aware of at this point. This is a framework, information will change and nothing in the document should be construed as set in stone until the city council votes on the budget and tax levy each year. The financial goals that this plan is based upon are listed below. These goals change periodically as well. ✓ Maintain our AA+ bond rating ✓ Work towards a AAA bond rating ✓ Transition from funding large projects from debt to a combination of debt and cash to eventually all cash ✓ Balance future tax levy increases to acceptable levels ✓ Work to achieve annual street/trail maintenance/projects funding targets ✓ Purchase all future fire engines with cash ✓ Review city council fund balance reserve goal This document is meant to tell a story so the city council, staff and residents can see the big picture of the next five and ten years of city finances. This plan focuses primarily on the General Fund but also includes financial plans and capital improvement plans for our utility funds as well. This document includes a summary of the next five years (2021-2025)which is followed by individual financial plans in a number of areas. City staff does have a ten year plan as well (2026-2030) but thought it is important to focus on the first five years of the plan. A number of important factors are highlighted and explained to show potential future projects and funding changes. The plans and changes are only proposals at this time and should not be considered official until they are approved by the city council. CITY OF FARMINGTON Summary Page and Summary Page with Items of Note CITY OF FARMINGTON 2030 FINANCIAL PLAN SUMMARY 2020 2021 2022 2023 2024 2025 ANNUAL HUMAN RESOURCES COSTS -$9,696,605 $10,159,442 $10,565,820 $10,988,453 $11,427,991 $11,885,110 BASE NON-HR COSTS $3,176,451 $2,668,584 $2,748,642 $2,776,128 $2,831,650 $2,916,600 NEW HR COSTS _ - $0 $0 $100,000 $200,000 $100,000 $100,000 EXISTING DEBT $2,805,387 $3,013,080 $2,275,250 $1,883,250 $1,566,250 $1,440,750 FUTURE STREET CIP DEBT $0 $126,000 $261,000 $261,000 $421,000 $421,000 FUTURE STREET CIP CASH $0 $350,000 $435,000 $960,000 $653,000 _ $634,000_ FUTURE VEHICLE CIP CASH $0 $480,000 $542,000 $542,000_ $630,000 $624,000 TRANSFER PROJECT-TAX LEVY $603,240 $1,157,567 $1,172,567 $1,177,567 $1,203,292 $1,420,270 TRANSFER PROJECT-LGA $328,967 $328,967 $328,967 $328,967 $328,967 $314,725 PROJECTS-TAX LEVY $0 $300,000 $325,000 $0 $0 $0 PROJECTS-DEBT PAYMENTS $0 $252,000 $252,000 $252,000 $252,000 $252,000 PARK IMPROVEMENT FUND CIP $0 $0 $0 $0 $100,000 $100,000 TOTAL OPERATING/DEBT EXPENDITURES $16,610,650 $18,835,640 $19,006,245 $19,369,365 $19,514,150 $20,108,455 I OTHER REVENUES(1%INCREASE ANNUALLY) $3,574,072_11_$3,609,813 $3,645,911 $3,682,370 $3,719,194 $3,756,386 FISCAL DISPARITIES V $2,294,024 $2,294,024 $2,294,024 $2,294,024 $2,294,024 1 $2,294,024 TOTAL REVENUES $5,868,096 $5,903,837 $5,939,935 $5,976,394 $6,013,218 $6,050,410 SUMMARY BASE BUDGET LEVY $12,873,056 $12,828,026 $13,414,461 $13,964,581 $14,359,641 $14,901,710 CIP/TRANSFER/LGA LEVY $932,207- $1,786,534 $1,826,534 $1,506,534 $1,632,259 $1,834,995 EXISTING DEBT LEVY $2,805,387 $3,013,080 $2,275,250 $1,883,250 $1,566,250 $1,440,750 FUTURE DEBT LEVY $0 $378,000 $513,000 $513,000 $673,000 $673,000 PAY AS WE GO LEVY $0 $830,000 $977,000 $1,502,000 $1,283,000 $1,258,000 TOTAL EXPENDITURES $16,610,650 $18,835,640 $19,006,245 $19,369,365 $19,514,150 $20,108,455 OTHER REVENUES $3,574,072 $3,609,813 $3,645,911 $3,682,370 $3,71_9,194 $3,756,386 FISCAL DISPARITIES - �- - $2,294,024 $2,294,024 $2,294,024 $2,294,024 $2,294,024 $2,294,024 TOTAL REVENUES $5,868,096 $5,903,837 $5,939,935 $5,976,394 $6,013,218 $6,050,410 1 I I I I TOTAL TAX LEVY $10,742,554 $12,931,803 $13,066,310 $13,392,971 $13,500,933 $14,058,046 PROJECTED%CHANGE -0.49% 20.38% 1.04% 2.50% 0.81% 4.13% PROJECTED$CHANGE -$53,211 $2,189,249 $134,507 $326,660 $107,962 $557,113 ENDING FUND BALANCE $5,325,270 $5,325,270 $5,325,270 $5,325,270 $5,325,270 $5,325,270 FUND BALANCE AS A%OF ANNUAL EXPENSES 38.57% 37.20% 35.46% 33.98% 33.30% 31.82% 4/13/2020 2030 Financial Plan Info2030 Financial Plan Info CITY OF FARMINGTON 2030 FINANCIAL PLAN SUMMARY 2020 2021 2022 2023 2024 2025 ANNUAL HUMAN RESOURCES COSTS $9,696,605 $10,159,442 $10,565,820 $10,988,453 $11,427,991 $11,885,110 BASE NON-HR COSTS $3,176,451 $2,668,584 $2,748,642 $2,776,128 $2,831,650 $2,916,600 NEW HR COSTS_ $0 $0 $100,000 $200,000 $100,000 $100,000 EXISTING DEBT _ $2,805,387 $3,013,080 $2,275,250 $1,883,250 $1,566,250 $1,440,750 FUTURE STREET CIP DEBT $0 $126,000 $261,000 $261,000 $421,000 $421,000 FUTURE STREET CIP CASH $0 $350,000 $435,000 $960,000 $653,000 $634,000 FUTURE VEHICLE CIP CASH $0 $480,000 $542,000 $542,000 $630,000 $624,000 TRANSFER PROJECT-TAX LEVY $603,240 $1,157,567 $1,172,567 $1,177,567 $1,203,292 $1,420,270 TRANSFER PROJECT-LGA $328,967 $328,967 $328,967 $328,967 $328,967 $314,725 PROJECTS-TAX LEVY $0 $300,000 $325,000 $0 $0 $0 PROJECTS-DEBT PAYMENTS $0 $252,000 $252,000 $252,000 $252,000 $252,000 PARK IMPROVEMENT FUND CIP $0 $0 $0 $0 $100,000 $SOQ000 TOTAL OPERATING/DEBT EXPENDITURES $16,610,650 $18,835,640 $19,006,245 $19,369,365 $19,514,150 $20,108,455 OTHER REVENUES(1%INCREASE ANNUALLY)-� $3,574,072 $3,609,813 $3,645,911 $3,682,370 $3,719,194 $3,756,386 FISCAL DISPARITIES $2,294,024 1 $2,294,024 $2,294,024 1 $2,294,024 $2,294,024 $2,294,024 TOTAL REVENUES $5,868,096 $5,903,837 $5,939,935 $5,976,394 $6,013,218 $6,050,410 SUMMARY BASE BUDGET LEVY $12,873,056 $12,828,026 $13,414,461 $13,964,581 $14,359,641 $14,901,710 CIP/TRANSFER/LGA LEVY $932,207 $1,786,534 $1,826,534 $1,506,534 $1,632,259 $1,834,995 EXISTING DEBT LEVY $2,805,387 $3,013,080 $2,275,250 $1,883,250 $1,566,250 $1,440,750 FUTURE DEBT LEVY _ $0 $378,000 $513,000 $513,000 $673,000 $673,000 PAY AS WE GO LEVY $0 $830,000 $977,000 $1,502,000 $1,283,000 $1,258,000 TOTAL EXPENDITURES $16,610,650 $18,835,640 $19,006,245 $19,369,365 $19,514,150 $20,108,455 OTHER REVENUES -' $3,574,072 $3,609,813 $3,645,911 $3,682,370 $3,719,194 $3,756,386 FISCAL DISPARITIES $2,294,024 $2,294,024 $2,294,024 $2,294,024 $2,294,024 $2,294,024 TOTAL REVENUES $5,868,096 $5,903,837 $5,939,935 $5,976,394 $6,013,218 $6,050,410 TOTALTAXLEVY $10,742,554 $12,931,803 $13,066,310 $13,392,971 $13,500,933 $14,058,046 PROJECTED%CHANGE -0.49% 20.38% 1.04% 2.50% 0.81% 4.13% PROJECTED$CHANGE -$53,211 $2,189,249 $134,507 $326,660 t $107,962 $557,113 ENDING FUND BALANCE $5,325,270 $5,325,270 $5,325,270 $5,325,270 $5,325,270 $5,325,270 FUND BALANCE AS A%OF ANNUAL EXPENSES 38.57% 37.20% 35.46% 33.98% 33.30% 31.82% 4/13/2020 2030 Financial Plan Info2030 Financial Plan Info Items of Note 1. The Existing Debt CIP includes the first year repayment of the debt issued to purchase Ladder 1. The annual debt payment on this purchase is approximately$270,000. This is a five-year debt issuance. 2. A potential project to be completed in 2021 is included in the plan. The project is the Highway 3 Backage Road to be built between Willow Street and 2091h Street over time. This project would require debt to be issued in the amount of$1,000,000. The first debt repayment is included In 2021 for now in the amount of$126,000. This is a ten-year debt issuance. 3. A potential project to be completed in 2021 is included in the plan. The project is the extension of 202nd Street into Farmington from Lakeville at the north end of Farmington High School. This one-time cash funding is included in the 2021 plan in the amount of $350,000. 4. This item is the annual purchase of city vehicles that restarted with the 2020 budget. The 2021 plan has$480,000 planned for the purchase of General Fund vehicles and equipment. 5. This item includes a significant increase in the tax levy portion of the Transfers CIP to include funding to mill and overlay Akin Road in 2021. The increase in this line item is $450,000. There is also an increase in tax levy supported trail maintenance in the amount of$55,327. 6. The Projects CIP includes$300,000 in cash for sidewalk replacement in the downtown area in 2021. 7. The Phase Two Schmitz/Maki Arena project is included in 2021 in the Projects CIP. This project will create dedicated locker rooms for the facility and build a new lobby area for the facility. This project is estimated at$2,000,000 and will require debt to be issued. The plan has the first repayment of the project occurring in 2021 at an annual cost of $252,000. This is a ten-year debt issuance. 8. The plan in 2022 includes the start of the collection of dollars to replace Engine 1 in 2027. The annual amount collected is$220,000. With four fire engines,the collection of cash on an annual basis will be a recurring item to enable the city to replace one engine every five years without issuing debt. 9. The plan includes the collection of tax dollars to help fund the Park Improvement CIP starting in 2024. Other Plan Assumptions The plan includes a number of other assumptions at this point. A reminder, that these are assumptions and would not be confirmed until a city council vote on future budgets. ✓ The plan includes one new position per year starting in 2022 to cover future staffing needs. The amount of$100,000 is used annual at this point to cover wages, benefits, etc. ✓ A 1%increase in "other revenues" is used to account for increased income from permits, etc. ✓ The amount used for Fiscal Disparities is kept constant at the most recent approved number. In this plan,the amount from the 2020 budget is used for all ten years of the plan. ✓ Increased human resources costs in terms of wages, cost of living adjustment and benefit cost increases are assumed in the plan. 2021 Items Summary There are a number of large items that are affecting 2021. For simplicity,these items are summarized below. 1. Ladder 1 Debt Payment-$270,000 2. Highway 3 Backage Road Debt Payment-$126,000 3. 202"d Street One-Time Cash Collection-$350,000 4. Vehicle CIP Cash Collection-$480,000 5. Akin Road Mill and Overlay Cash Collection-$450,000 6. Downtown Sidewalks Cash Collection-$300,000 7. Schmitz-Maki Arena Debt Payment-$252,000 CITY OF FARMINGTON Existing CIP This CIP tracks the repayment of existing debt in the General Fund. Any new debt issued is moved to this plan once it is issued. CITY OF FARMINGTON 2030 FINANCIAL PLAN EXISTING DEBT ROAD AND BRIDGE FUND 2020 2021 2022 2023 2024 2025 2013A(ASH/SPRUCE/HILL DEE) $669,000 $443,000 2016A(ELM/195TH/WALNUT) $352,000 $574,327 $624,750 $276,750 $271,750 $181,750 TOTAL ROAD AND BRIDGE FUND DEBT $1,021,000 I $1,017,327 $624,750 $276,750 I $271,750 $181,750 NON ROAD AND BRIDGE FUND 2020 2021 2022 2023 2024 2025 2010D(ARENA IMPROVEMENTS) $16,437 2010A(POLICE STATION) $400,000 $292,253--,---- 2005C 292,253 _ _2005C(FIRE STATION 2) $166,000 $275,000 $166,000 $166,000 $96,000 $49,000 20166(CITY HALL) $665,000 $635,000 $640,000 $638,000 $636,000 $647,500 2015A(195TH ST) _ $307,000 $293,500 $335,500 $293,500 $293,500 $293,500 2019A(WESTVIEW ACRES) $229,950 $231,000 $240,000 $240,000 2020A(LADDER ONE) $269,000 $269,000 $269,000 $269,000 $269,000 TOTAL NON ROAD AND BRIDGE DEBT $1,784,387 $1,995,753 ++ $1,650,500 $1,606,500 $1,294,500 $1,259,000 TOTAL EXISTING DEBT $2,805,387 $3,013,080 $2,275,250 $1,883,250 $1,566,250 $1,440,750 4/13/2020 2030 Financial Plan Info CITY OF FARMINGTON Street Projects CIP This CIP tracks upcoming street construction and reconstruction projects over the next five years. CITY OF FARMINGTON 2030 FINANCIAL PLAN____ STREET PROJECTS CIP STREETS CAPITAL IMPROVEMENT PLAN PROJECT 2020 2021 2022 2023 2024 2025 NE FARMINGTON STUDY $25,000 TURN LANE AT 209TH AND HWY 3 HWY 3 TRAIL THROUGH LPP $320,000 202ND STREET EXTENSION $350,000 HIGHWAY 3 BACKAGE ROAD $1,000,000 TURN LANES AT 225TH STREET $158,664 SPRUCE STREET(RR TRACKS TO DENMARK) $2,189,867 DIVISION STREET $1,013,134 WILLOWjLINDON STREETS $2,627,587 PINESTREET $1,967,833 FIRST/OAK STREETS $3,995,670 CR 66/HWY 3 TRAFFIC CONTROL $229,307 BACKAGE ROAD,CARVER LANE $896,844 TOTALSTREET CIP EXPENDITURES $590,000 $1,670,000 $5,989,252 $1,967,833 $5,121,821 $0 STREET CIP FUNDING/FUND BALANCE 2020 2021 2022 2023 2024 2025 STARTING BALANCE $109,391 $69,391 $59,391 $73,287 $75,963 $79,306 TOTAL ANNUAL EXPENDITURES $590,000 $1,670,000 $5,989,252 $1,967,833 $5,121,821 -$0 TOTAL ANNUAL TAX LEVY(CASH) $0 $350,000 $435,000 $960,000 $653,000 $634,000 BONDED DEBT REVENUE $0 $1,000,000 $1,600,000 $0 $925,000 $0 WATER FUND CONTRIBUTION $0 $0 $1,146,105 $390,021 $1,053,685 $0 STORM WATER FUND CONTRIBUTION $0 $0 $601,274 $283,652 $232,874 $0 SANITARY SEWER FUND CONTRIBUTION $0 $0--$720,769 $336,836 $760,605 $0 TRANSFERS FROM R/B FUND $0 $0 $0 $0 $0 $0 MSA CONTRIBUTIONS $45,000 $0 $1,500,000 $0 $1,500,000 $0 OTHER SOURCES--. ------ $505,000 $310,000 $0 $0 $0 $0 YEAR ENDING BALANCE $69,391 $59,391 $73,287 $75,963 $79,306 $713,306 FUTURE CIP DEBT REPAYMENTS 2020 2021 2022 2023 2024 2025 2021 PROJECT(10 YEARS) $126,000 $126,000 $126,000 $126,000 $126,000 2022 PROJECTS(15 YEARS) $135,000 $135,000 $135,000 $135,000 2023 PROJECTS(10 YEARS) $0 $0 $0 2024 PROJECTS(S YEARS) $160,000 $160,000 SIXTH STREET TOTAL FUTURE STREET CIP DEBT $0 $126,000 $261,000 $261,000 $421,000 $421,000 ASSUMPTIONS DEBT PAID BACK AT 120%OF BOND DEBT TYPICALLY PAID BACK OVER 15 YEARS IANNUAL PAYMENT AT 105% 4/13/2020 2030 Financial Plan Info CITY OF FARMINGTON Street Maointenance CIP This CIP tracks the planned street maintenance work including sealcoating, crack sealing and mill and overlay projects. STREET MAINTENANCE FUND 2030 FINANCIAL PLAN STREET MAINTENANCE CIP 2020 2021 2022 2023 2024 2025 STARTING CASH BALANCE $70,977 $129,055 $110,023 $63,938 -$39,267 -$159,592 REVENUES $967,398 $1,023,208 $753,275 $803,275 $793,275 $949,033 TAX LEVY $400,000 $850,000 $600,000 $630,000 $660,000 $690,000 LOCAL GOVERNMENT AID $117,033 $81,208 $61,275 $81,275 $41,275 $167,033 OTHER REVENUE $358,365 $0 $0 $0 $0 $0 MSA $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 EXPENSES $909,320 $1,042,240 $799,360 $906,480 $913,600 $920,720 CRACK SEALING - $34,320 $35,640 $36,960 $38,280 $39,600 $40,920 SEAL COATING_ $75,000 $156,600 $162,400 $168,200 $174,000 $179,800 MILL AND OVERLAY $800,000 $850,000 $600,000 $700,000 $700,000 $700,000 ENDING BALANCE $129,055 $110,023 $63,938 -$39,267 -$159,592 -$131,279 IDEAL MAINTENANCE FUNDING _ PAVEMENT MANAGEMENT $810,000 4 4/13/2020 2030 Financial Plan Info CITY OF FARMINGTON Vehelcles This CIP tracks the purchase/replacement plan for vehicles from General Fund departments. CITY OF FARMINGTON 2030 FINANCIAL PLAN'. ------ VEHICLE CIP SUMMARY 2020 2021 2022 2023 2024 2025 COMMUNITY DEVELOPMENT $32,860 $0 $0 $34,500 $0 $0 ENGINEERING $37,100 $34,880 $0 $37,950 $0 v $0 FIRE $37,100 $59,950 $61,600 $126,500 $436,600 $432,350 MUNICIPAL SERVICES $89,040 $264,870 $248,640 $17,250 $153,400 $254,100 NATURAL RESOURCES $0 $0 $39,200 $0 $0 $0 PARKS $368,880 $207,100 $133,280 $56,350 $123,900 $0 POLICE $92,180 $143,989 $213,920 $118,785 $105,138 $173,030 TOTAL _ $657,160 $710,789 $696,640 $391,335 $819,038 $859,480 VEHICLE CIP FUNDING/FUND BALANCE 2020 2021 2022 2023 2024 2025 STARTING BALANCE $748,605 $91,445 -$139,344 -$293,984 -$143,319 -$332,357 TOTAL ANNUAL EXPENDITURES $657,160 $710,789 $696,640 $391,335 $819,038 $859,480 TAX LEVY REVENUE(CASH) $o $480,000 $542,000 $542,000 $630,000 $624,000 USE OF FUND BALANCE $0 $o $o $0 -so $0 LGA $0 $o $o-- $0 so $o OTHER REVENUE $0 $o $0 $0 $o $o YEAR ENDING BALANCE $91,445 -$139,344 -$293,984 -$143,319 -$332,357 -$567,837 FUTURE CIP DEBT REPAYMENTS 2020 2021 2022 2023 2024 2025 FUTURE DEBT $0 $0 $0 $0 $0 $0 TOTAL FUTURE CIP DEBT $0 $0 $0 $0 $0 $0 ----------------- 2021 PURCHASES TBD $710,789 TOTAL $710,789 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON Transfers CIP This CIP tracks specific expenditures that staff or the city council have asked be noted over time. There are two funding sources in this plan, the tax levy and the use of local government aid dollars. CITY OF FARMINGTON 2030 FINANCIAL PLAN TRANSFERS CIP TAX LEVY PROJECTS - 2020 2021 2022 2023 2024 2025 EDA TRANSFER $0 $0 $0 $0 $0 $40,000 ENGINE ONE(2027) $0 $0 $220,000 $220,000 $220,000 $220,000 ARENA CAPITAL PROJECTS $10,000 $10,000 $20,000 $20,000 $20,000 $20,000 POLICE EQUIPMENT CIP $51,000 $75,000 $110,000 $55,000 $30,725 $30,725 FIRE EQUIPMENT CIP $91,545 $91,545 $91,545 $111,545 $111,545 $126,545 PAVEMENT MANAGEMENT $400,000 $850,000 $600,000 $630,000 $660,000 $690,000 TRAIL MAINTENANCE CIP $34,673 $90,000 $90,000 $100,000 $120,000 $170,000 BUILDING MAINTENANCE CIP $0 $5,000 $5,000 $5,000 $5,000 $100,000 TOWNSHIP ROAD MAINTENANCE $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 EMPLOYEE EXPENSE FUND e $13,022 $13,022 $13,022 $13,022 $13,022 $0 PROPERTY/CASUALTY DEDUCTIBLE $0 $20,000 $20,000 $20,000 $20,000 $20,000- TOTAL TAX LEVY PROJECTS $603,240 $1,157,567 $1,172,567 $1,177,567 $1,203,292 $1,420,270 LGA PROJECTS 2020 2021 2022 2023 2024 2025 BUILDING MAINTENANCE $86,607 $137,958 $166,607 $136,607 $186,607 $136,607 EDATRANSFER $40,000 $68,976 $41,085 $41,085 $41,085 $0 EMERALD ASH BORER $10,000 $10,825 $10,000 $10,000 $10,000 $10,000 TRAIL MAINTENANCE $75,327 $30,000 $50,000 $60,000 $50,000 $1,085 PAVEMENT MANAGEMENT $117,033 $81,208 $61,275 $81,275 $41,275 $167,033 TOTAL LGA PROJECTS $328,967 $328,967 $328,967 $328,967 $328,967 $314,725 TOTAL TRANSFERS PROJECTS $932,207 $1,486,534 $1,501,534 $1,506,534 $1,532,259 $1,734,995 FUNDING TARGETS BUILDING MAINTENANCE $300,000 _ EMERALD ASH BORER $50,000 TRAIL MAINTENANCE $510,000 PARK IMPROVEMENT FUND $100,000 PAVEMENT MANAGEMENT $810,000 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON Plansint e Transfers CIP This CIP tracks a number of expenditures included in the Transfers CIP including fire equipment, police equipment and building maintenance. CITY OF FARMINGTON 2030 FINANCIAL PLAN FIRE EQUIPMENT CIP 2020 2021 2022 2023 2024 2025 SCBA $0 $149,800 $0 $0 $0 $0 PORTABLE RADIOS $0 $45,000 $45,000 $45,000 $45,000- $45,000 RADIO BATTERIES - $6,000 $0 $8,000 $0 $8,000 $0 MOBILE RADIOS $0 $0 $9,750 $9,750 $9,750 $9,750 EXTRACTION TOOLS - $0 $0 $0 $40,000 $0 $0 THERMAL IMAGING CAMERA $0 $7,500 $5,000 $0 $0 $7,500 RAD 57 CO MONITOR $0 $0 $7,000 $0 $0 $8,000 STATION COMPRESSOR $0 $0 $0 $0 $50,000 $0 HOSE $7,500 $11,000 $7,500 $11,000 $7,500 $9,000 GAS MONITORS $8,000 $9,000 $0 $0 TOTAL - $13,500 $221,300 $82,250 $114,750 $120,250 $79,250 - - 2020 2021 2022 2023 2024 2025 STARTING BALANCE _ $88,606 $166,651 $36,896 $46,191 $42,986 $34,281 EXPENDITURES _ $13,500 $221,300 $82,250 $114,750 $120,250 $79,250 TAX LEVY $91,545 $91,545 $91,545 $111,545 $111,545 $126,545 ENDING BALALNCE $166,651 $36,896 $46,191 $42,986 $34,281 $81,576 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON 2030 FINANCIAL PLAN POLICE EQUIPMENT CIP 2020 2021 2022 2023 2024 2025 AEDS $0 $9,800 $0 $0 $0 $0 RADIOS $73,901 $73,901 $73,901 $0 $0 $0 HANDGUNS $0 $0 $0 $0 $0 $0 RIFLES $0 $0 $0 $0 $0 $0 TASERS $0 $0 $0 $0 _$0 $22,000 BODY CAMERAS $13,452 $13,452 $13,452 $13,452 $13,452 $13,452 SQUAD CAMERAS $28,398 $14,706 $14,706 $14,706 $16,188 $16,188 GUN CAMERAS _ $0 $0 $0 $0 $0 $0 THERMAL IMAGING $10,000 $0 $0 $0 $0 $0 FINGERPRINT MACHINE $0 $18,000 $0 $0 u $0 $0 SPEEDTRAILER $0 $16,000 $0 $0 $0 $0 TOTAL $125,751 $145,859 $102,059 $28,158 $29,640 $51,640 2020 2021 2022 2023 2024 2025 STARTING BALANCE $118,435 $43,684 $6,825 $14,766 $41,608 $42,693 ANNUAL EXPENDITURES _ $125,751 $145,85_9 $102,059 $28,158 $29,640 $51,640 TAX LEVY _ $51,000 $75,000 $110,000 $55,000 $30,725 $30,725 LIQUOR STORE FUNDS $0 $34,000 $0 _ $0 $0 $0 ENDING BALANCE $43,684 $6,825 $14,766 $41,608 $42,693 $21,778 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON 2030 FINANCIAL PLAN TRAIL MAINTENANCE CIP REVENUES 2020 2021 2022 2023 2024 2025 TAX LEVY $34,673 $90,000 $90,000 $100,000 $120,000 $170,000 LOCAL GOVERNMENT AID $75,327 $30,000 $50,000 $60,000 $50,000 $1,085 OTHER i� $0 $0 $0 $0 $0 $0 TOTAL $110,000 $120,000 $140,000 $160,000 $170,000 $171,085 EXPENDITURES 2020 2021 2022 2023 2024 2025 BEGINNING BALALNCE $12,847 $9,967 $6,207 $21,567 $6,047 -$353 FOG SEALING $15,600 $16,200 $16,800 $17,400 $18,000 $9,055 CRACK SEALING $7,280 _$7,560 $7,840 $8,120 $8,400 $8,350 PAVEMENT REPLACEMENT $90,000 $100,000 $100,000 $150,000 $150,000 $150,000 RECONSTRUCTION ---- ----� $4-�-- T $0 ---$0---- - $0 $0 $0 TOTAL EXPENDITURES $112,880 $123,760 $124,640 $175,520 $176,400 $167,405 YEAR END BALANCE $9,967 $6,207 $21,567 $6,047 -$353 $3,327 FUNDING TARGET TRAIL MAINTENANCE $510,000 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON 2030 FINANCIAL PLAN BUILDING CIP SCHEDULE SUMMARY BY BUILDING 2020 2021 2022 2023 2024 2025 CITY HALL $0 $0 $0 $0 $0 $o FIRE STATION#1 $103,000 $0 $0111.1 $0 $0 $0 FIRE STATION#2 $0 $0 $0 $0 $0 $0 SCHMITZ-MAKI ARENA $0 $0 $0 $0 $0 $0 FIRST STREET GARAGE $0 $0 $0 $0 $0 $0 MAINTENANCE FACILITY $0 $0 $0 $0 $0 $0 POLICE STATION $0 $0 $0 $0 $0 _ $0 RAMBLING RIVER CENTER $48,000 $0 $0_ _ $0 $0 $0 FEES(7.5%) $11,325 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $162,325 $0 $0 $0 $0 $0 ---� - - --- 2020 2021 2022 2023 2024 2025 STARTING BALANCE $94,289 $18,571 $161,529 $333,136 $474,743 $666,350 EXPENDITURES $162,325 _$0 $0 $0 $0 $0 _ LGA FUNDING $86,607 $137,958 $166,607 $136,607 $186,607 $136,607 LIQUOR STORE FUNDING $0 $0 $0 - $0 $0_ $0 TAX LEVY FUNDING $0- $5,000 $5,000 $5,000 $5,000 $100,000 ENDING BALANCE $18,571 $161,529 $333,136 $474,743 $666,350 $902,957 FUNDING TARGET BUILDING MAINTENANCE 2020 PROJECTS J _ _-- FIRE STATION#1 TBD $0 RAMBLING RIVER CENTER _ FEES - TOTAL $0 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON Projeects CIP This CIP tracks potential projects the city may undertake in the future. These larger scale projects may include building and or facility projects. CITY OF FARMINGTON 2030 FINANCIAL PLAN FUTURE PROJECTS CIP _ — 2020 2021 2022 2023 2024 2025 ARENA PHASE ONE $280,000 $0 $0 $0 $0 $0 ARENA PHASE TWO $0 $2,000,000 $0 _ $0 $0 $0 SIDEWALKS $0 $300,000 $0 $0 $0 $0 FUEL STATION $0 $150,000 $0 $0 $0 $0 SALT SHED $0 $250,000 $0 $0 $0 $0 PARKING LOTS $0 $0 $325,000 $0 $0 $0 LIQUOR STORE $0 $0 $0 $1,500,000 $0 $0 TOTAL $280,000 $2,700,000 $325,000 $1,500,000 $0 $0 REVENUE STARTING BALANCE $0 $0 $0 $0 $0 $0 TOTAL ANNUAL EXPENDITURES $280,000 $2,700,000 $325,000 $1,500,000 $0 $0 LIQUOR STORE FUNDS $280,000 $0 $0 $750,000 $0 $0 TAX LEVY $0 $300,000 $325,000 $0 $0 $0 DEBT $0 $2,000,000 $0 $750,000 $0 $0 OTHER SOURCES $0 $400,000 $0 $0 $0 $0 YEAR END BALANCE $0 $0 $0 $0 $0 $0 FUTURE CIP DEBT REPAYMENTS 2020 2021 2022 2023 2024 2025 ARENA PHASE TWO $252,000 $252,000 $252,000 $252,000 $252,000 LIQUOR STORE $189,000 $189,000 $189,000 BOND PAYMENTS i $252,000 $252,000 $252,000 $252,000 $252,000 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON Park mprovement CIP This CIP tracks planned park build outs and improvements to the city's park system. CITY OF FARMINGTON 2030 FINANCIAL PLAN PARK IMPROVEMENT CIP PROJECT 2020 2021 2022 2023 2024 2025 DAKOTA ESTATES PARK v - DAISY KNOLL PARK DEPOT WAY ARTS PARK EVERGREEN KNOLL PARK $325,000 FAIR HILLS PARK FARMINGTON PRESERVE PARK FLAGSTAFF MEADOW $7,500 $100,000 HILL DEE PARK HILLVIEW PARK JIM BELL PARK AND PRESERVE $250,000 LAKE JULIA PARK MARIGOLD PARK MEADOWVIEW PARK $100,000 MIDDLE CREEK PARK NORTH CREEK PARK PINE KNOLL PARK $5,000 PRAIRIE PINES PARK PRAIRIE VIEW PARK y _ PRAIRIE WATERWAY $3,000 RAMBLING RIVER PARK - - $30,000 $20,000 $40,000 $25,000 $195,000 SILVER SPRINGS PARK TAMARACK PARK TROY HILL PARK VERMILLION GROVE PARK VRC TOWN SQUARE _ $10,000 WESTVIEW ACRES PARK $6,000 TOTAL $39,000 $7,500 $120,000 $145,000 $275,000 $530,000 FUNDING/FUND BALANCE 2020 2021 2022 2023 2024 2025 STARTING BALANCE $292,582 $361,827 $462,730 $451,133 $414,693 $339,693 ANNUAL PROJECT COSTS $39,000 _$7,500 $120,000 $145,000 $275,000 $530,000 TAX LEVY $0 $0 $0 $0 $100,000 $100,000 FARM LEASE $8,245 $8,403 $8,403 $8,560 $0 _ $0 PARK DEDICATION/PARK DEV FEES $25,000 $25,000 $25,000 $25,000 ' $25,000 $25,000 LIQUOR STORE FUNDING $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 YEAR END BALANCE $361,827 $462,730 $451,133 $414,693 $339,693 $9,693 FUNDING TARGETS PARK IMPROVEMENT FUND 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON Hu an Resources CIP This CIP tracks potential added staff positions needed due to work volumes and increased population. CITY OF FARMINGTON 2030 FINANCIAL PLAN NEW POSITIONS CIP POTENTIAL NEW POSITIONS 2020 2021 2022 2023 2024 2025 ADMINISTRATION ADMINISTATVIE SERVICES DIRECTOR $100,000 COMMUNITY DEVELOPMENT PLANNER 1 PUBLIC WORKS MAINTENANCE WORKER $100,000 FINANCE UTILITY BILLING FIREADMINISTRATIVE SUPPORT DUTY CREWS $50'000 ---_. HR/IT HR GENERALIST - COMMUNICATIONS SPECIALIST _ $50,000 PARKS/RECREATION _ PARK MAINTENANCE $100,000 POLICE PATROL OFFICER $100,000 CSO TOTAL _ $0 $0 $100,000 $200,000 $100,000 $100,000 4/14/2020 2030 Financial Plan Info CITY OF FARMINGTON City Tax Rate History and Dakota County Cities Comparison FARMINGTON CITY TAX RATE BY YEAR 80 70 66.82 65.87 63.09 61.45 60 59.23 58.76 57.16 55.7 54.37 50.73 49.2 50 40 30 20 10 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dalcota County City Tax Rates 80.00 70.00 60.00 aj Y f� x 50.00 40.00 30.00 20.00 2010 2011 2012 2013 2014 2015 2016 APPLE VALLEY 39.86 42.38 44.11 49.21 47.89 45.27 44.72 BURNSVILLE 38.56 42.59 43.21 47.02 46.67 44.79 46.52 CITY OF FARMINGTON Ut *1161ty CIP This CIP tracks the four utility funds. These funds stand on their own and are funded by fees paid by users. CITY OF FARMINGTON Utility Funds Current and Future Debt CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 VIS ® Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Liquor Store Profits DATE: July 13, 2020 INTRODUCTION At the last city council meeting, staff brought up the idea of possible use of liquor store profits for possible projects at the Schmitz-Maki Arena. The city council asked for additional information on this proposal. DISCUSSION The city had planned to complete a project at the Schmitz-Maki Arena to relocate the ice resurfacer to the northwest corner of the building. The city council rejected the bids received for the project earlier this year due to the high cost of the bids compared to the estimate. The city had set aside$300,000 in liquor store profits to pay for this project. After recent discussions amongst city staff and representatives from the Farmington Youth Hockey Association,the idea of using some of this money for projects inside of the arena instead of the relocation project have taken place. Attached for your review are lists from both city staff and the FYHA on possible projects to be considered. Once the city council has had a chance to review this information,we can discuss the pros and cons of switching priorities. BUDGET IMPACT Any projects decided upon will need to be within the scope of the available liquor store profits already in hand. ACTION REQUESTED Review the attached information, discuss the issue with city staff and provide guidance on how to best use these dollars. ATTACHMENTS: Type Description ❑ Cover Memo 2020 Liquor Store Profits Available ❑ Cover Memo Arena Project Ideas from Staff and FYHA Cash Balances-All Funds Business Object Subsid Account Unit Acctoun lary Description 12131/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12131/2019 6100-LIQUOR OPERATIONS 1010 CASH 771,957 402,755.49 398,605.30 449,959.79 460,043.00 411,451.99 6100-LIQUOR OPERATIONS 1010 01 CASH-COMMUNITY PROJECTS 227,437.07 246,759.61 202,562.42 312,720.86_-- 408,795.16- 6100-LIQUOR OPERATIONS 1010 02 CASH-CAPITAL IMPROVEMENTS 267,437.08 359,530.98 467,645.29 = --640;372.29736,446.89 771,957 897,629.64 1,004,895.89-—1;120,167.50 1,413,136.15 1,556,694.04 Liquor Operations-Community Investment Fund 408,795 Arena Project (408,795) Uncommitted as of 12-31-19 - H:k@H Driveliquor Stores\Community Investment Funds Available for Investment 6/9/2020 Schmitz-Maki Arena Capital Improvement Project Priorities Priority Order Improvement Item Estimate Cost #1 Compressor#1 Oil Separator $ 17,000 #2 Replace Evaporative Condenser $ 100,000 #3 Replace Compressor Relief Valves $ 5,500 #4 Replace Zamboni Batteries _ _ _ $ 9,500 95 Replace Rubber Tile Flooring(lobby,all team rooms&women's restroom) _ $ 80,000 #6 Replace Bleachers(estimated cost is being researched) #7 Replace Acoustic Tiles $ 20,000 #8 LED lighting $ 30,000 Total $ 262,000 David McKnight From: Andy Goblirsch <andy.goblirsch@farmingtonhockey.org> Sent: Thursday,June 18,2020 2:52 PM To: David McKnight Subject: Re: Meeting I would say the rubber floor replaced would be high on our list,being concrete is showing in spots(I know some of this has already been done). Removing the brown egg crate from the upper walls and maybe just painting it unless they needed to be replaced to understand the PA system. I would think if they are for sound absorption that would defeat our home ice advantage,as we want that building loud and paint would be cheaper. If you look at other rinks they have ark work that would show the culture of their programs. Maybe some large pictures of FYHA and the high School Teams in action. An example would be the Girls High School teams that went to state,maybe an on ice celebration?? It really all depends on how much we are looking to spend. Anything construction is going to cost a fortune right now, as construction companies can pick and choose what they are willing to do and for ridiculous costs. 1. Rubber Floor 2. Egg Crate 3. Culture Upgrades I'm not sure on the costs of any of these items but these would be our top 3. If my rambling doesn't make sense give me a call at 651-245-2833. Andy Goblirsch On Tue, Jun 16,2020 at 3:07 PM David McKnight<DMcKni Tiit @farniingtommii.g_o_v>wrote: The city council is interested in hearing from FYHA on any smaller projects(not locker rooms or second sheet of ice) you guys would recommend at the arena. If you can get me a list that would be great. Thanksl I I i i 1 I David McKnight City Administrator ' a Main:651-280-6800 i Direct:651-280-6801 I ®430 Third St. Farmington, MN 55024 CITY OF FARMINGTON I I 1 CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 U®euIrI11Yu O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: CARES Act Funding DATE: July 13, 2020 INTRODUCTION The city is scheduled to receive financial assistance under the CARES Act for coronavirus related expenses. Guidelines and frequently asked questions on the use of these funds has been developed by the United States Treasury Department. These guidelines have been updated at least twice. DISCUSSION The city has received its allocation of$1,723,785 of CARES Act dollars last week. City staff members including Teah Malecha,Jim Constantineau, Jennifer Gabbard, Peter Gilbertson, Adam Kienberger and I have been working on what city expenses are/will be eligible for reimbursement. The guidelines developed by the federal government are not as clear as we would like. To qualify for use of the CARES Act funding, expenses must satisfy three distinct criteria- 1. Necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019. 2. Costs not accounted for in the budget most recently approved as of March 27, 2020. 3. Incurred during the covered period. (For cities the period is March 1, 2020 through November 15, 2020) Eligible uses for the CARES Act dollars include- 1. Medical Expenses 2. Public Health 3. Payroll Expenses 4. Public Health Measures 5. Economic Support I have attached the presentation from a recent League of Minnesota Cities webcast on this topic. Teah Malecha and I both participated in the webcast. The attachment is long and includes the frequently asked questions from the US Treasury Department. I share this so you can see the complexity of determining what city costs are eligible. City staff has been in touch with our auditors for guidance on allowable expenditures. They are in the same boat as everyone else in trying to determine what is appropriate. Staff is also working with Dakota County and the Dakota County CDA on the issue of dollars that will be available to Farmington businesses from the$1.7 million allotment the city has received. We are looking for a simple process for businesses to go through to obtain some of these dollars. BUDGET IMPACT Any dollars received by the city for our expenses will be beneficial. ACTION REQUESTED This item is for information only. City staff wanted to share the work that is going on with this issue. ATTACHMENTS: Type Description D Cover Memo LMC CARES Presentation CARES Act Fundingm What to Expect - rr LEAGUE <:rS Lm MINNESOTA CITIES '..i #WeGotThis Series - ;;°>' _ -:' :'.1 ,: . _ r. ,ce:�echn�.c �ffi � . �es�;. . a e•: o : a W . _ , �:.::'::. ::�:.:t;:::::>:;;�,: Agenda • Opening remarks from Gary Carlson • Guidance and overview • Moderated Q&A with speakers 11lIMEMNON i f V MANAGEMENT AND BUDGET r < r r ,�`' rS2 i -,�,,, ._... -r..,.^.�:.> �... .,... .. �.;�.. „a:..:. :'. ...,� r'..".}} -d. ,tt S -:q� ,I,l jJff _q �,r'i..✓- '.i t r,^ > .:-J.z2<f'� r..�„`-4'�;-"�':9�..{�,�f' .r.�. �q,_ ,.T'�a-., .✓ ,: n _: � = .,.... ._,.. r -.,.r s,�: .rr�r � ,f":z-``..f...� n �!�Cr. a.. '�, �':� �m{ 4n ,. ;_ ..;_ .-. :v✓ rs �: �:�.,,5, k r,..r .:�!i-':.�: r"'.. .:�.� ,�.z „w.. .r 'y.��.w.'. .* :.�= �'.� r�,�: �,.�+'�,:;,� �,�t,.�:r�,,,r 'vn-.. _ CORONAVIRUS RELIEF FUND (CRF) GUIDANCE CONTENT AGENDA 01 INTRODUCTIONS & FUND OVERVIEWS 02 REQUESTING & ACCESSING FUNDS 03 REPORTING DEMONSTRATION CORONAVIRUS RELIEF FUND (CRF) GUIDANCE CONTENT AGENDA Local Government Support Team INTRODUCTIONS & CARES ACT / coaorvaweus 01 FUND OVERVIEWS RELIEF FUND (CRF) OVERVIEW • Eligible uses of CRF • FEMA Match 091 REQUESTING & ACCESSING FUNDS 03 REPORTING DEMONSTRATION Local Government Support LMS Association of Minnesota League of Minnesota Cities Minnesota Association of Counties I Townships 125 Charles Avenue 145 University Ave. W, Saint Paul, MN (800) 228-0296 St. Paul, MN 55103-2108 55103-2044 info@mntownships.org Main Line/Switchboard: 651-224-3344 Phone: (651) 281-1200 1 Toll-Free: FAX: (763) 497-3361 1 Office Fax: 651-224-6540 (800) 925-1122 Central Clearinghouse for Central Clearinghouse for Central Clearinghouse for Frequently Asked Questions Frequently Asked Questions Frequently Asked Questions Disbursement • • Certification MN DEPARTMENT REVENUE CRF Fund • and Reporting MMB/MN RESPONSE ACCOUNTABILITY 7 MIN COVID-19 RESPONSE ACCOUNTABILITY OFFICE - OVERVIEW Consistent with the State of Minnesota COVID-19 response effort, MMB has established a temporary COVID-19 Response Accountability Office (Office) led by Amy Jorgenson. The role of the Office, specific to local governments, is in relationship to the Coronavirus Relief Fund (CRF). The Office will play a key role in monitoring the state and local government expenditures and establishing reporting requirements. Materials have been compiled for local government reference and are available on the Office's COVID-19 Response Accountability Office website (https://mn.gov/mmb/covid-19-response-accountability-off ice/), and a portal will be created for report submission. 8 CARES ACT / CCIRCINAVIRUs RELIEF FUND (CRF) OVERVIEW COVID-19 ECONOMIC RELIEF The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed on March 27th, provides over $2 trillion in federal economic relief to protect the American people from the public health and economic impacts of COVID-19. The CARES Act provides assistance for American workers, families, and small businesses, and preserves jobs for American industries. CORONAVIRUS RELIEF FUND (CRF) Section 5001 of the CARES Act established the $150 billion Coronavirus Relief Fund (CRF), providing payments to State, Local, and Tribal governments navigating the impact of the COVID-19 outbreak. The CARES Act sets criteria that expenses must meet to be eligible for CRF funding. :.'--:".-:'.-:—'-!.!--:1- IJ Qualifying C - Necessary To qualify, expenses must satisfy three distinct elements. CESSARY -------- — -- — - - Necessary expenditures incurred due to the public health emergency with P \ ..f PENDITURES respect to the Coronavirus Disease 2019 (COVID-19) "NECESSARY": Expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments. "DUE TO": Expenditures must be used for actions taken to respond to the public health emergency; including expenditures incurred to respond directly to the emergency, as well as expenditures incurred to respond to second-order effects, such as by providing economic support to those suffering from employment or business interruptions due to COVI D-19-related business closures. Qualifying Costs 2 — Unaccounted-for Expenses To qualify, expenses must satisfy three distinct elements. Costs not accounted for in the _. budget most recently approved as NACCOUNTED-FOR of March 27 2020 ` ----------___-_ ~" "EXPENSES "NOT ACCOUNTED FOR": (a) the COST CANNOT LAWFULLY BE FUNDED using a line item, allotment, or allocation within that budget; or (b) the cost is for a SUBSTANTIALLY DIFFERENT use from any expected use of funds in such a line item, allotment, or allocation. "MOST RECENTLY APPROVED" budget: the enacted budget for the relevant fiscal period for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency. Qualifying Costs 3 — Incurred Di g vexed Period To qualify, expenses must satisfy three distinct elements. . <_ -~^ CURRED DURING COVERED PERIOD "INCURRED" - performance or delivery must occur during the covered period but payment of funds need not be made during that time (though it is generally expected that this will take place within 90 days of a cost being incurred.) "COVERED PERIOD" for cities and townships: March 1, 2020 — November 15, 2020. "COVERED PERIOD" for counties: March 1, 2020 - December 1, 2020. 2 COVID-19-related expenses of public hospitals, clinics, and similar facilities. • Expenses of establishing temporary public medical. facilities and other measures to increase COVID-19 treatment capacity, including related construction costs. • Costs of providing COVID-19 testing, including serological testing. • Emergency medical response expenses, including emergency medical transportation, related to COVID-19. • Expenses for establishing and operating public telemedicine capabilities for COVID-19 related treatment. 13 • Expenses for communication and enforcement of public health orders related to COVID-19. • Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment (PPE), for medical personnel, police officers, social workers, child protection services, and child welfare officers, direct service providers for older adults and individuals with disabilities in community settings, and other public health or safety workers connected to the COVID-19 public health emergency. 14 i Disinfection of public areas and other facilities, e.g., nursing homes. • Technical assistance to local authorities or other entities on mitigation of COVID-19 related threats to public health and safety. • Public safety measures undertaken in response to COVID-19. • Expenses for quarantining individuals. • Contact tracing. • Recovery planning projects or operating a recovery coordination office. 15 The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency, therefore a local government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise. • Use of payments from the Fund to cover payroll or benefits expenses of public employees are limited to those employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 16 Examples of types of covered employees, or classes of employees, include: • Public Safety, Public Health, Health Care, Human Services. • Similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. • Payroll and benefit costs associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency. • Payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19 related school closures. • Increased workers' compensation cost to the government due to the COVID-19 public health emergency. 17 ME The following are eligible expenses if to enable compliance with COVID-19 public health precautions: • Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations. • Expenses to facilitate distance learning, including technological improvements, in connection with school closings. • Expenses to improve telework capabilities for public employees. • Expenses of providing paid sick and paid family and medical leave to public employees. 8 The following are eligible expenses if to enable compliance with COVID-19 public health precautions: Maintaining state prisons and county jails, including sanitation and improvement of social distancing measures. Care for homeless populations provided to mitigate COVID-19 effects. • Ongoing expenses from decommissioned equipment placed back into use or an unplanned lease renewal in order to respond to the public health emergency to the extent the expenses were previously unbudgeted and are otherwise consistent with section 601(d) of the Social Security Act outlined in the Guidance. 19 t ' • Provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. • Local government payroll support program. • Unemployment insurance costs related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. • Consumer grant program to prevent eviction and assist in preventing homelessness be considered an eligible expense. • Employment and training programs for employees who have been furloughed due to the public health emergency, if the government determined that the costs of such employment and training programs would be necessary due to the public health emergency. 20 t. • Program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. • Grants to small businesses to reimburse the costs of business interruption caused by required closures. o Governments have discretion to determine what payments are necessary. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need. A grant to a small business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure. Any other COVID-19 related expenses reasonably necessary to the function of government that satisfy the Fund's eligibility criteria. 21 Local governments may transfer CRF funds to other local units of government. Local governments may also use Fund payments in the form of a grant or a short- term loan to support public or private business entities to the extent that the costs are necessary expenditures incurred due to the COVID-19 public health emergency. ..........:.- If you transfer any funds to other local units of government, or award grants or loans to business entities, you must ensure they follow the same federal requirements you are subject to, and you are responsible for subrecipient monitoring regulations under Uniform Grant Guidance If a local government has transferred funds to another entity, the Treasury Department would seek to recoup any funds used in a manner not consistent with the CARES Act from the government that received the CRF Fund payment directly from the State. 22 INELIGIBLE COSTS Expenses that DO NOT qualify for CRF: • Expenses for the State share of Medicaid. Replacement of lost revenues, including property tax relief. ;IELIGIBLE • expenses Payroll or benefits ex for employees whose work duties are not Y p '` } COSTS substantially dedicated to mitigating or responding to the COVID-19 public health emergency. • Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds. • Reimbursement to donors for donated items or services. • Workforce bonuses other than hazard pay or overtime. • Severance pay or legal settlements • Damages covered by insurance. • Per capital payments to residents of a particular jurisdiction without an assessment of individual need 23 USING CRF FOR FEMA,, WORKERS" 1 OTHER COSTS MIMI FEMA Public Assistance (PA) Funding Considerations: Any local government receiving aid under this distribution is expected to pay the nonfederal share of federal disaster (FEMA) assistance due to the COVID-19 public health peacetime emergency. Treasury guidance states that CRF may be used to pay for the nonfederal share, Workers' Compensation: Increased workers' compensation cost to the government due to the COVID-19 public health emergency is an eligible expense. A local government receiving aid under this distribution shall use the funds, if necessary, to pay for COVID-19 workers' compensation costs expended between April 7, 2020 and December 1, 2020 for employees in job classifications entitled to the presumption established by Laws 2020, chapter 72, section 1. Community Health Boards: As stated in the certification materials, local governments should use the funds to support Community Health Board COVID-19 efforts. 24 CORONAVIRUS RELIEF FUND (CRF) GUIDANCE CONTENT AGENDA 01 INTRODUCTIONS & FUND OVERVIEWS o2 REQUESTING & Registering to receive funds ACCESSING FUNDS F,,,,a Distribution Methodology 03 REPORTING DEMONSTRATION DISTRIBUTION METHODOLOGY TIMELY ACTION REQUIRED • Local Governments that DO NOT have a State of Minnesota State Wide Integrated Financial Tool (SWIFT) supplier ID will need to create one to receive a distribution of funds • Local Governments that DO NOT have a DUNS number will need to obtain one and register in the System for Award Management (SAM) within 30 days of receipt of CRF funds from the State. This is a requirement so the Federal Government can track the distribution of federal funds. • Instructions on how to create a SWIFT account, enroll in SAM, and obtain a DUNS number follow. 26 DISTRIBUTION METHODOLOGY - CERTIFICATION: SWIFT USER ID (VENDOR #) CERTIFICATION (AND DISBURSEMENT) REQUIRES SWIFT ID PROCESS TO REQUEST A SWIFT ID: [ONLY FOR LOCAL GOVERNMENTS THAT DO NOT HAVE A SWIFT SUPPLIER ID (VENDOR #)I, SWIFT Vendor Portal https://mn.gov/mmb/accounting/swift/`vendor-resources/ The State's accounting system is called State Wide Integrated Financial Tools (SWIFT). Vendors interact with the State through the Supplier Portal, which is part of SWIFT. The Supplier Portal allows vendors to login and view payment detail as well as maintain address and contact information related to their vendor record. Every individual and organization doing business with the State is considered a vendor. To view invoices or payments through the Supplier Portal, vendors must be registered with the State. If you are a new or prospective vendor, please navigate to the Supplier Portal Vendor Registration link to register as a vendor. Existing vendors can request a User ID to login to the Supplier Portal by clicking the Create a New User ID link. When a vendor registration is approved or the new User ID is approved, a confirmation is sent to the email address entered during the registration/creation process. If you have a SWIFT ID and don't know it, you cad contact efthelpIine.mmb@state.mn.us. DISTRIBUTION METHODOLOGY - CERTIFICATION: SAM ACCOUNT AND DUNS # _.. .. CERTIFICATION (AND DISBURSEMENT) REQUIRES A SAM USER ACCOUNT TO ENABLE TRACKING THE FLOW OF FUNDS. THIS NEEDS TO BE COMPLETED WITHIN 30 DAYS OF SUBMITTING THE CERTIFICATION. THE SAM USER ACCOUNT REQUIRES A DUN & BRADSTREET RECORD (DUNS #) [ONLY FOR LOCAL GOVERNMENTS THAT DO NOT HAVE A SAM USER ACCOUNT] PROCESS TO REQUEST A DUNS NUMBER DUN & BRADSTREET HTTPS:/ FEDGOV.DNB.COM/WEBFORM/ The System for Award Management (SAM) is an official website of the U.S. government. To register in SAM, at a minimum, you will need the following information: • Your DUNS Number, Legal Business Name, and Physical Address from your Dun & Bradstreet (D&B) record. • If you don't already have one, you can request a DUNS Number dun&bradstreet for FREE from D&B. ...... ,.,.. . • Your Taxpayer Identification Number (TIN) and Taxpayer Name associated with your TIN. Review your tax documents from the IRS (such as a 1099 or W-2 form) to find your Taxpayer Name. • Your bank's routing number, your bank account number, and " "' "°'";';; ';;: °; :;�:.":" " your bank account type, i.e. checking or savings, to set up Electronic Funds Transfer (EFT). 28 DISTRIBUTION • • • CERTIFICATION: SAM ACCOUNT PROCESS TO REQUEST A CREATE A SAM USER ACCOUNT [ONLY FOR LOCAL GOVERNMENTS THAT DO NOT HAVE A SAM USER ACCOUNT] SYSTEM FOR AWARD MANAGEMENT (SAM) https:/Isam.gov/SAM/pages/public/``index.isf o�oatr.00v i WAM" . :. Select [Log In] „...:.... ......l,......:....,....,., ,� . .......................:.. Choose [Create an Account] m...............................l.........�................,....,. _ ShMlsnsi g Enter your email address then to _...... .._...... .._ ....._..... . ......... .. ... t ■ PMA■ xmatro aro t i int uracrnu sat y nd 'm oN testa' tt� w. still] a ya nt rl d F61RrhefHx%'WJJWf4 1itn.,I)ts a a&"%ibluddf VA Imm t•,"'•'""",M i1��"'w'�'""•••• �t•�tn�•,y [Submit] t6111K!�f7dtttt I�yl+t44 JIWe1ws<t4 CS tn4 of �"'•� .Ct41t tv./.+w7Mm•m w...e.r.Mxsw cugMaeu r w.....a.rr...a.l..w..w..w.wr+w...w L1•�<ep•a..sd Getffi%Statted hNUMI [rnteACrnaNpitl RepldrWYr ....l..ew.t.,,.,r✓1I...w! .,. Euler your entail address A+ ki 'wW Ia.y1.e w.,t.eyNµwwlrYlu! 411p YNt Wer ® •,..- � .w....r •41._•..awd.v lF Y a... .. ... , ,• .... .......... ......r..,.,..�_..,.. �.... .... S. .,fi.. <:Ir Iii Select "Create A User ww www". Account" to view the FAQs wt. 1,<1.• 29 DISTRIBUTION METHODOLOGY CERTIFICATION FOR DISBURSEMENT OF FUNDS Form m~ st be submitted Local Governments by September 15, 2020 • Must be completed prior to Complete • Submit by e-mail to Certification disbursement of funds ! proptax.admin@state.mn.us OR •Spent funds are subject to federal single • Mall to Property Tax Division, Mail audit and certain provisions of the •Completed ONLY if accepting CRF funding Station 3340,St.Paul, MN 55146 uniform grant guidance • Requires SWIFT ID at submission;SAM account ID within 30 days of submission Local • CRF Certification Submit • Form Distributed rm Complete form ONLY if accepting • =� CRF disbursement. Not submitting the form signals local government non-acceptance of funds. Any local government that does not submit a certification form by September 15, 2020, forfeits the funds. 30 DISTRIBUTION METHODOLOGY DISTRIBUTION ALLOCATION The Department of Revenue is tasked with the monetary distribution to local governments according to the determined formula based on per capita as defined in statute. A completed Revenue CRF Certification form must be received by September 15, 2020. After this time, the Department of Revenue will disburse funds. Not submitting the form signals local government non-acceptance of funds • Funds will be distributed by means of electronic funds transfer (EFT) • Funds will be distributed by check via mail to local governments not equipped to receive EFT 31 • N METHODOLOGY - REr • OF 4) These distributions are federal funds (CFDA. 20.019) that come with federal requirements. Both guidance and requirements continue to evolve and communications will be provided on any changes. Key Points: • State, territorial, local, and Tribal governments receiving funds from Treasury should ensure that funds transferred to other entities, whether pursuant to a grant program or otherwise, are used in accordance with section 601(d) of the Social Security Act as implemented in the Guidance • Treasury Department would seek to recoup the funds used in a manner not consistent with section 601(d) of the Social Security Act Expenditures more than $750,000 in federal funds in this calendar year require a single audit from the Office of the State Auditor or private CPA firm. The audit period for these funds will be calendar year 2020 and the audit will need to be completed by September 30, 2021 for fiscal year ending December 31, 2020 auditors. 32 DISTRIBUTION METHODOLOGY REPORTING (2 OF 4) The MN COVID-19 Response Accountability Office plays a lead role in developing state agency and sub-recipients' (local governments) documentation and reporting requirements. Local governments (cities, counties, and townships) accepting CRF funds will be required to submit monthly, interim and final reports: Monthly: Report the spend status of allotted Coronavirus Relief Funds awarded by Minnesota Management and Budget. This requires reporting the total spent to date and the total received by the agency. IF ALL CRF FUNDS HAVE BEEN SPENT, THEN COMPLETE THE FINAL REPORT 33 DISTRIBUTION METHODOLOGY REPORTING (3 OF 4) Final: Report the spend status of allotted Coronavirus Relief Funds awarded by Minnesota Management and Budget. This requires reporting summary and detail information. • Summary: is the same as that for the monthly reporting on the total spent to date • Detail: Requires selection of the eligible CRF category, the amount spent and the date IF ALL CRF FUNDS HAVE BEEN SPENT, THEN COMPLETE THE FINAL REPORT 34 CORONAVIRUS RELIEF FUND (CRF) GUIDANCE CONTENT AGENDA O 1 INTRODUCTIONS & FUND OVERVIEWS O 2 REQUESTING & ACCESSING FUNDS .03 REPORTING Local Government Reporting DEMONSTRATION Process Workflows Sample Expenditure • r {701,/(.'ff"t!1'i(:'Cli I .X5,E-mail address of person filling out thefomi ' ) ------ ---— -— - ...__...._."...,__..._._.._._........._. I\e )(}! ( { Enter your answer — 6.What was the dollar amount of your local government's Coronavirus Relief Fund `Required (CFDA#20.019)allocation from the State of Minnesota? " 1,Name of Local Government" Tile value must be a number Enter your answer 7,of the arnount in question#6,what is the total dollar amount you have spent to date(actual expenditures)?" 2.SWIFT Supplier ID#" Tl,e value must be a number _.. .............. --- 3.Name and Title of Person Filling Out Form" 8.What is the date you are submitting this report? Enter your ansrmr Please input date in format of M/d/yyyy 4.Phone number of the person filling out the form ' nh,nit Enter your answer 36 • N METHODOLOGY - REPORT • The MN COVID-19 Response Accountability Office will create a portal to support an online, digital reporting process using Microsoft Forms and other methods. Al information will be available on our website: https://mn.goy/mmb/covid-19-response-accountability-office/ 37 References 1. Coronavirus Relief Fund, Guidance for State, Territorial, Local, and Tribal Governments, April 22, 2020 (updated June 30, 2020) (https://home.treasury.gov/system/files/136/Coronavirus- Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governmen ts.pdf } 2. Coronavirus Relief Fund Frequently Asked Questions, Updated June 24, 2020 (https://home.treasury. ov/system/files/136/Coronavirus-Relief-Fund-Frequently-Asked- uestions. .pdf ) 3R CORONAVIRUS RELIEF FUND (CRF) New GuicianceL uag - (6-30-20) Finally, the CARES Act provides that payments from the Fund may only be used to cover costs that were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 (the "covered period"). Putting this requirement together with the other provisions discussed above, section 601(d) may be summarized as providing that a State, local, or tribal government may use payments from the Fund only to cover previously unbudgeted costs of necessary expenditures incurred due to the COVID-19 public health emergency during the covered period. I The Guidance is available at https:Hhome.treasury.gov/system/files/1.36/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local- and-Tribal-Govern ments.pdf. CORONAVIRUS RELIEF FUND (CRF) New Gumance Initial guidance released on April 22, 2020, provided that the cost of an expenditure is incurred when the recipient has expended funds to cover the cost. Upon further consideration and informed by an understanding of State, local, and tribal government practices, Treasury is clarifying that for a cost to be considered to have been incurred, performance or delivery must occur during the covered period but payment of funds need not be made during that time (though it is generally expected that this will take place within 90 days of a cost being incurred). For instance, in the case of a lease of equipment or other property, irrespective of when payment occurs, the cost of a lease payment shall be considered to have been incurred for the period of the lease that is within the covered period, but not otherwise. Furthermore, in all cases it must be necessary that performance or delivery take place during the covered period. Thus the cost of a good or service received during the covered period will not be considered eligible under section 601(d) if there is no need for receipt until after the covered period has expired. 1 The Guidance is available at https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-GuIda nce-for-State-Territorial-Local- and-Tribal-Governments.pdf. 40 VM CORONAVIRUS RELIEF FUND (CRF) New Gumance L (6-30-20) Goods delivered in the covered period need not be used during the covered period in all cases. For example, the cost of a good that must be delivered in December in order to be available for use in January could be covered using payments from the Fund. Additionally, the cost of goods purchased in bulk and delivered during the covered period may be covered using payments from the Fund if a portion of the goods is ordered for use in the covered period, the bulk purchase is consistent with the recipient's usual procurement policies and practices, and it is impractical to track and record when the items were used. A recipient may use payments from the Fund to purchase a durable good that is to be used during the current period and in subsequent periods if the acquisition in the covered period was necessary due to the public health emergency. 1 The Guidance is available at https://home,treasury.gov/system/files/1.36/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local- and-Tribal-Governments.pdf. CORONAVIRUS RELIEF FUND (CRF) 0 M 5 U New Guouance Language (6-30-20) 4e Given that it is not always passible to estimate with precision when a good or service will be needed, the touchstone in assessing the determination of need for a good or service during the covered period will be reasonableness at the time delivery or performance was sought, e.g., the time of entry into a procurement contract specifying a time for delivery. Similarly, in recognition of the likelihood of supply chain disruptions and increased demand for certain goods and services during the COVID-19 public health emergency, if a recipient enters into a contract requiring the delivery of goods or performance of services by December 30, 2020, the failure of a vendor to complete delivery or services by December 30, 2020, will not affect the ability of the recipient to use payments from the Fund to cover the cost of such goods or services if the delay is due to circumstances beyond the recipient's control. 1 The Guidance is available at https://home.treasury.gov/system/files/136/coronavirus-Relief-Fund-Guidance-for-State-Territorial-i-ocal- and-Tribal-Governments.pdf. CORONAVIRUS RELIEF FUND (CRF) C* MU New a e Language ' This guidance applies in a like manner to costs of subrecipients. Thus, a grant or loan, for example, provided by a recipient using payments from the Fund must be used by the subrecipient only to purchase (or reimburse a purchase of) goods or services for which receipt both is needed within the covered period and occurs within the covered period. The direct recipient of payments from the Fund is ultimately responsible for compliance with this limitation on use of payments from the Fund. 1 The Guidance is available at https:Hhome.treasurV.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local- and-Tribal-Governments.pdf. CORONAVIRUS RELIEF FUND (CRF) r1 l Asked + Updated as of June 24, 2020 The following [PowerPoint slides] answers to frequently asked questions supplement Treasury's Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments, dated April 22, 2020. Amounts paid from the Fund are subject to the restrictions outlined in the Guidance and set forth in section 601(d) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). 1 The Guidance is available at https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local- and-Tribal-Governments.pdf. CORONAVIRUS RELIEF FUND (CRF) FrequentlyQuestions (Eligible Expenditures - continued - 1.) Updated as of June 24, 2020 . E !IGIBLE PENDITURES Are governments required to submit proposed expenditures to Treasury for approval? No. Governments are responsible for making determinations as to what expenditures are necessary due to the public health emergency with respect to COVID-19 and do not need to submit any proposed expenditures to Treasury. The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. How does a government determine whether payroll expenses for a given employee satisfy the "substantially dedicated"condition? The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise. as CORONAVIRUS RELIEF FUND (CRF) Frequently sQuestions' (Eligible Expenditures - c,rantirmea. - 2) Updated as of lune 24, 2020 The Guidance says that a cost was not accounted for in the most recently approved budget if the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a "substantially different use"for purposes of the Fund eligibility? Costs incurred for a "substantially different use" include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty's ordinary responsibilities. Note that a public function does not become a "substantially different use" merely because it is provided from a different location or through a different manner. For example, although developing online instruction capabilities may be a substantially different use of funds, online instruction itself is not a substantially different use of public funds than classroom instruction. _16 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible Expenditures continued - 3) Updated as of June 24, 2020 May a State receiving a payment transfer funds to a local government? Yes, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act. Such funds would be subject to recoupment by the Treasury Department if they have not been used in a manner consistent with section 601(d) of the Social Security Act. May a unit of local government receiving a Fund payment transfer funds to another unit of government? Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure. Is a Fund payment recipient required to transfer funds to a smaller, constituent unit of government within its borders? No. For example, a county recipient is not required to transfer funds to smaller cities within the county's borders. -17 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (iriiail<ile Expenditures a continuer] - 4) Updated as of June 24, 2020 Are recipients required to use other federal funds or seek reimbursement under other federal programs before using Fund payments to satisfy eligible expenses? No. Recipients may use Fund payments for any expenses eligible under section 601(d) of the Social Security Act outlined in the Guidance. Fund payments are not required to be used as the source of funding of last resort. However, as noted below, recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement. Are there prohibitions on combining a transaction supported with Fund payments with other CARES Act funding or COVID-19 relief Federal funding? Recipients will need to consider the applicable restrictions and limitations of such other sources of funding. In addition, expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds, are not eligible uses of Fund payments. Are States permitted to use Fund payments to support state unemployment insurance funds generally? To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID-19 public health emergency, a State may use Fund payments to make payments to its respective state unemployment insurance fund, separate and apart from such State's obligation to the unemployment insurance fund as an employer. This will permit States to use Fund payments to prevent expenses related to the public health emergency from causing their state unemployment insurance funds to become insolvent. 8 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (EligiExpendit"re - continued S) Updated as of June 24, 2020 <Ielwr Are recipients permitted to use Fund payments to pay for unemployment insurance costs incurred by the recipient as an employer? Yes, Fund payments may be used for unemployment insurance costs incurred by the recipient as an employer (for example, as a reimbursing employer) related to the COVI D-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. The Guidance states that the Fund may support a "broad range of uses"including payroll expenses for several classes of employees whose services are "substantially dedicated to mitigating or responding to the COVID-19 public health emergency." What are some examples of types of covered employees? The Guidance provides examples of broad classes of employees whose payroll expenses would be eligible expenses under the Fund. These classes of employees include public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Payroll and benefit costs associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency are also covered. Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19-related school closures. Please see the Guidance for a discussion of what is meant by an expense that was not accounted for in the budget most recently approved as of March 27, 2020. to CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible Expenditures e contintA ),'d - 6) Updated as of lune 24, 2020 el In some cases,first responders and critical health care workers that contract COVID-19 are eligible for workers'compensation coverage. Is the cost of this expanded workers compensation coverage eligible? Increased workers compensation cost to the government due to the COVID-19 public health emergency incurred during the period beginning March 1, 2020, and ending December 30, 2020, is an eligible expense. If a recipient would have decommissioned equipment or not renewed a lease on particular office space or equipment but decides to continue to use the equipment or to renew the lease in order to respond to the public health emergency, are the costs associated with continuing to operate the equipment or the ongoing lease payments eligible expenses? Yes. To the extent the expenses were previously unbudgeted and are otherwise consistent with section 601(d) of the Social Security Act outlined in the Guidance, such expenses would be eligible May recipients provide stipends to employees for eligible expenses (for example, a stipend to employees to improve telework capabilities) rather than require employees to incur the eligible cost and submit for reimbursement? Expenditures paid for with payments from the Fund must be limited to those that are necessary due to the public health emergency. As such, unless the government were to determine that providing assistance in the form of a stipend is an administrative necessity, the government should provide such assistance on a reimbursement basis to ensure as much as possible that funds are used to cover only eligible expenses. 50 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible Expcyndittir•es w corltintAed b 7) Updated as of June 24, 2020 May Fund payments be used for COVID-19 public health emergency recovery planning? Yes. Expenses associated with conducting a recovery planning project or operating a recovery coordination office would be eligible, if the expenses otherwise meet the criteria set forth in section 601(d) of the Social Security Act outlined in the Guidance. Are expenses associated with contact tracing eligible? Yes, expenses associated with contract tracing are eligible. To what extent may a government use Fund payments to support the operations of private hospitals? Governments may use Fund payments to support public or private hospitals to the extent that the costs are necessary expenditures incurred due to the COVID-19 public health emergency, but the form such assistance would take may differ. In particular, financial assistance to private hospitals could take the form of a grant or a short-term loan. May payments from the Fund be used to assist individuals with enrolling in a government benefit program for those who have been laid off due to COVID-19 and thereby lost health insurance? Yes. To the extent that the relevant government official determines that these expenses are necessary and they meet the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance, these expenses are eligible. 51 CORONAVIRUS RELIEF FUND (CRF) Frequently Questions (Eligible Expenditures - COk-Ainued -- g) Updated as of June 24, 2020 May recipients use Fund payments to facilitate livestock depopulation incurred by producers due to supply chain disruptions? Yes, to the extent these efforts are deemed necessary for public health reasons or as a form of economic support as a result of the COVID-19 health emergency. . Would providing a consumer grant program to prevent eviction and assist in preventing homelessness be considered an eligible expense? Yes, assuming that the recipient considers the grants to be a necessary expense incurred due to the COVID-19 public health emergency and the grants meet the other requirements for the use of Fund payments under section 601(d) of the Social Security Act outlined in the Guidance, As a general matter, providing assistance to recipients to enable them to meet property tax requirements would not be an eligible use of funds, but exceptions may be made in the case of assistance designed to prevent foreclosures. May recipients create a "payroll support program"for public employees? Use of payments from the Fund to cover payroll or benefits expenses of public employees are limited to those employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 52 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions; (Eligible Expenditures - continued - 9) Updated as of June 24, 2020 el May recipients use Fund payments to cover employment and training programs for employees that have been furloughed due to the public health emergency? Yes, this would be an eligible expense if the government determined that the costs of such employment and training programs would be necessary due to the public health emergency. May recipients use Fund payments to provide emergency financial assistance to individuals and families directly impacted by a loss of income due to the COVID-19 public health emergency? Yes, if a government determines such assistance to be a necessary expenditure. Such assistance could include, for example, a program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. Such assistance should be structured in a manner to ensure as much as possible, within the realm of what is administratively feasible, that such assistance is necessary. 3 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible xlaery des t,c�n inaaer - 10 4e Updated as of June 24, 2020 The Guidance provides that eligible expenditures may include expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. What is meant by a "small business,"and is the Guidance intended to refer only to expenditures to cover administrative expenses of such a grant program? Governments have discretion to determine what payments are necessary. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need of such assistance. The amount of a grant to a small business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure under section 601(d) of the Social Security Act, as outlined in the Guidance The Guidance provides that expenses associated with the provision of economic support in connection with the public health emergency, such as expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures, would constitute eligible expenditures of Fund payments. Would such expenditures be eligible in the absence of a stay-at-home order? Fund payments may be used for economic support in the absence of a stay-at-home order if such expenditures are determined by the government to be necessary. This may include, for example, a grant program to benefit small businesses that close voluntarily to promote social distancing measures or that are affected by decreased customer demand as a result of the COVID-19 public health emergency. il'� CORONAVIRUS RELIEF FUND (CRF) FrequentlyAsked Questions (Eligible Expenditures w continued a 11 Updated as of June 24, 2020 May Fund payments be used to assist impacted property owners with the payment of their property faxes? Fund payments may not be used for government revenue replacement, including the provision of assistance to meet tax obligations May Fund payments be used to replace foregone utility fees? if not, can Fund payments be used as a direct subsidy payment to all utility account holders? Fund payments may not be used for government revenue replacement, including the replacement of unpaid utility fees, Fund payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the recipient to be necessary expenditures incurred due to the COVID-19 public health emergency and meet the other criteria of section 601(d) of the Social Security Act outlined in the Guidance, For example, if determined to be a necessary expenditure, a government could provide grants to individuals facing economic hardship to allow them to pay their utility fees and thereby continue to receive essential services. CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible Expenditures - contirmed - 12 Updated as of June 24, 2020 A�e Could Fund payments be used for capital improvement projects that broadly provide potential economic development in a community? In general, no. If capital improvement projects are not necessary expenditures incurred due to the COVID-19 public health emergency, then f=und payments may not be used for such projects. However, Fund payments may be used for the expenses of, for example, establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity or improve mitigation measures, including related construction costs. The Guidance includes workforce bonuses as an example of ineligible expenses but provides that hazard pay would be eligible if otherwise determined to be a necessary expense. is there a specific definition of "hazard pay"? Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. �n CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible Expenditures - continued - :1 Updated as of June 241 2020 The Guidance provides that ineligible expenditures include "['p]ayroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency."Is this intended to relate only to public employees? Yes, This particular nonexclusive example of an ineligible expenditure relates to public employees. A recipient would not be permitted to pay for payroll or benefit expenses of private employees and any financial assistance (such as grants or short-term loans) to private employers are not subject to the restriction that the private employers' employees must be substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May counties pre-pay with CARES Act funds for expenses such as a one or two-year facility lease, such as to house staff hired in response to COVID-19? A government should not make prepayments on contracts using payments from the Fund to the extent that doing so would not be consistent with its ordinary course policies and procedures. Must a stay-at-home order or other public health mandate be in effect in order for a government to provide assistance to small businesses using payments from the Fund? No. The Guidance provides, as an example of an eligible use of payments from the Fund, expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. Such assistance may be provided using amounts received from the Fund in the absence of a requirement to close businesses if the relevant government determines that such expenditures are necessary in response to the public health emergency. 57 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligifile Expenditures continued - 1.11, Updated as of June 24, 2020 400 Should States receiving a payment transfer funds to local governments that did not receive payments directly from Treasury? Yes, provided that the transferred funds are used by the local government for eligible expenditures under the statute. To facilitate prompt distribution of Title V funds, the CARES Act authorized Treasury to make direct payments to local governments with populations in excess of 500,000, in amounts equal to 45% of the local government's per capita share of the statewide allocation. This statutory structure was based on a recognition that it is more administratively feasible to rely on States, rather than the federal government, to manage the transfer of funds to smaller local governments. Consistent with the needs of all local governments for funding to address the public health emergency, States should transfer funds to local governments with populations of 500,000 or less, using as a benchmark the per capita allocation formula that governs payments to larger local governments. This approach will ensure equitable treatment among local governments of all sizes. For example, a State received the minimum $1.25 billion allocation and had one county with a population over 500,000 that received $250 million directly. The State should distribute 45 percent of the $1 billion it received, or $450 million, to local governments within the State with a population of 500,000 or less. May a State impose restrictions on transfers of funds to local governments? Yes, to the extent that the restrictions facilitate the State's compliance with the requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance and other applicable requirements such as the Single Audit Act, discussed below. Other restrictions are not permissible. !if.; CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions {Eligible Expenditures - continued "' 15 Updated as of June 24, 2020 el If a recipient must issue tax anticipation notes (TANs) to make up for tax due date deferrals or revenue shortfalls, are the expenses associated with the issuance eligible uses of Fund payments? If a government determines that the issuance of TANs is necessary due to the COVID-19 public health emergency, the government may expend payments from the Fund on the accrued interest expense on TANs and unbudgeted administrative and transactional costs, such as necessary payments to advisors and underwriters, associated with the issuance of the TANs. May recipients use Fund payments to expand rural broadband capacity to assist with distance learning and telework? Such expenditures would only be permissible if they are necessary for the public health emergency. The cost of projects that would not be expected to increase capacity to a significant extent until the need for distance learning and telework have passed due to this public health emergency would not be necessary due to the public health emergency and thus would not be eligible uses of Fund payments, Are costs associated with increased solid waste capacity an eligible use of payments from the Fund? Yes, costs to address increase in solid waste as a result of the public health emergency, such as relates to the disposal of used personal protective equipment, would be an eligible expenditure. CORONAVIRUS RELIEF FUND (CRF) Frequently std (Eligible Expenditures - continued .. 145 Updated as of June 24, 2020 May payments from the Fund be used to cover across-the-board hazard pay for employees working during a state of emergency? No. The Guidance says that funding may be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Hazard pay is a form of payroll expense and is subject to this limitation, so Fund payments may only be used to cover hazard pay for such individuals. May Fund payments be used for expenditures related to the administration of Fund payments by a State, territorial, local, or Tribal government? Yes, if the administrative expenses represent an increase over previously budgeted amounts and are limited to what is necessary, For example, a State may expend Fund payments on necessary administrative expenses incurred with respect to a new grant program established to disburse amounts received from the Fund. 60 r CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible ExpenditIAVS - continued - 17 Updated as of June 24, 2020 May recipients use Fund payments to provide loans? Yes, if the loans otherwise qualify as eligible expenditures under section 601(d) of the Social Security Act as implemented by the Guidance. Any amounts repaid by the borrower before December 30, 2020, must be either returned to Treasury upon receipt by the unit of government providing the loan or used for another expense that qualifies as an eligible expenditure under section 601(d) of the Social Security Act, Any amounts not repaid by the borrower until after December 30, 2020, must be returned to Treasury upon receipt by the unit of government lending the funds. May Fund payments be used for expenditures necessary to prepare for a future COVID-19 outbreak? Fund payments may be used only for expenditures necessary to address the current COVID-19 public health emergency. For example, a State may spend Fund payments to create a reserve of personal protective equipment or develop increased intensive care unit capacity to support regions in its CORONAVIRUS RELIEF FUND (CRF) Frequentlysty (Eligible Expenditures - continued - 18 Updated as of June 24, 2020 May funds be used to satisfy non-federal matching requirements under the Stafford Act? Yes, payments from the Fund may be used to meet the non-federal matching requirements for Stafford Act assistance to the extent such matching requirements entail COVID-19-related costs that otherwise satisfy the Fund's eligibility criteria and the Stafford Act. Regardless of the use of Fund payments for such purposes, FEMA funding is still dependent on FEMA's determination of eligibility under the Stafford Act. Must a State, local, or tribal government require applications to be submitted by businesses or individuals before providing assistance using payments from the fund? Governments have discretion to determine how to tailor assistance programs they establish in response to the COVID-19 public health emergency. However, such a program should be structured in such a manner as will ensure that such assistance is determined to be necessary in response to the COVID-19 public health emergency and otherwise satisfies the requirements of the CARES Act and other applicable law. For example, a per capita payment to residents of a particular jurisdiction without an assessment of individual need would not be an appropriate use of payments from the Fund. �;z CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Quest-ions (Eligible Expenditures -• continued - 19 Updated as of June 24, 2020 May Fund payments be provided to non-profits for distribution to individuals in need of financial assistance, such as rent relief? Yes, non-profits may be used to distribute assistance. Regardless of how the assistance is structured, the financial assistance provided would have to be related to COVID-19. May recipients use Fund payments to remarket the recipient's convention facilities and tourism industry? Yes, if the costs of such remarketing satisfy the requirements of the CARES Act. Expenses incurred to publicize the resumption of activities and steps taken to ensure a safe experience may be needed due to the public health emergency. Expenses related to developing a long-term plan to reposition a recipient's convention and tourism industry and infrastructure would not be incurred due to the public health emergency and therefore may not be covered using payments from the Fund. U '60 CORONAVIRUS RELIEF FUND (CRF) Frequently Asked Questions (Eligible Expenditures - continued -- 21--)- Updated C)Updated as of June 24, 2020 May a State provide assistance to farmers and meat processors to expand capacity, such to cover overtime for USDA meat inspectors? If a State determines that expanding meat processing capacity, including by paying overtime to USDA meat inspectors, is a necessary expense incurred due to the public health emergency, such as if increased capacity is necessary to allow farmers and processors to donate meat to food banks, then such expenses are eligible expenses, provided that the expenses satisfy the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance. The guidance provides that funding may be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May Fund payments be used to cover such an employee's entire payroll cost or just the portion of time spent on mitigating or responding to the COVID-19 public health emergency? . As a matter of administrative convenience, the entire payroll cost of an employee whose time is substantially dedicated to mitigating or responding to the COVID-19 public health emergency is eligible, provided that such payroll costs are incurred by December 30, 2020. An employer may also track time spent by employees related to COVID-19 and apply Fund payments on that basis but would need to do so consistently within the relevant agency or department. CORONAVIRUS RELIEF FUND (CRF) 540 Frequently Asked Questions Updated as of June 24, 2020 ESTIONS RELATED TO .ADMINISTRATION OF FUND PAYMENTS Do governments have to return unspent funds to Treasury? Yes. Section 601(f)(2) of the Social Security Act, as added by section 5001(a) of the CARES Act, provides for recoupment by the Department of the Treasury of amounts received from the Fund that have not been used in a manner consistent with section-601(d) of the Social Security Act. If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury. What records must be kept by governments receiving payment? A government should keep records sufficient to demonstrate that the amount of Fund payments to the government has been used in accordance with section 601(d) of the Social Security Act. 65 CORONAVIRUS RELIEF FUND (CRF) Frequently (Adruin of F"nds sa continued - 2) Updated as of lune 24, 2020 May recipients deposit Fund payments into interest bearing accounts? Yes, provided that if recipients separately invest amounts received from the Fund, they must use the interest earned or other proceeds of these investments only to cover expenditures incurred in accordance with section 601(d) of the Social Security Act and the Guidance on eligible expenses. If a government deposits Fund payments in a government's general account, it may use those funds to meet immediate cash management needs provided that the full amount of the payment is used to cover necessary expenditures. Fund payments are not subject to the Cash Management Improvement Act of 1990, as amended. May governments retain assets purchased with payments from the Fund? Yes, if the purchase of the asset was consistent with the limitations on the eligible use of funds provided by section 601(d) of the Social Security Act. What rules apply to the proceeds of disposition or sale of assets acquired using payments from the Fund? If such assets are disposed of prior to December 30, 2020, the proceeds would be subject to the restrictions on the eligible use of payments from the Fund provided by section 601(d) of the Social Security Act. Au CORONAVIRUS RELIEF FUND (CRF) Frequently Questions (Admin of Funds ct-witintied — 3) Updated as of June 24, 2020 Are Fund payments to State, territorial, local, and tribal governments considered grants? No. Fund payments made by Treasury to State, territorial, local, and Tribal governments are not considered to be grants but are "other financial assistance" under 2 C.F.R. § 200.40. Are Fund payments considered federal financial assistance for purposes of the Single Audit Act? Yes, Fund payments are considered to be federal financial assistance subject to the Single Audit Act (31 U.S.C. §§ 7501- 7507) and the related provisions of the Uniform Guidance, 2 C.F.R. § 200.303 regarding internal controls, §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements, Are Fund payments subject to other requirements of the Uniform Guidance? Fund payments are subject to the following requirements in the Uniform Guidance (2 C.F.R. Part 200); 2 C.F.R. § 200.303 regarding internal controls, 2 C.F.R. §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. Is there a Catalog of Federal Domestic Assistance (CFDA) number assigned to the Fund? Yes. The CFDA number assigned to the Fund is 21.019. t;7 IftJCORONAVIRUS RELIEF FUND (CRF) F Questions (Admin of Funds- continued 4) Updated as of lune 24, 2020 el If a State transfers Fund payments to its political subdivisions, would the transferred funds count toward the subrecipients' total funding received from the federal government for purposes of the Single Audit Act? Yes. The Fund payments to subreciplents would count toward the threshold of the Single Audit Act and 2 C.F.R. part 200, subpart F re: audit requirements. Subrecipients are subject to a single audit or program-specific audit pursuant to 2 C.F.R. § 200.501.(a) when the subrecipients spend $750,000 or more in federal awards during their fiscal year. Are recipients permitted to use payments from the Fund to cover the expenses of an audit conducted under the Single Audit Act? Yes, such expenses would be eligible expenditures, subject to the limitations set forth in 2 C.F.R. § 200.425. If a government has transferred funds to another entity,from which entity would the Treasury Department seek to recoup the funds if they have not been used in a manner consistent with section 601(d) of the Social Security Act? The Treasury Department would seek to recoup the funds from the government that received the payment directly from the Treasury Department. State, territorial, local, and Tribal governments receiving funds from Treasury should ensure that funds transferred to other entities, whether pursuant to a grant program or otherwise, are used in accordance with section 601.(d) of the Social Security Act as implemented in the Guidance. fit; Mark calendars ! Wednesday, July 29 11 a.m. — 12 p.m. Part 2 webinar on CARES Act Funding from MMB LACLEAGUE ()I MINNESOTA CITIES