Report to Mayor and City Council
Tuesday, August 04, 2020
Consent
SUBJECT:
Title
APPROVE A LETTER TO LOS ANGELES COUNTY REGARDING THE CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY (CARES) ACT REQUESTING CONSIDERATION FOR DIRECT FUNDING (CITY COUNCIL)
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I. SUMMARY
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress with bipartisan support and signed into law by President Trump on March 27th, 2020. No provisions were made to directly fund cities, like the City of Carson, with populations under 500,000. The new federal legislation currently under consideration to provide additional relief also has no provision to fund cities with populations under 500,000.
II. RECOMMENDATION
Recommendation
APPROVE a letter to Los Angeles County regarding the CARES Act.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The Coronavirus Aid, Relief and Economic Security (CARES) Act is over a $2 trillion dollar economic relief prioritized to protect the American people from the public health and economic impacts of COVID-19. Through the newly established $150 billion Coronavirus Relief Fund, the CARES Act provides for payments to State, Local, and Tribal governments navigating the impact of the COVID-19 outbreak.
Amounts paid to States, the District of Columbia, U.S. Territories, and eligible units of local government are based on population as provided in the CARES Act. A unit of local government eligible for receipt of direct payment includes a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000.
The City of Carson and the overwhelming majority of Los Angeles County Cities did not receive direct funding from the federal government from the CARES Act/Coronavirus Relief Fund. In contrast, the County of Los Angeles received $1.22 billion.
V. FISCAL IMPACT
The City’s General Fund has been negatively impacted by a loss of revenues from the economic slowdown brought on by the novel coronavirus and the increase in expenditures to contain the spread of the virus in the workplace and the community, and to provide needed assistance to our residents and businesses. The City is seeking to minimize this impact by obtaining reimbursements that would cover the expenditures associated with COVID-19. Costs for this pandemic have not been budgeted in FY 2020-21.
VI. EXHIBITS
1. Exhibit 1 - Letter of Request
1.
Prepared by: David C. Roberts, Jr., Assistant City Manager