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HomeMy WebLinkAboutAgenda - 06-02-20; 6-d - Coronavirus Relief Funding Plan and Additional Emergency Small Business Grant Funds 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 2, 2020 Action Agenda Item No. 6-d SUBJECT: Coronavirus Relief Funding Plan and Additional Emergency Small Business Grant Funds DEPARTMENT(S): County Manager and Financial and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Bonnie Hammersley, (919) 245-2300 Travis Myren, (919) 245-2300 Gary Donaldson, (919) 245-2453 Paul Laughton, (919) 245-2152 PURPOSE: To approve: 1) the appropriation of $2,665,753 in Coronavirus Relief Funding (CRF) on a County-wide per capita basis; 2) the submittal of the County's CRF Plan by June 1, 2020; and 3) the appropriation of $410,000 in Article 46 Sales Tax Small Business Loan Funds for Emergency Funding to small businesses. BACKGROUND: The North Carolina General Assembly unanimously approved the Coronavirus Relief Funding (House Bill 1043) that was signed by the Governor on May 4, 2020. The CRF package includes relief measures related to public health and safety, education, small business assistance, and continuity of state government operations. The Orange County State-wide per capita share is $2,665,753 of the $150 million allocated to NC counties. House Bill 1043 does not appropriate any funds directly to a city or town, but instead delegates that funding decision to counties. At the May 19, 2020 Virtual Business Meeting, the BOCC approved the CRF funding allocation detailed in the table below based on a per capita allocation. Coronavirus Relief Per Capita Fund $ 2,665,753.00 Allocation ORANGE $ 1,546,136.74 58% CARRBORO $ 266,575.30 10% CHAPEL HILL $ 746,410.84 28% DURHAM $ - 0% HILLSBOROUGH $ 79,972.59 3% MEBANE $ 26,657.53 1% TOTAL $ 2,665,753.00 100% 2 COVID-19 Eligible Expenses: • Support COVID-19 related expenditure for public health staff and program costs, personal protective equipment (PPE), public safety staff expense, medical expense, overtime or mandatory pay, distance learning and teleworking requirements • Economic and Human Services support • Expenses must be incurred between March 1, 2020 — December 30, 2020 • Funds cannot be used to replace lost local government revenue The proposed County compiled CRF Funding Plan following requests from County departments is: Categories Planned Expenditures Public Health Expenses; PPEs, Disinfectants $570,000 Personnel Support $350,000 Human Services including Housing Assistance and $456,136 Food to vulnerable residents Telework and Information Technology $145,000 Economic Development $25,000 Tota 1 $1,546,136 CRF Reporting Requirements June 1, 2020 - Counties determine a funding plan Beginning October 1 - Submit Quarterly Reporting of expenditures to the State The Funding Plan categories due by June 1, 2020 are: 1) Medical expenses 2) Public health expenses 3) Payroll expenses 4) Expenses to facilitate compliance with COVID-19-related public health measures 5) Expenses associated with economic support including small businesses Emergency Small Business Grants Staff is separately proposing using $410,000 from Article 46 Sales Tax Small Business Program funds to provide Round 2 Emergency Grants to small businesses based on a financial review of businesses April 2019 and April 2020 revenue. Grant Program eligibility requirements: - Orange County based businesses - A business must have not received Federal CARES Act, State or local funds - Minimum of one year of operations - Provide a public benefit in the form of job creation and tax base increase - For-Profit business status - All applicants are required to have been in business for a minimum of one-year, hold applicable 2019 business privilege licenses, and be registered with appropriate legal entities such as the North Carolina Secretary of State or Orange County Register of Deeds office - Companies are not eligible if they have past-due tax liabilities or tax liens, delinquencies in Orange County property taxes, or were in bankruptcy (Corporate or Personal) prior to the pandemic 3 FINANCIAL IMPACT: The State has allocated $2,665,753 to the County for eligible COVID-19 expenses and the use of $410,000 of Article 46 Sales Tax Small Business Fund. There will be forthcoming Budget Amendments for both funding sources. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs, and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board approve the CRF Funding Plan for submittal to the State as stated herein, and approve the appropriation of $410,000 from Article 46 Sales Tax Small Business Loan Program funds for Emergency Small Business grants.