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COVID-19 Emergency Response / Building and Safety Permit Enterprise Fund / Loan

Posted on 05/11/2020

On March 17, 2020, Council adopted a motion to transfer $20 million from the Reserve Fund to the General City Purposes Fund under a new account entitled "COVID-19 Emergency Response" to provide additional funding for City departments to respond to theCOVID-19 pandemic (CF20-0147-S46]. In accordance with the Council action, the City Administrative Officer is authorized to expend these funds at the direction of the Mayor. The costs of the City response will exceed the $20 million allocation and an additional appropriation will be required. The Mayor's Office has identified the use of the Building and Safety Building Permit Enterprise Fund as a potential source to provide a $50 million loan for the City's emergency response. It is anticipated the loan will be repaid as soon as Fiscal Year 2020-21 by the General Fund and/or State and federal funds for COVID-19 response.

The Council previously adopted a resolution authorizing the Mayor to transfer up to $1million in funding pursuant to Charter Section 340 (C.F. 20-0147-S5). Because the requested loan exceeds this threshold, Council action is required to effectuate the loan to continue the Citywide response efforts.

I THEREFORE MOVE that Council authorize the Controller to transfer a $50 million appropriation from Fund 48R, Building and Safety Permit Enterprise Fund, Department 08, Account 08S204, Reserve for Future Cost, to Fund 100, Department 56, Account 000955, COVID-19 Emergency Response, with the understanding that these funds are a temporary loan to be repaid from future General Fund and/or State and federal funds for COVID-19 response.