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Reserve Fund / COVID-19 Federal Relief Fund / Reimbursement

Posted on 06/09/2020

Over the course of the COVID-19 pandemic, the city has spent extraordinary sums of money that were not considered during the budget process for the 2019-20 fiscal year and for some expenses that may or may not be fully reimbursable by the Federal Emergency Management Agency (FEMA) or other sources. Most expenses that qualify for FEMA reimbursement are reimbursable up to 75% of the expense. Though most of the funding for the immediate COVID-19 response was provided in the form of a loan from the LADBS Permit Enterprise Fund, there were also significant sums of money drawn from the City's Reserve Fund, particularly in the waning weeks of FY 2019-20.With the passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the federal government has made a source of funds available that can be used to reimburse the city for its expenses which are not eligible under the emergency declaration adopted by FEMA, or for the 25% portion of the costs that are currently the city's responsibility.

WE THEREFORE MOVE that the Council INSTRUCT the CAO to identify appropriate reimbursements to the Reserve Fund from the COVID-19 Federal Relief Fund for COVID-19response costs the city has incurred which are either (a) within the category of expenses for which the city must cover 25 percent; or (b) for which the city is not eligible to be reimbursed, in an amount sufficient to cover the non-reimbursable portion of the funds which were drawn from the reserve Fund
WE FURTHER MOVE that the Council INSTRUCT the CAO to allocate that sum to replenish the Reserve Fund.