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Recommended Spending Plan for CARES Act Funding — <br />Local Government Coronavirus Relief Reserve <br />Executive Summary <br />On March 27, 2020, Congress adopted and President Trump signed the Coronavirus Aid, Relief <br />and Economic Security Act — or CARES Act. Included in the package was $150 billion in aid to <br />state and local governments. Of that amount, $4 billion was allocated to North Carolina as a <br />Coronavirus Relief Fund. <br />Subsequently, a $300 million local government reserve (Local Government Coronavirus Relief <br />Reserve) was established through N.C. Session Law 2020 -4 for the purpose of assisting local <br />governments with expenses incurred in responding to the coronavirus. New Hanover County <br />has received allocations totaling $8,615,592 from this reserve, of which a minimum of 25 <br />percent must be transferred to municipalities within the county per Session Law 2020 -80. <br />Below is staff's recommendation for using the funds. The original plan was approved by the <br />Board on May 18, 2020, and is reflective of the funding appropriated in Session Law 2020 -4. <br />The revised amounts below are inclusive of the additional funding appropriated in Session Law <br />2020 -80 and also reflect certain changes in spending needs. <br />Direct expenses <br />Original Revised <br />$954,951 $288,283 <br />The original amount included county expenditures through May 14 for overtime and <br />equipment, including PPE, testing supplies and teleworking support, to respond to the <br />coronavirus. It also included $25,000 for the county's share of sheltering vulnerable <br />populations. Based on revised guidance of the NC Pandemic Recovery Office (NC PRO), the <br />county will now request reimbursement from FEMA for PPE and overtime, leaving a balance of <br />$288,283 in previously incurred direct expenses. <br />Original Revised <br />Payroll for substantially changed job duties $720,000 $2,700,000 <br />The original amount included estimated payroll for substantially changed job duties ($675,000) <br />and estimated future county overtime expenditures for COVID -19 related work ($45,000). <br />Reimbursement for overtime will now be requested through FEMA, while estimated payroll for <br />substantially changed job duties has increased as COVID -19 response efforts continue. <br />Original Revised <br />Small business grant program $1,300,000 $1,300,000 <br />In June 2020, the county launched an economic incentive grant program for small businesses <br />adversely impacted by COVID-19. Eligible expenditures included the hiring or rehiring of staff <br />disrupted by the pandemic and costs associated with public hygiene and social distancing <br />Board of Commissioners - August 10, 2020 <br />ITEM: 8 - 1 - 1 <br />