The County of Loudoun accepted funding in the amount of $36,079,596 from the Federal Government’s Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  A portion of this funding is earmarked for the incorporated towns with allocations based upon proportional population.  The Town of Purcellville’s expected distribution is $891,932.  

To receive this funding distribution from Loudoun County, the Town must complete two critical steps.  The first is to authorize the payment from the County and certify the acceptance of the funding.  This was completed at the May 26, 2020 Town Council meeting.  The second requirement is to submit a high level spending plan to the County to include brief descriptions of intended funding use and how the expenditures will comply with the conditions of the funding, set forth by the U.S. Treasury.  Upon receipt of the Certification and Spending Plan, the County will review the spending plan within five business days and if approved, the Town may expect payment to be distributed within ten business days of receipt. 

The table below (also provided as Attachment 3) highlights recommended uses of the funds in alignment with the U.S. Treasury fund usage conditions and guidance.  The estimated amounts include actual expenses incurred since March 1, 2020 as well as those projected based on information and conditions at this time.  As the current state of affairs and the Town’s response surrounding the COVID-19 pandemic remains fluid, the resources allocated to some of the items noted  may need to be reassessed.

The CARES Act funding is limited by the defined permissible uses set forth by the U.S. Treasury and restricted to costs that:

·    are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19);

·   were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State and/or local government; and

·    were incurred between March 1, 2020, and December 30, 2020.

The guidance from the U.S. Treasury further describes the necessary expenditures incurred due to the public health emergency as expenditures that must be used for actions taken to respond to the public health emergency and per the statute, the expenditures using fund payments must be “necessary.”  Additionally, a cost is “incurred” when the responsible unit of government has expended funds to cover the cost.

The Town will be required to submit a mid-cycle report to the County by September 1, 2020.  This reporting will include an updated spending plan and a financial reporting of how funds have been spent to date with a detailed justification of compliance with the conditions of the funding.   A final report must be submitted by the Town no later than January 8, 2021.  This will be a final comprehensive financial reporting to include a summary of all expenditures and closing validation of compliance with funding conditions.   Any unspent funds, as of December 30, 2020, must be returned to Loudoun County.

The CARES Act funding is considered supplemental, and can only be used for expenditures associated with the response to COVID-19 not accounted for in the Town’s FY2020 budget.  As such, there is no negative fiscal impact. Budget Amendment, BA 20-0058, is attached to address the expected expenditures in FY20.  The balance of the CARES Act Funding will be addressed via a future appropriation for Fiscal Year 2021.

I move Town Council authorize the Town Manager to submit the Council-approved high level spending plan to Loudoun County for their approval and authorization to proceed.

I further move Town Council authorize the Town Manager to issue a Memorandum of Understanding with Loudoun County Economic Development Authority (EDA) allowing the Town to partner with Loudoun County Department of Economic Development (DED) and EDA for the administration and certification of local grant applications and the distribution of funds to the selected grantees on behalf of the Town.

I further move Town Council approve BA 20-0058 to appropriate the Town’s allocation of the federal CARES Act Coronavirus Relief Funds for Fiscal Year 2020.