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RESOLUTION R-2021-63: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, APPROPRIATING CARES ACT REIMBURSEMENT FUNDING IN THE AMOUNT OF $6,525,000 RECEIVED FROM THE STATE OF OKLAHOMA FROM THE GENERAL FUND MISCELLANEOUS GRANT REIMBURSEMENTS ACCOUNT TO BE USED FOR IDENTIFIED HIGH PRIORITY PROJECTS.
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BACKGROUND: On March 27, 2020, the United States Federal Government enacted the $2,200,000,000,000 Coronavirus Aid, Relief and Economic Security (CARES) Act. Among the provisions of the CARES Act was financial relief to state and local governments negatively impacted by the Novel Coronavirus of 2019 (COVID-19). Funds were distributed to state governments for distribution, based on guidelines established by the Federal government.
On August 6, 2020, $250,000,000 was made available to Oklahoma cities through newly-established guidelines promulgated under Oklahoma’s Coronavirus Relief Fund, based on the population of the city. Approximately $9,600,000 has been made available to Norman based upon these new guidelines, to reimburse the City’s previous expenses related to response to COVID-19. On September 9th, $7,008,045 of this funding was received by the City from the Oklahoma Office of Management and Enterprise Services and deposited to the City’s General Fund. The guidelines for these reimbursements make the City of Norman’s total of $9.6 million broadly available for City purposes, based upon the direction of the City Council.
DISCUSSION: At the City Council virtual retreat meeting held on October 16th, the Council gave direction to several high priority projects for which some of the CARES Act funding should be used. Broadly speaking, these projects include the following:
• $4,800,000 for a Construction Supplement for a Senior Wellness Center and purchase of a permanent Community Service and Homeless Service Facility
• $575,000 for Visit Norman, Inc. to restore lost Room Tax revenues
• $500,000 for the Norman Arts Council to restore lost Room Tax revenues
• $465,000 to be allocated to the City’s General Fund
• $135,000 to be allocated to the City Net Revenue Stabilization (“Rainy Day”) Fund
• $50,000 to be allocated to Municipal COVID Service Providers such as Norman Regional Health System
As further reimbursements are received from the Oklahoma Office of Management and Enterprise Services, Council will consider further high priority uses for these CARES Act funds.
Based on Council’s direction, it is recommended that $6,525,000 be appropriated from the General Fund, Miscellaneous Grant Reimbursements (account 109-331346) to the following accounts:
NFST Fund, Senior Center, Construction (account 51793365-46101) - $4,800,000
Room Tax Fund, Organizational Services (account 23330243-44744) - $ 575,000
Room Tax Fund, Organizational Services (account 23730241-44741) - $ 500,000
City Manager, Other Business Services (account 10110110-44199) - $ 465,000
Rainy Day Fund, I/F Transfer-General Fund (account 119-372910) - $ 135,000
City Council, Organizational Services (account 10110101-44741) - $ 50,000
To implement these allocated funds, the Council may consider future service contracts or contract amendments with the agencies mentioned above to give direction to the agencies for the use of the funds distributed to them, within the stated purposes of the organizations.
RECOMMENDATION: It is recommended that the Resolution be adopted and the CARES Act funds be appropriated as directed by Council.