CARES ACT Coronavirus Relief Fund $118,956,278.90
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Strategic Plan Alignment Goal 6. Set the Standard for Sound Governance and Fiscal Management • 6.6 Ensure continued financial stability and accountability through sound financial management, budgeting and reporting
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Agenda • Requested Council action
• Brief overview • Recommended uses of Coronavirus Relief Funds • Public health and safety response • Community and economic support/recovery programs 4
Requested Council Action Approve the appropriation of $118,956,278.90 from the Coronavirus Relief Fund in accordance with the requirements stipulated by the CARES Act and federal guidelines: 1. Are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19); 2. 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 or government; and 3. Were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. 5
CARES Act - Coronavirus Relief Fund • March 27, 2020 the federal government enacted the CARES Act • The CARES Act established the Coronavirus Relief Fund • $150 billion was appropriated to address the economic fallout caused by the pandemic • On April 22nd, recipients received initial guidance related to funding • On April 23rd, the City of El Paso received $118,956,278 • On May 4th, additional FAQ’s provided to recipients 6
Financial Cross-Functional Team • Utilizing various sources of information for guidance • Review information released daily • Brainstormed with all departments on current City needs • Maintain communication with departments • Expedite application process for various funding opportunities • Coordinating processes for expense tracking 7
Preparing for a Long-Term Response • Possible waves of outbreak • Possible hospital surges • Potential future Shelter-in-Place • Continued impact of financial crisis
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Recommended Allocations Description
Amount
Public Health and Safety Response
$84.2 million
Community Response + Recovery Programs
$16.4 million
Economic Response + Recovery Programs
$18.4 million
Total
$119 million
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Public Health & Safety Response
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Public Health & Safety Response Programs • Testing • Contact tracing and epidemiology • Education • Prevention • Compliance Total Investment : $84.2 million 11
Testing – Increase & Expand • Department of Public Health Laboratory - Identify a New Facility and additional testing options • Partnership with UMC on rural testing
• Partnership with UTEP on COVID Laboratory Expansion • Drive Through Locations • Private Testing Locations 12
Contact Tracing & Epidemiology • Increase Staffing through:* • Department of Public Health • Fire Department • Texas Tech • Identify additional resources • Work with State on Epidemiology and Contact Tracing App • Expand to a new facility for additional Epidemiologist / Contact Tracers / Call Center 13
*CARES Act Funding allows furloughed employees to be reassigned to COVID-19 response positions
Education – Expand Outreach • Continue education session on disinfecting facilities
• Wearing personal protective equipment (i.e. masks, gloves) • Importance of social distancing • Testing availability • Employment and training programs for furloughed employees
• Add additional vehicles and personnel to assist with efforts 14
Prevention & Treatment • Robust approach: • COVID-19 Human Vaccine • Decontamination of facilities • Ensure availability of Personal Protective equipment • Maintain social-distancing
• Compliance • Cover existing and future costs for compliance efforts • Continue to ensure that all directives are appropriately enforced 15
Through satellite medical facilities and decontamination units
Community & Economic Support & Recovery
Programs
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An informed approach…
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• Vulnerable Population Task Force
• Family Resilience Center Steering Committee
• Fair Housing Task Force
• NCDA Nationwide Network Survey
• Community Wide Service Provider Needs Assessment
• Global Resilient City Network Focus Group
• UTEP Student / Researcher Roundtable
• Texas Housing Network Focus Group
• Hope Border Institute Roundtable
• Individual Stakeholder/Partner Interviews
• Funders Roundtable
• Federal Reserve Research • Social Service Provider Trend Data
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COMMUNITY
SERVICE PROVIDERS
PHILANTHROPY
Educators, Researchers, Students, Residents
Homeless, Childcare, Transitional Living, Mental and Clinical Health
Foundations and Other Granting Agencies
Community Response + Recovery Housing + Basic Needs: $ 11,321,779 • • • • • •
Rental Assistance Utility Assistance (households) Mortgage Assistance Rapid Rehousing Food Security Community Assistance Fund
Livelihood + Employment: $ 5,050,000 • Microenterprise Support • Independent Contractor Support • Expanded Digital Access for Vulnerable Populations
Total Investment : $16.4 million 18
Community Response + Recovery CDBG and ESG Funding Housing + Basic Needs: $ 4,117,899 • Rental Assistance • Rapid Rehousing • Food Security • Domestic Violence + Abuse • Homeless Shelter + Support Livelihood + Employment: $ 500,000 • Credit Counseling + Bankability
Total Investment : $4.6 million 19
Economic Response + Recovery Outreach Results and Key Takeaways El Paso and Hispanic Chamber Surveys MOST PRESSING CONCERNS 2 1 Financial Assistance
Information on Resources/News
*Based on
Most Critical Needs Based on 337 responses Source: El Paso Hispanic Chamber of Commerce, El Paso Chamber
3 Reopen the Economy
KEY TAKEAWAYS • According to a survey conducted by the Hispanic Chamber: • Nearly half of respondents employ less than 10 people • Nearly two-thirds cannot remain in operation for more than 6 months • About two-thirds applied for an SBA, EIDL, PPP loan • According to a second survey, payroll was overwhelmingly identified as the primary use of financing should it be received, followed by other monthly expenses Average 372 responses between March 17-April 6 Source: El Paso Hispanic Chamber of Commerce
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Economic Response + Recovery Outreach Results and Key Takeaways Lender Roundtable and Active Agreement Portfolio Active Agreement Portfolio • 76% of portfolio was reached • Top 3 Pressing Concerns: • Lease and/or debt payments • Making payroll • Product demand • Top Business Needs: • Information on available resources • Financial assistance such as grants or tax relief
Lenders’ Roundtable • May 5th roundtable included 7 lenders ranging in size • Key Takeaways: • Due to difficulty accessing traditional lending, micro and small businesses need additional financial resources • City should fill the gap as a central repository providing information on resources available
City/County/Liftfund Partnership • Of the 618 applications received, nearly three-fourths did not meet program criteria • Primary reason was lack of/poor credit history • Nearly 178 million was requested in financing, however, only $1.2 million was provided through the program • Key Takeaways: • Additional financial assistance is needed • Target those unable to meet traditional lending requirements
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Economic Response + Recovery Supporting Businesses: Target specific sectors and business sizes Goal
Strategy
Action
(supported by CARES Act Funding)
Improve liquidity and cash flow ($10.0M)
Ease financial obligations (rent, utilities, supplies, inventory)
Expand grant program for small businesses
Provide information on available financial assistance
Develop clearing house/central repository to share information on existing and future resources
Invigorate demand ($0.6M)
Target affected sectors and SMBs
Marketing campaign partnerships (Main Street America, Support Local, etc.)
Shift attention to demand spikes and changing purchasing channels
Technical training and support for e-Commerce, website development, and use of social media platforms
Support business mitigation measures
Increase access to remote work equipment/digital access
Restart and continue operations ($7.8M)
Increase access to PPE, supplies and physical alterations
Reduce barriers to operation and expansion
Total Investment : $18.4 million
Business licensing and permit fee waiver program
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Requested Council Action Approve the appropriation of $118,956,278.90 from the Coronavirus Relief Fund in accordance with the requirements stipulated by the CARES Act and federal guidelines: 1. Are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19); 2. 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 or government; and 3. Were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. 23
Questions ?