BACKGROUND

Collin County has received federal funding under the Coronavirus Aid, Relief, and Economic Security Act (hereinafter “CARES ACT”) to address and respond to the effects of the COVID-19 emergency. Assisting municipalities within the County in recovering their costs directly incurred in responding to the COVID-19 emergency is a legitimate and lawful use of the CARES ACT funding, including the cost of public safety employees and those who directly support such employees in public safety departments.

OVERVIEW

The City may use its Municipal Funds for reimbursing itself for COVID-19 expenditures already paid and incurred, and for expenditures to assist it with its ongoing responses to COVID-19 as detailed in the CARES ACT, the Direct Costs Program and this Agreement. Municipal Funds may be used for all expenditures that municipalities are eligible to recover under the CARES ACT as described under said Act and the U.S. Department of the Treasury’s Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments as applies to municipalities. Payments for the performance of governmental functions or services shall be made from current revenues available to the paying party.

On December 14, 2020, the Collin County Commissioners Court unanimously approved a court order to provide additional funds to certain municipalities within Collin County for reimbursement of public safety payroll expenditures.  Collin County designated an additional $270,491.43 of the CARES Act funds it received to be distributed to the City of Sachse. Funds were allocated to each municipality within Collin County (with the exception of the City of Dallas, which received its own allotment of CARES Act funding) by population size.  This additional CARES Act distribution is only eligible for reimbursement for COVID-19 expenditures already paid and incurred related to public safety payroll, which includes, but is not limited to, police officers, fire marshals, emergency management, firefighters, emergency medical responders, correctional and detention officers, environmental health officers, and those who directly support such employees such as dispatchers and supervisory personnel.

POLICY CONSIDERATIONS

Each municipality receiving a share of these funds shall deposit them into a special segregated account created by each municipality solely for holding and dispersing the Municipal Funds. This account must be interest-bearing and similarly insured as the municipality’s other funds.

RECOMMENDATION

Approve the Interlocal Agreement between the City of Sachse and Collin County under the County's Emergency Program for recovery of direct public safety costs expended by municipalities located in Collin County to address and respond to COVID-19.