Stanislaus County could give millions of dollars in CARES Act money to its cities
Stanislaus County could spread $15 million in CARES Act money among its nine cities to help with costs of dealing with the coronavirus pandemic.
Modesto would get $7.5 million in assistance, though there are limits on how the federal money can be used. The county Board of Supervisors will consider approving the population-based allocations at its meeting Tuesday.
The county’s proposed plan for spending some $96 million received through the CARES Act includes $30 million in “community support” — the $15 million for the nine cities and another $15 million for business revitalization and economic development.
Another $30 million would reimburse county departments for costs and financial impacts tied to the COVID-19 emergency. The county also would salt away $36 million for contingencies.
Kristin Olsen, chairwoman of the Board of Supervisors, said she’s in favor of providing the assistance for cities. “It is important that the county and cities continue to work collaboratively through the economic recovery phase of COVID-19,” Olsen wrote in an email Friday. “I want to do everything we can as a county to support our cities, local businesses, nonprofits and residents as we all work to bounce back.”
According to a county staff report, cities will need to show their expenses are eligible for reimbursement under federal guidelines. The CARES Act signed by President Trump on March 27 provided $2 trillion in economic relief including $150 billion for state, local and tribal governments, with $15.3 billion allocated to California.
Stanislaus was eligible for a share because its population is more than 500,000. Modesto, with 222,335 residents, missed out on the federal stimulus but will likely get an allocation from the county.
“We have not yet fully digested how it can be used,” Modesto City Manager Joe Lopez said. “But we are grateful to the county that it is considering aiding its cities during the pandemic.”
Under the county proposal, the eight other cities will receive allocations based on population: $2.51 million for Turlock, $1.64 million for Ceres, $845,000 for Riverbank, $779,000 for Patterson, $776,000 for Oakdale, $402,000 for Newman, $300,000 for Waterford and $246,000 for Hughson.
Turlock City Manager Toby Wells said any money to help with the pandemic is welcome, but Turlock officials need to know more about how the funding will work.
“Any allocation from Stanislaus County will be a significant help,” said City Manager Tom Westbrook of Ceres.
CARES Act spending has to meet guidelines
The CARES Act money cannot be used to make up for lost tax revenue. Cities are facing budget gaps from losing sales tax when large retail stores were closed by Gov. Gavin Newsom’s shelter in place order and people stopped buying cars.
The CARES funding can be used to cover pandemic-related expenses, such as employee overtime and the purchase of protective equipment for employees. It can also help with “second-order effects” of the public health emergency, “such as by providing economic support to those suffering from employment or business interruptions due to COVID-19-related business closures,” according to U.S. Treasury Department guidance.
As an example, Stanislaus County created a small business grant program in which the county used $3 million of CARES money to provide up to $10,000 grants to help businesses cover rent, payroll and other operating expenses.
California’s proposed budget for the fiscal year starting July 1 allocates some of the state’s CARES money to cities. Lopez said he believes Modesto could receive about $2.7 million through the state’s current proposal.
The county is making arrangements to lease 22,300 square feet of space at 4701 Stoddard Road for housing its infectious disease contract tracing team and other public health staff. The county’s 35-member contact tracing team was moved to the Salida library in April when a free coronavirus testing site was launched there.
But the Salida building lacks the space for additions to the contact tracing unit and other health services staff. The tracing team is expected to grow to 82, a combination of full-time and part-time members, to meet a state requirement for reopening businesses.
The county’s CARES Act funding could pay for the $373,584 first-year lease for the Stoddard Road facility, which increases to $386,976 the second year.
The same property provides space for American Medical Response and Kaiser Permanente.
The Board of Supervisors will meet at 9 a.m. Tuesday at Tenth Street Place in Modesto. Board meetings are closed to in-person attendance during the coronavirus emergency but are broadcast on local cable television. To make arrangements to comment on an agenda item, call (209) 525-4494.
This story was originally published June 7, 2020 at 5:00 AM.
