By 1808Delaware
During Monday’s meeting of the Finance Committee of Delaware City Council, the body considered a request by Finance Director Justin Nahvi related to the receipt of CARES Act monies to the City.
Nahvi first shared with Council an overview both of receipts to date as well as news of a potential third round of CARES funding that would, if approved, create a set of questions about those monies would be spent.
So far, the City of Delaware has received two rounds of CARES money. Round 1, received in July, amounted to $750,116; at that time, Nahvi submitted an ordinance to establish the Coronavirus Relief Fund, which included an appropriation to spend those dollars.
During the last week of August, the City received $414,552 in a second round of CARES funding. While the Finance Director was working on a second appropriation ordinance, City Manager Tom Homan requested that he hold off as the Senate was considering — and is still considering — a third round bill.
The new bill would provide funding to local communities not through the Local Government Fund distribution formula used in the first two, but by population. Delaware would receive $1,487,664 if that bill passes, Nahvi noted, for total CARES receipts of $2,652,332.
As deadlines to encumber all CARES money might come as early as mid-October, Nahvi asked the Committee if they would be supportive of a supplemental approrpation ordinance to encumber the entire $1.9 million.
Homan stated that if approved, he would be coming back to Council with recommendations on how to allocate that entire amount. There has already been discussion about a second round for the grant program he noted, and a third round amount would require some planning. While the encumbrance date could be stretched out to November, both Homan and Nahvi expressed support for Council to consider waiving the three reading requirement and passing the legislation at their September 28 meeting.
