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Substitute Resolution RS2020-496

A resolution requesting the Director of Finance to assess whether subsidy funds appropriated in the Fiscal Years 2019-2020 or 2020-2021 Metropolitan Government Operating Budget to the Metropolitan Hospital Authority were redundant to funds provided by federal CARES Act and other COVID-19-related funding sources and to submit recommendations based upon this assessment to the Metropolitan Council on or before December 31, 2020.

WHEREAS, on June 15, 2020, the Metropolitan Hospital Authority received $9.4 million in federal CARES Act dollars through the U.S. Department of Health and Human Services (HHS) to address COVID-19 related expenses and net revenue losses associated with the COVID-19 pandemic; and

WHEREAS, the guidance from HHS regarding the use of CARES Act funds allocated for health care providers indicates that the funds can be used to cover lost revenue so that providers can respond to the coronavirus public health emergency by maintaining healthcare delivery capacity, such as using Provider Relief Fund payments to cover:

• Employee or contractor payroll
• Employee health insurance
• Rent or mortgage payments
• Equipment lease payments
• Electronic health record licensing fees; and

WHEREAS, the Metropolitan Council was not made aware of this HHS CARES Act funding until after the Fiscal Year 2020-2021 Operating Budget Ordinance (Substitute Ordinance No. BL2020-286, as amended), which included a subsidy for the Hospital Authority in the amount of $43,112,100, was approved by the Council on June 16, 2020; and

WHEREAS, the enactment of Substitute Ordinance No. BL2020-286, as amended, necessitated an increase in the ad valorem property tax levy in the amount of $1.066 per $100 of assessed value, an increase in excess of 34% over the Fiscal Year 2019-2020 tax levy; and

WHEREAS, the Metropolitan Hospital Authority is currently undergoing the annual external audit of financial statements through an independent public accounting firm, and completion of said audit is anticipated as early as October 31, 2020; and

WHEREAS, despite not being informed of the HHS CARES Act funding until after completion of the budget process, the Metro Finance Department is working with the Metropolitan Hospital Authority to assure equitable allocation of these funds for the benefit of community, to diminish the risk of duplication with other funding measures, and to prevent the non-use of funds resulting in their return to the federal government.

WHEREAS, as part of its responsibility as a steward of taxpayer dollars, the Metropolitan Council should ensure that all CARES Act and other COVID-19 relief funding is put to use to the greatest extent possible to relieve the burden on the taxpayers during a time when so many of our residents are out of work.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. The Council of Metropolitan Nashville and Davidson County hereby requests that the Metropolitan Hospital Authority clearly disclose in the footnotes to the financial statements the amount of CARES Act funding earned in Fiscal Year 2019-2020 related to revenue lost and direct payroll and other expenses incurred as a result of COVID-19, and that, following submission of the annual audit report, the Metropolitan Director of Finance to assess whether subsidy funds appropriated in the Fiscal Year 2019-2020 or 2020-2021 Metropolitan Government Operating Budget to the Metropolitan Hospital Authority were redundant to funds provided by federal CARES Act and other COVID-19-related funding sources.

Section 2. The Metropolitan Council further goes on record as requesting that the Metropolitan Director of Finance submit a report of his recommendations, based upon this assessment, to the Metropolitan Council on or before December 31, 2020.

Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsor(s)

Jonathan Hall

Legislative History

Substitute acceptedSeptember 1, 2020

FailedSeptember 1, 2020

Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615-862-6770.

Last Modified: 09/04/2020 2:07 PM