Sioux City leaders to begin requesting reimbursement from state for COVID-19

SIOUX CITY (KTIV) — This Monday Sioux City leaders will be looking to begin requesting reimbursement from the state for COVID-19.

In August, Iowa Gov. Kim Reynolds announced $125 million would be available in federal CARES Act funding for the state. Those funds would help to reimburse cities and county governments for their COVID-19 response expenses.

City Finance Director Teresa Fitch said the city was allocated up to nearly $1.97 million. That figure, she said, is based on the city’s population from the most recent Census figures.

Fitch says the city would be able to be reimbursed for 25% of the payroll costs for public safety employees.

“They have kind it in a sense easier for cities they’ve assumed and presumed that 25 percent of public safety was used and dedicated to mitigate our response to COVID. So they have allowed us to use 25% of that payroll within that period of time,” said Fitch.

According to city council homework, the city’s revenue for the 2021 Fiscal Year would increase by the same amount as the located funds.

“That revenue would offset any revenue shortages from sales tax or hotel/motel tax, if there was any shortage in those taxes. This revenue reimbursement would go to not only pay for any of the COVID related expenses that are not covered under FEMA,” said Fitch.

Fitch said the funds would also be used to help ensure the city has enough revenue to fulfill its 2021 fiscal year budget.

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