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County staff recommends applying for FEMA Community Disaster Loan; board asked for permission to file application
Summary
County staff briefed commissioners on the FEMA Community Disaster Loan: up to 25% of operating budget (max $5 million), low example interest rate cited and the loan can be drawn as needed. Staff asked for permission to submit the application; acceptance of any draw would require a later formal approval.
County staff presented the FEMA Community Disaster Loan (CDL) as a financing tool for municipalities facing post-disaster revenue shortfalls.
The presenter explained the program’s structure: eligibility is calculated as a percentage of operating budget (staff cited 25% up to a $5,000,000 cap), the loan is typically a five-year note that can be extended, and borrowers draw down funds as needed rather than receiving an upfront lump sum. "We do feel like that we will qualify for the full $5,000,000," the presenter said while urging the board to authorize filing an application so the county could preserve an option to draw funds later if required.
Staff said the loan is intended to cover operational costs — salaries, utilities and ordinary operating expenses — if disaster-driven revenue declines persist. They noted that many jurisdictions that undertook similar loans since the cited benchmark date saw eventual forgiveness in a high percentage of cases, though staff said they did not have the complete forgiveness criteria and recommended caution.
County legal counsel and staff described the two-step process: (1) the board must authorize staff to submit the initial application and revenue projections to FEMA, and (2) if and when the loan is approved, the board would later need to vote whether to accept and draw funds. Staff highlighted that applying does not obligate the county to draw funds and that having the loan in place can preserve reserve balances while the county’s revenues recover.
Commissioners discussed timing, the effect on reserves, and whether reimbursement tracks with FEMA project timelines. No final draw decision was made at the meeting; staff asked the board for permission to proceed with the application paperwork so eligibility and projected losses could be formally assessed.
Ending: The board agreed to consider an application; staff will complete the application questionnaire and the county will bring any later acceptance of funds back to the board for formal approval.
