$2.5M fund proposed for restaurant staffers
A proposed $2.5 million fund would help restaurant workers throughout Shelby County who have been impacted by the coronavirus pandemic.
If approved, the fund will provide a one-time, $1,000 relief benefit to 2,500 restaurant workers impacted by COVID-19.
Applicants must live and work in Shelby County in a local, independently owned restaurant that does not have a drive-thru.
The “Share the Tab II” relief fund was presented to a Shelby County Commission committee on Wednesday and could be approved by the full commission Monday.
The idea for the fund was developed in collaboration with Shelby County Mayor Lee Harris’ office and several county commissioners, including County Commissioner Tami Sawyer. The resolution was sponsored by six other commissioners in addition to Sawyer: Chairman Eddie S. Jones Jr., Commissioner Van D. Turner Jr., Commissioner Mickell Lowery, Commissioner Willie F. Brooks Jr., Commissioner Reginald Milton and Commissioner Michael Whaley.
The $2.5 million would come from the county’s general fund balance. Current county policy is to maintain an unassigned fund balance in its general fund of 20-30% of revenue in order to provide cash flow for operations throughout the year. At the beginning of the fiscal year, the county’s budget was expected to take the fund balance to 19% of the county’s revenue.
In Wednesday’s meeting, the county’s budget director Michael Thompson said the fund balance currently is at $74 million. Based on annual revenues in the county’s adopted budget, that means the fund balance currently stands at around 17.4%. Drawing an additional $2.5 million from the fund balance would bring it down to around 16.8%, well below policy.
Several commissioners voiced concerns Wednesday about taking $2.5 million from the fund balance, questioning whether it would be better to allow restaurants to open at 50% capacity.
Under the resolution, the Memphis Urban League would review applications and administer the $1,000 benefit payments as part of a grant agreement with the county.
COVID-19 has meant prioritizing saving lives and reducing strain on hospitals, Harris told commissioners
Wednesday. However, that has meant limiting restaurant capacity and impacting people’s livelihoods.
“As a result of this moment, our restaurant industry and hospitality workers have endured unbelievable hardship and really borne a very steep cost,” Harris said.
Although he and others were hopeful that federal action would support the restaurant industry or allow local governments to do so, that did not happen, Harris said.
During Wednesday’s presentation, the resolution sponsors said the restaurant industry has had a disproportionate financial impact and public health restrictions have impacted the industry for 41 weeks and counting.
Currently, restaurants are limited to 25% indoor seating, may only have six guests from the same household per table and must close all bar counters for seating. Food service cannot exceed 90 minutes and all food and beverage service has to close at 10 p.m., according to Shelby County health directive.
“Our restaurants are a part of the fiber of our community. Memphis and Shelby County are known globally for our excellent cuisine and genuine service. Our restaurant workers — from the cooks to the wait staff — are behind that hospitable brand,” said Candice Grose, public information officer for Shelby County. “They’ve sacrificed tremendously for the community, and we’re happy that the Commission sent this resolution for a $1000 restaurant worker relief payment down favorably for a Monday vote.”
Jennifer Chandler is the Food & Dining reporter at The Commercial Appeal. She can be reached at jennifer.chandler@commercialappeal.com and you can follow her on Twitter and Instagram at @cookwjennifer.
Katherine Burgess covers county government and religion. She can be reached at katherine.burgess@commercialappeal.com, 901-529-2799 or followed on Twitter @kathsburgess.