Staff Report.Community Grant Update
PREPARED BY: Ryan Baker
Library Director
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/21/2023 ITEM NO: 13
DATE: February 21, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive Update on the Community Grant Program and Provide Direction on
the Program’s Funding Level for Fiscal Year (FY) 2023-24
RECOMMENDATION:
Receive update on the Community Grant Program and provide direction on the program’s
funding level for FY2023-24.
BACKGROUND:
The Town of Los Gatos has been awarding grants since 1992 to support community groups
working toward the benefit of Los Gatos residents. The program was administered by the
Town’s Community Services Department until the Department was dissolved in FY 2011/12. In
that year, program administration was transferred to the Town Manager’s Office with review of
applications and award recommendations passing through the Arts and Culture Commission
(ACC) and the Community and Senior Services Commission [now Community Health and Senior
Services Commission (CHSSC)] before final approval from Town Council. In 2018, the ACC and
CHSSC revised and streamlined the application process.
On February 4, 2020, the Town Council approved revisions to the Community Grant program
which had been recommended by Town staff working in conjunction with the ACC and the
CHSSC. These changes included establishing the total funding amount for community grants as
part of the regular budget process; moving the application cycle to begin after approval of the
annual budget; allowing grant applications for projects addressing Community Vitality and
Events in addition to the traditional categories of Human Services, Arts, and Education; and
establishing three classes of grants: one-time grants focusing on assisting new projects or
surmounting new challenges for non-profits, two-year grants for sustaining non-profit projects
in social services that had been receiving funding consistently between 2014 and 2020, and
PAGE 2 OF 3 SUBJECT: Community Grant Update DATE: February 21, 2023
BACKGROUND (continued):
one-time innovation grants to assist individual community members in launching a project for
the community. On June 2, 2020, the Town Council approved a standardized scoring rubric for
judging and rating grant applications by using a fair and equally comparable set of guidelines,
with staff making minor administrative changes each year where additional clarity was needed
(Attachment 1). Grant applications are read and ranked by a joint subcommittee consisting of
two members of the ACC and two members of the CHSSC.
Between FY2020-21 to FY2022-23, the Town has allocated between $150,000 to $151,000 per
fiscal year to fund the Community Grant Program. In those three years, the Town has awarded
a total of 32 one-time Community Grants for non-profits at approximately $7,500 each, 14
Sustaining Grants for non-profits ranging between $5,000 and $22,000 each, and seven
Innovation Grants for individual community members at a flat $1,500 each.
The Community Grant Program is funded with General Fund monies with no tie or crossover
with American Rescue Plan Act (ARPA) funding. Under the Council’s authority and discretion,
the Council did award grants to organizations using ARPA funds outside of the community grant
process. As such, these ARPA grants are not discussed in this report.
DISCUSSION:
Demand for grant funding from local organizations each year far exceeds the budget allocated,
with approximately 15 applications per year not awarded funding for a total of 45 unfunded
applications over the three-year period. Additionally, several organizations each year approach
Council directly to request funding for their projects either in addition to, or in lieu of, applying
for a Community Grant.
If Council is agreeable to continuing the Community Grant Program in its current form, Council
may wish to consider what funding levels can be afforded within the limitations of the FY2023-
24 budget in relation to Council’s priorities for support to community organizations.
Additionally, if Council is agreeable to continuing the program in its current form, staff requests
that Council be forthright throughout the year in directing requests received at Council
meetings to the Community Grant application process to ensure that all community
organizations are subject to the same standard set of guidelines, processes, and rating
considerations so that all competition for such funding is on equal footing and within threshold
allocation amounts.
PAGE 3 OF 3 SUBJECT: Community Grant Update DATE: February 21, 2023
CONCLUSION:
The Town’s Community Grant Program is unique in that few local government agencies offer
similar competitive application programs on an annual basis for distributing grants of public
money from their General Funds; where such programs do exist, they are often funded from
Community Development Block Grants or passed through from other State or Federal grants.
There is no doubt that such funds greatly aid organizations in our community, although it is not
possible for staff to determine what amount of budget placed towards grant giving would meet
community demand for funding.
ALTERNATIVES:
If Council is not amenable to continuing the Community Grant Program in its current form,
either by discontinuing the program due to budget constraints, assigning funding directly to
select organizations instead of employing a competitive process, or desiring to revise the
program process other than changes to funding levels, Council should provide staff with
direction regarding desired changes.
FISCAL IMPACT:
A status quo budget for Community Grants for FY2023-24 would be equal to $151,000. Any
amount greater or less would be taken from or returned to the General Fund.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Community Grant Scoring Rubric