ARPA Public Safety ExpensesPREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 08/15/2023 ITEM NO: 13
DATE: August 10, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive an Update on American Rescue Plan Act (ARPA) Public Safety
Expenses and General Fund Council Priorities – Economic Recovery Reserve
Tracking and Provide Direction for the Use of the Remaining Funds in this
Reserve
RECOMMENDATION:
Receive an update on American Rescue Plan Act (ARPA) Public Safety expenses and General
Fund Council Priorities – Economic Recovery Reserve tracking and provide direction for the use
of the remaining funds in this reserve.
BACKGROUND:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by President
Biden. In accordance with ARPA, the Town was awarded an ARPA grant in the amount of
$7,229,744 paid to the Town in two separate payments. The first payment of $3,614,872 was
received in early July 2021, and the second payment of $3,614,872 was received in July 2022.
DISCUSSION:
Based on initial guidance of eligible uses of ARPA funds, the Town allocated these funds to
various purposes to respond and support the impacts of the pandemic on Town residents. For
Fiscal Year (FY) 2020/21, the Town recognized the initial $200,911 of ARPA proceeds as revenue
to reimburse the Town for qualifying expenses.
Since the initial receipt of ARPA funds, the Treasury revised its federal guidelines to allow
certain non-entitlement units (NEUs), such as the Town of Los Gatos, a simplified procedure
PAGE 2 OF 3 SUBJECT: Receive Update on American Rescue Plan Act (ARPA) and Council Priorities and Provide Direction DATE: August 10, 2023
DISCUSSION (continued):
for claiming and reporting revenue loss. To be eligible for the simplified claiming procedures,
the NEU must have received a total ARPA award of less than $10 million.
During FY 2021/22, the Town recognized $3,413,961 as operating grant revenue in the ARPA
special revenue fund and transferred $3,413,961 to other funds, reimbursing the Town for
qualifying public safety expenditures under the provisions of the Act. The Town recognized
the $3,614,872 in FY 2022/23 the same manner as FY 2021/22.
ARPA Grant proceeds have been fully recognized as lost revenue for use in providing public
safety services consistent with federal law. In other words, all of the ARPA funds have been
used for qualifying expenses. As a result, General Fund operating revenues which were
previously dedicated for public safety costs became available for Council priorities. The table
below identifies the Council priorities to date and shows a remaining unallocated amount of
$866,281.
FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
Actuals Actuals Estimated Adopted
General Fund Council Priorities – Economic Recovery Reserve Tracking $ 7,229,744
Less Council Approved Uses
Parklets (Downtown Economic Recovery Efforts)$ 930,000 466,428$ 463,572$
Rent Waivers 746,463 121,255 341,452 283,756
CUP/ADA Fee Waivers 75,000 19,656 27,672 7,018
Destination Marketing 55,000 55,000 -
K-Rails (Downtown Economic Recovery Efforts) 68,000 88,654 -
Promenades 200,000 69,855 130,145
Direct Grants 110,000 60,000 50,000 -
Enhanced Senior Services 500,000 249,597 250,403
Capital Improvement Program Support Transfers 2,900,000 2,900,000
One-Time Community Grant (Council Action 2-21-2023) 150,000 $ 150,000
One-Time to LGS REC 55+ Program (Council Action 2-21-2023) 225,000 225,000
One-Time to KCAT Producers (Council Action 2-21-2023) 100,000 100,000
One-Time Unhoused Residents Efforts (Council Action 2-21-2023) 25,000 25,000
One-Time Rent Forgiveness LGS REC (Council Action 3-21-2023) 200,000 200,000
One-Time Rent Forgiveness NUMU (Council Action 3-21-2023) 21,000 21,000
One-Time Unhoused Residents Efforts (Council Action 4-4-2023) 25,000 25,000
One-Time - Additional Chambers of Commerce (Council Action 5-2-2023) 33,000 33,000
Total 6,363,463$ 200,911$ 1,348,659$ 4,034,894$ 779,000$
Available Funding After Council Recent Actions 866,281$
PAGE 3 OF 3 SUBJECT: Receive Update on American Rescue Plan Act (ARPA) and Council Priorities and Provide Direction DATE: August 10, 2023
DISCUSSION (continued):
The details of the Council approved use of $2.9 million for the capital program are illustrated
below.
With the adoption of the Fiscal Year 2023/24 Budget, the unallocated amount of $866,281 is in
the General Fund Council Priorities – Economic Recovery Reserve. If the Council wishes, with
this agenda item, it can choose to allocate this remaining amount to its priorities. Attachment 1
includes a memorandum from Councilmembers Matthew Hudes and Rob Moore to the Los
Gatos Town Council regarding the possible use of the available $866,281.
FISCAL IMPACT:
This report outlines the $7,229,744 in General Fund operating revenues which were previously
dedicated for public safety costs. Of those funds, $6,363,463 have been committed to various
Council priorities and $866,281 remains available.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1.
2.
Memorandum from Council Members Matthew Hudes and Rob Moore to the Los Gatos
Town Council.
Public comments received before 11:01 a.m. Thursday, August 10, 2023.
Project Name Funding
Obligated
East Main Street Crosswalk Improvements $ 300,000 Prior Council Action $ 61,700
Downtown Restroom Feasibility Study/Design 25,000 Prior Council Action
Rehabilitate Automatic Gates - 41 Miles Avenue 25,000 Prior Council Action
-
24,225
Termite Abatement at Water Tower – 41 Miles Avenue 25,000 Prior Council Action -
Civic Center Plumbing Repair – 110 E. Main Street 40,000 Prior Council Action -
HVAC Improvements – Police Operations Building 25,000 Prior Council Action -
Engineering Counter Modifications – 41 Miles Avenue 40,000 Prior Council Action
Unanticipated Repairs 100,000 Prior Council Action
Pinehurst Community Garden - 30% Design 100,000 Prior Council Action
-
100,000
250
Gateway Art Project 112,500 Prior Council Action -
Roadside Fire Fuel Reduction - FEMA Match 750,000 Prior Council Direction 3-21-2023 -
Shannon Road Repair - Additional Needed 295,720 Adopted with FY 2023/24 - 2027/28 CIP
Pinehurst Community Garden Project 250,000 Adopted with FY 2023/24 - 2027/28 CIP
Lynn Avenue 215,000 Adopted with FY 2023/24 - 2027/28 CIP
-
68,108
55,448
Creekside Park Turf Replacement 500,000 Adopted with FY 2023/24 - 2027/28 CIP -
Emergency Preparedness 96,780 Adopted with FY 2023/24 - 2027/28 CIP -
Total Funding $ 2,900,000 $ 309,731
General Fund Council Priorities – $2.9 Million Capital Allocation Tracking Expended or
Encumbered
as of 8/1/2023