Staff Report.ARPA Update
PREPARED BY: Arn Andrews
Assistant Town Manager
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: 08/03/2021 ITEM NO: 8
DATE: July 20, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive Update on ARPA Allocations to Nonentitlement Units of Government
and the Town’s Allocation
RECOMMENDATION:
Receive update on ARPA allocations to Nonentitlement Units (NEUs) of Government and the
Town’s allocation.
BACKGROUND:
On March 29, 2021, the Town Council received a staff report describing the American Rescue
Plan Act (ARPA), and receipt on March 10, 2021, of notification from Congressional
Representative Eshoo’s Office that Los Gatos will receive $5,688,630 based on a modified
version of the Community Development Block Grant formula.
The ARPA delineated local governments which generally have populations below 50,000 as
nonentitlement units of local government (NEUs). Unlike other ARPA allocation recipients
NEUs were programmed to receive their allocations directly from the State. The ARPA requires
that States and territories allocate funding to NEUs in an amount that bears the same
proportion as the population of the NEU bears to the total population of all NEUs in the State.
DISCUSSION:
Based on the State Finance Department’s proportional population calculations, the Town is
now slated to receive $7,229,744 of which the first tranche payment of $3,614,872 was
received on July 13, 2021. Given the States proportional population calculation the Town’s
allocation will increase by $1,541,114.
PAGE 2 OF 3 SUBJECT: ARPA Allocation Update DATE: July 19, 2021
DISCUSSION (continued):
To date, the Town Council has pledged a total of $5,106,898 in eligible ARPA allocations with
$2,122,846 of ARPA funding currently unallocated. Pledged allocations total $1,831,452 toward
assistance to households, small businesses, nonprofits, and impacted industries such as
hospitality and $3,275,446 toward the provision of governmental services to the extent of
revenue reduction due to the pandemic. While staff tracks Council commitments by fiscal year
for accounting purposes, ARPA funding does not need to be expended until December 31, 2024
and can remain fluid until that time. As an example, if FY 2021/22 revenue budget projections
perform better than anticipated, then the current commitment of ARPA funding toward
provision of governmental services would be less and the funding can be diverted to other
eligible uses.
FY 2020/21 FY 2021/22
Estimated ARPA Funds $3,614,872 $3,614,872
Replace Revenue Reduction $1,362,910 $1,912,536
Economic Development
• Parklets
• CUP Fee waiver
• ADA Fee waiver
• Destination Marketing
$250,000
$50,000
$550,000
$25,000
$55,000
Nonprofit/Public Assistance
• Rent Waiver
• Direct Grants
• Enhanced Senior
Services
$60,000
$341,452
$500,000
Total Allocations $1,722,910 $3,383,988
Total ARPA Funds Unallocated $1,891,962 $230,884
CONCLUSION:
Staff will continue to monitor ARPA guidance for the allocation of funding toward eligible uses
and any Council funding commitments.
PAGE 3 OF 3 SUBJECT: ARPA Allocation Update DATE: July 19, 2021
COORDINATION:
This staff report was coordinated with the Town Manager, Town Attorney, and Director of
Finance.
FISCAL IMPACT:
None
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.