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Council approves budget amendment to obligate ARPA funds to salary lines
Summary
Belmont council approved Budget Amendment No. 1 to obligate remaining ARPA funds (approx. $1.6M) to current-year salary lines to meet federal obligation deadlines and free local budget dollars for other uses; council discussed trade-offs and tracking requirements.
Belmont City Council approved a budget amendment at the Aug. 19, 2024 workshop to obligate approximately $1.6 million of remaining American Rescue Plan Act (ARPA) funds to current-year salary expenditures.
Finance Director Jared Piles told council the U.S. Department of the Treasury requires ARPA funds to be obligated by Dec. 31, 2024 and spent by Dec. 31, 2026, and recommended obligating the remainder to salary lines under the city’s Revenue Replacement election. “This will free up dollars that would have rolled to fund balance and allow the city to use locally budgeted funds elsewhere,” Jared said.
Council members asked whether obligating ARPA to salaries would foreclose future capital projects. Staff replied that obligating ARPA to salaries shifts the reporting and accounting but does not eliminate the economic value of those funds; council would need a later budget amendment to reallocate money from salaries to capital if it chooses. Jason moved to approve Budget Amendment No. 1 and Catherine seconded; the motion passed by voice vote in the workshop. The workshop transcript records discussion and the voice vote but does not include a roll-call tally.
What's next: staff will track expenditures to ensure ARPA appropriation reporting is compliant and will report back if council seeks to reallocate obligated ARPA to capital projects; no specific capital reallocations were approved at the workshop.
