Temple City council authorizes ARPA budget transfers to preserve federal funds and cover public safety costs

Temple City’s council voted April 2 to adopt budget amendments designed to protect and program the city’s American Rescue Plan Act (ARPA) allocation so no eligible funds are returned to the federal government.

Administrative staff explained the measures: move an ARPA amount into the general fund to recognize allowable revenue, then transfer a portion back to an ARPA fund to pay for public‑safety expenditures such as the sheriff’s contract for fiscal year 2023‑24, and assign the remaining ARPA balance to previously approved projects. Staff said the accounting maneuver is a recognized way for cities under the applicable thresholds to treat ARPA revenue and expenditures while maintaining clear audit trails.

The administrative services director described the mechanics and said the city expects to draw down the ARPA allocation by November 2024; staff characterized the total ARPA allocation available to Temple City as roughly $8.6 million and the public‑safety transfer as roughly $5.75 million (staff emphasized these figures are estimates in the staff presentation). The director said auditors have reviewed the approach and several comparable cities have used similar accounting to preserve ARPA‑eligible spending.

Council members asked whether adopting the amendments locks the city into spending on public safety; staff replied that the transfers are an accounting mechanism tied to approved projects and that any reallocation of unassigned funds would return to the council for future decisions. The motion to approve staff recommendations passed unanimously by roll call.

Next steps: staff will report ARPA use to the U.S. Treasury as required and include the transfers in the 2024‑25 budget documents so the city can demonstrate an assigned fund balance and an audit trail for ARPA‑eligible projects.