I move to approve the deobligation of $315,650 in ARPA LRHA funds and authorize the Mayor to sign any necessary documents to effectuate that deobligation.  

October 19, 2023 (Item 17.B) – The Board of Supervisors approved the acceptance of the grant from DPBH in an amount up to $749,634, effective July 1, 2023, through June 30, 2024, as SG 26070.

The intent of the Carson City Health and Human Services Department (“CCHHS”) for the ARPA LRHA funds was to enhance public health workforce infrastructure by hiring personnel to perform duties needed to increase foundational public health services to the residents served by CCHHS. 

As the grant enters its last three months, Carson City analyzed spending and determined that there would be significant funds left over at the end of the award period, and proposed deobligation to the grantor to reflect CCHHS’s updated projected needs and allow other grantees to utilize the funds. When developing the original budget, salaries, contractual needs, and operating expenses were estimated. Due to staffing turnover and staff retirements, the funding needed is lower than projected. 

Grant Fund, Health Department Revenue 2756881-431010 and Expenses for ARPA LHRA G680025053, 2756800-500101 to 501225.

If approved, the deobligation would reduce the current total award from $3,474,934 to $3,159,284.

The initial subgrant (SG 26070) of $749,634 through June 30, 2024, was supplemented by a new subgrant (SG 2025-00673) for $2,950,366 with a term beginning July 1, 2024, and ending November 30, 2026. Subsequently, SG 2025-00673 was amended to roll over unspent funds from SG 26070, resulting in the subgrant funds from SG 2025-00673 increasing to a total of $3,520,886. In November of 2025, SG 2025-00673 was modified to deobligate $12,488 of the subgrant funds, resulting in a new total amount of $3,508,398. In May of 2026, another $33,464 was deobligated, resulting in a new total amount of $3,474,934. In July of 2026, funds were redistributed among budget categories to support revision of the grant scope of work. The $315,650 deobligation now sought will result in a new total of $3,159,284 for the subgrant funds from SG 2025-00673, through November 30, 2026.

Do not authorize the deobligation of ARPA LRHA funds and/or provide alternative direction to staff.