Title
Resolution authorizing the creation of the Federal Funding Contingency Fund (Fund 102), authorizing the transfer of interest income revenue from ARPA Fund (Fund 746) fund balance in the amount of $2,000,000 to the new Federal Funding Contingency Fund, and authorizing an emergency appropriation in the amount of $2,000,000 to establish the new fund’s FY27 budget.
Staff Summary
• In March 2021, the American Rescue Plan Act (ARPA) provided federal funding to local governments for response and recovery from the COVID-19 pandemic. ARPA provided $135.2 million in direct local recovery assistance to the Lake County Government.
• ARPA program guidelines do not place restrictions on the interest earned on the State and Local Fiscal Recovery Funds (SLFRF) payments made by the US Treasury to ARPA recipients, meaning that the interest income has no program restrictions and must not be returned to the US Treasury. (Coronavirus State and Local Fiscal Recovery Funds, Frequently Asked Questions (as of August 7, 2026), FAQ 10.1)
• To date, Lake County has earned nearly $11.7 million in interest income since 2021. Two million ($2,000,000) of that interest income will be transferred from the ARPA Fund (Fund 746) to the new Federal Funding Contingency Fund (Fund 102), and an emergency appropriation in the amount of $2,000,000 will establish a Fiscal Year 2027 Budget in the new fund for any potential FY2027 needs.
• The Federal Funding Contingency Fund (Fund 102) will be a sub-fund of the General Fund (Fund 101) and will not be reported separately in the Annual Comprehensive Financial Report.
• Due to the potentially uncertain and rapid nature of federal funding challenges, the County Administrator is authorized to administer these funds for a 60-day duration, during which the F&A Committee will be informed and consulted regarding any long-term decisions being made on the programming, in accordance with the Federal Funding criteria that were previously discussed with the Finance & Administrative Committee.
Body
RESOLUTION
WHEREAS, the County Board supported a short-term solution for the federal funding delays and challenges that were experienced during Fiscal Year 2026; and
WHEREAS, the County Board wishes to create a sub-fund within the General Fund where funds have been set aside and are immediately available to mitigate disruptions in the funding of Lake County’s federally funded programs; and
WHEREAS, the County Administrator will use the previously discussed Federal Funding criteria for immediate use to avoid disruptions and will report out each use as soon as practical; and
WHEREAS, the funding source which has been identified is the interest income on the federally funded American Rescue Plan Act (ARPA) since 2021, which has more than sufficient funds to establish the fund in the desired amount of two million ($2 million).
NOW, THEREFORE, BE IT RESOLVED, by this County Board of Lake County, Illinois, that the new fund Federal Funding Contingency Fund (Fund 102) is authorized as a sub-fund of the General Fund (Fund 101); and
BE IT FURTHER RESOLVED, that a transfer of interest income in the ARPA Fund (Fund 746) to the new Federal Funding Contingency Fund (Fund 102) in the amount of $2,000,000 as indicated in the attachment; and
BE IT FURTHER RESOLVED, that a new FY2027 budget is authorized in the new Federal Funding Contingency Fund (Fund 102) in the amount of $2,000,000 as indicated in the attachment; and
BE IT FURTHER RESOLVED, that the authority to use, allocate, and distribute these contingency reserve funds is delegated to the County Administrator; and
BE IT FURTHER RESOLVED, that the County Administrator shall report to the Financial & Administrative Committee any use of funds, any proposed plans or options when a federal funding interruption occurs.
DATED at Waukegan, Illinois, November 10, 2026.