Title
Resolution authorizing the creation of the Economic Incentive Fund (Fund 104), authorizing the transfer of interest income revenue from ARPA Fund (Fund 746) fund balance in the amount of $4,000,000 to the new Economic Incentive Fund, and authorizing an emergency appropriation in the amount of $4,000,000 to establish the new fund’s budget as of December 1, 2026, and committing $2,000,000 to Project Bravo.
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 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. Four million ($4,000,000) of that interest income will be transferred from the ARPA Fund (Fund 746) to the new Economic Incentive Fund (Fund 104), and an emergency appropriation in the amount of $4,000,000 will establish a Fiscal Year 2027 Budget in the new fund, with $2,000,000 for Project Bravo, a proposed development in incorporated Lake County that is projected to create 400 new jobs.
• The Economic Incentive Fund (Fund 104) will be a sub-fund of the General Fund (Fund 101) and will not be reported separately in the Annual Comprehensive Financial Report.
• Should Project Bravo not materialize in Lake County, the funds will automatically be freed up for other purposes in accordance with the Economic Incentive Policy.
Body
RESOLUTION
WHEREAS, the County Board wishes to create a sub-fund within the General Fund where funds have been set aside and are immediately available for economic development through the use of incentives; and
WHEREAS, an Economic Incentive Policy has been in place and was most recently updated on November 10, 2026, which will guide the use of the fund; 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 four million dollars ($4 million).
NOW, THEREFORE, BE IT RESOLVED, by this County Board of Lake County, Illinois, that the new fund Economic Incentive Fund (Fund 104) 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 Economic Incentive Fund (Fund 102) in the amount of $4,000,000 as indicated in the attachment; and
BE IT FURTHER RESOLVED, that a new budget is authorized in the new Economic Incentive Fund (Fund 104) in the amount of four million dollars ($4,000,000) as indicated in the attachment; and
BE IT FURTHER RESOLVED, that an amount of two million dollars ($2,000,000) is dedicated to Project Bravo, a proposed development in incorporated Lake County, assuming an agreement in accordance with the Economic Incentive Policy can be reached; and
BE IT FURTHER RESOLVED, that should Project Bravo not materialize, the funding will be available for other initiatives that align with the Economic Incentive Policy.
DATED at Waukegan, Illinois, on November 10, 2026.