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 & Admi...
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