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Finance committee debates ARPA balances, agrees to transfers to general fund and keeps ARPA program budget line
Summary
The committee reviewed ARPA cash-on-hand, agreed to reduce the ARPA spending line and to record transfers of interest to the general fund; members discussed leaving a contingency for administration and preserving some ARPA interest for future use.
LaSalle County Finance and TIF Committee members reviewed American Rescue Plan Act (ARPA) balances on Oct. 14 and agreed by committee direction to adjust spending lines and show transfers of ARPA interest into the general fund to help offset budget shortfalls.
Staff reported $1.6 million in ARPA cash on hand before bills, and after anticipated payments would leave roughly $544,001.83 available for distribution on behalf of nonprofits and other recipients. The committee's working worksheet proposed lowering a primary ARPA spending line to $500,000 and keeping $50,000 for a separate lost-revenue line, for a total program allocation of $550,000.
On the county's ARPA interest account, staff said $808,100 (current-year interest) was available for broad use. Committee members discussed using part of that interest as revenue to help the general fund. The committee agreed to record a $500,000 transfer as general-fund revenue and discussed larger transfers; later in discussion members expressed a consensus around moving $700,000 of ARPA interest to general-fund uses while leaving an administrative reserve.
Committee member Mister Trager asked whether decisions on ARPA interest allocation require full-board approval; staff and members clarified that the finance committee will recommend uses to the full board for final action. "I think the finance committee probably will have recommendations, but it'll have to be approved by the whole board," one committee member said.
Why it matters: ARPA funds and related interest are one-time resources that counties have used to cover pandemic-related expenses and to stabilize budgets. How those balances get transferred into the general fund affects the county's ability to close budget gaps without recurring revenue.
Next steps: Staff will revise ARPA worksheet lines to show $500,000 and $50,000 program lines (total $550,000), record a $500,000 transfer to the general fund as revenue and reflect further consensus to transfer larger sums in future budget adjustments; the finance committee will forward recommendations to the full board for final approval.
