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Authorizing the Use and Transfer of State and Local Fiscal Recovery Funds from Lost Revenue Recoupment Fund 356 to General Fund 001 to Economic Development Fund 400 to Financially Support the Launch of an Economic Development Organization for Kane County
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WHEREAS, the Congress of the United States has enacted the American Rescue Plan Act of 2021 (“ARPA”) to provide economic relief to State, Local, and Tribal governments responding to economic and public health impacts of the COVID-19 pandemic; and
WHEREAS, the County of Kane has received a total of $103,413,041 (One Hundred Three Million, Four Hundred Thirteen Thousand, Forty-One Dollars) from the United States Department of the Treasury, in State and Local Fiscal Recovery Funds (“SLFRF”) pursuant to ARPA, and
WHEREAS, pursuant to ARPA and the administrative regulations adopted by the United States Department of the Treasury (“Final Rule”), the County of Kane shall use SLFRF to defray costs associated with its response to the COVID-19 pandemic within the County, to address the economic fallout from the pandemic, and lay the foundation for a strong and equitable recovery; and
WHEREAS, by Resolution 21-313, the Kane County Board has established the
American Rescue Plan Committee (“ARPC”) as a resource for research, education, planning, and recommendations for the best allocation and uses of the County’s SLFRF; and
WHEREAS, by Resolution 21-156, the Kane County Board approved the
recommended Spending Plan as proposed by the ARPC, which designates $42,000,000 (Forty-Two Million Dollars) to be used for Kane County Department and Elected Office project requests; and
WHEREAS, the Kane County Development and Community Services Department has made a request in the amount of $3,790,000 (Three Million Seven Hundred Ninety Thousand Dollars) of SLFRF to fund the planning and launch for a county-wide Economic Development Organization which was approved as part of Resolution 21-156; and
WHEREAS, Kane County documented the need to undertake a strategic economic development plan in its application to the State of Illinois RISE Economic Development Planning Grant Program, where from this program funds were awarded to local governments, and regional economic development organizations to create or update regional plans to accelerate economic recovery from the COVID-19 pandemic; and
WHEREAS, Kane County was awarded $150,000.00 (One Hundred Fifty Thousand) in funding by the State of Illinois RISE Economic Development Planning Grant Program to create a strategic economic development plan for Kane County; and
WHEREAS, RW Ventures, LLC, has worked diligently with Kane County staff and economic development partners in the creation of Kane County’s first strategic economic development plan; and
WHEREAS, one of the key recommendations of the strategic economic development plan created by RW Ventures, LLC, is the creation of a county-wide economic development organization; and
WHEREAS, County staff and economic development consultants have reviewed the budgets of economic development originations in similarly sized counties and recommend that $3,000,000 (Three Million Dollars) to meet startup operations expenses is reasonable to show County Board support for the first four years while the new organization solicits other financial investors including municipalities, utility companies, banks, grant funds, and from private businesses; and
WHEREAS, this request is for $3,000,000 (Three Million Dollars) over three (3) years to meet startup operations expenses; and
WHEREAS, to assist the County in determining whether the project is an eligible use of SLFRF under ARPA, the Final Rule, and the related guidance issued by the United States Department of the Treasury, the ARPC consultant, Ernst and Young, has reviewed the Kane County Development and Community Services Department request for the SLFRF for the Launch of an Economic Development Organization for Kane County project; and
WHEREAS, the ARPC consultant, Ernst and Young, has indicated that revenue recoupment funds from SLFRF may be used to fund the Launch of an Economic Development Organization for Kane County project during the ARPA period of performance and in accordance with the ARPA, the Final Rule and related guidance issued by the United States Department of the Treasury, and any other Federal, State or Local laws and regulations; and
WHEREAS, the Kane County ARPC recommends that the Kane County Board authorizes the use of amounts allocated under revenue recoupment of SLFRF in the amount of $3,000,000 (Three Million Dollars); and
WHEREAS, the ARPC recommends that the Kane County Board authorizes the transfer of the SLFRF Lost Revenue Recoupment funds in the amount of $3,000,000 (Three Million Dollars) from Fund 356 to General Fund 001 Sub Fund 400 Economic Development to be used to fund the planning and launch for a county-wide Economic Development Organization; and
NOW, THEREFORE, BE IT RESOLVED that the Kane County Board hereby authorizes the use and transfer of State and Local Fiscal Recovery Funds from Lost Revenue Recoupment in the amount of $3,000,000 (Three Million Dollars), in accordance with the American Rescue Plan Act of 2021, the Final Rule, and related guidance issued by the United States Department of the Treasury, and any other Federal, State or local laws and regulations; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, by the Kane County Board that the following adjustment be made to the Fiscal Year 2024 budget:
356.800.672.99001 Transfer to General Fund 001 $500,000
356.800.000.39900 Fund Balance Utilization $500,000
001.000.000.39356 Transfer from Recoupment of Lost Revenue Fund 356 $500,000
001.800.808.99400 Contracts and Consulting $500,000
400.690.000.39001 Transfer from General Fund 001 $500,000
400.690.710.50150 Contractual/Consulting Services $500,000
NOW, THEREFORE, BE IT RESOLVED that the Kane County Board that the Fiscal Year 2025 budget will include an amount not to exceed $1,250,000 (One Million Two Hundred Fifty Dollars), that the Fiscal Year 2026 budget will include an amount not to exceed $1,250,000 (One Million Two Hundred Fifty Dollars).
Line Item: See above
Line Item Description: See above
Was Personnel/Item/Service approved in original budget or a subsequent budget revision? No
Are funds currently available for this Personnel/Item/Service in the specific line item? Yes
If funds are not currently available in the specified line item, where are the funds available? See above
Passed by the Kane County Board on May 14, 2024.
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John A. Cunningham, MBA, JD, JD Corinne M. Pierog MA, MBA
Clerk, County Board Chairman, County Board
Kane County, Illinois Kane County, Illinois
Vote: