Oak Park trustees have more than $7.9 million in federal pandemic funds left, and they are looking for a way to buy more time to figure out how to spend the money.
The money comes from unobligated or unspent American Rescue Plan Act funds. Trustees are deliberating whether to reclassify the sum as “lost revenue,” a bookkeeping technique that would remove the spending deadline.
The village received about $38.9 million in ARPA funds to address COVID-19’s impact on the community. A portion of those funds were allocated in 2022, 2023 and 2024 to address capital needs.
The remaining ARPA funds have to be committed by the end of 2024 and spent by the end of 2026. As one of the eligible uses of ARPA funds, the trustees can reclassify the money as lost revenue.
Village Manager Kevin Jackson said that by doing this, the village won’t lose the ability to follow through on projects with ARPA funds, rather than having to spend them by the end of 2026.
If the funds are allocated as lost revenue, they will be split between the general fund and the parking fund, said Arlene Pedraza, the village’s management analyst. She said about $6.3 million would go to the general fund, and almost $1.6 million to parking. That’s based on an 80% split for the general fund and a 20% split for the parking fund.
Trustee Lucia Robinson pointed out that $209,589 ARPA dollars that had been used during the migrant crisis were reimbursed. The village received reimbursements from the Supporting Municipalities for Asylum Seeker Services grants and the Cook County Disaster Response and Recovery Fund grants. Robinson said she’d like to see that money allocated toward “what would’ve been an original ARPA-designated purpose.”
According to Oak Park officials, eligible uses, according to federal rules, for the funds include supporting public health responses, replacing public sector revenue loss, investing in certain infrastructure, addressing negative economic affects and offering premium pay for essential workers.
“There are a lot of community needs,” Robinson said Oct. 8. “That was money we got for our residents. There’s still an opportunity to apply that to some of our residents’ needs.”
Trustee Brian Straw said that he appreciates all the ways the board has used ARPA funds thus far, including services throughout the migrant crisis.
“The use of the ARPA dollars there, going to residents who have come to our community through that migrant crisis, was important,” he said. “And the fact that we’ve been able to recoup those dollars through grant programs so that we’re able to recapture that as lost revenues is a wonderful thing.”
Trustee Cory Wesley pointed out that converting the leftover ARPA funds to lost revenue makes it easier to use with fewer restrictions. Those restrictions would include not being able to use the funds toward village debt, pension obligations or for legal settlements, Pedraza clarified.
“I would be supportive of converting it because it does give us more flexibility, but I don’t want to lose the original intention of the ARPA funding in terms of using it for community purposes that are partially in spirit with the way the money was awarded,” Wesley said.
Trustee Susan Buchanan said she’d like to see some of the leftover ARPA funds go toward climate change mitigation efforts. So far, no ARPA funds have gone toward the village’s Climate Ready Oak Park initiatives, but that is an eligible use for them, she said.
“I really hope that we can find a way to use some [ARPA funds] to have the greatest impact on reducing greenhouse gas emissions,” she said. “My panic continues about climate change and what we can do about it.”
Village President Vicki Scaman also summarized sentiments from the board to use the leftover ARPA funds not only to help reach their goals but also to do additional outreach to local nonprofits and work that serves Black and brown community members.
Village staff members plan to come back to the board with recommendations on how to spend the leftover revenue as budget conversations continue.