Northbrook Receives Over $4.4M from American Rescue Plan

Northbrook Receives Over $4.4M from American Rescue Plan

The Village of Northbrook has been allocated $4,480,449 from the federal government as part of a national initiative to help municipalities recover from the pandemic. The American Rescue Plan (ARP) passed in March 2021 provided $65 billion to fund local fiscal relief nationwide; according to a press release from the office of Congressman Brad Schneider, Northbrook and other communities in the 10th District received more than $131 million in aid.

According to Village Manager Cara Pavlicek, the federal funds were allocated to all municipalities, with no competitive application process. For communities with under 50,000 residents, the determination was based primarily on population. The Village has already received one-half of the funding; it is not yet known when the second half will be sent.

The U.S. Treasury’s Eligible Use of Fund guidelines set specific rules for how municipalities can use the recovery funds, including:

  • Replace lost public sector revenue from decreased sales tax, parking revenue, and other collections, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic
  • Support upcoming public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff
  • Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector
  • Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors
  • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet.

Village Manager Pavlicek stated that the Board of Trustees will review a staff report on options for use of the funds at the next Board Committee of the Whole meeting on Tuesday, October 26.  According to a staff report published in the meeting’s agenda packet (page 79), the Village’s pandemic-era revenue reduction is approximately $5 million using actual growth rate of 4.2% and covers the entire ARP allotment.  (“Lost revenue is calculated by comparing FY 2018/19 (Base Year) General Revenue adjusted for Growth Rate to actual General Revenue collected during the last twelve-month period ended December 31, 2020.”)

The Committee of the Whole meeting, beginning at 6:00 p.m., can be viewed on Comcast Channel 17, the Village website, or the Village Facebook page.