President Dailly requested that staff prepare information for the Committee of the Whole regarding a one-time "rebate payment" for all owner-occupied households of the village. The basis for the payment is twofold - the impacts of inflation on residents during the past 12 months and the strong revenue growth that the village has experienced this fiscal year and the resulting projected surplus.

Based on Cook County records, it is estimated that there are approximately 18,500 residential properties that receive the homestead exemption. Estimates of total impact of the rebate payment based on this figure are as follows:

@ $100/household = $1.85 million

@ $125/household = $2.31 million

@ $150/household = $2.8 million

Under the proposal, each homeowner would receive the same amount, regardless of household income, the value of the home, or the amount of taxes paid.

The final rule from US Treasury regarding the American Rescue Plan Act doesn’t provide direct advice on this specific type of program, but the rule does discuss “cash assistance” to households and indicates that there must be a reasonable connection between the payment and the negative impact of the pandemic. Based on this, ARPA is not considered an eligible funding source. If approved, the funds for the rebate payment will come from the village's General Fund.

Each payment could be in the form of a check or gift card, sent via US mail, and come with an accompanying letter from President Dailly sometime in early 2023. The payments may be sent in waves, depending on the ability of staff and systems to produce and mail the payments. The village could also grant credits to the utility bills of qualifying households.

The payment could have tax implications for some residents, including those that itemize their deductions. The letter from the village could encourage residents to consult with their tax professional to determine their specific obligations. Utility bill credits would not have tax implications.

At this time, this is proposed as a one-time payment; however, it could evaluated in future years, depending on the circumstances and an evaluation of the village's fiscal condition.