NEW FAIRFIELD – The Board of Selectmen held a special meeting July 14 to discuss the funds allocation received by the town as a result of the American Rescue Plan. Attending the meeting were most of the individuals invited by the Board to be part of the working group formed to find eligible uses for the fundsFirst Selectman Pat Del Monaco began the meeting by giving a brief overview of the parameters of the use of the funds as outlined by the Treasury Department. New Fairfield is set to receive a total of $4,107,202.22. The funds will be made available over 2 years, half ($2,053,601.11) in 2021 and the other half in 2022. The town received the first allotment in June and is keeping it in a segregated fund. Funds must be obligated by December 31,2024 and spent by December 31, 2026. The Treasury Department must sign off on all proposed expenditures.

According to the act, the purpose of these funds is “to provi de a substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.”
According to First Selectman Pat Del Monaco, although the town will have some discretion in the use of the funds, the act outlines several broad categories of eligibility. These include support for public health response, replacing public sector revenue loss, water and sewer infrastructure, addressing negative economic impacts, premium pay for essential workers, and broadband infrastructures.
In discussing the parameters of the Act, Ms. Del Monaco said that there has been clarification on the meaning of “replacing public sector revenue loss”. She said that when an initial review of the town’s revenue was conducted, it appeared that the town had not suffered any loss due to the pandemic. However, further clarification of parameters given by the Treasury Department states that the definition of lost revenue takes into account revenue as a whole, not just individual revenue streams and assumes a growth rate of 4.1%. She noted that once this new formula was used to calculate revenue, the town has a $3,461,534 loss of revenue for the current year.

Ms. Del Monaco noted that there may be some one-time expenditures in the budget that are eligible to be financed with the funds. She cautioned against using funds to cover ongoing items, saying it would create a budgetary “hole” in subsequent budgets that taxpayers would have to fund after these monies are expended.
In her summation, Ms. Del Monaco noted that the Act looks forward, not back—it is intended to shore up areas that need it for the future, rather than reimbursing for past expenses. She called it making “short term investments with lasting benefits.”
She said the Act instructs municipalities to look for ”pre-Covid inhibitors to growth,” meaning any infrastructure issues such as sewer and broadband communications.

She recommended setting 3 to 5 goals and to review their eligibility requirements. Areas she suggested for review were infrastructure, public safety, social services, and premium pay for town workers with prolonged exposure to potentially infected individuals in the course of performing their job.

Several thoughts were brought forward by the working group. Infrastructure, emergency broadband, sewers and water systems for the business district, EMS and firefighting showers and living quarters for responders were discussed.
The group will meet monthly and will report to the Board of Selectmen.

By Greg Slomba