Earlier this month, the ARPA Commission met and discussed the possibility of transferring $500,000 of its remaining unassigned balance of ARPA money ($865,764) to Stafford’s General Fund to shore up the town’s rainy day fund. The commission put the decision off, saying it needed more time to decide whether this was viable. The entire issue was raised after Lynn Nenni, Interim Finance Director, appeared before the Board of Selectmen to talk about a troublesome deficit in the utility budget that has been a problem since 2018. Most recently, the utility budget ran about $2,261,000 over, and the town has borrowed from the General Fund to make up the balance.
Current town policy says the General Fund should hold about 10-14% of the budget (which would be $4.4 million on the low-end for 2023) in unassigned balance. But Nenni's preliminary estimates for 2023 put that balance at just $2.8 million. With an estimated $1.6 million difference between the goal balance and the projected balance, the $500,000 from the ARPA funds would only get the General Fund about one-third of the way to where it needs to be.
The ARPA Commission reconvened for a Special Meeting on September 21, 2023, to revisit the issue. While Nenni, First Selectman Sal Titus, and Steve Geryk — who is on the Board of Finance as well as the ARPA Commission — stressed the importance of padding the General Fund. Nenni posited a potential "Do Nothing" scenario, which could cost the town even more money in interest down the line. If the town’s ability to get favorable bond terms is impacted by the lack of funds in reserve, Nenni speculated that it could cost the town upwards of $60,000 a year.
Meanwhile, other members of the committee weren’t convinced this was a legitimate use of the ARPA funds, which come with a long list of strings attached. Amber Wakley-Whaley, Director of Grants and Community Development, said she was still waiting to hear back from Congressman Joe Courtney’s office with guidance on the legality of this use.
Commission member Cathy Cannon pointed out that well-known funding shortfalls remain regarding road improvements. ARPA funds can be used for these projects, and the DPW has proposed several. At the previous ARPA meeting, Devin Cowperthwaite reiterated that the town often loses out on grant opportunities because the legwork to get the projects “shovel ready” hasn’t been done. ARPA funds could be used to get the projects more grant-ready.
Additionally, commission member Dave Bchiochi pointed out that they have not approved many projects in the recreation category and that he was reluctant to yield such a large portion of the unobligated balance.
Ultimately, the commission voted not to approve moving the funds, with only Titus and Geryk voting in favor. The commission did, however, say it was willing to reconsider the topic at a future meeting when additional information might be available.
[This article was written using the official meeting minutes.]
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