Small business, bridges and more
How Danbury-area towns are spending millions in federal COVID-19 funds
Local towns plan to support infrastructure, small businesses, public safety and other needs with the infusion of $2.55 billion in federal COVID-19 relief funds going toward Connecticut municipalities.
Towns and schools in the Danbury area received millions from the American Rescue Plan Act, passed by Congress over a year ago to help the country recover from the economic effects of COVID-19.
The money may be used toward COVID-related expenses — like the about $344,000 Ridgefield used to purchase COVID test kits. But towns may also use the money to support nonprofits and government services affected by the pandemic, as well as invest in water, sewer or broadcast infrastructure.
Several local towns are committing the money toward various projects in phases, seeking public feedback and approval along the way. Towns have until 2024 to allocate the money and 2026 to spend it, so other projects could be proposed in the future.
Meanwhile, Danbury City Council voted on Wednesday to recommend approving the mayor’s plan to divvy up the $32 million in federal COVID relief for various projects and to offset revenue losses.
Towns were scheduled to receive the first tranche of money from the American Rescue Plan Act, known as ARPA, last year and a second tranche this year.
Here are some of the ways municipalities in the Danbury area plan to spend the money:
Small businesses
Bethel and Brookfield set up financial assistance grants to support small businesses in their towns.
After approving $200,000 for the program last month, Brookfield launched its grant application in April for small businesses negatively affected by COVID. Applications are due at 2 p.m. May 6. Eligible businesses may apply for grants up to $5,000.
Businesses may use the money toward costs such as payroll, mortgage interest, rent, utilities, costs associated with compliance with health measures and the construction of an outdoor dining area.
“The business must be able to demonstrate satisfactorily that it has been negatively impacted by the COVID-19 pandemic and that funding will enable the business to continue to operate,” the town said in an announcement. “The business must have a clear and specific use for the grant money and the grant money can only be used toward future expenditures.”
In Bethel, the town allocated $350,000 to be split up between up to 70 small businesses that employ 25 or fewer people. The town granted over $127,000 to 34 Bethel businesses in its first round of grants last year.
Public safety
Danbury’s ambulance service suffered some of the largest negative economic effects of the pandemic because the number of transports and associated revenues fell. The city wants to contribute $5 million over six years to stabilize the ambulance fund, which lost about $500,000 in 2019-20 and $600,000 in 2020-21, according to the city’s finance director. Losses of $1.1 million are estimated for this fiscal year.
Public safety is among the main ways New Fairfield could use its funding. The town plans to use about $22,000 to purchase 12 portable radios for the police. The town also wants to replace the police department’s 12-year-old communications console and complete security improvements to the exterior of the police station.
Ridgefield has proposed $300,000 to purchase a truck for the Ridgefield Fire Department. In Redding, funding could go toward a water pump system to support Redding Fire District. No. 1 and Redding Elementary School, which does not have a sprinkler system. The $163,000 cost for bodywarn cameras and evidence software for the police department could also be paid for through ARPA.
Brookfield approved $117,000 to be split among members of the town’s volunteer fire department, as well as $39,000 to hire a consultant to help overhaul the emergency communications system.
Revenue losses
Almost a third of Danbury’s federal relief could go toward offsetting the town revenue lost due to COVID. The city estimates that it lost about $12.1 million in revenue due to the pandemic, basing this number off of historical revenues.
Separately, Danbury wants to put $2.5 million toward losses to the grand list from the reduction to commercial property values.
Similarly, Ridgefield allocated $1.5 million to replace revenue the town missed out on due to COVID. This should help to reduce a tax rate increase, officials have said.
Infrastructure
Danbury’s mayor aims to put $8 million toward capital improvements that could include various upgrades to infrastructure.
One major way Ridgefield will use its funding is toward its Route 7 sewer project. Voters already approved putting $2.9 million in ARPA money toward the cost to construct a new force-main sewer line connecting the District II plant on Route 7 to the upgraded District I plant on South Street.
In Newtown, the American Rescue Plan Working Group has considered $1.5 million to replace the water distribution system at Fairfield Hills, according to meeting minutes. The Sandy Hook Organization for Prosperity has asked for $600,000 to connect sidewalks in Sandy Hook Center.
New Milford has approved $600,000 to repair a bridge on Cherniske Road that has become a major controversy in town. Droves of residents have called for the road to remain one lane, although the town is considering widening the bridge to two lanes to receive a state grant for 50 percent of the cost.
Another $126,000 is set to go toward the temporary repair of New Milford’s Harrybrooke Park Bridge, which is in danger of collapse.
voted this past week to recommend $200,000 for transfer station improvements, $100,000 to upgrade the municipal building,
Boosting social services, nonprofits, community programs
Officials have said the pandemic exacerbated challenges such as mental health and financial security for many residents, so towns plan to bolster social services, nonprofits and other community programs.
Danbury’s authorities, such as Tarrywile Park, the parking authority, and the Danbury Museum and Historical Society, could get $1 million. Those groups lost event fees, donations and activity-based revenues, the city said.
The Housing Collective, a nonprofit, would receive $238,500 for a rental assistance program in Danbury, while United Way of Western Connecticut would get $200,000 to help needy families.
Danbury’s mayor also wants to provide $250,000 toward public safety wellness programs, $220,000 toward a summer youth camp program and $100,000 toward public safety training programs.
In Ridgefield, the amount of money that would go toward nonprofits is yet to be determined. But the Ridgefield Arts Council and Economic & Community Development Commission requested $740,000 be split between 24 nonprofits.
Brookfield plans to put $200,000 toward the town’s behavioral health and case management. The town also wants to give $25,500 to its library and around $20,400 to a theater program.
Redding hopes to expand the hours for its senior center coordinator, as well as establish a $50,000 fund to be administered by the town’s social services director directly to community members who in financial distress as a result of the pandemic.