Derby Votes To Use ARPA Cash To Close Budget Gap

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Derby City Hall

DERBY – The Derby Board of Aldermen & Alderwomen voted unanimously to put $2.5 million from the American Rescue Plan Act (ARPA) to help close a hole in the city budget.

Earlier this year new interim finance director Brian Hall warned the budget approved by the city in April 2023 had a deficit of an estimated $2 million to $2.5 million.

The deficit was because the previous administration under-budgeted benefits by $1 million, didn’t budget for a $648,000 increase in sanitation costs and over-estimated how much money would be collected in taxes tax collections, Hall said.

He advised against using money from the city’s fund balance, or reserve fund, because it would leave the account too low.

Hall advised Mayor Joseph DiMartino’s administration to take two steps to close the budget gap: decrease the contribution to the employee pension plan for one year to $500,000, and to put remaining ARPA money into the general fund.

About $1.8 million in ARPA funds will go toward the deficit. About $700,000 from APRA was previously earmarked for other uses in Derby. 

The Aldermen & Alderwomen formally voted to make the ARPA move at their March 13 meeting, after talking about it extensively at prior meetings.

The move involves the current Derby budget, which covers July 1, 2023 until June 30, 2024.

The mayor recently unveiled his proposed budget for the next fiscal year, which starts July 1, 2024.

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