County takes ARPA money back from Philipstown water district project

CARMEL – The county legislature’s Audit and Administration Committee approved a plan to redirect $369,670 of American Rescue Plan Act (ARPA) money originally earmarked for the Garrison Landing Water District in Philipstown.  The money will be reallocated to an ARPA-eligible county project after learning the Garrison Landing project did not meet the standards set by the federal government.  Legislators were briefed on the need to redirect the money by Finance Commissioner Michael Lewis.

Putnam County received $19.1 million in ARPA money in 2022 and a plan was developed to spread $5 million ARPA dollars to municipalities in the county based on census data.  An additional $5 million of county sales tax revenue was pooled with the ARPA funds for local government projects focused on infrastructure, mental health, substance abuse, food insecurity, clean water, roads, bridges, and buildings to aid in the recovery from the pandemic.

At Monday’s legislature committee meeting, Commissioner Lewis reported that the administration had worked closely with each municipality to ensure compliance with “applicable rules and regulations for the use of ARPA funding.”

Lewis said the project spending reviews were responsible for catching the eligibility issue for the Garrison Landing project.   The project, Lewis said, “may not be in compliance with standards set forth by the U.S. Treasury despite the fact that the project for drinking water was essential for Philipstown residents.”  The commissioner noted that town and county officials were unsuccessful in their bid to get the project qualified for the ARPA funds.   

In exchange for getting the $369,670 from Philipstown, the town will receive $184,835 from the county’s general fund balance to move the town’s water project along.   

Lewis explained the give and take between the county and Philipstown as necessary, adding “This amount assists Philipstown in accordance with ARPA rules and requirements by helping the town with an essential need.”

This was not the first time ARPA funds have been reallocated in Putnam.

Earlier this year, three other municipalities decided to reallocate portions of their ARPA funds to pay for projects different than originally indicated.  The Town of Southeast had received $1.5 million in 2022 to pay for moving town hall.  After receiving the money, town officials redirected $150,000 to the Lake Tonetta Bio Treatment System project.

The Town of Patterson took their $1.1 million originally budgeted for construction of a new EMS building and opted to use it to extend a service line from the Dorset Hollow Water District along Front Street to entice the redevelopment of the downtown area.

The Village of Nelsonville was allocated $63,890 in ARPA funds and moved it to another budget line to pay for the HVAC system at Nelsonville Village Hall.