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Berlin, Ocean Pines News Worcester County Bayside Gazette Logo Berlin, Ocean Pines News Worcester County Bayside Gazette

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Berlin weighs how to spend federal funds

With millions available now council must develop plan

By Greg Ellison

(July 22, 2021) Town of Berlin officials have yet to determine where to direct $2.4 million in American Rescue Plan funds recently awarded to the municipality, with federal program directives mandating allocations by December 2024 and expenditures prior to December 2026.

Town Administrator Jeff Fleetwood said Berlin is now in receipt of American Rescue Plan money, albeit only a partial sum of the overall allocation.

“We were originally told $4.06 million but that number has been amended,” he said. “We received 50 percent of what we’re going to get.”

The first lump of $2.4 million was recently deposited in Town of Berlin banking accounts with a comparable amount anticipated in the future.

“We have another $2.4 million coming, probably this time next year,” he said. “We don’t determine the amounts.”

Fleetwood said town elected officials have until December 2024 to decide on funding directives.

“It must be spent by December 2026,” he said.

Funds not expended by that point would be forfeited.

Fleetwood said the U.S. Department of the Treasury has provided guidance to municipalities as to qualifying expenses.

“There are limitations like infrastructure needs,” he said.

The list of qualifying projects goes further, according to Fleetwood.

“I can’t tell you all municipalities, but at least the ones I’ve spoken to, it’s all over the map on what folks are doing with it,” he said.

Besides water, sewer or storm water infrastructure needs, other qualifying expenses include employee bonuses.

“The Town of Berlin is not going to be utilizing any of that for employees’ pay, but there are some municipalities that are … giving employees … a one-time bonus,” he said. “We’re not even going to entertain that.”

Ultimately, the mayor and Town Council will be tasked with determining where to direct American Rescue Plan funds.

Still, Fleetwood has several project recommendations to pitch for consideration.

“One thing on my agenda is upgrades to the wastewater treatment plant,” he said.

Other ideas Fleetwood mentioned include installing smart meters for both water and electric utilities.

“Whatever they decide they want to discuss we have until December of 2024 to allocate it,” he said.