After watching and waiting for the right opportunity to make use of federal funds through last year’s American Rescue Plan Act, Berlin leaders have struck upon what may be the most effective use of all: reimbursing money already spent to improve the town’s roads.

At the town council’s regular meeting Monday, Berlin mayor Patrick Bates informed the council that the town qualifies for reimbursement for paving projects completed last year, thanks to a state-sanctioned ARPA provision that allows the town to claim a standard allowance for lost revenue under the terms of the Act.

In Berlin’s case, the allowance should allow the town to shift the cost for $109,000 in paving project funds away from its General Fund by claiming a standard allowance that, under Alabama’s final interpretation of the ARPA Act’s provisions, can compensate municipalities for lost revenue on government services up to $10 million.

“They made a change for use of the funds to replace lost revenue,” explained Bates on Tuesday. “Before, it was essentially like itemizing deductions on your taxes: You had to itemize everything that you had lost. But they changed it to a standard deduction where they set the cap at $10 million.”

For months, the council had held off on committing to a use for its share of ARPA funds, as it awaited the state’s final word on how to interpret the U.S. Treasury Department’s terms for using the money. That patience seems to have paid off, noted town clerk Keirstyn Montgomery. Applying the funds toward the past year’s paving projects, she explained, is a meaningful use of ARPA funds that addresses a legitimate financial need for the town. 

“We’re lucky, because it was going to cost us between $220,000 and $250,000 to do all the roads,” she said. “We were going to have to dip into our General Fund, which we had accounted for. But this will free up our General Fund by $109,000.”

In other business at its regular meeting, the council:

• Awarded a bid for mowing and landscaping to Glen Laney, who will be compensated at $100 per cut for mowing and grounds maintenance at the town hall property and the Berlin Farmers Market during this year’s growing season.
• Awarded a bid for bush hogging service to Steve Clark, who will be compensated at $800 per cut for bush hogging municipal property during this year’s growing season.
• Agreed to retain Huntsville-based Jeremy Jeffreys, CPA to conduct the town’s 2021 financial audit.
• Approved the minutes of the council’s Dec. 20, 2021 regular meeting.