Town finance staff reports roughly $8.28 million estimated surplus; ARPA funds earmarked for projects

New Canaan, Conn. — Town finance staff told the Town Council on July 16 that the current estimate for the fiscal-year general fund is a surplus of roughly $8.283 million, citing a recent lien sale, higher conveyance fees and investment gains. Finance staff presented a brief fiscal update that identified several drivers for the surplus, noted budget savings from vacancies and service contracts, and described a plan to reallocate American Rescue Plan Act (ARPA) reimbursements to a special projects fund. Why it matters: The town’s estimated surplus affects the calculation of the mill rate, available contingency funds and decisions about special projects and capital needs. Council members asked clarifying budget questions and staff said some of the changes reflected market volatility in investment income. The presenter, identified in the meeting as Kelly Lentz (staff member), summarized key items: an approximately $2 million-plus lien sale, about $800,000 in unrealized investment gains recognized in the reporting period, substantially higher conveyance fees tied to a large Riverwood transaction and two unusually large building permits. On the expenditure side, Lentz said personnel savings and reductions in purchased services created further net savings. Lentz described a technical accounting move: ARPA reimbursements that were recorded as a negative amount under other objects will be transferred back into the general fund and then allocated to a special projects fund to support four projects previously approved by the council. Lentz said the transfer was part of the town’s effort to lower the mill rate by using one-time funds: “We put 5,750,000 toward the mill rate calculation to bring it down,” she said. Councilors asked standard clarification questions about where unrealized gains are recorded and whether they are expected to persist in future months. Lentz noted that unrealized gains (or losses) reflect market movements and are marked to market each reporting period. Next steps: Lentz said staff will finalize a few adjustments to the projections and that follow-up materials will be provided to the council. No appropriations were approved during the presentation; councilors asked staff to return with any required ordinance or special-appropriation language before funds are transferred or expended.