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Council declines to forgive $500,000 behavioral health facility note; motion fails after split vote
Summary
Fairfield County Council considered converting a 2017 $500,000 note to Behavioral Health Services into a grant but did not approve the change after debate about accounting, stewardship and future contingencies; the motion failed on a 3-3 vote.
Fairfield County Council considered a request from the county's Behavioral Health Services board to convert a $500,000 note from 2017 into a grant but did not approve the change at the June meeting.
County staff described the 2017 instrument as a permissive, open‑ended note tied to a facility project; the note included a 25‑year term and stated that if Behavioral Health sold the building the county could be repaid from sale proceeds. County attorneys and staff said the note did not include regular repayment terms or an interest schedule; it was intended as an assurance the facility would remain in the county.
An executive of Behavioral Health Services explained the county funds were used during construction while state grant disbursements were phased and that the agency had no intention of selling the facility. "We don't have any intentions of selling. We are the county authority for providing the services," the agency representative said, noting the organization has served the county for decades.
Some council members expressed concern about removing the note from Behavioral Health's balance sheet entirely, noting the county could lose the ability to recoup funds if the building were sold in a future, uncertain circumstance. One member asked whether another legal structure could preserve a county repayment claim while removing the liability from Behavioral Health's statements; county counsel said accounting treatment might not change merely by renaming the instrument and suggested a negotiated agreement could be explored but would likely remain visible in audits.
A motion to convert the $500,000 note to a grant was made and seconded; the vote was recorded as a 3-3 tie and the motion failed. Separately, a motion to table the item was discussed earlier in the meeting; council debate focused on obtaining additional financial information about Behavioral Health's balance sheet and the county's accounting treatment before making a final decision.
Council members asked for more time and information on the agency's assets and on possible legal mechanisms that would allow the county to preserve repayment rights while addressing the agency's concern about the liability showing on its books. No conversion was approved at the meeting.
