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Council approves loan‑forgiveness bookkeeping for Fairfield Behavioral Health Services
Summary
Fairfield County Council approved a resolution to clear a $500,000 contingent note from the books of Fairfield Behavioral Health Services, which staff described as a bookkeeping cleanup rather than a change in repayment terms; council recorded the vote 5–1.
Council considered Resolution 2026‑06 to provide loan forgiveness (accounting removal) to Fairfield Behavioral Health Services during the June 22 meeting.
A council member asked for the terms of the original note and whether forgiveness would trigger repayment obligations if the facility closed or moved. County staff explained that the note carries a $500,000 contingent liability that would be owed if the facility closed or was sold and that the provider had asked the county to remove that liability from its audited net position. On the record the staff described the requested action as "just a bookkeeping thing" intended to clean up the provider's financial statements; staff said there were no additional repayment terms being imposed.
After discussion the council moved and seconded the resolution; the recorded vote on the resolution was 5 in favor, 1 opposed. Council members supporting the resolution cited the provider's long service to the county; one member opposed and asked for more documentation on the note terms before approving forgiveness.
