Warren to get $2.24M in federal funds to maintain wastewater treatment plant

By Ethan Hartley
Posted 3/12/24

The ability to fund the entirety of the project is not a given, however, given Warren's current financial uncertainty.

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Warren to get $2.24M in federal funds to maintain wastewater treatment plant

Posted

Last week six federal omnibus spending bills made it through Congress with widespread bipartisan and bicameral support, which now head to President Biden’s desk for a signature.

The package includes over $123.2 million in federal earmarks for projects to be undertaken in many of Rhode Island’s municipalities, thanks in large part to recommendations made by Senator Jack Reed, who sits as a senior member on the Appropriations Committee.

Warren was included within that package, in line to receive $2.24 million to make a variety of high-priority upgrades to the town’s Wastewater Treatment Plant, including its primary sludge pump station and various components that allow the plant to function effectively moving forward.

“These enhancements are critical to the system’s continued safe and efficient operation and necessary for the Town to maintain compliance with state regulations,” reads a summary description of the project.

However, the overall cost of the project is estimated to be around $2.8 million, leaving a $560,000 funding gap that, amidst the Town’s current financial uncertainty, could become problematic.

“I believe when [former Town Manager Kate Michaud] made the request, she envisioned the earmark covering 80% of project costs with the Town responsible for the 20% balance,” said Town Planner Herb Durfee III. “At the time, I believe she was relying on availability of local capital project/budget funds and/or Town's designated ARPA monies.”

But since the town was slapped with an $8 million lawsuit settlement late last year — plunging the financial health of the Town into ongoing uncertainty as state auditors, the Town’s new finance director, and various consultants try to get a firm hold on how much money the town actually has in its reserves — relying on capital spending, reserves, or ARPA money is no longer a guarantee.

Durfee said that once a clearer financial picture is ascertained, the Town might have to seek funding elsewhere to bridge that gap.

“Based on the pending FYE 2023 audit, etc., the Town will have a better understanding of the existing availability of such funds. Notably, since Kate's departure, the Council ‘deauthorized’ its previously approved decisions on the use of the remaining ARPA funds,” he said. “So, once the Town has an updated status on its ‘net position’, the Town will better understand its ability to cover the 20% balance. If it turns out existing funds aren't available or short of the amount needed, the Town will explore, for instance, grant funds (non-federal based) to offset the gap amount necessary, subject to Council and Town Manager approval.”

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