New Britain Charter Question Sparks Legislation To Ensure “Clarity” On Local Ballot Referendums

Local, State League of Women Voters (LWV) Back Election Law Change

Legislation to ensure specific wording on local referendum questions has been proposed by New Britain lawmakers in the 2023 Connecticut General Assembly. Proposed Bill 862 “to increase the clarity and simplicity of the language presented to voters in municipal referendum questions” will be considered by the Government Administration and Elections Committee (GAE).

The bill stems from concerns over a controversially worded New Britain charter referendum on last November’s ballot that will result in sweeping changes to local government, including the addition of a city manager (chief administrative officer) and making the offices of Tax Collector and Town and City Clerk appointed instead of being chosen by voters. Those changes and others were approved by voters who were asked an all inclusive question: “Shall the remainder of the changes to the city charter, as recommended by the charter revision commission be approved?” The vote was 5,718 Yes and 4,800 No after a well-financed Yes Committee touted by Mayor Erin Stewart campaigned for approval with citywide mailers and robocalls. The Democratic Town Committee opposed the charter changes but opponents did not form a committee for a campaign against charter revisions. The New Britain LWV disseminated a fact sheet on the charter referendum questions during its fall voter registration activities but did not take a formal position for or against the charter questions.

Leaders of the New Britain League of Women Voters (NB-LWV) reached out to legislators to consider a bill that will “clarify future charter revision ballot questions in Connecticut.” Proponents are seeking a change in election law that would make questions “specific to one subject” and contain concise explanations on the ballot that “adhere to Plain Language Law.” In addition a process in which the Secretary of the State would review local questions for “standards of clarity” may be considered in the legislation.

New Britain was apparently not alone over concerns about charter referendums. New Britain LWV Secretary Ann Speyer said ballot clarity issues also arose last year in Fairfield, East Hartford, Newington, Derby, Stamford and Hamden based on members’ research and inquiries to other League chapters. The League of Women Voters of Connecticut is also supporting the bill and is sending action alerts to chapters throughout the state to support the legislation.

A brief prepared by New Britain LWV members states “ballot questions which will make changes to a charter must be clear to the voters. The League is concerned that Connecticut voters have been asked to vote on ballot questions for charter reform which lacked transparency as to their effect.” At issue were ballot questions that “often consisted of several unrelated issues lumped together and referred to only as recommended changes of a charter revision committee. They failed to inform voters of the changes
themselves.”

Supporters of Proposed Bill 862 acknowledged the existing requirement of legal notification already exists but called the official explanations to voters in New Britain “outdated” last year. They cited Town and City Clerk Mark Bernacki’s classified ad in the July 19th New Britain Herald where the published charter amendments and strike throughs (deletions) appeared in a small-type, two-page spread without any “concise explanatory texts” as required in state law. Unlike other communities New Britain’s website failed to share the charter amendments in an accessible way.

In New Britain last year the city Charter Commission, which conducted numerous public hearings and fully disclosed meeting minutes in its deliberations, sent final recommendations to the Common Council in June that were accepted. However, the Commission’s suggestions to break up the recommendations into four separate ballot questions were ignored by the Council. Alderman Aram Ayalon (D-3) was the sole member of the Council to object to the final language on Question 3. The ballot question even prompted some “Yes” advocates to complain the ballot was not transparent.

In the coming weeks the GAE Committee will schedule a public hearing on the clear language referendum bill when testimony will be heard before the Committee votes to report the bill out for consideration by the General Assembly. Initial sponsors of the bill are members of the city’s legislative delegation: State Senator Rick Lopes (D-6), State Representatives Manny Sanchez (D-24), Bobby Sanchez (D-25), Peter Tercyak (D-26) and Gary Turco (D-27). At a January 21st Legislative Conversations meeting held by the LWV Senator Lopes called the legislation “a common sense bill.”

Taking Sides on Charter Revision In New Britain

Mayor, Yes Committee To Hold “Education Session” Tuesday, October 18 at City Hall

by John McNamara

The Yes on Charter Revision Referendum Committee will hold an “educational session” on October 18th featuring members of the charter commission to promote passage of amendments that have far-reaching implications as to how city government will be governed. Tuesday’s session will be held in Room 504 at City Hall, 27 West Main Street, at 6:30 p.m.

Heading into the final stretch of the 2022 campaign, pros and cons are being raised in letters to the editor and campaign literature with absentee voting already underway. Mayor Stewart has been pushing approval in her monthly opinion column in the New Britain Herald. The New Britain League of Women Voters (NBLWV) has been circulating a fact sheet on referenda to appear on the ballot at its voter registration sessions. The New Britain Democratic Town Committee adopted a resolution opposing charter changes.

There are three questions on the November 8th ballot in New Britain.

Question 1 is a statewide referendum on a constitutional change to permit early voting in Connecticut, one of only four states that does not allow voting ahead of election day now. It appears to have broad-based support except for factions in the Republican Party who push the need for “election security” and oppose voter access reforms.

Questions 2 and 3 pertain to the City Charter amendments. In June, the Common Council condensed the separate recommendations into two questions, ignoring specific questions contained in the commission’s report.

Question 2 asks that at large (citywide) representation on the 15-member Common Council end to be replaced by three councilors to be elected under the minority representation law in five wards (council districts). Currently, five council members are elected at large and 10 are elected in the wards. The current hybrid make up of the Council was created after charter changes re-establishing ward representation that was led by Democrats.

Question 3 asks that the remainder of the changes be adopted including the proposed chief administrative officer to perform mayoral duties in January 2023 and appointing instead of electing the Tax Collector and Town and City Clerk in 2025. Another revision sensibly calls for a charter commission review every five years but it is lumped into the question with the more contentious changes.

Question 3 has led to objections from both proponents and opponents because it lumps major changes into a broad question that leaves out what voters are being asked to decide.

The Yes on Charter Committee will promote passage of changing the composition of the Common Council on one question and in a vaguely worded second question creating a chief administrative officer in the mayor’s office, ending the election of Town Clerk and Tax Collector and several other amendments.

The Council adhered to Mayor Stewart’s wishes and eliminated the ballot questions proposed by the charter commission that included:

  • Shall the positions of Revenue Collector and the Town and City Clerk be changed from elected to civil service, appointed positions?
  • Shall an appointed Chief Operations Officer, who shall report directly to the Mayor, be responsible for the daily management of certain City functions?
  • Shall the remainder of the changes to the Charter as recommended by the Charter Revision Commission be approved, which changes include a provision requiring periodic Charter review every five years at a minimum?

All of those questions haven been incorporated into “Shall the remainder of the changes to the City Charter, as recommended by the Charter Revision Commission, be approved?” Yes or No”. The rationale for consolidating questions is purportedly to keep all questions on a one-sided ballot.

Don DeFronzo, a former mayor, state senator and state DAS commissioner, called the wording of Question 3 “disrespectful, patronizing, and perhaps deceitful, in dealing with New Britain voters” in a September 26th Opinion published in the New Britain Herald.

DeFronzo wrote that Question 3 is “generic, non-specific” and “poorly worded question with no informational context.” He also disagreed with the amendment for a new chief administrative officer: “While not disputing the need for strong professional management, many students of public administration would see the retention of both a full-time mayor and a high-salaried COO as a duplicative expenditure, leading to more bureaucracy and a fragmentation of authority.” The charter change will retain both a full time Mayor with a current salary of $100,000 and, if approved, bring on as of next January a city manager (COO) with a likely salary well over $100,000. The appointment of a tax collector and town clerk would not take effect until 2025.

Text of an amendment to the City Charter creating a Chief Operations Officer

In an October 6th Herald letter to the editor, John Board, who has served as a city commissioner in the Stewart administration, urged a yes vote to “help New Britain adopt 21st-century public administration best practices.” Board, however, acknowledged transparency problems with a “catchall” Question 2: “A lot of the recent chatter I’ve heard around town has been related to the process of how the final questions are structured and presented — those discussions absolutely have merit. Personally, Treasurer Danny Salerno’s approach of considering that question two be separated into a third question or more detailed provided would have given the greatest level of transparency for voters.”

State law (Sec.9-369b) requires the Town and City Clerk to print and disseminate “concise explanatory texts or other printed material with respect to local proposals or questions approved for submission to the electors at a referendum.” Each explanatory text, says state law, shall specify the intent and purpose of each proposal or question. In the July 19th New Britain Herald the Town and City Clerk, in apparent conformance with the law, published the charter amendments and strike throughs (deletions) in a small-type, two-page spread without any “concise explanatory texts.”

Officials have made assurances that prior to November 8th the public will be officially informed about the content of all the charter changes with explanatory literature for voters at the polls and in public notices.

The Day After: Should fireworks be free or come with a fee?

The 4th of July Show Tab This Year Was $60K and $10 A Car Load

By John McNamara

No one can deny that fireworks on the Fourth of July brings a community together. It is America’s birthday tradition that can awe and delight children or the child in all of us. And after 15 months of social distancing because of COVID, New Britain’s 4th was a welcome return to normalcy.

The City of New Britain obliged for the pyrotechnics this year putting up $60,000 of your tax money at the June 23rd Common Council meeting. The transfer of funds provided $24,999 for the show and $35,001 in overtime and salaries. Alderman-At Large Chris Anderson was the sole Council vote against the appropriation. His vote, however, was not about being a killjoy. I’m hoping he took in the show from his Buell Street home’s front yard just a block or so from the rockets red glare without paying the $10 fee.

“I voted no because I am concerned about this expenditure given our other budget needs and because the event will not be free,” wrote Anderson in one of his regular Facebook updates on Council business.

New Britain’s regionally popular “Great American Boom”, held at Stanley Quarter Park until last year and free to all, has been raised as a budget issue in years past. Some of the costs previously were met with fees on vendors and private contributions. Insurance man and former Alderman Carlo Carlozzi, for example, led the way a few years back in securing a major grant from Liberty Mutual to cover expenses. For the most part the bulk of expenses, however, depend on public appropriations.

New Britain was one of a handful of communities that went on with the show last year despite COVID concerns. Like this year the “drive in fireworks show” at Willow Brook Park near the baseball stadium required pre-registration at $10 per car load, a nominal fee that raised some but not a lot for the city’s Fireworks Fund. It’s been one of several public events that the Parks and Recreation Department assesses for admission. The fireworks fee undoubtedly had more to do with social distancing than revenue but it should be said that it could have been made free to city residents.

The change of venue these last two years also returned the city’s fireworks back to Willow Brook where it once was held. That’s a welcome change that should be made permanent. Holding an event drawing in excess of 20,000 people at Stanley Quarter in the residential Belvedere neighborhood creates a parking nightmare and heightened public safety concerns (Full disclosure: it’s my neighborhood).

Ideally, if the city restores the Great American Boom to a free-to-all event next year it ought to be a Greater New Britain event with costs shared by surrounding towns with a healthy dose of corporate, civic-minded philanthropy.

Alderman Anderson’s points on nickel and diming residents and striking a balance on budget priorities are well taken. Blowing $60K on its own on America’s birthday to light up New Britain night sky is a lot for a financially stressed city government dependent on borrowing.

Republican Candidate For 26th District Stirred Social Media Controversy in 2015

“Racially Divisive” Posts Sunk Ceglarz’ Council Candidacy In The ’15 Municipal

By John McNamara

The New Britain Republican Town Committee’s (NBRTC) slate of legislative candidates for the November 3rd Election includes a nominee who stirred controversy in 2015 that forced his withdrawal from the Councillor-At-Large race that year.

Piotr (Peter) Ceglarz, a member of the NBRTC from Ward 4, is making his second run at incumbent Democrat Peter Tercyak for the General Assembly District that includes John Paul II, Pulaski Middle School, Saint Francis Church and Holmes School polling places.

In 2014 Tercyak defeated Ceglarz for re-election in an uneventful race with both candidates participating in the Citizen Election Program (CEP) of public financing.  In the 2015 municipal election Ceglarz joined the Erin Stewart slate as one of five at large Council candidates.

His short-lived campaign for city office was anything but uneventful.  Soon after the July nominations racially-charged social media posts attributed to Ceglarz’ Facebook page surfaced spreading white nationalist, hateful memes that have become all too familiar in Trump Republicans’ playbooks and are ever present on Facebook and Twitter.

At issue were Facebook posts by Republican Ceglarz in which he shared and agreed with messages from right-wing groups defending the Confederate flag and referring to such organizations as the NAACP, United Negro College Fund and the Hispanic Scholarship Fund as “racist.” In another post President Obama is linked with Adolf Hitler and Joseph Stalin over gun ownership rights. Ceglarz also disparaged minimum wage workers in disseminating his views at the time of his candidacy for City Council.

The offensive posts led to immediate calls for Ceglarz to exit the campaign by Democrats and drew in media coverage that eventually caused Stewart, protecting her “socially liberal” Republican brand outside of New Britain, to dump Ceglarz once the television and newspapers came calling.

The social media-savvy Mayor with a constant presence on Facebook professed no knowledge of the Ceglarz posts on the day she asked him to leave the slate. “Earlier today I became aware of several postings on Facebook, made by Peter Ceglarz, that were both ill-advised and indefensible in their nature. While I consider Peter to be a good friend, there is simply no room in this campaign for that sort of divisiveness,” the Mayor responded in a written statement.

Ceglarz complied with Erin Stewart’s order to withdraw but without any apology or remorse saying he was the victim of “a political hit job.”  Reacting to the press coverage back then Ceglarz, in a comment to the New Britain Herald, called the paper “the most biased and liberal paper in the state. Sorry but your recent story about me was the biggest B.S. and P.O.S. NICE way to kiss ass with (former Democratic Chair John) McNamara and (former Councillor David) DeFronzo and then calling things racist. Get your facts straight and cover the truth and not lies.”

Coming off the GOP bench to run a third time, the unrepentant 2020 Ceglarz has scrubbed his social media of any of the publically shared racist taunts that abruptly ended his run for office five Augusts ago.  Of more concern, however, is how his personal views may inform his stances on legislative issues that effect the residents of his district in a multi-cultural, diverse community. 

Unfortunately, Ceglarz’ 2015 posts are an example of the vitriol that has been injected via social media into New Britain politics going back to at least 2009. 

Last year older posts attributed to  Democratic Council candidate Antonio Lavoy, Sr. were widely condemned for vulgar remarks directed at Erin Stewart, transgressions for which Lavoy apologized.  And early in 2019 former Mayor Timothy Stewart referred to Democratic women in Congress as “bitches in heat” in a Facebook post during the State of the Union address, a flip remark that brought his forced resignation as head of the Chamber of Commerce after dodging an earlier controversy with the help of State Senator Gennaro Bizzarro, the city corporation counsel and Chamber Board Chairman. 

“Stewart had already been facing calls that he resign or be removed as the head of the Greater New Britain Chamber of Commerce from a scandal from 2017 in which he made a comment that was widely criticized as racist,” according to the New Britain Progressive. “Stewart had made an online comment that, ‘Unfortunately the inmates continue to run the neighborhood,’ in a discussion regarding the city’s North Oak neighborhood, a neighborhood that has a large Latino and African American population.”

Inflammatory rhetoric, personal insults and racial invective are nothing new in political discourse in New Britain and elsewhere.  But social media — pervasive and unfiltered — accelerates division and does harm to  civic engagement.  There’s no stopping the bigoted and uninformed, egged on by the highest office in the land, to post their rants. But elected leaders and those who aspire to leadership have a special responsibility not to offend nor tolerate those who do so.

(Editor’s Note:  In 2015 I was the Democratic Party Chair and Mayoral candidate and was among Democrats calling for the withdrawal of Ceglarz from the Council race.)

 

 

 

Under the Cover of Covid: Four Democratic Councillors Excluded From July Meeting

Mayor Pulls Plug On Remote Access For Common Council Members

By John McNamara

Four Democratic City Councillors, expecting teleconference access because of the state-mandated COVID 19 social distancing order for public meetings, were shut out of participating and voting at the July 8th Common Council meeting.

At Large Alderman Richard Reyes, Ward 2 Alderperson Colin Osborn and Ward 3’s Aram Ayalon and Iris Sanchez were muted for this month’s only Common Council meeting. The remote system used for council debate and voting was turned off.

Three other Democrats, Manny Sanchez, Chris Anderson and Francisco Santiago, were present along with the eight members of the Republican caucus. Councillors meet in a semi-circle in close proximity to one another in the Council chambers. Holding remote meetings with call in public participation has been the routine during the pandemic.

Close to 40 residents spoke via telephone about a civilian review board and the Christopher Columbus statue amid the waves of protest and concern over police violence and racism since the killing of George Floyd in Minneapolis.

COVID protocols were in force for public participation in accordance with Governor Lamont’s Executive Order on holding public meetings remotely and avoiding person to person contact.

“I was told that the Mayor expected the council members to be present,” Iris Sanchez said in a Facebook post. “I did it remotely and the whole time I and some of my colleagues were muted the whole meeting.”

While public participation took up over an hour, the regular meeting took less than 15 minutes. On the roll call Town and City Clerk Mark Bernacki hesitated but appeared to record Ayalon present when he heard Ayalon’s voice over the public participation line. Iris Sanchez, Osborn and Reyes were counted as absent. Ayalon is responding with a Freedom of Information complaint that his own open meeting rights may have been violated.

It may be that the failure to let four Democrats in on the July 8th Council meeting was just a mix up. But that seems unlikely. Mayor Stewart’s reopening of the Council Chambers without a recourse to participating remotely fits a pattern of minimal, nonchalant responses to the pandemic at City Hall.

Using her eight to seven majority, Stewart derailed Council discussion on dealing with the pandemic aside from her “proactive steps” that included a 10 p.m. curfew and the closing of municipal facilities. A resolution calling for the city to consider a work from home policy for non-essential city employees was hastily rejected on a party line vote at the April 8th Common Council meeting one day after Stewart closed City Hall to the public.

Stewart and her obedient eight-member caucus squelched any talk of looking into a work from home option, a policy that 60 percent of municipalities are allowing across the nation in the interest of continuing city operations without interruption and ensuring the safety of the work force.

The GOP caucus pushed through its own resolution without any questions falling in line with whatever the administration wanted to do. Amid criticism that the Council was doing its business remotely but requiring city workers to show up, GOP caucus members claimed Council Democrats were attempting to usurp the powers of the Mayor, ignoring completely what the City Charter mandates about legislative powers.

“City employees do not have the capability to work from home,” Stewart told the New Britain Herald on March 24th. “I’m not sure how you would fill a pothole working from home or how you could obtain a copy of a birth certificate or file a death certificate, working from home. Employees who are worried about their health have every opportunity to use their accrued time and stay home.”

Telling employees willing to work but with health concerns to take their sick or vacation time would seem to open up the Mayor to a labor law violation. Her management indifference, however, drew no response from local AFSCME or other municipal union presidents who enjoy cozy ties to the Mayor. The rank and file be damned.

Thankfully the spread of coronavirus has considerably ebbed across the state because of strong and continuous public health measures. But it’s not over. That is especially true in municipalities where rates of infection are higher. 

The prudent thing to do on July 8th was to give all elected Common Council members the remote option and follow the Governor’s executive order “to permit a public agency to meet and take action without permitting in-person, public access to such meeting, and to hold such meetings or proceedings remotely by conference call, video conferencing or other technology.”

Open meetings and transparency should not become a casualty of the pandemic at any level of government.  As social distancing and phased re-openings continue, the situation warrants some true bipartisanship in governing the city. It’s unfortunate that there has been very little of that coming out of the Mayor’s office or from her loyalists on the Council. Their brand of bipartisanship only works if you set aside transparency, dialogue and agree with them 100 percent of the time.

Four Ways to Fight Racism in Your Town

Commentary courtesy of Otherwords.org

Spontaneous, peaceful protests have been occurring in New Britain over the murder of George Floyd and systemic police violence.  A rare 15 to 0 Common Council vote declared “racism is a public health crisis.” The movement is ramping up the pressure for a Civilian Review Board and changes in city government that would emphasize more community policing and de-escalation tactics in law enforcement and more funding to education and neighborhood services. 

This commentary by Gloria Oladipo, a Cornell University student, discusses activities to keep the momentum going.

By Gloria Oladipo June 24, 2020

For weeks since the police killing of George Floyd in Minneapolis, protests have erupted across the globe. While demonstrations in larger cities have drawn the most attention in the U.S., smaller communities can be — and are — involved in the fight for racial justice.

From Medford, Oregon to Meridian, Mississippi, and many places beyond, peaceful protests have attracted hundreds. Even those in conservative, majority-white towns — some with active KKK chapters — have gathered to reject racism and violence.

It’s an encouraging sign. But not all communities have been able to hold gatherings, especially at the height of COVID-19. Thankfully, there are other ways to contribute to the fight for racial justice, even if protests have not reached your area.

1. Educate yourself.

The first step to being an effective ally is to educate yourself on racism, both structurally and in your community. A number of books are a great starting point. I recommend Freedom Is a Constant Struggle by Angela Davis and So You Want to Talk About Race by Ijeoma Oluo.

If you prefer watching to reading, Netflix has a number of documentaries to help understand racism and its role in the United States, including 13th and When They See Us.

Don’t forget to learn about racism and police brutality in your own community. Despite the media’s depiction of police brutality as an issue impacting mainly cities, many rural communities and suburbs also suffer from disturbing examples of police brutality.

Keep track of events in the local news. Meet with your local sheriff and ask about police accountability measures. You have a right to live in a town where the police aren’t a threat to you and others. 

2. Talk about racism at home.

One of the most impactful things that allies can do in the face of anti-Blackness is to discuss these topics at home, especially with racist people in your inner circles. Challenging racism inter-personally can help change the ideology of family and friends — or at least introduce a different perspective.

Educating your family and friends is the first step to creating new allies and fostering a more tolerant culture in your community.

3. Support racial justice organizations.

Organizations need resources to support activists on the ground, bail out protestors, and pay their bills. Funding is especially important for local organizations who may not have the same bandwidth as national organizations to raise money. For these small local groups, every dollar counts.

A simple Google search can produce thousands of results for local, smaller organizations in your area. If the internet is not accessible in your area, check local community boards. Often, groups will post flyers about events, opportunities for you to learn more about the work they do, and ways to donate to their efforts. 

4. Support struggling people.

Many Black people are exhausted and vulnerable. Many need financial help. Whether suffering from COVID-19, job loss, the death of family members, or marginalization on account of their race or gender identity, direct donations can change their lives.

Finding people in need isn’t difficult. GoFundMe has hundreds of thousands of people asking for help with basic needs. Twitter houses similar campaigns, including threads with women looking for donations to escape abusive situations or in need of general financial help.

Or, go through your local church. Ask your pastor or church board members if they are currently looking for donations to help marginalized people. Your dollars can and will change lives.

Don’t let Black Lives Matter be a passing, catchy slogan. Wherever you live, be an active ally who challenges racism at every opportunity. Everyone is responsible to fight against racism, now and always.

New Britain’s Bond Rating Drops From Stable To Negative: Huge Spike In Debt Through 2021 Cited By Moody’s

By John McNamara

Republican incumbent Mayor Erin Stewart, in her re-election campaign this year and throughout her second term, has touted improving municipal bond ratings for New Britain’s fiscal solvency, claiming credit for budget surpluses of $15 million and pushing spending up at City Hall with no need for an election year tax increase.

Fiscal stability is the cornerstone of her platform and a main talking point in her aspirations to leave the mayor’s job for statewide office. Her campaign’s website points to New Britain “gracing the cover of the Bond Buyer, a trade publication covering the municipal bond market, “not once but twice. The city under her management is a shining example for how to make a financial turnaround work during a difficult economy.”

The November 2nd edition of Bond Buyerhowever, paints a different picture for the city’s finances in the  latest analysis, portending a difficult road ahead for the city’s budget over the next four years.  Moody’s Investor Services, which along with Standard & Poor’s, assesses the borrowing ability and fiscal health of cities in the municipal bond market, has downgraded general obligation borrowing to Baa2 from Baa1. “Moody’s cited New Britain’s reliance on nonrecurring revenues to stabilize its financial position in recent years. The rating agency also revised its outlook on the 73,000-population city to negative from stable,” Bond Buyer’s Paul Burton reported. “The rating also incorporates the city’s elevated debt profile with rapidly escalating debt service and its modest pension liability,’ the rating agency said Tuesday.”

In contrast to Moody’s downgrade four months into the 2018 fiscal year, Standard & Poor’s has previously affirmed  a more favorable A-plus rating for New Britain after upgrading the city four notches through two upgrades.   Moody’s last assessment came in 2014.

According to the Bond Buyer story:

Moody’s said the negative outlook reflects the short-term challenge New Britain will face to match recurring revenues with recurring expenditures while managing its debt service pegged to spike through fiscal 2021. New Britain, said Moody’s, could earn an upgrade through a sustained trend of structurally balanced operations without one-shots, a material reduction in debt burden, growth in its tax base or an improved resident wealth and income profile.  By contrast, continuing reliance on nonrecurring revenues, erosion of its financial position, taking on more debt or deterioration of New Britain’s tax base or wealth profile could lead to a downgrade.

The Moody’s downgrade may be related to action taken by the Common Council prior to the end of the 2017 fiscal year at the behest of the Stewart administration when debt payments were deferred in the last fiscal year pushing the debt into this year and succeeding years when interest rates on the city’s borrowing will be accelerating.

Did Stewart Get A Prohibited Campaign Freebie In Mailing Of Car Tax Bills?

By John McNamara

New Britain motor vehicle owners finally got their bills on September 1 along with  a glowing missive from Mayor Erin Stewart that makes the case for her re-election.

The city held up auto tax notices this year, blaming the state budget impasse for the two month delay. Uncertain was whether the auto levy would be lowered to 32 mills or stay at 37.  Given the state deficit then and now,  it would have been a safe bet to go with the 37 mill rate in July rather than wait.  The $241.5  million municipal budget for the year that began July 1st is based on what New Britain got from the state in the 2017 fiscal year.

In a city election year the delay in mailing tax bills is giving incumbent Stewart a prohibited taxpayer-funded freebie — an expensive city-wide mailing to everyone who owns a car or truck — to boost her campaign closer to the election.

Don’t expect Stewart and her full-time image team in the Mayor’s office  to miss an incumbent’s prerogative of using public funds to deliver a not so subtle piece of campaign promotion. Normally there’d be nothing wrong with it.  It’s done here and in many places all the time — an advantage to incumbents in local races with no public financing

Brochure advancing Mayor Stewart’s candidacy sent with motor vehicle tax bills this week. State law bars use of public funds for candidate promotions within three months of elections.

The issue usually arises over “franking privileges” for state and federal lawmakers who send their own positive mailers back to their districts on accomplishments and legislation.

At issue here is whether Stewart used the good offices of the Tax Collector to promote her candidacy within three months of an election.  That’s where the Connecticut General Statutes come in. State law prohibits any use of taxpayer money by incumbents within 90 days of an election for self promotion.

From Connecticut general statutes 9-610

(d) (1) No incumbent holding office shall, during the three months preceding an election in which he is a candidate for reelection or election to another office, use public funds to mail or print flyers or other promotional materials intended to bring about his election or reelection.

Using her campaign slogan “Leading The Way” in the taxpayer-funded brochure, Stewart cites saving the city from fiscal ruin, good bond ratings, reorganizing city hall departments “to find efficiencies and improve customer service and “a continuous commitment to provide our teachers and our children with the proper tools for learning and exploring.”  The official message is a carbon copy of what can be found on Stewart’s campaign website.

Any and all of the Stewart’s tax mailer assertions, of course, can be challenged in an election year.  A closer look at the  municipal budget shows higher spending  trumps efficiency at City Hall. A hefty jump in interest payments looms on short-term borrowing because Stewart and the Common Council deferred on paying bills coming due last year. And that  “continuous commitment” to education?  It’s  hard to find in a Stewart budget that continues to spend more at City Hall but didn’t add a dime to schools in the current budget.

In politics timing can be everything and can determine what is allowed and what isn’t under the law.

By incorporating her campaign promotion in the late auto tax notices , Mayor Stewart ignored the law that bans incumbents from using public funds “to mail or print flyers or other promotional materials” for reelection.

 

 

GOP Alderman Hits School Board On Salaries But Rubber Stamps Pay Hikes, More Spending At City Hall

 

By John McNamara

The sometimes fragile relations between City Hall  and the Board of Education took a backward step this week over complaints from Ward 2 Republican Alderman Kristian Rosado appearing in the New Britain City Journal.

Rosado, in a front-page story in the City Journal , derided a unanimous BOE move on salary increases for three administrators,  pitting Rosado against BOE President and fellow Republican Nick Mercier.

unnamedRosado was joined by two BOE members, Sharon Beloin-Saavedra and Miriam Geraci, who either half-heartedly voted for the increases or didn’t stick around long enough to vote on the matter at a July 24th meeting.  Geraci, absent for the vote, objected because of uncertainty over the amount of Educational Cost Sharing (ECS) funds the city will receive in the unresolved state budget.  In a City Journal editorial, Editor Robin Vinci, often a mouthpiece for the Stewart administration on many issues, sided with Rosado.

The BOE, however,  unanimously approved three salary increases — a revenue neutral move, according to Mercier, because of a $49,000 cut in Assistant Superintendent Paul Salina’s compensation.  Receiving salary hikes were Chief Financial Officer Kevin Kane, Talent Officer Dr. Shuana Tucker and Assistant Talent Officer, Dr. Nicole Sanders, the principal of the North End School, who was promoted to the position.

 

City Journal Editor Robin Vinci, apparently confusing Dr. Sanders with someone else, falsely reported that Sanders is a member of the BOE.  By law, school employees cannot serve on the elected board.

Mercier, quoted in the City Journal, said “the chief financial officer is taking over as head of three departments, that warranted the salary increase. In terms of the talent office it was partially due to an increase in duties and responsibilities”  and making the salaries “competitive.” Mercier said the move is saving $20,000 in central office spending this year and will reduce administrative costs by $90,000 next year.

But Rosado lambasted the salary levels  as “outrageous and insulting considering that the average resident of New Britain makes under $40,000 a year,” saying more money should be going to classroom support.

By contrast, Rosado, in his capacity as a member of the Common Council, has been a reliable rubber stamp for Mayor’s office salary hikes and major budget increases on the municipal side of the ledger.  He supported Mayor Stewart’s budget that denied a very small increase for city schools.

No one questions Alderman Rosado nor the City Journal for casting a critical eye on how tax dollars are spent. But their critical eyes appear to be only wide open at the Board of Education. They are closed shut when it comes to salary hikes, increasing debt interest and all manner of discretionary spending by the Stewart administration.

 

 

 

 

 

 

City Hall Watch: Deferring Municipal Debt Payment Means Cash Now, Higher Interest Next Year

By John McNamara

The Stewart administration is shifting $6 million from a scheduled payment on the city’s rising municipal debt— creating an election year windfall to avert yet another tax increase.  The Common Council approved what representatives of William Blair & Company, the city’s bond counsel, called a “re-structuring” of  a $28 million bond at a special meeting  on January 11th.

Expect Mayor Stewart to trumpet a “savings” to avert her third property tax hike or claim a hefty boost to the city’s “rainy day fund” as municipal budget talks get underway in a few weeks.

CITY HALL WATCH
CITY HALL WATCH

But using the city’s credit card to increase cash flow in the current fiscal year is hardly a savings or proof of Stewart’s fiscal prudence. It obligates the city to shell out more to bond holders in the out years. Pushing debt obligations to 2018 and beyond  guarantees all the borrowed money (short and long-term debt for capital projects and allowable expenses) will come with considerably higher interest rates.

“We’ve been seeing  the rates increasing from last year,” William Blair’s Richard Thivierge told the Common Council. “Some debt rates have gone up 60 to 80 basis points.”

Ward 5 Alderman Carlo Carlozzi, who extensively questioned bond counsel along with Alderman Manny Sanchez on January 11, expressed some frustration on the new deal with creditors which will lower the payment this year from $28,315,000 to $21, 600,000. “The city always seems to be restructuring its debt.”  Carlozzi said,  wondering out loud if moving the debt was kicking the can down the road at higher interest rates.

Bond counsel representatives explained that the city is not re-financing — which is usually done to get lower rates — but is deferring the debt a portion of which stems from borrowing  in Stewart’s first two terms. Because of the city’s “high debt base” Thivierge said the city needs to “levelize” its debt service by slowing down its payments. Always the obliging middle man in extending the debt, Thivierge called it “budgetary prudence.” In political terms that’s a euphemism for not having to raise taxes or cut services in an election year.  Pressed by Carlozzi’s questions, the Mayor,  Finance Director Lori Granato and Bond Counsel tacitly acknowledged the city could pay down its debt at a lower interest rate this year, but that the extra $6 million will be needed in the next budget after July 1.

Obligating the city to pay more for debt at the start of 2017 stems from structural factors that cash-strapped cities face. New Britain, according to the state Office of Policy and Management (OPM), is the slowest growing grand list in the state with 97% of the land developed and a considerable amount of real property owned by the state or nonprofit institutions. This inelastic tax base, reliance on the property tax and dependence on state aid that this year exceeds $100 million makes the current system unsustainable no matter who is mayor or serves on the Common Council. All of this is why the bond lenders hold cities in a cycle of  borrowing for needed capital improvements not favorable to fiscal stability and residents. Raising taxes is good. Cutting services is better. Selling off municipal assets (such as watershed) is even better for improving your bond rating and pleasing the lenders on Wall Street.

The situation has been made worse in New Britain by “structural deficits” first identified by Mayor Tim O’Brien when he took office in 2011 and quickly acknowledged by Erin Stewart when she succeeded O’Brien despite her politicking that the budget mess was created entirely by O’Brien in one term.

Both mayors pointed to the four terms of former Mayor Tim Stewart who, with the acquiescence of Democratic common councils between 2003 and 2010, relied on one-time fixes and phantom sales of land.  With increases in spending and freezing the tax rate year after year during the first Mayor Stewart’s terms,  a financial hole was created that the city is still climbing out of.

“We had an issue a few years back when someone came into office and said there were structural problems in the budget,” said Carlozzi at the bond authorization meeting, alluding to former Mayor O’Brien sounding the alarm more than five years ago. “That person was heavily criticized. We now have heard for the last three years that we have structural issues with the budget. That individual was correct.”

As Alderman Carlozzi made clear at the Council meeting paying off your credit card debt sooner rather than later would be a good thing.  In 2017, however, the restructuring of debt is a way to paint a hunky-dory financial picture that relies on the city’s mountain of debt getting higher.  What is especially misleading is the “rainy day” or “tax stabilization” fund being counted in the millions of dollars. Implying that the surplus stems from more efficiencies and prudent fiscal management as Stewart boasts is false. It is based almost entirely on restructuring borrowed money and a 2014 property tax increase — the largest in city history.

The bottom line is that in a municipal election year all that glitters is not gold when it comes to city finances. Bond authorizations cannot be used to meet current operations only capital improvements.  But in New Britain and other financially struggling cities increasing debt costs for ready cash carries a heavy price tag due and payable sooner rather than later.