NB Politicus

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

Posted in city government, City Hall, municipal budget, New Britain, Uncategorized by nbpoliticus on November 4, 2017

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.

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Your Tax Dollars At Work: Erin Stewart Does Politics On Dem. Primary Day From City Hall

Posted in City Hall, city politics and government, New Britain Republicans by nbpoliticus on August 9, 2016

Republican Erin Stewart  is taking time from her  duties at City Hall to jump into today’s Democratic Primary for State Senate and Registrar of Voters,  posting a pitch from her official Facebook page to support the challengers.

Acknowledging she “is not a Democrat” Ms. Stewart urged her social media followers to oppose endorsed candidates State Senator Terry Gerratana and Registrar of Voters candidate Mike Trueworthy.

In an earlier post on her personal Facebook page Ms. Stewart resorted to name calling that was caught by Courant Columnist Kevin Rennie on his Daily Ructions blog.  Rennie has been a chronicler of Erin Stewart’s foul-mouthed rants and drinking episodes that have been an embarrassment to the city and may come back to haunt the young Republican as she seeks higher office.

Stewart Post

Erin Stewart in full campaign mode ripping up a Vote Democrat sign.

In his pursuit of a return to public office Registrar candidate Lucian Pawlak is relying heavily on Republican financial support.  A fellow Democratic supporter of Pawlak’s recently asked the former four-term Mayor if he would co-sign a letter to the editor opposing the controversial sale of the city’s Patton Brook Well in Southington that is up for a vote this week at the City Council.. Pawlak initially agreed but purportedly backed off telling his supporter that the Stewarts offered to get his committee contributions for the Democratic Primary.  Pawlak, in other words, allowed himself to be bought off on a key public issue.

Beloin-Saavedra, touting her advocacy for education and support of the schools in her challenge, has also embraced Stewart but that embrace has come at a price for what Beloin-Saavedra has said she stands for. When Mayor Stewart illegally attempted to cut $4 million already appropriated for the school budget in her first budget  Beloin-Saavedra never said a word in protest,  acquiescing to the raid on school funds. That was a disappointment for those who have always admired her BOE leadership and advocacy for education through the years. It took New Britain’s Democratic legislators  to block the loss of funds for education.

If nothing else in today’s Democratic Primary  Mr. Pawlak and Ms. Beloin-Saavedra are giving new meaning to the acronym  DINO – Democrats In Name Only.   And contrary to Ms. Stewart’s “people not politics” slogan  it’s about politics, pettiness and self aggrandizement on the city’s dime.

 

 

 

 

 

 

 

 

Inside City Hall: Republicans Seek To Eliminate Polling Places in Center of New Britain

Posted in City Hall, city politics and government, Voting Rights by nbpoliticus on January 27, 2016

By John McNamara

Republican Mayor Erin Stewart and Registrar of Voters Peter Gostin are moving quickly to reduce voter access to polling places for the November Presidential election.

A  plan drafted by Republican Gostin will  come up for a fast-tracked feasibility study vote at the Wednesday January 27th Common Council meeting. right-to-vote1

The feasibility study apparently has the support of Democrat Carlo Carlozzi, Jr., the council minority leader. Consideration of the plan would appear to be a done deal if the Council majority  agrees to look into sudden changes in where the electorate votes in 2016 . Carlozzi, however, maintains that he will oppose sudden changes in polling places despite supporting the feasibility move by Republicans.

Democratic legislators and other Democratic leaders are expected to strongly oppose any changes so close to a primary and the general election especially for its impact on elderly and minority voters.

Facing a tight timeline,  GOP leaders and the Registrars met on Monday to float the plan to reduce the number of polling places in the city from 17 to 13 on the eve of an April 26th presidential primary and the November general election.

The plan takes direct aim at two polling places in the central part of the city — the Graham and School Apartment polling places — where a minority and older population reside.

The GOP plan would eliminate those polling places and residents would apparently be offered a shuttle to the New Britain Senior Center to vote, according to Democratic Registrar Juan Verdu.

Also under consideration is the elimination of two additional polling places including the Holmes School (District 11) and the Armory (District  6). The Armory District is also in the center of New Britain where many minority residents live.

Republican Registrar Gostin has previously floated a plan to reduce polling places in the city from 17 to 10.  Gostin, who lobbied heavily for a pay raise for himself in 2015, is calling for reduced voter access as a way to save the city money,  but apparently not to reduce  the payroll and administrative expenses in his office.

The Common Council meeting on January 27th begins at 7 p.m. with public participation.