NB $13M Away from Bond Cap
By Robin Vinci at February 20, 2024 | 7:00 pm | Print
If a major snowstorm or hurricane were to hit New Britain causing severe damage, the City may not be able to get funds to fix the problems that may occur.
“We are only allowed to put so much on the City credit card and we are right up there,” said Mayor Erin Stewart. “We are only $13 million from the bond ceiling. If we suffered an event where there was serious infrastructure damage we can’t do anything to get us out of the situation and it is very scary.”
Stewart said the City has started rescinding bonds and not moving forward with projects.
“There is going to be a plethora of projects on the table because it is not healthy to have that ability to bond when needed. We also don’t have the money to pay down,” said Stewart. “We have to be able to pay monthly payments on these bonds.”
Stewart said in the next few weeks she will go through all the bonding – Former Mayor Tim O’Brien moved forward with over $90 million in bonds last year alone – and will choose which ones will move forward. Stewart did not say exactly which ones are not moving forward.
Among the project the City approved bonding for included $30 million for Gaffney Elementary School, $13 million for Broad and Washington St, reconstruction, $950,000 for city wide repairs, $1.75 for Willow Brook Park improvements, $875,000 for ADA project improvements, $940,000 for improvements to Beehive Field, $200,000 for the War Memorial project, $3.75 for a water park at Chesley Park, $2 million for a Washington Park Pool Project, $5 million for capitol improvements, $6 million for streetscape, $1.2 million for Arch St. and $555,000 for infrastructure improvement.
Each project will be looked at by the Bond Council and rescinding them will go to the Common Council.
Stewart did not say how many dollars would be cut from bonding.
“Of that $90 million that has been bonded, I am trying to slash as much as possible that hasn’t already been spent,” said Stewart. “Many of the projects have not moved forward yet.”
Stewart said the City just can’t afford it.
“It is unfortunate that folks on the Council were led to believe that we can move forward with these projects and that we had the resources necessary to do so,” said Stewart. “I feel sorry for them because the wool was pulled over their eyes. You are only as good as the information that you are told.”
But, during one bond meeting last June, Alderman Jamie Giantonio did question the amount of bonding
“When do we reach our limit? We are paying for things on credit cards. Everyone has a credit limit. I am worried right now because we are spending like drunken sailors,” said Giantonio. “Over the years we rely on one time monies to fill a gap. And then that gap creates another gap and then it spirals and spirals and spirals and then we are in the situation we are in.”
Stewart said she hopes the Council does come together with her on these bonds.
“Looking at the bigger picture we must say this needs to be done for financial stability. Not just for now, but for years to come,” said Stewart. “A prudent thing would be to do one a year. Doing 15 projects a year is not feasible.”
Stewart said she will give Council members the details on each bond, before they vote on these projects.
“There are ramifications for not being financially smart,” said Stewart.
