The city owes companies that have received economic development grants about $70,000 more than it has in the account to pay the bills.
City Comptroller Glenn Klocko said the fund has $200,000 in it, but the city already owes $270,000 to companies that have been lured into expanding in Bristol or moving town during the past couple of years.
Klocko said it isn't really a serious problem.
He said the city's economic development director, Jonathan Rosenthal, plans to ask the Board of Finance for an additional $150,000 in order to replenish the account.
Klocko said it shouldn't be controversial since everyone has an interest in seeing more growth in Bristol.
What the problem does show, however, is how tight budgeting and a lack of oversight can lead to an embarrassing situation.
Klocko said the city hasn't put any money into the economic development fund for the past three years. That proved a mistake, he said, because Rosenthal has managed to beat the bushes far more successfully than officials anticipated. [Click here for a list of companies that have received grants in 2008 and 2009.]
All of the money involved has been fully accounted for, Klocko said.
The firms that are owned money, he said, will get it.
"We pay our bills," Klocko said.
He said the finance board will likely take the $150,000 needed for economic development from the contingency fund, leaving about $800,000 for other unanticipated needs.
The comptroller said that his office plans "to beef up internal controls" so it will know if similar fiscal issues arise in the future.
Klocko said that a couple of people in the Bristol Development Authority office will also be trained on the city financial database so they can track the spending better.
Klocko said that some have criticized Rosenthal for allowing the situation to occur, but that's not really fair.
He said the city is short because Rosenthal has been so successful in aggressively seeking new companies for Bristol. Klocko said his job is "to go out there and bird dog" potential firms.
In fact, the city is making sure it has more than $70,000 it knows it needs because it figures at least one other company is likely to agree to come to town in a few months because of Rosenthal's efforts.
Klocko said he knows the money situation appears to be a problem. But, he said, it's really not.
It's like spending $950 on Christmas presents with a credit card knowing that the paycheck in December will cover the tab.
Still, Klocko said, "we are immediately remedying the situation."
Wednesday, 10:30 a.m. update -- Read the full story that appeared in today's Press by clicking here.
I should point out, too, that some comments so far have missed an essential point: that the city gives out some money to help lure new businesses. If the account is short of cash, the city would be foolish to refrain from giving out more money and perhaps losing a new company to another town. Instead, it simply has to take the cash from a different account. That's just bookkeeping. It's not something intrinsically irresponsible.
If I had a jar where I was shoving bills to pay for a future vacation in Cancun, say, it wouldn't be crazy for me to grab a great deal that costs more than I have in the jar if it would ultimately save me money -- as long as I have the extra money somewhere else. The city, of course, does.
I, on the other hand, don't. So it appear Cancun will have to get along without me. I could, though, scrape together enough to get a hot dog and a beer in, say, Waterbury. It's not quite the same thing.
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
40 comments:
What a surprise. Tim is the spelling OK.
Give JR THE MONEY. He is doing a great job just ask art.
5:32 - Read the list of new and expanding companies stupid.
"He said the city is short because Rosenthal has been so successful in aggressively seeking new companies for Bristol."
Are you kidding me! Klocko don't hitch your wagon to this looser. He's our 100k photographer. It's time for Ward to stop protecting him and get rid of him.
My dog can do a better job than Rosenthal.
Is Klocko the mayor now?
Where the hell is the mayor on this?
Stortz is proven right again!
Klocko should be disciplined if not fired for this...afterall it is HIS JOB to make sure that situations like this don't occur! Where's Artie on this one???
"Klocko said he knows the money situation appears to be a problem. But, he said, it's really not.
It's like spending $950 on Christmas presents with a credit card knowing that the paycheck in December will cover the tab."
--
Are you kidding me?? The Comptroller of the 9th largest city in Connecticut runs City finances by living on credit?? That's gross incompetence.
And, by the way, the "internal controls" should have already been in place if Mr. Klocko was doing his job.
The Mayor can monitor lunch money, but he can't/does'nt monitor major spending.
And apparently, neither does Kloko.
I hope all you stupid Ward backers do not vote this man in again. WAKE UP HE NEEDS TO GO.0
How about the 60THOUSAND DOLLARS ON MAIN ST RESTAURANT. THAT IS NO MORE. Whos fault is that
Where is the BDA Board?
Who chairs that?
No wonder we are in such amess!
"Klocko said it isn't really a serious problem."... That seems like the attitude of emost people in charge of running this town. Glad they can sleep well at night without worrying about how to pay the bills.
one member of the fab five protecting another. to bad there is no accountability for dept. heads.
Now we know why Klocko makes more than the mayor. He is the mayors boss!
Shame on you Art!
My question is, who's the professional staff to the economic development committee, and why didn't that person (Klocko, presumably) take the Mayor aside and warn him that the pot is empty and needs to be replenished? I'm no fan of Bill Stortz, but this kind of fiscal sloppiness did not happen when he was mayor.
Klocko just covering up his complete lack of controls on the money. How did he let this happen in the first place? He will blame the Board of Finance, watch.
And Klocko won a budget award???
Does this give Carte Blanche to ALL department heads.
Or is Jonathan special?
I disagree that Rosenthal is doing a great job. He is terrible and should have been all over this - spening money not in his budget!
He needs to go!
Klocko dropped the ball on this one too. Some of these promises are from last year! What a shame to say we didn't know.
Like Klocko said, "If we had done a better job...".
Guess Ward is satisfied with mediocrity, or water tends to seek its own level.
'Tis a slippery slope we are on.
Klocko says that staff insie the Bristol Development Authority will be trained to track this better?? Am I the only one who thinks this should be Rosenthals job? Isn't he supposed to know what goes on in his own department? How did it come to be that he promised this money to companies without knowing how much money was in the fund? And to think that Rosenthal was aggresive in bringing businesses to Bristol, someone out to find out why Klocko is backing Rosenthal all the sudden. I feel sorry for the staff in the Bristol Development Authority
I can't believe Rosenthal somehow weaseled his way out of this one. He does that for just about everything. This guy is more of a magician then an Economic Development Director.
Makes me wonder what Rosenthal has on everyone that covers his a**. Ever see how good he is at pulling the wool over the board members eyes?
Rosenthal doesn't make any promises or close any deals. His boss, the Mayor, closes the deals. And if the Mayor closed a deal when there was insufficient funds in the pot, then shame on him. Again I say, fiscal sloppiness.
1:35
Maybe Klocko wants to take over that department too!
Why do we even have a budget?
Other than for Klocko to get the beautification award.
overheard "rosie" talking at another city function a few weeks back and he was stabbing everyone at city hall in the back - again.
suggest that, supposed cohorts or friends, watch their backs because "jonnie boy" sure is.
Did Ward put anything is Rosenthals file on this?
If not, we are never going to be able to get rid of him!
Nice try Steve ...you sound like Klocko's understudy.
Bottem line: Accounting Blunder, Control Blunder, Poor management by both Rosenthal (mostly) and Klocko.
6:27 - falling heads over heels about those "rosie" and "jonnie' tags - makes him sound so much thinner.
To 6:35 AM -
Don't worry, this time the hammer is coming down strong to squash Mr. Rosenthal.
Everyone should be careful of Rosenthal, even if you think your his friend. He's selfish, has an oversized ego, lives in his own "I am prefect and everyone attacks me" world and cannot be trusted. Ask anyone whose been at meetings with him outside of Bristol. Such an embarrassment for Bristol
11:55
I doubt it.
Klocko and Ferguson will come to Rosenthals aid.
ought to get "rosie" out from behind the dinner table and into the gym.
Remember when Ward wanted Rosenthal and BDA to be the lead on the Mall site, now Depot Square?
Wow!
Good thing it didn't happen.
6:36 - if you are lucky enough to understand him in between bites of his food.
Third screw up by Jonathan in past two years (that we know of).
How many will it take before Art takes action?
What an inner cabal.
It was bad, and is getting worse.
No wonder the city is in such bad shape.
How many strikes does he get?
How many at bats does he get?
Post a Comment