New schools likely to open in 2012

It looks like city officials will agree to speed up the construction timeline for the proposed new schools. See the story here.
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Copyright 2010. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

City hits sweet spot in bond sale

The bond rating upgrade Bristol got last week paid off big this week.
At a Wednesday bond sale, the city managed to sell two different bonds at rates that officials never dreamed possible.
The results, which will save taxpayers as much as $250,000, were “beyond the wildest imagination,” said Mayor Art Ward.
Eastern Bank Capital Markets, based in Boston, bought up the city’s bonds with rates lower than even AAA-rated communities were able to secure on sales the previous day.
“We just set the new standard,” Comptroller Glenn Klocko. “Amazing.”
Finance Chairman Rich Miecznikowski said he “thrilled that we got such a great rate.”
David Bertnagle, the city’s chief accountant, said that because of the low interest rates the city has to pay to bondholders, there won’t be a need to raise the debt service payment levels in the budget.
He said that officials were eyeing the possibility of raising the payment level in the budget by as much as $250,000 next year alone in order to cover the borrowing tab. But that won’t be necessary, Bertnagle said, because the rates were so good.
“It looks like our hard work paid off,” said Matthew Spoerndle of Milford’s Phoenix Advisors, the city’s financial consultant.
A number of city leaders watched the bid projections on a wall in Klocko’s office as Spoerndle maneuvered through the iDeal website to show incoming bids.
They expressed amazement when they saw the long-term rate that Eastern Bank Capital Markets offered, beating out eight competing bids.
Sam Caligiuri, the city’s bond counsel, called the results “great” and a credit to the city’s fiscal management.
“It shows how well run Bristol is,” said Caligiuri, a Republican state senator.
The taxable bonds were sold to reimburse the city's rainy day fund for the money spent on the downtown mall site. The tax exempt bonds were sold to cover road, sewer and park projects.

Rates Bristol got
$8.9 million, 16-year tax-exempt bonds – 3.12 percent
$7.4 million, 1-year taxable note – 2.5 percent

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Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

City snags a bond upgrade

Astonishing city officials who only sought to maintain Bristol's existing bond rating, Standard & Poors today awarded the city an upgrade its credit rating that puts it only one step behind the best-rated municipalities in the country.
"We're happy campers," said Mayor Art Ward, who pumped his fist in the air in joy at the unexpected news.
City Comptroller Glenn Klocko called it "freaking phenomenal," saying it would save taxpayers $100,000 in next week's bond sales alone.
City Finance Chairman Rich Miecznikowski said the higher rating will be "a big plus for us" in future bond sales as well.
The other two rating agencies, Moody's and Fitch, left the city's rating as it has been. But Fitch's report indicated it might upgrade Bristol in the months ahead as the firm revises its way of dealing with municipal bond ratings generally. Moody's is also eyeing changes that could push Bristol's rating higher.
Bristol's rating is significantly higher than the cty's demographics would normally indicate because it has managed to take care of its money so much better than most towns.
It has a large rainy day fund, overfunded pension plans and policies over the long run that have proven its commitment to a fiscal conservatism that bond buyers appreciate.
I'll have more on this later today.

Update: Here is Fitch's report today on Bristol's finances:

NEW YORK - (Business Wire) Fitch Ratings has assigned an 'AA' rating to the city of Bristol, Connecticut's $8.9 million of tax-exempt general obligation (GO) bonds, issue of 2009, and an 'F1+' rating to the city's $7.4 million of taxable GO bond anticipation notes (BANs). The bonds and BANs, scheduled to sell competitively on Feb. 4, will finance various general purpose and school projects in the city. Fitch also affirms the 'AA' rating on the city's approximately $51.8 million of outstanding GO bonds. The Rating Outlook on the GO bonds is Stable.
The 'AA' rating is based on Bristol's sound financial flexibility, well-managed overall fixed-cost burden, and slightly below-average economic indicators. Strong financial management, including prudent budgetary practices, has contributed to consistently healthy reserve levels, which provide ample operating flexibility particularly in the current recessionary environment. Pensions are significantly overfunded and future capital needs appear manageable. A key rating driver is the city's ability to maintain its financial flexibility during the current recession, while also continuing to diversify the local economy. The short-term 'F1+' rating reflects the city's general credit characteristics.
Bristol is located in Hartford County approximately 16 miles west of the state capitol. The Entertainment and Sports Programming Network (ESPN) has its headquarters in the city, accounting for 11% of the residential employment base and 5.3% of fiscal 2009 taxable assessed valuation. The company's approximately $1 billion of infrastructure investments this decade and longstanding presence in the city somewhat offset Fitch's concerns about the single-employer economic concentration. Bristol's 229 Technology Park is fully occupied and the Southeast Bristol Industrial Park, which can accommodate up to 750,000 square feet of industrial space, was recently completed. The Southeast Bristol Industrial Park and successful redevelopment of the 17-acre downtown mall area should help broaden the local economy and improve labor market conditions over the next several years. The city's November 2008 unemployment rate grew to 7% from 5% the prior year, and remained above the county, state, and national levels. Population growth has been modest this decade and per capita income levels are below the high state average but slightly above the national level.
Bristol's conservative financial management has resulted in consistently healthy reserve levels. Fiscal 2008 ended with a $1.3 million surplus, which brought the unreserved general fund balance to $27.2 million, or a sound 13.2% of spending. Reflecting the city's prudent budgeting practices, economically sensitive investment income, building permit fees, and conveyance taxes ended the year near or above budgeted amounts. Officials expect to end fiscal 2009 with another modest general fund surplus after realizing a large 51.8% increase in the tax base stemming from the Oct. 1, 2007 revaluation and minimizing expenditures during the fiscal year; the revaluation, effective for fiscal 2009, underscores the health of the local tax base. Officials expect minimal to no growth in the fiscal 2010 operating budget, reflecting tightening budgetary conditions stemming from the national recession.
Overall debt is low at $1,090 per capita, or 1% of taxable market value, and debt amortizes at the rapid rate of 69.4% within 10 years. Bristol's fiscal 2008 debt service burden represented a low 3.4% of general and debt service fund spending, which provides the city with sufficient flexibility to issue up to $28 million in bonds for two new school projects within the next five years. Pensions remain considerably overfunded despite significant investment losses in calendar 2008, and the city is developing plans to manage its $72 million other post-employment benefits (OPEB) liability. An OPEB trust fund was created in the current fiscal year.
Fitch issued an exposure draft on July 31, 2008 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework'.) At this time, Fitch is deferring its final determination on municipal recalibration. Fitch will continue to monitor market and credit conditions, and plans to revisit the recalibration in the first quarter of 2009.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Ryan A. Greene, +1-212-908-0315
Jessalynn K. Moro, +1-212-908-0568
Media Relations:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com

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Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

City aims to sell bonds. notes in early February

The city plans to borrowl more than $16 million in early February to recover the costs of a number of projects that are already underway or completed.

Selling the bonds and notes will bring in revenue to replenish the $17 million rainy day fund, which is full of IOUs because officials have dipped into it for several years to cover spending that includes even the purchase of the now demolished downtown mall.

City Comptroller Glenn Klocko said experts are telling him the city might be able to pay as little as 4 percent on the long-term bonds that it’s selling.

That’s half a percent cheaper than he figured just a couple of weeks ago and could mean a savings to taxpayers of $100,000 over the life of the bonds, Klocko said.

“The rates are extremely low,” Klocko said, adding that catching the market at the right moment is “all about timing.”

The City Council and Board of Finance voted to approve the borrowing recently, with city Councilor Mike Rimcoski raising the only real opposition. He said he could not vote to borrow money for buying the mall because he so strongly objected to it.

City Councilor Frank Nicastro, who also opposed the $5.3 million move in 2005, said he abstained because he was not on the council when the mall was purchased.

The city is making a pitch to bond rating agents on Jan. 27 to leave intact the city’s solid financial rating. The bond sale itself is slated for Feb. 5.

Klocko said that next time the city sells bonds, he’s going to try for an upgrade, which would allow Bristol to borrow even more cheaply.

He has a secret weapon, too: ESPN.

It seems that giving the financial analysts a personalized tour of ESPN, including the chance to sit behind the SportsCenter desk for a picture, is such “a hot commodity” that it might help Bristol make its case.

Some projects included in the bond sale:

$4.5 for Rockwell Park renovations

$385,000 to replace Bristol Eastern’s track

$600,000 to reconstruct Allentown Road

$700,000 to repair the North Creek conduit

$800,000 to replace the Main Street culvert

$3.5 million to demolish the mall

$6.3 million to buy the mall

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Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

To cover mall buy, city may sell its first taxable bonds soon

The city may issue its first-ever taxable bond in early February in order to repay itself for the $7.4 million it has spent so far on the downtown mall.

Comptroller Glenn Klocko said the city typically sells tax-exempt bonds because they are used to pay for civic improvements that fall within the norm of municipalities, such as schools, roads and parks.

But when the city bought the mall for $5.3 million in 2005, it leaped into a commercial enterprise that required different handling than the city’s other ventures.

It has since poured at least another $2.1 million into the property in order to demolish the decrepit building and pay for studies, lawyers and more.

Since the city needs to sell at bonds for at least $15 million worth of civic improvements, as well as the $7.4 million for the mall, it is eyeing a bond or financial note sale in the first week of February in order to take advantage of cheap borrowing rates, Klocko said.

The money taken in from the bonds will be used to replenish various accounts, particularly the $17 million rainy day fund that is full of IOUs at the moment.

Klocko said that bond sales are complex, but this one presents more challenges than others because of the mall.

“It’s not as clear cut as it’s been in the past,” Klocko said, because of the need to sell taxable bonds to recoup the mall money.

The difference to taxpayers is that one-year tax-exempt notes currently earn little more than 1 percent interest. Taxable notes pay more than 3 percent.

That adds up to some real money for taxpayers over the 17 years or so the city is likely to take to pay off the entire mall debt.

Klocko said the city hasn’t decided for sure that it will sell bonds for the debt, as it normally does. It has the option of selling one-year notes that it can roll over annually for as long as a decade.

“It’s a big choice that we’re going to have to talk about,” the comptroller said. “There are a lot of options that are available to us.”

One part of the discussion is how to value the mall itself in the paperwork that accompanies a sale of bonds.

“The problem is we have no idea what that property is going to sell for, if it sells at all,” Klocko said.

The nonprofit Bristol Downtown Development Corp. is overseeing an effort to revitalize the 17-acre mall site, but so far it has no luck in finding a potential developer.

Currently, the city plans to sell between $15 and $18 million in bonds along with the mall bond. But if it buys the land for two new schools during the next few weeks, which is likely, that tab would almost certainly be included in the bond sale as well.

City Attorney Dale Clift said the land purchases should occur soon.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

Fiscal crisis could slam Bristol

The fallout from the mess on Wall Street is beginning to hit home on Main Street.
Though there's still cash to finish a public works project on Main Street - the replacement of a culvert - there may not be anything left in the months ahead.
We already know the federal government is borrowing $700 billion or more to prop up the financial sector, thanks to the bailout bill approved last week. Even its prodigious capacity to pump out money is starting to feel crimped, unless authorities decide that a dose of inflation might help.
And we know the state is looking at a deficit that could reach $1 billion during this fiscal year, which ends in June.
We see that income tax revenue is down, lottery sales are down, casino revenues are down, and on and on and on.
About the only thing that's up are the length of the lines at the soup kitchens.
During hard times, state and local government tend to borrow to keep up with expenses, counting on good times to replenish the coffers. That makes sense.
But this time around, nobody wants to buy the bonds. Borrowing is nearly impossible.
While that could change -- there are a lot of finance experts pointing out that municipal bonds are a good bet in these tough times -- might remain a problem for a long while. The normal buyers, typically big banks and investment houses, haven't got any money to fork over for bonds or anything else.
That would leave cities like Bristol with no options other than to cut wherever they can to ensure they don't run up deficits they can't finance.
It's no surprise that Mayor Art Ward and other city leaders are eyeing the budget warily, wondering what they can pare. Projects that can wait, from schools to parks, are a sure bet to be put off unless the market conditions change.
But it could go much further. Services could be slashed, programs dumped and layoffs reluctantly considered.
It sure looks like it'll get a lot uglier unless the economy rebounds far more swiftly than almost anyone is predicting.

Update: I don't know if I explained well enough what the city is facing in the bond market.
Before counting any new projects, including the schools, the city needs to raise about $25 million to pay for projects that are mostly already done, including the purchase of the mall.
For now, it just owes the money to itself because it borrowed against the rainy day fund.
But to provide the liquidity and cash flow it needs, those projects have to be bonded and paid back to bond holders over the next 17 years, which makes the annual burden for taxpayers relatively modest.
At the moment, selling the bonds woud be a trick. Some communities have had luck, but many have found no buyers or interest rates that are too high to accept.
Things are likely to get better, of course, but there's no guarantee that the rates will improve much, particularly if inflation takes hold (since it's the easiest way for the government to help debtors, including the government itself, pay off what they owe).
So if there's a window for a city bond sale next year -- and there probably will be -- the top priority has to be to sell the bonds to pay for projects that are already done.
Then officials have to consider something quite basic: can the taxpayers come up with enough extra to pay for any additional projects? That's where the schools might lose out.
Putting aside the schools and looking at the recreation complex long eyed for the former Roberts property, can make this easier to see. A recreation complex is a nice thing, but nobody believes it is essential. It's never going to make the cut until officials are sure that its cost can be dealt with both by the city itself and the taxpayers who ultimately foot the bill. It could be a few years until that happens, or it could be decade. It surely won't happen soon.
The school project is perhaps more essential, but it's almost more expensive. So does it happen? Well, watch the economy. Unless things start looking up, it's a long shot now.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

School project may get KO'd by Wall Street mess

When the state of Connecticut sought a routine refunding of $500 million in bonds a couple of weeks ago, it found that Wall Street's credit crisis had hit home.

Only about $90 million of the state's bonds were bought, raising all sorts of questions about how the state can cope with billions in projects that are planned or underway.

Bristol's comptroller, Glenn Klocko, said that if the state can't sell its bonds and other towns, including AAA-rated Avon, can't find buyers either, then it's time to consider a freeze on all capital projects.

"Those who are looking to bond are going to have serious problems," Klocko said.

Klocko said the credit crisis that has contributed to tumbling stock values and corporate panic is going to have an impact on Bristol, too.

He said, for instance, that if the $130 million school project had to be financed now, "it would be a no go."

Klocko said that Bristol wouldn't be able to bond for its share of the cost and the state would likely pull out of it anyway, since it's on the hook for 74 percent of the tab.

"You can't do it now," Klocko said. "The bets are off. The numbers are very shaky."

Klocko said the financial situation is unprecedented since the Great Depression, with nobody having the cash to buy bonds.

"It's the worst ever. It's extremely tough," Klocko said.

With such uncertain markets, he said he intends to recommend to the City Council and the Board of Finance to hit the brakes on everything they can.

"It's not the time to fool with new projects," Klocko said.

The city has about $25 million in borrowing that it intended to roll into a bond sale next year. For now, it's simply borrowing the cash from its own reserves, including the $5.3 million it used to buy the downtown mall several years ago.

Klocko said that the city can't finance any more projects itself. It would have to sell bonds if anything new arose, even an emergency allocation to fix a bridge or other type of crisis.

"We no longer have the capacity" to handle any more significant spending needs, the comptroller said.

The chaos in the markets may have an immediate impact on the school plan because the city is negotiating the final purchase of the former Crowley dealership on Pine Street and is eyeing an empty lot off Matthews Street. Each would house a 900-student school.

But if officials are not confident that they'll be reimbursed at the promised 74 percent rate by the state, those purchases may not happen, because the city might prefer not to risk getting stuck with land it can't use.

Delaying the purchases might well kill the project since there's a tight timetable already.

"It's not the time to fool with new projects, including schools," Klocko said.

Calls to the state treasurer's office have not been returned yet today, but Reuters quoted an anonymous person in the Connecticut government today who said the state got only about $88 million in retail orders during a presale period and had slashed its sale to $100 million overall.

That means about $400 million in expected transportation infrastructure work around the state won'tt have any financing in place and, presumably, may not happen until bonds can be sold. It's not clear if that would have any impact on Bristol.

Most of the municipalities around the country that have sold bonds in recent weeks have seen the interest rates they pay soar, which can have a drastic effect on the cost of projects.

State Rep. Frank Nicastro, a Bristol Democrat who is also on the City Council, said he warned months ago that the economic crisis would worsen.

He said that the city can have terrific school buildings, but if it's taxes are too high, there won't be any children to attend them.

More later.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

Forget that AAA rating

No sooner do I find that Moody's is changing its policy than the giant credit rating agency decides to postpone the change.

Gail Sussman, group managing director of the public finance department at Moody's Investors Service, sent out an email today announcing that because of the uncertainty in the markets, her company is delaying its plan to rate public and private entities the same way.

For the time being, and perhaps a long time, that means the longstanding policy will remain in place.

So Bristol can be happy with its AA3 rating, which is pretty high for a city with its economy and demographics.

There's more to say about this whole thing, but let me put it into something coherent later in the day. Check back.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

AAA bond rating may be possible for Bristol

Since Oct. 1, Moody's has been rating municipal bonds using the same criteria as corporate bonds, which is leading to many more communities with high bond ratings.
Given that Bristol isn't far off now, and has both a healthy reserve and an overfunded pension fund, it's likely to reach the top tier when the credit rating agencies take another look.
That's good news for taxpayers.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

Other potential pitfalls

The last-minute recognition that a Planning Commission recommendation had to be secured before city councilors could vote on purchasing the two proposed sites for new schools raises an obvious question: is there anything else that could block the project?
The answer is yes.

Aside from the planning panel's recommendation, which the council can ignore if it can muster a two-thirds vote, the site plans are also going to need a thumbs up from the Zoning Commission at some point, officials said.

By then, though, a lot of cash will have been spent on architectural renderings and details, which might make it hard to call a halt to the whole thing.

But the Board of Finance may well have a say sooner than that.

Though the finance panel appropriated $105 million to cover the city's share of the project last year -- far more than is likely to be needed in the end -- it hasn't done anything to put the financing in place to pay the bills.

To do that, the finance board would need to agree to sell some bonds to cover the city's share of the tab.

Comptroller Glenn Klocko said today that without the financing in place, any spending would be coming out of the city's reserve fund -- and that isn't enough to cover the costs of a project this large.

What that means is that finance board could refuse to put the financing in place, if its members aren't happy with what they see. It wouldn't be the first time they've hit the brakes on a project that other city boards were pushing for.

It's probably unlikely that finance commissioners would pull the plug on the project, but it's not impossible.

Stay tuned.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

The piggy bank is empty at City Hall

When the city’s project review committee meets tomorrow, it might not have much to do.
City Comptroller Glenn Klocko said Wednesday that about $16 million worth of new projects sought by various departments can’t be done without forcing an unacceptable tax hike and possibly undermining Bristol’s solid bond rating.
“We can’t afford it,” Klocko said.
Mayor Art Ward said he has spoken with Klocko in anticipation of today’s Five-Year Capital Improvement Program Committee meeting and understands the fiscal realities are going to make it tough to do much.
Klocko said that after a decade of generally approving what departments say they need, this time it’s not possible.
“This year, we have to take a break,” Klocko said.
The comptroller said the city is carrying $51 million worth of debt that has to be paid off and has already authorized $15 million more. Next year, he said, it will have to add about $30 million to cover the city’s share of the $115 million proposal to build two new schools.
If the city were to approve this year’s projects as well, Klocko said, it would push up annual repayment costs to an untenable level.
The school project alone is going to force about a three-quarters of a mill property tax hike, Klocko said, so it’s crucial to hold down other project spending as much as possible to keep the burden manageable.
What that means is that if the committee agrees with Klocko’s request, a number of flood control measures, culvert replacements and other infrastructure needs would be delayed.
Pushing them off to future years doesn’t mean the project won’t happen, merely that they wouldn’t get going during the 2008-2009 fiscal year.
Klocko said that his primary concern is that credit rating agencies, which are skittish now after a series of debacles, won’t look kindly on a spike in city bonding that could have been controlled.
In practical terms, though, a clampdown on projects would mean that the move to renovate firehouses won’t happen for at least a few years. It would also mean a postponement of the proposed community theater project at Memorial Boulevard School.
Klocko said he doesn’t like saying no, but there’s no choice.
“They have to get in line,” Klocko said.
He said people need to keep in mind that city issues bonds that are paid off over 17 years so taxpayers will be paying off past projects for a long time. Among the projects that were done with bond money were the library renovation and the mall purchase.
The comptroller said that that several million dollars in projects can be done, probably including a scheduled roof replacement at one of the schools and perhaps the replacement of a damaged track at one of the high schools, which may pose a liability hazard.
The projects committee is meeting at 4 p.m. Thursday at City Hall.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

Lake Compounce, BCO among bond package winners

Press release from the state House Republicans:

A fiscally responsible bond package approved by the Connecticut General Assembly Tuesday will help pay for important Bristol projects and provide funding for school construction and transportation infrastructure projects statewide without increasing the burden on taxpayers or threatening the state’s bond rating, state Representatives William A. Hamzy and Ron Burns said today.
The $2.82 billion package approved Tuesday was significantly less expensive than the $3.2 billion measure that passed on party line votes in September, with the majority Democrats voting to approve the bill. House Republicans opposed that Democrat measure but voted for a leaner alternative Republican bond package, which failed on another party-line vote.
Governor Rell vetoed the earlier Democrat bonding bill, citing excessive spending on pork barrel projects that could have jeopardized the state’s bond rating and unduly burdened taxpayers. She has indicated she will sign the measure that passed Tuesday.
“The bonding package approved by the majority Democrats a few weeks ago called for excessive spending on pork barrel projects that did not serve the overall interests of the people of Connecticut, would have increased the burden on taxpayers who already bear the nation’s third-highest per capita state debt, and threatened our currently favorable bond rating,” said Representative Burns, R-77th District, who serves on the General Assembly’s Appropriations Committee.
“Interestingly enough, the measure we approved today is almost a mirror image of the alternative bond package we offered in September. Weeks of uncertainty over the future of school building projects around the state could have been avoided if Democrat legislators had crossed party lines and voted to approve our proposal,” Representative Burns said.
“Governor Rell did the right thing by vetoing the majority Democrats’ original bonding proposal while Republican legislators showed it was possible to put together a responsible measure that provided funding for repairs and improvements to our highways and bridges and for school construction projects throughout the state without increasing the tax burden on working families,” said Representative Hamzy, R-78th District, who had a prior commitment in Washington, D.C., and was unable to be in Hartford for Tuesday’s vote. “I’m proud of the work I did to help draft our alternative bond package, which in many ways was the model for the measure that passed today. Unfortunately, I had to be in our nation’s capitol for an engagement that could not be postponed or I would have been on the state House floor and would have voted for the bond package that passed today.”
Grants authorized for Bristol projects in the bill that passed Tuesday include:
• $3,500,000 for road relocation, utility upgrades, new service facilities and other improvements related to the expansion of Lake Compounce Water Park.
• $373,170 for the Bristol Community Organization, Inc., to purchase a building for the expansion of the Head Start program.

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Copyright 2007. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

Dems hammer Hamzy, Burns

Keep in mind the GOP response to this argument, offered in a Friday release

Press release from the Democrats at the statehouse:

The State House Democrats Office released a list of targeted community investments identified by House Republican legislators as key projects for their districts. These projects were negotiated in a bipartisan manner as part of the bonding package and voted on Thursday by the General Assembly.

The vote was split among party lines with every House Republican legislator voting against the bill. As a result, the Republican legislators voted against their own projects that would benefit the municipalities they were elected to represent.

House Majority Leader Christopher G. Donovan said, “These projects benefit our communities and provide property tax relief for our cities and towns. When it came time to vote, the Republicans voted no. It is important for residents to know where their representatives stand.”

“After these legislators indicated how important these projects were to their communities and got them in the bond package, they voted against the bill for some short sighted political reason,” said Speaker of the House Jim Amann (D-Milford). “Now they will have to explain to their mayor and constituents why all of a sudden these projects aren't so important after all.”

Bonding projects earmarked by House Republican legislators:

Bristol (Reps. William Hamzy, Ron Burns): $425,000 grant-in-aid to Bristol Community Organization, Inc. to purchase a building for expansion of the Head Start program
Brookfield (Rep. David Scribner): $1 million made available to the Regional YMCA of Western Connecticut in Brookfield for capital improvements including an indoor pool
Brookfield (Rep. David Scribner): $500,000 grant-in-aid for expansion of the senior center, including computer equipment
Durham (Rep. Raymond Kalinowski): $500,000 grant-in-aid to Farnam Neighborhood House for the Camp Farnam Reclamation and Revitalization Project
Easton (Rep. John Stripp): $250,000 grant-in-aid for renovations at the senior center
Granby (Rep. Richard Ferrari): $100,000 grant-in-aid to Holcomb Farm for restoration and renovation of buildings
Greenwich (Reps. Livvy Floren, Claudia Powers, Lile Gibbons): $1.5 million for renovation of existing or construction of new exhibition areas, teaching spaces and the science gallery at the Bruce Museum
Greenwich (Reps. Livvy Floren, Claudia Powers, Lile Gibbons): $2 million grant-in-aid for remediation of brownfields at the Cos Cob Power Plant site
Litchfield (Rep. Craig Miner): $1 million grant-in-aid for firehouse construction in Northfield
Manchester (Rep. Pamela Sawyer): $900,000 grant-in-aid for the development and construction of the Manchester to Bolton segment of the East Coast Greenway
Middlefield (Rep. Raymond Kalinowski): Up to $100,000 made available for Lake Beseck
Middletown (Rep. Raymond Kalinowski): $1 million grant-in-aid to the Middlesex County Revitalization Commission for revitalization projects
Naugatuck (Reps. Kevin DelGobbo, David Labriola): $93,000 grant-in-aid for improvements to Long Meadow Brook, including riverside access
North Branford (Rep. Vincent Candelora): $500,000 grant-in-aid for development of the Swatchuk Property for active and passive recreation
North Branford (Rep. Vincent Candelora): $500,000 grant-in-aid for renovations and additions to the Edward Smith Library in Northford
Oxford (Rep. David Labriola): $600,000 grant-in-aid to Oxford for improvements to Oxford Industrial Park Road
Somers (Rep. Penny Bacchiochi): $1 million grant-in-aid to the Somers Housing Authority for the rehabilitation and expansion of senior housing at the Woodcrest facility
Somers (Rep. Penny Bacchiochi): $500,000 grant-in-aid for expansion of the Somers Library
Somers (Rep. Penny Bacchiochi): $500,000 grant-in-aid for two fire substations
Stafford (Rep. Penny Bacchiochi): $500,000 grant-in-aid for downtown redevelopment
Stratford (Reps. John Harkins, Lawrence Miller): $500,000 grant-in-aid for new boilers at Stratford High School
Thomaston (Rep. John Piscopo): $2 million grant-in-aid for extension of a water main in the Jackson Street area
Torrington (Rep. Anne Ruwet): $1 million grant-in-aid for the development and construction of the Warner Theater Stage House
Torrington (Rep. Anne Ruwet): $575,000 grant-in-aid for downtown redevelopment


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Copyright 2007. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

Burns, Hamzy explain bond votes

Another press release:

State representatives William A. Hamzy and Ron Burns opposed a $3.1 billion bonding measure drafted by the General Assembly’s majority Democrats that was approved on a party line vote Thursday, saying the extravagant package, which Governor Rell vetoed today, would have jeopardized the state’s credit rating, inflated the state debt, and increased the burden on Connecticut taxpayers.
The legislators instead opted for a leaner alternative bond package developed by House Republicans, which would have saved taxpayers more than $275 million, mostly achieved by limiting pet projects, the majority of which are earmarked for large urban areas represented by the state legislature’s Democrats. The House Republican proposal also would have preserved funding for several critical Bristol projects.
“As a fiscal conservative, I simply could not support the Democrats’ bonding bill,” said Representative Hamzy, R-78th District. “The agencies that determine Connecticut’s credit rating have told us that the state’s currently favorable rating would be jeopardized if we borrow more than $1.25 billion through the sale of state bonds over the next two years. Even the Democrats have acknowledged that our credit rating would suffer if all of the earmark projects they included in their bill are approved by the State Bond Commission, which has the final say on which projects are funded. If the state’s credit rating is downgraded by the rating agencies, it would mean we would have to pay higher interest rates on the bonds we sell, which would further inflate the state debt and mean higher costs to taxpayers as the bonds are paid off.”
“Clearly, some major projects need to be funded with the sale of state bonds that are paid off over a period of years to reduce the impact on taxpayers. They include school construction, improvements to our transportation infrastructure, maintaining our bridges, and helping to fund truly critical local projects. Our alternative bond package preserved funding for projects like these - and even provided $60 million for badly needed local projects. Our proposal would have significantly reduced wasteful pork barrel spending and limited growth in the state debt to a sustainable level that would have been affordable to Connecticut’s overburdened taxpayers,” Representative Hamzy said.
“Currently, 11 cents of every tax dollar the state collects is used to help pay off our bonded indebtedness. If every item authorized in the Democrats’ bonding package receives final approval and is allocated by the State Bond Commission, it would mean about 18 cents of every tax dollar would have to be dedicated to servicing the state debt,” said Representative Burns, R-77th District, who serves on the General Assembly’s Appropriations Committee.
“Bristol has some very worthwhile projects that were included in the bonding package approved Thursday,” Representative Burns said. “Our alternative budget, which was offered as an amendment to the Democrats’ bill, would have preserved funding for those projects and other wise investments while limiting the state’s borrowing to levels that would not jeopardize our credit rating. Unfortunately, our Democratic colleagues refused to support our proposal.”
Grants authorized for Bristol projects under both the Democrat and Republican bonding packages include:
$3,500,000 for a public works project to relocate Mount Vernon Road, which would allow Lake Compounce to expand.
$425,000 for the Bristol Community Organization, Inc., to purchase a building for the expansion of the Head Start program.
$200,000 to the Environmental Learning Center for infrastructure improvements at Indian Rock Nature Preserve in Bristol.

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Copyright 2007. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com