MOODY INVESTOR'S DOWNGRADE REPORT FOR HARTFORD, CT

Here is the actual Moody's report and the reason's they downgraded Hartford's financial rating

Rating Action:

Moody's downgrades Hartford, CT's GO to A3; outlook negative

Global Credit Research - 24 Jun 2015

Assigns A3 to $76M GO Bonds; city has $434M in GO debt outstanding

New York, June 24, 2015 --
Moody's Rating

Issue: General Obligation Refunding Bonds, 2015 Series A; Rating: A3; Sale Amount: $55,000,000; Expected Sale Date: 07-03-2015; Rating Description: General Obligation

Issue: Taxable General Obligation Refunding Bonds, 2015 Series B; Rating: A3; Sale Amount: $20,700,000; Expected Sale Date: 07-03-2015; Rating Description: General Obligation

Opinion

Moody's Investors Service has downgraded to A3 from A2 the rating on the City of Hartford's, (CT) outstanding general obligation bonds, affecting approximately $434 million of outstanding debt. The outlook remains negative. Concurrently, Moody's has assigned an A3 rating to the city's $76 million of General Obligation Refunding Bonds, Series 2015 A and B.

SUMMARY RATING RATIONALE

The downgrade to A3 from A2 reflects: the city's weak financial position which is evidenced by a continued reliance on one-time revenue sources in order to balance the budget; a narrow reserve position following a sizeable deficit in fiscal 2014 and modest expected improvement in fiscal 2015, limited revenue raising ability in the absence of tax increases, and diminished flexibility for future expenditure reductions. The rating also incorporates sizeable pension, OPEB and debt liabilities, as well as the city's standing as the state capital and an important regional economic center, albeit characterized by weak socioeconomic indices.

OUTLOOK

The negative outlook reflects our expectation that the city will remain challenged to restore fiscal stability over the near term, given its limited revenue raising flexibility, high fixed cost burden and continued reliance on non-recurring revenues. The outlook also incorporates the possibility for downward rating action should the city fail to adopt structurally balanced budgets and augment its slim reserve levels.

WHAT COULD MAKE THE RATING GO UP

• Established trend of structurally balanced operations
• Rebuilding of reserves to adequate levels
• Substantial tax base growth
• Significant improvement in socioeconomic indices

WHAT COULD MAKE THE RATING GO DOWN

• Protracted structural budget imbalance, including reliance on one-time revenue sources
• Reduction of General Fund reserves
• Deterioration of the city's tax base or demographic profile

OBLIGOR PROFILE

Hartford is the capital and third largest city in Connecticut, with an estimated population of 124,893.

LEGAL SECURITY

The bonds are secured by the city's general obligation unlimited tax pledge.

USE OF PROCEEDS

Both the Series A and Series B bonds will be used to restructure certain outstanding maturities from the series 2005C, 2009, 2009A, 2010A, 2011A, 2012A & B, 2013B, and 2014B & C bonds. The restructuring will result in an overall net present value loss of $9 million. On a budgetary basis, the restructuring will provide roughly $42 million in upfront cash flow savings, which will be used to provide budgetary relief in fiscal 2016 and 2017, with smaller savings from 2018 to 2020. From 2021 to 2034 the city will recognize budgetary dis-savings of approximately $52 million.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

The following information supplements Disclosure 10 ("Information Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J) of SEC Rule 17g-7") in the regulatory disclosures made at the ratings tab on the issuer/entity page on www.moodys.com for each credit rating:

Moody's was not paid for services other than determining a credit rating in the most recently ended fiscal year by the person that paid Moody's to determine this credit rating.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
Thomas Compton
Analyst
Public Finance Group
Moody's Investors Service, Inc.
60 State Street
Suite 700
Boston, MA 02109
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

THANK YOU VERY MUCH, BUT NOW IT IS TIME TO STEP IT UP

Many of you that read this blog and have been faithful to it also deserve much of the credit for its success. Without your help and trust in me keeping your information confidential, this blog would have never accomplished even close to what is has been able to do.

Without your calls, I would have never know to look for the Mayor's caviar and champagne swilling receipts. Without your calls and tips I would have never know about the secret little dal with Saundra Kee-Borges to fleece the people of Hartford with her comeback deal approved by Segarra.Without your calls I would have never known about the Mayor's former Chief of Staff and his stolen City vehicle recovered in front of his home on Capitol Avenue.

Yes, with your help and assistance we have accomplished much and exposed a multitude of corrupt activities in the Segarra Administration. The work is not done yet though.

Hartford can not survive another four years of the Segarra Administration and the City Council that has been complicit with it. The only way to change that is through the voting booth.

If you have attended any of the Mayoral Forums  being held across the City , I applaud you for your involvement. But have you been able to weed through all the crap that you are being fed.

Let's start with one of the hot issues. Second chances and the second chance legislation. If you listen to Segarra , he strongly supports second chances and sits at very forum and states that with all sincerity. But look at the facts. Actions speak louder than words. Do any of you recall the name Kennard Ray? Ray was hired to work in the Segarra Office doing community outreach. Ray was a convicted felon and served prison time on numerous gun and drug charges.

Probably not the best choice to be hired by the Mayor to work with community groups trying to rid their neighborhoods of guns and drugs,but I think it was more about Ray's connections with the Working Families Party and Segarra's political future than anything else.  Apparently Kennard's speciality  during his younger years was providing  guns and drugs  to their very neighborhoods. But regardless, Segarra hired him. After it was announced  that Segarra hired Kennard Ray, the response was quick from the media and Ray's criminal history was out in the open. Segarra's response was just about as quick, he immediately fired Ray.

Now does that sound like someone who believes in second chances or second chance legislation?  No , it sounds more like a fraud who will say and do anything when it fits his needs

Let's go to public safety. Segarra loves telling people he brought us Chief Rovella. More Segarra nonsense. The truth of the matter is that when Segarra could have hired Rovella, he was signing a contract for $70,000 for an outside search firm to pick a Police Chief. That result almost landed us our next police Chief who was apparently a drunk from Indianapolis who had recently been arrested for a DUI charge.

I also love that after 6 years, Segarra has suddenly decided to act Mayoral and now makes it a point to console victims of violence and the families of homicide victims. During that comforting process does he also advise the victims families that under his guidance both he and the City Council have ignored hiring  the necessary number of Police Officers to keep up with the needs of HPD. Does he tell them that HPD is  close to 100 police officers under where it should of where it should be? Does he advise these families during his consoling tour that the violence that took their loved ones life could be directly attributable to his mismanagement? At least 5 more officers retired this week and there is no end in sight. HPD is headed for a real staffing crisis.

Today marks a monumental decision from the US Supreme Court regarding same sex marriage. It just happens to coincide with a Gay Pride Rally at the Old State House this evening. I am sure Pedro Segarra will be front and center proclaiming hi "gayness" He actually organized the rally and placed his husband in charge of organizing the even. But what is the motivation? Hartford hasn't had a gay pride rally in several years and under Segarra there has been very little attention to the gay community.

 Might it be that Segarra realizes that roughly 10% of the population are gay or identify as LGBT or Q. That is also 10% of the voting population as well as potentially 10% of possible donors. In a City with roughly 50,000 voters, 10% is 5,000 if they all voted, that's enough to win an election.Why would Segarra pander to them and act like he cares?If it was about "Gay Pride", it should have started in year one not year six when there is an election. More of the Segarra fraud.

Back to my original title. Now is the time to step up your game. If you believe Hartford needs serious change and you want to be part of it, continue to call me with your tips, but also pick up the phone and call your neighbors, friends, church members, actually anyone that will listen and tell them Pedro Segarra is the wrong choice for Hartford. Tell them if they care about this city, we need a fundamental change for truth and reality.

Go out in your neighborhood and knock on doors and tell them why we need change. Tell them why 4 more years of Pedro Segarra will be devastating to the people of Hartford.

Finally, if they ask you what the alternative is , let me say again, loudly, proudly and sincerely "I SUPPORT BOB KILLIAN FOR MAYOR" If you need to learn more , feel comfortable, call him and talk to Bob. Invite Bob to your home for coffee and a conversation, he will be glad to sit down with you and your neighbors and answer your questions. I doubt that is an offer you typically get from politicians.  But check out the real deal and know what you are getting in advance.

 Let's end the fraud and move forward with integrity.

HPD NEEDS CANCER SURGERY ...QUICKLY

The  Hartford Police Department has a cancer in its midst, and like any cancer it needs to be removed quickly to keep the rest of the body healthy.

That cancer is Hartford Police Officer Kamil Stachowitz. Stachowicz is a racist cop who has no problem referring to African Americans using the "N" word in Public. His behavior was well confirmed by the Foxwood's Tribal Police as they banned him from the Foxwood's Casino for life. His lifetime ban was the result of a racist tirade inside the Casino when he freely yelled the "N" word as well as other racist remarks. He also made it a point of letting everyone know that he was a Hartford Police Officer while doing it.

HPD and the City of Hartford, as well as the Mayor and Council can't have it both ways. You can't be holding meetings asking for the support and confidence of the community, while at the same time condoning racist behavior. Police Officers that respect the residents of Hartford don't throw around the "N" word during  racist rants.

Last night, I personally put Councilwoman Jennings and Councilman Anderson on notice of Stachowitz's behavior. They claimed they didn't know anything about it, but now that the Foxwood's incident reports are posted and public, ignorance is no longer a defense.

What will City Hall do? Will they allow this cancer to grow until God forbid we are the next Ferguson or Baltimore? Or will they assume the leadership roles we expected when we elected  them?

What will the Hartford Police Union  do? Will they continue to support a racist cop , providing attorney's for him for his IAD interviews. Or will the majority of Union members stand up and say that Stachowitz's  behavior is not representative of them and is offensive to all of the other Union members that conduct themselves with dignity  and respect for the people they serve. Since Stachowitz's behavior didn't happen on duty , why is the Union obligated to defend his racist actions?

The union's actions also strengthen the appearance of the Union defending bad cops, rather than working to clean up the working conditions to protect the good cops.

A cancer diagnosis is never an easy thing to deal with, but everyone knows when that diagnosis is confirmed, difficult treatment decisions need to be made. That time is now and the difficult decision for removing the HPD cancer needs to happen now.

Below is another Foxwoods Tribal Police statement provided to me this morning by Foxwood's Police Chief  William Dittma. The statement was omitted from my original request for documents.

Chief 15-109-OF

A STORY OF A RACIST COP, THE FOXWOODS REPORTS

When is a racist cop acceptable. How drunk do you have to be to overlook racist behavior. I think the correct answer is never .From what I am told this version is a greatly sanitized version and as you can see ,  both reports were "modified" on 5/19/15 , after I requested their release, even though the incident occurred on 2/25/15. I have requested the original versions from the Foxwoods Police Chief

Here are the incident reports from the Foxwoods Tribal Police. It has been a long day, but I promise , much more on this tomorrow,

FOXWODDS STACHOWITZ REPORT0001

WE HAVEN'T CORNERED THE MARKET ON MORONS

Here is another story of roadside sign holders. HPD showed more restraint than the Seattle PD did, but I guess stupidity is not just a local issue, click the link to see the story http://www.aol.com/article/2015/06/24/police-fine-man-holding-sign-warning-drivers-of-speed-trap/21200754/?icid=maing-grid7%7Chtmlws-main-bb%7Cdl34%7Csec1_lnk2%26pLid%3D-655136560

JEAN POTTINGER: A FIGHTER FOR HARTFORD

One of the immeasurable values of this blog are the great people I have met that I probably wouldn't have met under normal circumstances. One of those people is Bowles Park resident Jean Pottinger. Jean would call me on almost a weekly basis, sometimes more frequently, mostly  about issues involving transportation. More recently her calls were about the gentrification  of the Bowles Park housing project, where she lived.

Jean was also a regular caller to our public access TV program. She was passionate as well as extremely well informed about the issues she raised and a phone call from her almost always required a block of at least twenty minutes to get it all in.

I was surprised as well as saddened  yesterday to see that Jean had passed away Monday at Saint Francis Hospital. Jeans latest issue was with the I-quilt project and the removal of downtown bus stops. Jean said much of this was done without any notice and made it very difficult for Hartford Senior Citizens to make their bus connections downtown.

I never realized until reading her obituary what a staunch advocate she was for transportation issues and the various boards she had served on.

The people of Hartford have lost one of their unsung heroes, who worked hard for their benefit.

Jean Pottinger passed away Monday at 78.

You can read Jean's obituary in the Courant here

BE BOB'S GUEST

I am proud to be one of the hosts for a reception for Mayoral candidate Bob Killian tomorrow evening

Tomorrow night at 5:30PM we will be hosting Bob at the Tavern Downtown for a meet and greet  for Hartford people (and  others) Everyone is welcome to take a few minutes and meet Bob and ask him the questions that you may have on your mind. Donations are welcome, (it is politics), but they aren't required. Just your presence is enough, get to know the candidate

Stop by 201 Ann Ucello Street, next to the Russian Lady, and be our guest for an evening with BOB beginning at 5:30. Light refreshments, beer wine and soda  provided.

 Thank you to the Tavern Downtown, owner  Jerry Fornarelli and the staff of the Tavern for their hospitality

DELIVERING A STEAMING PILE OF CRAP

 

 

That's a rough title, but that is exactly what Mayor Segarra dumped on the desks of the Hartford Media people last Friday at 4:00PM in the afternoon.

 That pile of crap was the sixth month Fire Chief's Advisory Report commissioned by Segarra after numerous problems within the Hartford Fire Department, culminating with the first Line of Duty Death of a Hartford firefighter in decades.

The report was full of finger pointing and even some back slapping by the retired Chief's,  even going so far as trying to decide who was the best Chief. The report was very short on any solutions though.

I was a little surprised that Chief Rovella would even allow his name to be included on such a flawed report. I also realize who he works for and it wasn't his free choice to be included .  Rovella is one that always has a vision and is not short on solutions that make sense. The rest of the group is not.  I have heard a lot of positive things though regarding retired Chief Carter, but I have never personally met the man and was not here when he was Chief.

 The rest were predictable. Can anyone in their right mind say that  alcohol and drug abuse are not a problem within HFD. How many high profile do we need to see played out in the media? How many Doug Caldwell's do we need to see drunk in firehouses and creating public disturbances? How many firefighters do we need to see under arrest after gunplay with handguns while partying? If drugs are being dealt out of firehouses, might we have a problem?

Maybe the former Chief's might have issues with their own addictions and choose not to take a hardline approach against the very same behavior they have been involved in and may still be involved in. To ignore the problem is to condone the behavior.

 We also all know the animosity between the current Deputy Chief of Training Dan Nolan and both the current Chief as well as previous Chiefs A major portion of the report was to place blame for the Department's problems on Training and Nolan.

I have to ask who were the Chief's of the Department and where is the disciplinary reports or e-mails or documents, commonly called progressive discipline in the Labor world. The answer is simple, there is none. The Department Chiefs are responsible for monitoring the Department's performance , identifying problems and taking corrective action. If you have been asleep at the switch  for years, you can't suddenly try to cover your ass and point the finger of blame.

 The problems at HFD are much deeper than just the training Division. Where was the portion about Worker's Comp abuse? I must have missed that page. When you have a firefighter that has spent much of his career out injured but is well enough to carry a gun and shoot a man in the driveway of a home he is renovating, you have a problem. That wasn't caused by training.

When you have Lieutenant's fist fighting at a fire scene, your zero tolerance policy for workplace violence doesn't seem to be being taken seriously. I don't think the Training Division teaches hand to hand combat, so I don't think they can be blamed.

When a brand new ladder truck sits in the repair garage for months because no one is monitoring payment of bills, that is a problem. I am not sure of the entire structure of HFD, but I really would be surprised if fiscal management comes under the Training Division.

 There was a lot of discussion calling for another Assistant Chief position to be created, but there was no discussion of the time and effort wasted creating a sham position for Terry Waller.

One of the claims was that live fire training was not happening as frequently as it should. Last I heard, Chief Huertas would not approve funds for hay and other materials for the live burn scenarios, so is that the responsibility of the Deputy Chief of Training. Last I knew thy could no longer print money at the Fire Training Academy to pay bills.

The fact that fit tests were not performed on Scott Air Bottles as required because the machine was broken was never mentioned in the report. That seems like a major problem that at least warranted a mention in the report. Nothing, training again? I doubt it

 It was also interesting to note Chief Teale's mea culpa when he wanted it noted in the report that he was excluding himself   from any discussion when it came to the death of Firefighter Kevin Bell, stating that Bell was a relative of his. Did he make that same proclamation when it came to the hiring of Bell or his nepotism all OK as long as the spotlight isn't shining on it?

 It just seems interesting that Mayor Segarra made the choice to bring back these men to try to solve the problems within HFD. Especially when you consider that for the most part the are the same men that began or allowed the decay of the Hartford Fire Department. Reading this report will show you the lack of vision or the ability to conduct change of these so called leaders of the Hartford Fire Department.

 I think much more would have been accomplished if Segarra recruited the assistance of respected Fire Service leaders from outside of Hartford. Leaders that didn't have the need to cover their own tracks and bad deeds and really wanted to get to the truth to prevent any more LODD within HFD

To see a copy of the Hartford Fire Department Task Force’s final report, visit: http://bit.ly/1Gaw2fi

TRANSPARENCY CAN NOT BE A ONE-WAY STREET

Recently, the Hartford Police Department made a big production of their quickness in releasing information regarding an officer involved shooting in a Blue Hills neighborhood. Mayor Segarra quickly jumped on board and touted his transparency. I would gamble a guess and say Segarra had nothing to do with it, it had James Rovella written all over it and was probably thought out well in advance by the Chief.

Segarra can't seem to manage his way out of a paperbag, never mind successfully defuse the potential powderkeg that HPD had on their hands. Under Rovella's leadership the shooting was handled properly and no public disturbance was felt.

 But it is relatively easy to be transparent in textbook type situations. If the situation was entirely different, would the information be as forthcoming? If there were clear questions  regarding the officer's probable cause, would Mayor Segarra have been as quick to support HPD?

Lets move to another racial incident where "transparency " has not been as forthcoming. And let me say up front, I know Chief Rovella is in a tough spot on some of these decisions, but it doesn't make it right. I posted here a while back regarding Hartford Police Officer Kamil Stachowitz. Stachowitz in a drunken rage recently at the Foxwood's Casino began yelling the "N" word at a  Foxwoods tribal police officer, who had been called to remove an unruly Stachowitz. During the altercation Stachowitz repeatedly yelled the "N" word and even went so far as telling the African American tribal officer  "my grandfather used to own slaves like you".

After learning of the incident, I attempted to obtain the incident report from the Foxwoods  Police Department. After numerous phone calls to Foxwoods, the tribal Police finally acknowledged the incident and provided me with their case number. They refused to give me the report though, claiming that HPD asked them not to release it to me because they were conducting an internal administrative investigation. Foxwoods told me they had forwarded a copy of the incident report to HPD .

I requested the report on at least three occasions from HPD through Deputy Chief Foley to no avail. Detective Ursula Wiebusch who handles the Department's FOI requests would not give me a specific denial. All she would mention on her e-mails is that the report was part of an ongoing administrative investigation.

There are several very specific exemptions under the FOI law when an agency can refuse to release  public documents. Open Administrative investigations is not one of them. Documents as part of an "ongoing criminal investigation" can be withheld.  Since HPD has no jurisdiction in Ledyard or at Foxwoods, there is no chance of HPD's administrative investigation resulting in criminal charges. Specifically, this is the exemption HPD is apparently trying to use: Records of law enforcement agencies not otherwise available to the public which records were compiled in connection with the detection or investigation of crime,

 I understand collective bargaining and Union nonsense, but why would the Union or the Department try to protect a racist cop?

The scary part in this is that Stachowitz apparently went off sick under the Employee Assistance Program  (EAP) when the incident first came to light. I guess alcoholism is an illness under ADA( American's with Disabilities Act). It's a convenient dodge to buy time . Since that time Stachowitz has since returned to regular duty as a Hartford Police Officer complete with a badge and gun out in the public. He is currently assigned to TeleServe, HPD's front desk area, which is also the HPD version of the penalty box for bad boys and girls.

The problem with that is that Stachowitz last week was taken out of TeleServe and used in a regular  patr0ol car on the streets of Hartford, racist attitudes and all. One high ranking official at HPD also said that Stachowitz is eligible for overtime and there is no way of stopping that. What will happen if he is working a PJ at Walmart and assaults a black or Puerto Rican  alleged shoplifter. What happens if he is working a road job and gets involved in an altercation similar to the one we saw last year with the Taser deployment? Will the community give him the benefit of the doubt?

Will the community just accept the situation and continue their trust and confidence in HPD. In the current climate I would say probably not. Too many people are looking for a reason to light the fuse on that powderkeg, and with known racists like Officer Stachowitz on the force, they have every right to be concerned.

The HPD Union needs to not protect racist , bad cops. They have apparently provided legal representation for the racist Stachowitz at all of his interviews. Maybe it is time for the Moral Monday group to stage a protest on the street in front of 253 High Street at HPD Headquarters That's a protest for a cause that is not abstract to Hartford, we have a proven racist cop in our midst and he needs to be gone. Stachowitz has no business wearing the uniform and badge that all of the other honorable men and women of HPD wear  everyday as they serve our neighborhoods with respect.

HPD Stachowitz FOI0001

WOODEN DECIDES TO DO THE RIGHT THING FOR HARTFORD

"Just keep talking, I  can't hear you with my headphones on" 

 

According to sources within the Hartford Democratic Town Committee, Council President Shawn Wooden  has informed DTC Chairman Marc Dibella that he will not be seeking re-election. Wooden has had a very difficult year and has been widely criticized by Hartfordite's as being "out of touch" with his constituents as well as his waffling on the Stadium deal. Wooden was also criticized for his condescending attitude toward many of his constituents, especially those that disagreed with him publicly.

Wooden's political start was also an issue with many people after he originally announced his candidacy for Mayor years ago  and then backed out after an announcement  apparently orchestrated by Governor Malloy. The deal for Wooden to drop out was never fully realized after Pedro Segarra apparently backed out of his portion of the deal, but that was after the election so the deal was already sealed.


UPDATE: 9:00pm My knowledge of Hartford politics doesn't go back far enough apparently.. Wooden's start in elected politics in Hartford wasn't his ill fated Mayoral run, it was actually  his ill fated campaign against  Senator Eric Coleman 15 or 20 years ago, where he suffered the same fate he did in his latest run against Coleman- defeat. Actually he dropped out when the race became heated, something he might have been wise to do in last falls challenge again of  Senator Coleman.

For history sake, make note that Pedro Segarra does not have the title "Judge" before his name, and most likely never will

PAY BACK IS A B***H

I started getting some caricatures e- mailed to me last week. They appear to be by someone very artistic by the way,  I would imagine that it is someone disgruntled with the Segarra campaign . The cartoons raise some funny issues and they can be followed at https://twitter.com/SosoCampaign

 I have posted a couple here, but check out the rest if you have time. I am not sure why the female in the drawings is called "Cindy". It apparently is a reference to Segarra's campaign spokesperson Shelly Sindland who sometimes refers to herself as Cindy Crawford. The male in the caricatures is apparently intended to be Segarra's campaign manager.

Enjoy