Today it became official. According to sources at Hartford City Hall, one of the major reasons was that Moody's apparently felt that Mayor Segarra was less than truthful when he promised the rating agency last year that Hartford's Rainy Day Fund would be maintained at a level close to $30 million dollars. That apparently didn't happen and is far below that amount. Moody's also cited the City selling off assets to balance the City's budget as a factor.
In a detailed report they felt that the City's actions under Segarra and the Council "put a strain" on the City's abilities to close its deficits. That detailed evaluation can be viewed at moodys.com.
This downgrade will most likely also affect the over $350 million in outstanding bonding the City has out. It most likely will also make it more difficult to borrow money for future projects such as baseball stadiums and schools. Moody's also indicated the rating could most likely be downgraded more if the City doesn't clean up its financial situation.
Below is a release from Councilman David McDonald regarding the downgrade:
Today’s news from the
Moody’s that Hartford’s credit rating was downgraded from A1 to A2 with a
negative outlook comes at a very inopportune time for our city as we are about
to issue $82 million in bonds later this month. This will increase our debt
service and negatively affect all future bonding in which several important
schools are scheduled for renovation such as Weaver High School.
Also the City Council
is currently debating the financially risky development of a baseball stadium in
Downtown North. This proposal has the strong possibility of further negatively
impacting our budget and worsening our already weak financial position, which in
all likelihood will lead to further reductions in our credit rating in the
future.
A downgrade on our
credit rating will increase our debt service and cause our already $50 million
dollar annual structural deficit to grow even larger. This is why City Council
has worked so hard to balance our budgets without using the Fund Balance or mill
rate increases. It’s the administration’s responsibility to properly manage the
budget to avoid using the Fund Balance. The Mayor promised the credit rating
agencies that he would not touch the Fund Balance, yet he has done just that,
reducing it from $30 million to around $14 million.
Rather than being
fiscally prudent, this administration has been spending millions on a stadium
development proposal, appropriations that Council never authorized. This
proposal is extremely likely to increase the city’s annual deficit in Years 5
and out. This proposal is not “budget neutral,” as claimed, and it relies on
rosy revenue projections that are not tied to realistic revenue assumptions. It
will increase the city’s annual deficit, which will further decrease our credit
rating, starting a downward spiral not unlike what Detroit
experienced.
The people of Hartford
deserve much better from their city government. The news of Hartford’s credit
rating downgrade heightens the risk associated with the proposed stadium
development.
I urge all of my
colleagues on the Court of Common Council to reject this unaffordable and
financially risky proposal to build a stadium in Downtown North and instead
promote affordable and sustainable development for DoNo and focus on protecting
our residents and businesses from any potential need to increase taxes. Hartford
has many businesses and residents who are struggling with the current tax rate.
People can’t afford any higher taxes, and yet this mayor spends money without
regard to the struggles of everyday people in Hartford.
Contact: David
MacDonald
Harford City
Councilman
860-805-8935
NBC Connecticut's Len Besthoff was the first to break this story Thursday
20 comments:
Wait a minute, this is the same Pedro Segarra who said - just a few months ago - that our credit rating is extremely important.
Anonymous...Mayor Caviar is a pathological liar....he lies about most everything,from his work as a teenager and young adult ( hustling as a prostitute) to lying to the media about eating caviar on the city;s dime and of course the bond rating. This incompetent Mayor has no re-election issue other then he was one of the larger giver's to the Touch of Class Escort Service..I cant wait until his announcement for re-election...the Touch of Class t-shirts will be out and distributed.
According to BNN,
Da Pedro's iron fence issue on Prospect Av is still out there, the last time this came up Pedrito nearly die. He? had CC cover his tracks.
Varon, those who know, Know!
Nene, resign- You're done
Councilman MacDonald is absolutely correct in his comments about bond rating and other negative stadium impacts. Many agree downtown should, and can be, well developed WITHOUT a stadium -- which will NOT be "budget neutral" for city taxpayers. We in City Council will continue to inform the public, press, and others in city government. -- Larry Deutsch, City Council
That's it Pedro, enough already, it's time for you to leave office, time to go!
Mayor Caviar, together with the other idiot Deller the Seller are going to ruin this city beyond repair with their 'done deal' fantasy of a stadium. They started with a lower credit to the city. Morons.
Pedro Caviar is correct: At least we're not Detroit. We're not even like Greece.
You all must read Pedro's comment/reaction to Moody's downgrading Hartford rating. Shame on you Pedro Segarra. Go eat your caviar and get out of our way. We will be paying much more now for every dime we borrow for years to come. Shame on you, liar.
We're not like Detroit... We're not financially bankrupt like Detroit but we're almost there. We're not corrupt like Detroit but we're already there. Thank you Caviar Segarra.
Mayor Pedro will go down in history as the worst mayor ever in Hartford.
agreed, but if we let Pedro continue his way, we'll soon be just like Detroit and Greece.
Once upon a time there was a mayor in Hartford. His name was Pedro Caviar Segarra. This mayor had a fantasy to open a supermarket in downtown Hartford, so he gave Ryan (aka Rayen) Jones and Kelleanne Jones over $400,000.00 of the city residents hard earned money to open that supermarket. In less than 9 months the Jones' decided to shut the doors on that miserable supermarket. They also decided to tell mayor Pedro Caviar Segarra to take a hike, cause they already took the money and they have no intention to pay it back.
And that was just one more screw up by that mayor.
Some time later, mayor Pedro Caviar Segarra had another 'brilliant' idea. It was a done-deal' idea for a baseball stadium in downtown Hartford.
... And this part of the story will be continued soon.
Sorry, Pedro, we, the people of Hartford, lost faith in you and your administration long time ago. The incompetence, the scandals. You're not qualified to serve as a mayor of this city. Or any other city.
James Davidson 269 said: I hope they are also including money for plenty of vasoline because the taxpayers are going to need it when the bills get shoved up their collective butts.
Last One 1 saying: As long as the Hooker Brewery and the City of Hartford can pay for whatever they want, then it's fine with me and I wish them the best of luck, but if it will be paid for with state taxpayer dollars, I want my town to have a share of the revenues and a vote.
from Tee Zee: Clearly, between all the "secret" meetings, back room negotiations, kickbacks, and underhanded dealings that are going on, (according to the man and woman who live in her Mothers basement) they are CLEARLY intending to screw every CT resident and raise our taxes $15,000 per household every month.
10:34am Not to mention corruption after corruption. Segarra is a corrupt mayor.
show me anyone in he right mind who still supports this caviar mayor
Recent news: Moody's downgraded Hartford credit rating. One person to blame.
Latest news: S&P downgraded Hartford credit rating as well. One person to blame.
We will be paying much more for every dollar Segarra borrows for his caviar, for his ego stadium and everything else. "Great" news.
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