The City Council Tuesday night is expected to approve the refinancing of municipal bonds that Finance Director Ken Flatto projects will save at least $3 million for the current fiscal year to help close a budget deficit initially pegged at $20 million for the year ending June 30.
The council will vote on a Budget and Appropriations Committee Report approving “2016 General Obligation Bonds/Bond Refunding and Bond Issuance.”
Flatto, the former first selectman of Fairfield and a certified public accountant, says the estimated interest rate is expected to come in at 2.2 percent to refinance existing old bonds between 4-5 percent. Morgan Stanley was chosen as the underwriter through a request for qualifications.
Flatto adds that $6.7 million in new bonds will be included “to finance capital equipment & projects neglected past 3 years” including a fire ladder truck to replace a 24-year-old truck, a station alerting system to replace an old one about to go, $1.5 million for street paving, and new police cars for first time since 2012.
Also on the council agenda is a referral to the Miscellaneous Matters Committee regarding a communication from the City Attorney for a “Proposed Settlement of Taxes Relating to 889 Barnum Avenue and other Related Matters, including but not limited to a Certain Pending U.S. Bankruptcy Case: Remgrit Realty, Inc.”
The city has been in negotiations with Remgrit principal developer Sal DiNardo to resolve a tax dispute for the East Side property next to the proposed site of a new railroad station first proposed by the mayoral administration of Bill Finch.
The council will meet Tuesday night, rather than the traditional third Monday of the month, in observance of Martin Luther King Jr. Day.
Full City Council agenda here.