How’s Your TAN? Plus: Zoning Code

The following item is expected to be acted on by the City Council’s Budget and Appropriations Committee Monday night:

Communication from Finance Department re Approval of General Obligation Tax Anticipation Notes – To Pay Current Expenses and Obligations of the City, referred to Budget and Appropriations Committee.

What does this mean? If the City Council does not approve this within a couple of weeks, the city will not be able to pay its bills come July 1. It will be out of money. Tax anticipation notes–a short-term loan paid off by tax revenue–are not uncommon, but this illustrates the city’s fragile financial position during these times and in particular evaporation of the city’s fund balance so essential for positive financial standing from Wall Street bond rating agencies.

The city’s Finance Department is asking the City Council’s budget committee to approve $55 million in TANs to bolster the city’s revenue flow. Assuming the budget committee signs off, the request will go to the full council for a vote May 18. When the city’s fund balance was strong, upwards of $50 million 10 years ago, the city could rely on that to cover a short-term financial squeeze and then replenish the fund.

Not any more. The fund balance is down to $10 million or so. As a result, short-term borrowing becomes a necessary toothache. Interest, legal fees and other associated charges will cost the city hundreds of thousands of dollars depending on the amount borrowed.

The budget committee that has been busy going through Mayor Bill Finch’s proposed budget for the budget year that begins July 1 will meet Monday to act on the Finance Department request before the full council votes on Finch’s budget, according to budget co-chair Bob Curwen. The budget committee will vote on Finch’s spending plan within the next couple of days.

Will a business tax surcharge be included? Some on the committee support it, some don’t. How about councilman Andre Baker’s jihad to wipe out the Chief Administrative Office? I don’t see that happening. Curwen told OIB he doesn’t think the city needs a media relations position that costs nearly $100k with benefits.

Damn, just when I was thinking about getting my old job back. (Don’t worry, the electorate is safe.)

Hey, it looks like the Connecticut Legislature is going to authorize cities and towns to delay implementation of revaluation. That’s good news for some chief elected officials concerned about the fallout of a residential tax hit. Finch, however, will not put off reval. The city’s revaluation that kicks in July 1 is a mixed  bag of tax increases and decreases, with perhaps 50 percent or so homeowners staying the same, as a result of a reval shift to the business sector. Finch does not want to mess with that.

In The Zone

The city’s zoning rewrite has a number of OIB friends upset for the lack of public hearing. See news release from Mayor Finch below:

Mayor Finch Asks P&Z to Have Additional Public Hearing on Re-Write of Zoning Code

Mayor Bill Finch today asked the city’s Planning and Zoning Commission to have one more public hearing about rewriting Bridgeport’s zoning code – the regulations that govern where different types of buildings can be located in the city. Finch stated, “While an additional hearing is not required by law, I believe it is good public policy to hold one more public hearing on this important issue.”

“The process of rewriting the zoning code has been a very long, expensive and careful process and I commend the commission for its efforts,” said Mayor Finch. “Nevertheless, we need to make sure that all interested members of the public are heard.”

The Mayor explained that the proposed new zoning regulations were made available for public comment last July 28. Since then, the Planning and Zoning Commission conducted a public hearing on Nov. 10. Consequently, 29 different comments were made at the public hearing, while another 161 separate comments were made in letters sent to the commission. Commission staff contributed another 143 comments, resulting in the total of 333 comments on the proposed new zoning regulations. However, there are indications that there are members of the public who would still like to add to the comments.

“I am eager to have the new Zoning Code adopted as soon as possible,” said Mayor Finch. “However, providing another opportunity for the public to weigh in would not significantly delay the process.”

News release from Jim Himes

Himes Announces Seniors, Veterans Begin Receiving $250 Recovery Checks This Week

Over $137 million to boost Connecticut Economy

WASHINGTON, DC-Congressman Jim Himes announced that starting Thursday Social Security and Supplemental Security Income beneficiaries in Connecticut will begin receiving $250 checks to supplement their regular benefits. The one-time payments are part of the Recovery Act passed by Congress and earlier this year and will directly help over 550,000 Connecticut residents.

“When we passed the Recovery Act, we wanted to get money back into the economy as quickly as possible,” said Congressman Himes. “This one-time payment to seniors, disabled veterans, and SSI recipients stimulates our economy by putting money in the pockets of those who need it most.”

Social Security will begin disbursement of the payments this week and continue throughout May. Later this month, similar $250 payments will be sent to Railroad Retirement Board beneficiaries, followed by Veteran Compensation and Pension beneficiaries in June. Altogether, Connecticut residents will receive 137,697,000.

Eligible individuals will receive their $250 checks automatically. No action is needed to apply. To receive the payments, individuals needed to be eligible for benefits during November 2008, December 2008 or January 2009.

Those who have not received their payment by June 4 should contact the Social Security Administration at 1-800-772-1213. For more information, go to: www.socialsecurity.gov/payment/