The city is running out of money as it approaches the final quarter of the budget year that ends June 30. The Bridgeport City Council Monday night approved $110 million in tax anticipation notes, short-term borrowing that would be paid off by the anticipated July tax collections.
In an unusual move, the council approved the request from budget director Tom Sherwood on immediate consideration that requires a two-thirds vote of the legislative body. That means bean counters were in a hurry to get this done. According to City Councilman Bob “Troll” Walsh, an accountant, it “seems that no one was watching the bank balances. We go negative in cash on April 1. We will be short $33 million before the bonding kicks in” May 6.
Yikes. Council members were issued weekly cash projections showing the city goes into the red on April Fools Day. “I cannot even fathom a projection that shows $33 million in the red,” says Walsh.
Walsh says Mayor Bill Finch told the council the cost (interest and fees) to city taxpayers for this borrowing is roughly $500,000.
Tax anticipation notes are short-term obligations retired by future tax collections. The city in recent years has been relying on them more and more to finance government operations through the final months of the budget year. But relying on TANs raises a question about the financial stability of the city. Is more going on than we know? Will any of this borrowed money be used to pad the new budget year–avoiding a tax increase–that begins July 1?
You want four more years of this? DTC does.
Once again the sheep on the common council lay down for “Dollar Bill,” and once again the taxpayers are getting sheared. Now we have an additional $500,000 deficit to add to our bottom line. Damn, talk about financial irresponsibility.
I will be happy to pay my taxes in April @ a 20% discount.
My question to Bob Walsh and the rest of these dunderheads on the council is: WHERE THE HELL DID ALL THE MONEY FROM THIS YEAR’S BUDGET GO??? WHAT THE HELL WERE YOU 20 ELECTED OFFICIALS DOING WHILE ALL THIS MONEY WAS BEING SPENT?
This was a budget you people on the council voted for, it contained an $8 million deficit so we were told. Then we were told the deficit was only $3 million. We were told that with givebacks from the unions the deficit would disappear.
EVERY SINGLE COUNCIL MEMBER SHOULD RESIGN TODAY. You did not do your jobs, you did not protect our (meaning the taxpayers’) city from mismanagement. You on the council were more interested in protecting your city jobs and the jobs of family & friends.
Mr. Walsh you come on here and pontificate on a variety of subjects but you say nothing on this shortfall even though you were getting monthly reports. You are no better than the rest of these lemmings.
A 20% discount on my taxes will come out to be a savings of $1200 a year. Plus my $600 tax rebate check. And maybe Dollar Bill will throw in Comp cards for the Casinos. I LOVE BRIDGEPORT!
SOME PEOPLE think Bridgeport’s $110 million shortfall offers a convenient way for Bridgeport’s bond counsel to jump into action; fill a need and earn a fee.
However, keen observers will note their name was not mentioned in the above post nor was there any mention of the activities at the latest fundraiser held by–you guessed it–Bridgeport’s current bond counsel, whose banner was prominently displayed at yesterday’s BRBC meeting at the Holiday Inn.
Understanding the difference between investigative reporting and gossip is what makes this blog so much fun.
I have just one question. Do we now have a $110 million deficit? Hey Mario and the Town Committee are you really going to nominate this dope for another term? Really?
tc, NO. $110 million is the total borrowed, NOT the deficit.
Bridgeport’s tough situation is not of Mayor Finch’s doing. I doubt anyone else could do a better job. Methods might vary but the details would be the same.
Thanks but I have a question. If it is not the deficit then why are we borrowing $110 million. Are we about to hire more politically connected people or are we going to use the money to tell the ta payers that the taxes were not raised. In either case it’s bullshit.
Local Eyes // Mar 8, 2011 at 8:30 am
to your posting
Local Eyes …
Bridgeport’s situation is very much the Mayor’s doing. Against the advice of all the good government people who worked in his campaign to remove as quickly as possible the Director of the Office of Policy and Management, TOM SHERWOOD. Finch did not and therefore Finch is now very much responsible.
Local Eyes,
I cannot believe you are that discouraged or that cynical to not know in your heart that different methods could absolutely change the details.
Come back Local Eyes, come back.
Why all the shock? You people seem surprised Ali Baba and his forty thieves are robbing Peter to pay Paul. Save some cash by stopping the PD Chief from driving his 5-mile-to-a-gallon city-owned Escalade home to Danbury every day. Or Finchy (Ali Baba) to stop hiring a cop on OT to drive him around the city five times a week.
33 X 12 = 396. Why would we need that much money for three months, unless we have a true shortfall of $66 million?
Oust Finch/Walsh Now!
Hey, who is going to be the bond counsel? I will bet the ranch Stafstrom will make a killing on this sale and yet not a peep from this blog. We have the city looking to sell city hall and buy bonds for some reason. We have a push to form a regional sewer treatment plant with the right to bonding and still not a peep about our former town chairmen and his role in this.
“Fredo, I know it was you, you broke my heart.” It’s a good thing life doesn’t imitate art. Business is handled differently through the legal system. This juggling of the books should draw the attention of the FEDS. Welcome back boys, or did you ever leave?
Did you bring the cannoli?
Hurry up!!! Get Ernest “T” on the line. We need his expertise on how to handle this issue. He wants to be mayor, let’s hear from him right now on what steps he would take to mediate this financial crisis. (Someone tell “T” what mediate means.)
BTW … Same question for MJF and Gomes. Let’s hear from them too. MJF should get together with Timpanelli to see if they can orchestrate a solution.
*** ??? ***
Figures.
TC, Walsh is in the minority on the council bringing the financial information to light. He’s among the few asking questions. The co-chair of the council’s budget committee Bob Curwen now has a city job. Will he remain on the council?
Keila Torres grade question on Finch. I give him a W! He should withdraw.
blog.ctnews.com/connecticutpostings/2011/03/08/grade-mayor-bill-finchs-success-in-1st-term
Bueller? Bueller? Bueller?
Just a wild thought. Requires someone who can think out of the envelope.
WHAT IF … we made a general call to the people of Bridgeport offering a discount for prepayment of taxes due in July. If we have to pay bond interest, why not pay, so to speak, the taxpayers in the form of a one-time discount?
I’m just trying to assimilate to the Ernest “T” method of communication. When he becomes mayor, we’ll all have to adjust our eloquence.
yahooy:
If you promise to apologize to Ernie Newton, I will forgive your flagrant mistakes.
LE, Go make a sandwich. It sounds better in Italian. Ray … translate for me.
[Ray says: Va a fare un panino? You sure you didn’t want va a fare in culo aka vaffanculo?]
Notes Payable 25; Accounts Receivable 6.
“The cost for taxpayers is around $500,000.” My question is, is that the interest? I guess we don’t have to be concerned with the principal.
yahooy: The problem with your suggestion is that it makes SENSE. I for one would pay my taxes early for a discount. The problem is certain people will not make any money on such a deal.
What’s the reason for $110,000,000 short-term borrowing? If the City Budget is about $450 Million this year and the Board of Education we assume is getting State funds for Educational Cost Sharing of around $137 Million, that leaves about $313 Million to be funded from other sources. If the tax year has already had July 1, and January 1 taxing dates and we are behind the ball by the amount requested what is happening?
Ask your Council member for their understanding, because it certainly has not come out in the CT Post nor has it shown up on OIB. There are multiple elections this year, not just a Mayoral election. If Council members do not have a good understanding of the financial facts, they should be asking more questions. If they are too scared because of job security they are part of the lingering “corruption” or “conflict of interest” environment and deserve to be voted out.
I am not targeting any specific Council persons for blame, but each of us in our own Districts needs to be asking for open, accountable and transparent process and informed, responsible votes by our representatives. Serious amounts of money that has to be paid back. The Budget and Appropriations Committee meets next week. Why not attend a meeting and before or after seek answers to your questions? Frankly the explanations should be understandable by a fifth grader, right? And if they are not, then more questions should be forthcoming, from Council members to the administration, from Budget and Appropriations regarding overall financial position of the City, and from us to all the elected.
How did we get so far behind the revenues assumed from taxpayers a relatively small part of the year left? Could it be that part of the current budget was devoted to paying off tax anticipation notes from the previous year, floated then to pay last year’s budget expenses? That’s just another shell game played on the public with no good end in sight, if that is indeed what is happening.
I for one salute Bob Walsh. He asks questions, unpopular questions and does not get full truths in response. There should be more representatives like him. He may not be right all the time, but he understands the role our representatives need to play to have any “checks and balances” in this City.
Aren’t moves like this that got Connecticut into our financial mess in the first place?
*** Bound to get worse before it gets better, no? Time for an “independent” accounting firm to do the city’s budget, present its findings then let the B&A committee vote. If approved it moves on to the full council for their vote & back to the Mayor. Time to end the smoke and mirrors & secret pots of gold in City Hall! *** HERE WE GO! ***
Anticipation! What is the price if the city misses its mark on projected repayment? What happens if we fall 30% short on the anticipated revenue??? What carrying charges are we paying for other TAN’s that fell short??? I hope the next mayor will not be employing such Heinz 57 ways to screw the taxpayer type budgets. Walsh gets it and shouldn’t we be asking the mayor and his wooden soldiers why this happened?
I can remember Lennie asking Feeney or the mayor how they were so sure of their collection forecast %? Their response was don’t worry we know our numbers. Scary!
Mojo knows the score and always plays to win.
Case in point: Smoke and mirrors is better than smoking cigarettes.
People who quit cigarettes can do anything!
(wink)
bonus: www .thedailybeast.com
Off subject for a minute. Another grocery store is closing in Bridgeport. Food World on Huntington Turnpike is going out of business. For the shoppers everything there is 1/2 price. This is in addition to the old Waldbaums on Park Ave. Two fewer stores.
OIB Rumor Mill:
SEEN on a t-shirt in downtown Bridgeport:
yahooy’s knowledge
of Bridgeport is a
mile wide and
an inch deep.
So are you, sweetie.
Before the dough is eaten away, it shall be baked.
www .youtube.com/watch?v=v-9uKOmuBHs
I think we suffer from a yeast infection.
If Finchy got rid of all the no-show made-up jobs given to Calamarians during the hiring freeze, we’d get the 600 buck tax break we were promised.
TC
That’s about 25 people unemployed at Food World & how many @ Walbaum’s? To quote Michelle Obama this region is becoming a “Food Desert.” Has anyone in the Mayor’s office approached them to ask them why, or could we help them to change their mind? People will have to drive to Stratford to shop at Target. How does that help Bridgeport’s economy? We talk about economic development & we can’t keep jobs here. Let’s see if any of our leaders or wannabe leaders enter the fray. Those are really big parking lots that could hold a lot of protesters.
Antitesto:
We have no economic development, our economic development chief is a joke.
The rumor mill up here is this center will empty out meaning the new large liquor store and the thriving dollar store are on the way out. The adjoining Sunoco station is out of business. Rumor has it there will be a Stop&Shop here someday.
The city if they were on the ball could have helped relocate these businesses and kept the tax money and people would still be employed. For that you need foresight and brains.
Every time you think you have seen it all these assholes top themselves.
Wasn’t that location at one time supposed to have been turned into a Stop & Shop?
The City should have a department that’s purpose is to retain/recruit businesses. We probably wouldn’t need to make deals with “fake-ass” developers and could cut out the middlemen. Not sure if the time is right for this now, but once we have an administration whose word can be counted on …
Hey Lennie do you know if any of these Finch appointees are actually doing their jobs? Are they doing what we pay them big salaries to do? My guess is not one of them knows what the hell they are doing. Indulge me and let me know any one of these AH’s who is actually doing a good job.
Mr. Neversley could not be reached for comment as he was stuck on Metro North going home to New York.
What’s going on with the ‘Tain’t George project? Paging Port Authority!!!