Ward 3 Democrat Cites Administration’s “Extreme Partisanship”, Increasing Debt Service And Gentrification Moves
By John McNamara
NEW BRITAIN – Alderman Aram Ayalon (D-3) , the Common Council Minority Leader, responded to Mayor Erin Stewart’s widely publicized State of The City address delivered on March 8th at the only scheduled regular council meeting last month.
City Hall Watch
In his response to the official State of the City, Ayalon raised concerns over budgeting. rising debt payments, fair housing and what Ayalon says is the current administration’s “extreme partisanship.”
Ayalon’s views may be a preview of the upcoming debate in this year’s municipal election in which Mayor Stewart is seeking a sixth term that would match the tenure of former Mayor William “Billy Mac” McNamara.
Disagreements over the Mayor’s embellished rhetoric in the state of the city address in March was only the skirmish. The real debate begins in earnest this month over the 2023-24 municipal budget when Mayor Stewart sends her proposed plan to the Common Council. Top of mind for residents and all elected officials will be the impact of soaring property assessments for homeowners and small property owners. The administration has pledged a 10- or more mill rate cut to offset higher assessments, dropping the current 49.5 rate. Inevitably, however, property taxes will need to go up for many unfairly to maintain essential services and pay down a growing debt.
Alderman Aram Ayalon
On the municipal budget Mayor Stewart boasted about her ability to turn deficits into surpluses, throwing past administrations, including the tenure of her father Timothy, who was Mayor from 2003 to 2011, under the bus.
Text Of Mayor Stewart’s State of The City Address
“You have often heard me say that financial stability is a journey not a destination. I remain proud of the fact that we have turned a $30 million operating deficit into a $24 million surplus, bringing new found stability and fiscal responsibility back after decades of mismanagement.”
To Ayalon, however, the administration’s claims of surpluses and holding mill rates down over several terms stems from frequent borrowing to pay operating expenses. “The truth is that the mayor relies on an irresponsible practice of continuous borrowing and kicking the can to later,” stated Ayalon. “Since 2016 she has restructured city bonds every two years increasing the overall city debt to over $450 million, which requires larger and larger payments. Currently, the largest item of the city budget (not including the Board of Education budget) is debt payment and only 37% of it pays for principal. As a result, credit agencies have lowered the city ratings to A (on a triple A scale) by Standard & Poor with a negative outlook and Moody’s reduced ratings to Baa2.”
Mayor Stewart tacitly acknowledged rising interest rates and old debt in her budget plan last year for the current fiscal year as factors beyond the city’s control. Early last year the administration again re-financed the city debt and authorized new bonding. (Another Restructuring Adds Millions In Debt To City Finances) in a practice used by financially stressed cities known as “scoops and tosses.” City governments “scoop” up prior debts and “toss” them into the future.
On housing, Ayalon urged a balanced approach to build and maintain housing in the city with a greater use of tax abatements to spur more affordable housing. With one exception, the city has approved 26-year and 13-year tax caps for developers over the last two years for the building of market rate apartments that low and working income people cannot afford.
Ayalon, who previously served on the Board of Education and is a recently retired Professor of Education at Central Connecticut State University, also said the Stewart Administration is pushing a gentrification policy through actions that will displace low-income residents. “Mayor Stewart bragged about the amount of building renovations and development in the downtown,” according to Ayalon, “However, the shortage of housing across Connecticut and nation and the sharp increase in rents provide a huge incentive to developers to take over the city. ”
“What I love about New Britain is its diversity. In my neighborhood there are Polish and Jamaican, Puerto Ricans and African Americans, young and old, immigrants and old timers, middle and lower middle class, gay and heterosexuals, and much more.,” said Ayalon. “All of this is in danger if the city’s policies leading to gentrification continue. The city also is in the process of massive changes in parking and zoning ordinances that will create further hardships for low-income families.”
On bipartisanship Ayalon challenged Mayor Stewart’s assertion that “by working with elected officials from both sides of the aisle, both locally and statewide, we have been able to successfully craft and implement sound, responsible policies.”
“The mayor portrayed herself as a bipartisan and transparent leader,” responded Ayalon.. “I observed the opposite, She refuses to conduct leadership meetings before each Common Council meeting and rarely consults with the Democratic side of the aisle.”
Ayalon said the Mayor has ignored the role played by Democrats in securing $100 million in school renovations over the last five years. Singling out State Rep. Bobby Sanchez (D-25) when he chaired the Legislature’s Education Committee, Ayalon stated “most of the money for school renovations comes from the state Legislature and thanks to the leadership of Rep. Sanchez the state paid 95 percent of the school renovation costs for Chamberlain School instead of the usual 80 per cent saving the city millions of dollars.” Ayalon said bipartisanship should include regular communication with the city’s Democratic legislators and others “across the aisle” that does not occur. “We all should be working together in the best interests of the city,”
