City Will Match State Bonding With $4.2 Million For Allen Street Flooding

Council To Review Recommendations On Late Audit Reports July 22

An infrastructure improvement plan to address longstanding stormwater and sewer main problems in the neighborhood between Allen Street and Roxbury Road near CCSU is taking shape in a cooperative effort by state legislators and the Stewart Administration.

In recent months Common Council-approved engineering work has been completed confirming that the project will require an estimated $13.903 million to be implemented. The new estimate will make Allen Street “shovel ready” contingent on full funding for one of the city’s major trouble spots for flooding that was identified decades ago. The project has been listed for years on the annual Capital Improvement Program list at an estimated $6.7 million, but no local, state or federal funding has been secured.

At the invitation of New Britain legislators (State Reps. Manny Sanchez (D-24), Bobby Sanchez (D-25), Peter Tercyak (D-26), Gary Turco (D-27) and State Senator Rick Lopes (D-6)), the Chairman and the Ranking Member of the Legislature’s Finance and Bonding committee toured Allen Street on April 26th and agreed to consider a state bond proposal to provide up to $10 million for the project.  Legislative approval in the 2025 session will send the bonding to the state bonding commission for final approval.  Mayor Stewart has sent the project’s estimated cost and engineering specifications to the legislators for consideration and now guarantees matching funds of up to to  $4.2 million or 30 percent of project costs from the city’s “unrestricted fund balance of enterprise funds.”

Common Council Update From The Democratic Caucus – July 2024

In a letter to State Rep. Ron Napoli (D- Waterbury), the Co-Chair of the Bonding Committee, Stewart said the project “will include approximately 2,400 feet of full depth reconstruction of the lines on Allen Street between Oak and Stanley Street. Much of the work required is due to the fact that the sections of the existing systems are over 17 feet deep and located in areas of high ledge.” The project, according to the engineering conducted by Cardinal Engineering of Meriden, will involve a major excavation up to 20 feet deep on Allen Street.

The impetus for progress on addressing neighborhood flooding arose from residents who shared the personal and financial toll repeated floodings have caused at the Common Council. Roxbury Road resident Frank Chase and others have testified repeatedly to the Council. Similarly, residents from the Overlook-McKinley neighborhood protested last year and the city allocated $2 million from remaining American Rescue Plan Act (ARPA) funds to start a project reducing the flood risk in those neighborhoods.

The citywide FLUSH program, standing for Fresh Line Upgrades for Sanitary Health, is “a massive investment in repairing and replacing the city’s storm water and sanitary sewer lines, which are over 100 years old,” according to the annual comprehensive financial report (audit). FLUSH is reported in Phase 3 of 11 proposed phases and when complete is expected to cost more than $100 million.

Common Council To Review Auditor Recommendations On Municipal Finance

The city’s most recent audited financial statements will be the topic of a Common Council public hearing and an Administration, Finance, Law and Public Services (AFLPS) committee meeting on Monday July 22^nd at New Britain City Hall. at 6 p.m.

Independent auditors for the year ending June 30, 2023, report three areas of concern that caused the 2022 audit to be more than one year late and the 2023 audit to be six months late.  The 2023 audit was due last December 31 and was received by the Common Council on July 10^th. Officials attributed the delays in both years to a “shortage in staffing within the finance department.”

The findings show “material weakness in internal control” involving bank reconciliations and the absence of formal year-end close procedures.  A third finding says the city “did not comply with uniform guidance reporting requirements” because reports were not filed electronically  within nine months of the fiscal year. No material weaknesses nor significant deficiencies were reported in internal controls over state funded major programs.

Alderpersons will hear from representatives of CliftonLarsonAllen (CLA) and the Finance Department at the July 22nd meeting. Agenda items include the status of the Finance Department’s capacity and staffing, progress made on corrective action from the 2022 findings and a plan to strengthen internal controls and implement a financial close process based on the 2023 audit findings and recommendations.

Audit Financial Highlights For 2022 and 2023

The independent audit for fiscal year 2023 reported:

• An $812,000 decrease in net position of governmental activities with net revenues of $452.3 million and expenses of $455 million. In 2022 there was a net increase was $22 million with net revenues of $416.5 million and expenses of $395.9 million.

• Non-tax revenues increased by $980,000 with revenues of $14.5 million and expenses of $11.7 million. In 2022 the increase was $761,000 on revenues of $11.8 million and expenses of $10.4 million.

• General Fund balances of $25.1 million including $7.1 million assigned and $17.9 million unassigned. In 2022 the General Fund balance was $24.3 million including $4.7 million assigned and $19.6 million unassigned.

• Long-term debt totaled $316.1 million in bonds and notes outstanding versus $325.1 million last year, a 2.8 percent decrease. In 2022, indebtedness rose 11.1 percent over 2021’s $292.5 million.

The AFLPS Committee is expected to refer consideration of a Request for Qualifications and schedule to an audit subcommittee to begin the process of selecting an independent auditor firm for the current fiscal year. Last January the Common Council re-established the Audit subcommittee in accordance with state law that designates the Council as the “appointing authority” for the approval of “all items relating to the selection of an independent auditor.”

Summer Common Council Meetings

The Common Council holds regular meetings once a month in July and August. The August meeting will be held Wednesday, August 14, 2024 at 7 p.m. at the Council Chambers, 27 West Main Street. Public Participation begins at 7 p.m.

The Democratic Caucus is led by President Pro Tempore Francisco Santiago (D-5), Assistant Majority Leader Iris Sanchez (D-3) and Majority Leader John McNamara (D-4)

John McNamara is an alderman from Ward 4 and the Common Council Majority Leader. He has been sharing stories and writing about local government and the community on his nbpoliticus.com blog since 2006.