ANSONIA – City finance officials made their first appearance before a state commission Sept. 10, three months after state Rep. Kara Rochelle pushed for the city to be there.
Ansonia Mayor David Cassetti and budget director Kurt Miller told the commission that the city’s referral was a political move by state Rep. Rochelle, who represents Ansonia and part of Derby in the state House of Representatives.
However, Cassetti and Miller said they’re willing to go over their finances with the state.
“We all know the political maneuvering that put Ansonia here. This was not about financial necessity, but about politics,” Cassetti said. “But what matters is that we are here, and that’s an opportunity. An opportunity to highlight the strength of Ansonia’s progress, and an opportunity to learn from the commission’s experience so that we can continue to approve.”
Miller, in his statement, pointed out that Ansonia’s finances don’t meet most of the criteria that would normally cause a municipality to be referred to the state.
The Municipal Finance Advisory Commission (MFAC) is an eight-member panel appointed by the governor. Four of its members are municipal fiscal officers, such as finance directors. Three are non-public employees and one is from the Connecticut Office of Policy and Management (OPM). Read more at the MFAC website.
It’s an advisory panel, which doesn’t have the power to take over a city’s finance department.
The state budget this year included language that forced the City of Ansonia to appear in front of MFAC. Lawmakers attempted to remove the language, but Rep. Rochelle filibustered to keep it in.
Click here for a previous story.
In a statement on the House floor, Rochelle said Ansonia was in bad financial shape and needed state oversight.
In response, the Ansonia Board of Aldermen condemned Rochelle’s action by a 12 – 0 vote in June, saying they “deeply” disapproved “of the unilateral and politically motivated legislative conduct of Rep. Kara Rochelle.”
Miller and MFAC commissioners discussed the city’s audits in the meeting. City Democrats have pointed to late audits in the past, saying they’re evidence the city is in bad shape.
Miller said the city is on track to submit an audit on-time this year. He said late audits over the last two years were the result of staff turnover in the school business office, which included the death of former school business manager Rick Belden, as well as outdated accounting systems which have since been upgraded.
“These findings were not the result of structural fiscal weakness, but operational challenges, staffing shortages and outdated systems that made it difficult to keep pace with reporting requirements. Those situations have been corrected,” Miller said.
Commissioners Ask About WPCA Sale
Five commission members also asked about the city’s long-term budget plans after it sold its WPCA for $41 million last year. They asked about the city’s “use of future revenue” to prop up its budget, and how it relates to the WPCA sale.
“Use of future revenue” is an item included in recent budgets. City Democrats have criticized it in the past, alleging it’s money which doesn’t actually exist. Click here for a previous story which discusses future revenue.
Miller said the city includes that budget item to ease the burden on taxpayers. He said he expects the money to come from a fuel cell project at the former SHW site on North Main Street, but WPCA sale money is available as backup.
“We have put that in there to try to put some cost savings for the residents, with the understanding that we can use some money from the sale of the WPCA to backstop that if necessary,” Miller said.
He said the city is winding down its “use of future revenue.” He said he expects it to disappear from city budgets by the 2029 fiscal year, regardless of how the fuel cell project shakes out.
Commissioner Marcia Marien, who also serves as the finance director/controller for the Town of Brookfield, asked to see a long-term budget from Ansonia at MFAC’s next meeting. Miller said he’d have that budget ready for commissioners to review.
Commission Chair Michael LeBlanc, who is also the Waterbury Chief Finance Officer, said he’d like to know by the next meeting how much money was added to the city’s fund balance after the WPCA sale. Miller said he’d have that information available.
The next MFAC meeting is scheduled for Wednesday, Nov. 19, at 10 a.m. via telephone conference. Click here for the most up-to-date schedule from MFAC.