Bridgeport officials look to bandage budget

BILL CUMMINGS bcummings@ctpost.com
Article Last Updated: 02/12/2008 11:18:18 PM EST

BRIDGEPORT — City finance officials Monday said when they cobbled together the city's budget nearly a year ago, they believed a series of one-shot revenue sources would come through.

Now, facing a $16.2 million budget gap because those revenues have not materialized, those officials told the City Council's Budget and Appropriations Committee they are sure a combination of spending reductions and revenue-enhancing measures will plug most of the shortfall.

"We are confident," said Finance Director Michael Feeney.

As the committee learned firsthand Monday night, the plans to cut costs and generate more income are projected to cover $10.8 million of the looming $16.2 million deficit. Asked if they have a plan to cover the remaining $5.4 million, the finance staff had nothing new to report.

"Not right now. It's an evolution," Tom Sherwood, director of the Office of Policy and Management, said in conceding there is not yet a blueprint for the remaining shortfall.

Feeney, citing a worst-case scenario, said the city could apply some of the $29 million fund balance, or savings account, to cover part of the deficit. But, he acknowledged, that money would likely have to be replaced in next year's budget through a tax increase.

Credit-rating agencies for years have urged the city to increase its fund balance. Any long-term reduction in the account would likely trigger lower ratings for the city's bonds, which increases the cost of borrowing money.

The deficit is mostly caused by an over-reliance last year, during former Mayor John M. Fabrizi's administration, on one-time revenue sources such as the $4.5 million sale of the Steel Point property. City officials doubt those revenues will come in between now and June 30, the end of the fiscal year.

So far, city officials are not talking about employee layoffs as one of the ways to save money in the $470 million budget. The fiscal year ends June 30.

Instead, the city projects savings and extra revenue would come from reducing the payroll by $2.7 million through a freeze on hiring; bringing in $1.5 million through aggressive foreclosures; saving $2.1 million by reducing police and fire department overtime; and gaining $2.2 million by increased property tax collections.

Other steps include saving $1 million by freezing spending in dozens of budget accounts; saving $300,000 through reductions at the Department of Public Works, and collecting $1 million from delinquent taxpayers.

One-time revenue sources the city believes will not materialize in time to help balance the budget include $3.1 million from the sale of the American Fabrics property, $1.5 million from the sale of foreclosed properties, $2.6 million in payments from United Illuminating Co. and $2.4 million in various state grants.

Budget committee members were told Fire Department overtime will be brought under control when a new class of 28 recruits joins the department in the next month.

Although Sherwood said the city has "overstocked the pond," meaning it is hiring more firemen than actually needed to fill vacant positions, he said having more on the payroll would decrease overtime. He said expected retirements and resignations would quickly erase any surplus in the number of firefighters.

Sherwood also noted that police overtime is being driven, in part, by the cost of providing protection during events at the Arena at Harbor Yard. Under the city's contract with the arena operator, outside police protection is the responsibility of the city.