New Britain Committee on Administration, Finance, Law and Public Services Special Meeting June 5, 2024

The committee held a special meeting on June 5, 2024, at 6:00 PM in Council Chambers to discuss two agenda items: the status of a $4 million fund transfer for the Allen Street drainage improvement project and a proposed ordinance amendment regarding water meter readings. The meeting featured extensive testimony from Finance Director Mr. Perigini and former Alderwoman Luz Ortiz Luna, and concluded with motions to refer the first item with neutral recommendation and to table the second item.

Discussion Items

Item 36453: Status of Fund Transfer for Allen Street Drainage Improvement Project

• Mr. Perigini reported that the resolution passed by the Common Council on September 27, 2023, appropriating $4 million from the general fund for Phase II of the Allen Street project, could not be executed because it lacked specific line items and would have violated the city's fund balance policy. The transfer would have dropped the unassigned fund balance to 4.24%, below the required 5% threshold, necessitating a fiscal emergency declaration.
• Former Alderwoman Luz Ortiz Luna, the resolution's sponsor, stated she was not contacted by corporation counsel or the mayor's office about any issues before or after the vote. She was later given a stamped copy of the resolution as proof of transfer, leading her to believe the funds were allocated.
• Alderman McNamara expressed concern that the resolution was unanimously approved without proper vetting, attributing it to a desire to address public health and flooding issues in the Allen Street area. He noted that the project was not a priority at the time but has since gained urgency.
• Alderman Santiago questioned why no one flagged the procedural deficiency during the original vote, emphasizing that the council assumed the funds were available from the "rainy day" fund (unassigned fund balance).
• Mr. Perigini clarified that the $4 million remains in the general fund but cannot be used for Allen Street without triggering a fiscal crisis. He suggested alternative funding sources such as the sewer or clean water fund, or bonding.
• Alderman Simpson asked about the difference between the general fund and the budget, and Mr. Perigini explained that fund balance is not revenue and that the city has multiple funds (general, special revenue, enterprise).
• Alderman Pabone recalled that after the meeting, it was stated that partial funding ($4 million) could not be used without the full project cost (estimated at $6.7 million).
• Alderman Scott expressed sadness that the resolution was not executed, calling it a transparency issue and a failure to serve residents facing flooding and housing risks.

Item 36304: Amendment to Water Meter Ordinance

• Alderman Simpson moved to table the proposed ordinance amendment, which sought to provide exceptions for faulty equipment regarding water meter readings. He stated that corporation counsel informed him the wording conflicts with the city charter. The intent of the ordinance is to improve notification to homeowners of large water usage increases caused by leaks, to prevent excessive bills that could lead to home loss.
• The motion to table was seconded by Alderman Santiago and passed by voice vote.

Key Outcomes

• Item 36453: Motion to refer the item to the full council with a neutral recommendation, made by Alderman McNamara and seconded by Alderman Santiago, passed by voice vote. The committee will forward the report and discussion to the Common Council for further action.
• Item 36304: Motion to table the ordinance amendment for further discussion, made by Alderman Simpson and seconded by Alderman Santiago, passed by voice vote. The item will be revisited after language is revised to comply with the charter.
• The meeting adjourned at 6:43 PM.