A trio of Hartford’s biggest insurers and Mayor Luke Bronin said they will meet in the coming weeks to review the state’s agreement to pay off the Capital City’s approximately $550 million debt before the companies make good on their pledged investments in the city.
The Hartford City Council this week inked a contract assistance agreement, which sets the course for the state to pay off the city’s debt over two decades with annual debt payments of about $35 million.
With the agreement in hand, city leaders will look to collect donations promised from The Hartford, Travelers Cos., and Aetna, which collectively pledged in 2017 to contribute $50 million to Hartford over five years if policymakers develop a stable and sustainable fiscal climate in Hartford.
The insurers each told Hartford Business Journal they plan on reviewing the bailout agreement with Bronin in the coming weeks. The mayor on Wednesday confirmed the upcoming meetings with the Hartford insurers, saying he will discuss the “very significant progress” the city has made since the insurers promised the donation in March 2017.
Travelers Cos. issued a statement Tuesday saying the company will review the bailout agreement, although it “seems to be a step in the right direction for Hartford.”
“Our commitment remains subject to a comprehensive and sustainable financial solution for the city,” the company said. “We look forward to working with the mayor to ensure we’re on that path.”
Aetna officials also said they are still committed to supporting plans that promote long-term economic sustainability in Hartford and that the deal “seems to be a positive step in that direction.”
A spokesman from The Hartford also affirmed the company’s commitment to being part of the city’s resurgence. The company said the bailout agreements looks promising, coupled with the city’s recent labor agreements and other spending reductions.
The Hartford’s chairman and CEO Chris Swift in January had reiterated the groups’ $50 million pledge to the city if its finances improved.
At the time, The Hartford’s top executive said the new bipartisan $41.3 billion state budget looked promising, as lawmakers established a Municipal Accountability Review Board as part of the spending plan, which provided a process to bailout Hartford and other financially struggling municipalities. MARB began its oversight of the city in January.
Under the bailout terms, the state will begin making payments this week in time for an upcoming $12 million debt payment that’s due April 1.
The city will refinance its debt to reduce its yearly contributions by pushing payments into the future, with projections showing the state’s annual payments will be about $35 million, according to the Office of Policy and Management.
Hartford would still be required to make annual payments of $5 million on its new minor league ballpark.
