In a sign of rebounding financial strength, the City of Hartford is planning to raise $50 million through municipal bonds, most of which will be used to improve city infrastructure and update its aging vehicle fleet.
This marks the first time since the city’s near-bankruptcy in 2017 that Hartford has issued bonds for purposes other than refinancing past debt. A state bailout eight years ago placed the city’s finances under the supervision of the state’s Municipal Accountability Review Board (MARB), which, among other restrictions, limited its ability to borrow for capital projects.
Hartford’s improving finances were highlighted last year when its bond rating from S&P Global Ratings jumped from BBB to A-, a two-notch increase that enhances the city’s borrowing outlook and allows it to raise bond funds at lower interest rates. The city has also graduated to a lower intensity of review by the state oversight board, permitting borrowing with approval from the Governor’s budget chief and the state treasurer.
“The fact that we are looking at making these modest investments, including infrastructure investments that have been long overdue, shows a city that is getting its fiscal footing back, that is getting back on a healthy path fiscally for the future,” Hartford Mayor Arunan Arulampalam said Wednesday.
Arulampalam expects to seek City Council approval for the bonding at a March 23 meeting.
The administration plans to spend $25 million on infrastructure, including $10 million for repaving streets, $2.5 million to replace rusting streetlights, $4 million for ADA-compliant ramps at crosswalks, $3 million for stormwater pumping station repairs and replacements, $2 million for sidewalk repairs, and $1 million to upgrade the streetscape on a section of Maple Avenue.
Another $25 million will fund the leasing of updated fire apparatus, Department of Public Works vehicles and equipment, along with a $1.23 million investment in information technology equipment.
Under MARB oversight, the city has funded capital expenditures on a pay-as-you-go basis, Arulampalam said. While this approach has helped the city regain financial stability, it has also led to deferred investments and maintenance, he added.
“While we’ve gotten our finances under control and have worked to instill a sense of fiscal discipline, I think residents have started to notice the lack of investments in infrastructure,” Arulampalam said. “And so, it’s time to make those investments.”
