The mayor of Hartford yesterday told bond investors that Connecticut’s cash-strapped capital city has no room left to tax or cut its way out of its fiscal crisis, a bond holder said, Reuters reported yesterday. Mayor Luke Bronin reiterated that Hartford needs a substantial amount of state funding to avoid a chapter 9 bankruptcy filing, according to bondholder Belle Haven Investments. Bronin laid out the city’s dire circumstances and its potential case for insolvency in a call with investors, said Matthew Dalton, CEO of Belle Haven, which holds $30 million of insured Hartford general obligation debt. He said the mayor revealed no new critical information on the call, which lasted roughly 15 minutes. The pre-planned investor call came hours after bond insurer Assured Guaranty Ltd. publicly offered to support a refinancing of Hartford’s debt under a new state law. Such a move would lower debt service payments over the next 15 years and push repayments further into the future, providing near-term breathing room for the city of 123,200 people.
