City finance staff reported on a recent bond sale and related budgetary developments at the Board of Estimate and Taxation meeting Sept. 15.

Jared summarized the financing: "We had the AAA rating or reaffirmed, stable from both, from both their rating agencies, Moody's and S and P," he said. The city sold bonds on Sept. 3 in a competitive process that produced 15 bids; the offering priced at a 3.69% interest rate on general obligation bonds. The bond par amount was $53 million; bond premium of about $2.5 million reduced the net amount issued closer to $50 million. Staff said maturities were matched to project useful lives, with an average life around 11–13 years and longer maturities (30 years) allocated to school projects.

Staff flagged fund‑balance pressures and timing issues that affected FY25 results. Jared said the city will end FY25 with a roughly $3 million operating deficit that reduces the general fund balance from about $86 million to approximately $75 million. He cited timing as a key reason: some anticipated revenues, including tax‑sale receipts and a property sale related to a development deal, posted in different fiscal years. He also noted that a separate development payment of about $3.3 million will be realized in FY26, offsetting prior shortfalls.

On labor negotiations and retroactive pay: staff said most retroactive wage payments tied to recently approved labor contracts already went out. "The retro payment was over 2,000,000," a finance official said, adding about 98% of retro payments had been issued with the remainder expected in the following week. Officials said contingency held funds were intended to absorb retro payments and that they are analyzing whether transfers from contingency to departmental budgets will be necessary; they said their current plan is to shift money from contingency rather than cut departmental services.

Staff also discussed longer‑term revenue drivers. Several development projects — including the mall redevelopment — are structured with phased tax abatement schedules. Staff said some projects will ramp up assessed value over the next two to three years and increase recurring revenues, and they are meeting with the Office of Policy and Management in Hartford about requirements tied to a separate state aid increase before certain funds will be released.

This item was informational; no Board vote was required. Members asked for follow‑up materials showing the full fiscal impact of the labor contracts, the final tally of retro payments, and updated fund‑balance projections ahead of upcoming budget reviews.