As mayor, John DeStefano consistently demonstrated the ability to build coalitions to improve the city.

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When John DeStefano took office in as mayor in 1994, he quickly set out to rebuild the City of New Haven. At the time, the city had little money in the bank and its credit was so shaky that it could hardly borrow. The city's population had fallen to about 125,000, while it lost 18 percent of its manufacturing jobs in only three years. To make matters worse, the city's public buildings and infrastructure were crumbling, while its fiscal health continued to deteriorate and its shrinking tax base smothered plans for capital investment. Looming just behind the budget deficit was a cash shortfall that delayed vendor payments. Meanwhile, city officials were wasting precious general fund dollars to subsidize the operation of assets once intended to be self-supporting.

Ten years later, New Haven is a reborn American city. DeStefano successfully returned the city back to a sound fiscal footing, creating a place where children learn in good schools, residents live in safe neighborhoods, and everyone has the opportunity to make the most of his or her talents. DeStefano accomplished this by following a path that avoided temporary, quick fixes in favor of a climate for sustainable economic growth and social well-being.

You can learn more about Mayor DeStefano's strategy for success in New Haven by reading his essay, "Strategies for Financial Recovery: The City of New Haven's Experience," which was originally published in Government Finance Review, June 1, 1999.

The City of New Haven: A Path to Results

November 1993

• City has BBB-Baa credit ratings
• City unable to access capital markets
• City unable to meet vendor accounts or payroll

March 1994

• City completes five-year financial plan
• Plan identifies $45 million of management initiatives

February 1995

• $25 million BAN conversion and new money issue

August 1995

• $43.9 million general obligation refunding

September 1995

• $19.1 million tax lien sale (proceeds used to leverage $60 million state guarantee)

November 1995

• $23 million BAN for capital projects

June 1996

• $5.9 million bulk tax lien sale

August 1996

• $29 million BAN for capital projects

December 1996

• $28.8 million general obligation refunding

May 1997

• $40 million BAN conversion and new money issue

June1997

• City institutes contract for golf course
• $6.4 million bulk tax lien sale

August 1997

• City institutes contract for water/wastewater system
• City upgraded to BBB/Baa1

Autumn 1997

• Capital market access fully restored
• Debt service reduced $1 million annually

December1997

• $13.1 million general obligation refunding
• $25 million issued for capital projects

August 1998

• $40 million BAN for capitalized projects

Summer/Autumn 1998

• City institutes contract for school facilities maintenance

January 1999

• $55 million BAN conversion and new money issue for capital projects

February 1999

• $17 million general obligation issue to eliminate heart and hypertension liability

April 1999

• City upgraded to AB/BBB+

Conclusion

Mayor DeStefano directed savings into expanding critical services, investing in more police officers, firefighters, school nurses, and recreation, while launching a capital improvement program of $55 million in the first year alone. No doubt, New Haven is benefiting from Connecticut's general economic growth but New Haven's initiatives to make the city a more attractive place to live and work is an important reason why the value of building and facility permits climbed 43 percent from 1992 to 1998, while unemployment has fallen sharply.

 

[Adapted from the slide, "The City of New Haven: A Path to Results," originally published as part of the essay, "Strategies for Financial Recovery: The City of New Haven's Experience," in Government Finance Review, June 1, 1999.]

© Copyright 1999 Government Finance Officers Association of the U.S. & Canada.