Hartford Mayor Pedro Segarra downplayed the significance of a downgrade from Moody’s Investors Service during an interview Friday.
Moody’s cited unreliable funding sources in order to balance the city’s budget, such as the selling off of assets for cash to pay for continuing expenses.
The mayor defended the moves by saying that the city avoided a tax hike on residents.
"We've opted to sell assets in order not to increase the mill rate, which is important for our residents, our homeowners and our businesses," he explained.
The city finalized the sale of a parking garage earlier this year that netted $14 million and the mayor touted the move as a way to balance the city’s spending plan to end the fiscal year.
Mayoral candidate Luke Bronin said such budgetary decisions are irresponsible.
"It's one-time cash” Bronin said. “It comes on the heels of another garage sale the year before, which was one-time cash to close the budget deficit."
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Bronin, who most recently served as legal adviser to Gov. Dannel Malloy, said such decisions set the city on a path toward future budget problems.
"The city of Hartford has been engaged in irresponsible and unsustainable budget practices. We've been selling off city assets to close our deficit. We've been raiding long-term education funds. I wish we were not being downgraded. It's going to cost us. It's going to make our job more difficult," Bronin said.
Segarra said the Moody’s decision wasn’t all bad news, because a rival ratings agency maintained the city’s current level.
"I think it's a concern. It's never good news to hear of a downgrading but the fact that at least the other bond rating agency Standard & Poor's affirmed it means that there's differing opinions as to what our status should be in regards to the rating," he said.
