Mayor: New London Is Running Out of Cash

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    New London is scrambling to make its $1.7 million payroll this week and Mayor Daryl Justin Finizio has reached out to the state for help.

    In a scramble to make New London's $1.7 million payroll this week, Mayor Daryl Justin Finizio has reached out to the state for help.

    The Day of New London reports that Finizio disclosed the problem to the City Council on Monday night.

    The mayor said he called Gov. Dannel Malloy and asked that the state expedite payment of $11 million in state education aid that's due to the city.

    Finizio said Malloy agreed to the request and the city should be able to make its payroll by the end of this week.

    A city consultant said the city's fund balance should be at least $13 million to equal two months of operating expenses, but the fund balance has withered to $400,000.

    “This was not just something that happened overnight. We have had years of councils that have not budgeted properly and the finances caught up to us, but the city workers will get paid no matter what,” city council president Wade Hyslop said in a phone call.

    New London residents said they are saddened, but not surprised, by the news of the city’s financial problems because the city has struggled for quite some time

    “That’s a sad, sad situation for sure, especially for all of our city employees who work very had here to keep our city up,” Larry Lewis, of New London, said.

    Michael Lucas, a New London resident, said local officials wanted to close the library, so several people signed a petition to keep it open.

    City officials have not announced any future cuts, but the city council is looking into long term solutions to climb out of the financial hole and replenish their rainy day fund.

    Residents said they just hope that doesn’t include a higher tax bill.
     

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