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West Haven opts against bankruptcy.

Conceding to the pressures brought on by a $17.3 million cumulative deficit, the city of West Haven, Conn. accepted a state relief package that includes up to $35 million in loan guarantees in exchange for imposition of a Financial Planning and Assistance Board similar to the one previously established to work with the city of Bridgeport.

West Haven Mayor H. Richard Borer, Jr., who was appointed by Governor Lowell Weicker to serve on the financial review panel, said that, "The taxpayers of the city should be comfortable with the fact that these people will be cross-checking the finances of the city to ensure that we don't get into the same kind of trouble again."

The West Haven Finance Planning and Assistance board formally took shape last week with the city's issuance of short-term general obligation notes that it sold to investors at an interest rate of 3.5 percent. The Board has the power to accept or reject labor agreements and the city budget, and dictate line item changes in the Board of Education and Housing Authority budgets. The Board will be in place for at least the next two years.

The six-month notes issued last week will refinance $12.7 million in short-term bond anticipation notes that came due on April 15, as well as pay off the deficit for the fiscal year the ended June 30, 1991. Groton Mayor Goth, current president of the Connecticut Conference of Municipalities stated,"
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Title Annotation:fiscal crisis in West Haven, Connecticut
Author:Brookes, James
Publication:Nation's Cities Weekly
Date:Apr 20, 1992
Words:242
Previous Article:Weathering the storm in Bridgeport.
Next Article:3500 jurisdictions make phones pay.


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