Dan Haar (Hartford Courant, Status Of Hartford)

Dan Haar (Hartford Courant, Status Of Hartford) by The Financial Exchange

00:06:28

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We're joined now by Dan hard from the Hartford current to talk about the status of Hartford Connecticut hey dude and great good good so loop Ronan the mayor. Of Hartford has gone out and hired Greenburg for our riches. Affirm that it's specializes in bankruptcies. Well they have a lot of specialty but then a big special. Shall be in bankruptcy and restructuring yet. Yet no was it a mistake for him to do that publicly or was that part of the strategy. That's part of his status even though it was out of respect not only what it out of the state but it serves directly different. Goals for the mayor it sends a message that the legislature do you base period and that they don't come up with or you're fifty million dollars. Over the 250 that the city now get on there's going to be filing it sends a message to the union. That. We are now commencing and negotiate with the bondholders. Because that's the best arm does this firm specializes in restructuring. Municipal debt not necessarily in bankruptcy because as you know there have been very few municipal bankruptcies. Over the years and what has been plenty of restructure. It and so it spent the message to the union that you know get in line there's going to be a fact. I think composure out and and it sent a message to the bondholders. That they were serious. Sorry guys. What oh what do you power of their unions responded thus far did you for this came up last week. And the unions said anything positive it. No public statement and there's been no private movement. As far as I've been able to sell. From. I thought if people is that the unions do not appear to be moving the police union. And the the main city all union. I do not appear to be moving they are of the opinion that they've already given back to the teacher's union is at some euros. But that's not what is they got the mayor doesn't negotiate with order that union. But. You know looked every time something is is done in a contract that is what they want. That that can be considered a concession. To carry forward for years as a cumulative give back in the minds of and of course in the minds of the mayor that's not nearly enough. So what is the what are the options facing the mayor. It is right now. He's gonna have to wait. One way or another you're gonna have to wait we're all gonna have to wait and see what happens with the state budget can adapt and color negotiations whether victims negotiations are in court or out of court. I would draw. If there's a big distinction between negotiating. Yet. Out of bankruptcy court and in bankruptcy court. It financially maybe not quite as much as people think in other words. As you know if you're in the business once you go to New York yet folders and say you know look you're gonna have to say let me you're in negotiations yet. And of course bankruptcy filing is eight warmup negotiation is that court ordered negotiations. And if there if the parties don't agree and the court orders that result of the negotiations it is now you know but they eat is that. That they're saying openly we're gonna go to the bondholders Brett Eric no absent big you know at percent less on either principally mr. vote. It is it's the start of a process that bankruptcy as a part of and so the first thing that happens happens everybody wants NOAA. Are the police and are you gonna give something back and deep will the state give forty or fifty million dollars can't move very fast. And very far without knowing that it. When you when you look at it in when you talk to vendors. To the city are they getting paid air air that is the city still paying their bills and keeping current has. Out of Illinois as you know we hear about a lot of bills that are not getting paid. Yes can it. One of them sort of hallmark of this process is it. That mayor pro that is keeping the city running smoothly. Last night for example I was deputy state jazz festival and count them out of people with air. And and the mayor got up and spoke and said you know look how clean this place that we were up all night cleaning up a separate so that didn't functioning well right now and when I asked the mayor Eddie. If you're functioning so well how can you can't stop anything we're not gonna allow ourselves to become the sort. And so for the most part to my knowledge the vendors are being paid certainly the services are being rendered. Now are you are is a city going to be looking though it less policeman and less firefighters. Probably not less police. Because there was. As well as target there are shortfall or deficit under. They're sort of stated ideal level step by about a hundred officers. So. I would I do not anticipate any back. That may be one of the reasons that they can't reach an agreement on concessions is because. The police now you know that there's no layoff threat. Because you need the level you have right now I heard it more difficult situation. Because that has to do with reorganizing the way the department runs and there's a lot of discussion with that but of course the fire department they give back. Equivalent of four million dollars a year and so that sort of implicitly buys them out. When their other cities that you look out. Throughout the country were they've cut back on the number of cops and it hasn't been pretty in terms of primaries and get a direct correlation. The man it is that's absolutely true and the mayor has been abundantly clear that he's not going to allow the that he is going to services deficit before. Declaring that city installment in the form of bankruptcy in other words. You may be a well what looked on the surface to be a well running thirty mile for bankruptcy if they don't compute money and that's going to be an awfully odd. Situation because we're still you know we saw at Detroit where it got it real where's 55 minutes for police call. And and we're not going to see that in part in the U dismay. Well at in perhaps in the view of the mayor but the bankruptcy court could have another opinion. I couldn't agree more intimate and and the City Council may even have another opinion there are lots of opinions but the fact is that. We can't argue with the logic but it doesn't make sense if you have a financially insolvent steady and to wait until the city is. Basically broke. Before he is something and that's the purpose of this mayors. Push right now with Aaron Greenberg. Got it Dan thanks as always for your time up. A pleasure Dan harp Hartford current joining us today.
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