Accountability Transparency Trust

HDTC Statement on Debt Restructuring

June 23, 2020

As members of the Hamden Democratic Town Committee, we are requesting that the Legislative Council use extreme caution in proceeding with a debt restructure.

Therefore, we request that the Legislative Council not vote on Wednesday, June 24, 2020 regarding debt restructure for the following reasons.

  • Restructuring of town debt is a very complicated process that requires careful deliberation.
  • It is important that residents have the ability to hear and evaluate the information and the implications of all actions that may be taken.
  • Public comment should be allowed after such information is presented.
  • It is important to identify why and for what specific projects the Mayor is requesting to use a Tax Anticipation Note (TAN) when 50% of tax revenue in July 2020 is expected to be received by the town.
  • Debt restructure should ONLY be considered if the debt, along with the cost of restructuring the debt, guarantees savings now and in the future.