With the exit of the Municipal Accountability Review Board (MARB) announced last week, the two predecessors of Mayor Dorinda Borer had their own take on the last seven-plus years, and the effects MARB had on the city.
For former mayor Edward O’Brien, the man who made the decision that led to city oversight, the exercise was worth the effort and did exactly what it was intended to accomplish. According to O’Brien he made the decision fully expecting the state to come in and oversee municipal finances. That was the whole point.
“When I took office in December 2013, the City of West Haven faced a cumulative fund deficit of $16,336,378 and was already under the oversight of the Municipal Finance Advisory Commission (MFAC). After consulting with MFAC and financial experts, it became clear that we could not simply cut our way out of the deficit. We were advised to either bond the deficit or develop a long-term restructuring plan,” he said. “I proposed a comprehensive restructuring initiative that would have refinanced all city bonds at lower interest rates. This plan would have eliminated the deficit entirely and saved the city approximately $8 million in debt service costs, with only a six-month extension on the terms. Unfortunately, the plan was voted down by the City Council’s Finance Committee, chaired at the time by Councilwoman Nancy Rossi, which left us with no viable alternative but to bond the deficit.
Following that vote, I negotiated an agreement with the State of Connecticut: if we bonded the deficit as advised, the state would provide West Haven with $8 million in supplemental aid annually for two years—a total of $16 million. The condition was that West Haven would enter review by the Municipal Accountability Review Board (MARB) at Level 3, which meant “advice and consent” oversight, not a state takeover.”
By this time, O’Brien had lost the primary to Nancy Rossi, who won the mayoralty in 2017, and was inaugurated in December. O’Brien says the decision by the City Council’s Finance Committee set the entire process in motion. Yet, when Rossi assumed office, she announced her surprise. O’Brien disputes this.
“To this day, I don’t understand why my successor claimed to be surprised by the MARB’s presence. In reality, she entered office with a surplus and millions in additional state support— unlike the financial challenges I inherited,” he said.
O’Brien said his decision was a good one.
“My goal was simple: eliminate the deficit and avoid burdening the city with long-term financial uncertainty. Bonding the deficit allowed us to do just that, with less impact on the city’s bottom line than continuing to carry it forward,” he said.
O’Brien summed up his thoughts now that MARB is exiting the scene.
“I stand by the decisions I made. They were difficult but necessary. Had we not accepted both financial assistance and expert oversight from the state, West Haven might still be burdened by structural deficits today. Now that we are on a stronger financial path and MARB is exiting it’s critical that we stay the course. Every financial decision must be backed by thorough analysis and a clear understanding of its long-term impact. West Haven now has a fresh start. I sincerely hope future administrations will learn from the past so that history doesn’t repeat itself,” he said.
Rossi, meanwhile, has some different recollections leading up to the MARB takeover.
“I was shocked,” she said. “I ha just been elected mayor and a week before I took the oath of office I was contacted by the New Haven Register informing me that Mayor Edward O’Brien had executed an $18 million deficit bonding package. (He) was elected in 2013 and inherited a $76 million deficit. Over the following four years, his administration added more than $10 million in deficits. On my second day in office, I was notified by the Office of Policy and Management Secretary Ben Barnes that, by state statute, the deficit bonding…triggered West Haven into MARB.”
Rossi’s three-term tenure was entirely under the MARB direction. The relationship between her administration and the panel was, at times, strained. She believes part of it was growing pains.
“Wet Haven was one of two municipalities to come under the state oversight in 2017. The MARB was new and creating bylaws and rules as the work began,” she said. “I was a newly elected mayor with my first job being to control spending and balance the budget. In the early years both MARB and the city had tough jobs under brand new legislation and lots of pressure to be successful. The relationship got better as the city’s financial position improved.”
Now that the seven-plus years of MARB is ending, Rossi is congratulatory toward the Borer administration for hitting this milestone.
“I am thrilled that the MARB has recognized West Haven’s progress over the last 7.5 years. I want to congratulate the current administration for continuing the hard work I began when elected in 2017 and getting the city out from under state oversight. I see much potential and success in West Haven’s future.”
The relationship between O’Brien and Rossi has never been cordial, and their recollections of the events that led to the state’s taking over the city vary. However, the one thing they do agree on is MARB’s leaving the city is something to be celebrated.