Hartford Mayor Luke Bronin on Monday announced the details of a four-year agreement with the city's firefighters' union that he said will save Connecticut's capital city more than $3.5 million in fiscal 2018 and larger amounts in the following years.
"At a time when Hartford faces intense fiscal pressure, I'm proud that we were able to work together to sign a serious, responsible agreement for Hartford and its taxpayers," said Bronin, winding down his first year as mayor of a city in a severe fiscal crisis.
Hartford received two four-notch bond rating downgrades this fall. S&P Global Ratings knocked Hartford's general obligation bond ratings four levels to BBB from A-plus, keeping it on the lower rungs of investment grade, while Moody's Investors Service lowered its rating to junk-level Ba2 from Baa1. The moves affected roughly $550 million of debt.
Bronin, who earlier this year asked state lawmakers to impose a fiscal control board to oversee the city, has cited union cooperation as one essential element to reversing Hartford's fortunes. He is also lobbying state lawmakers for possible regional solutions, which could include a commuter tax or shared services.
Short-term, with zero fund balance for the city, "there's no running room," Bronin said in a
The City Council must approve the agreement with Hartford Fire Fighters Association, Local 706, which union membership ratified on Friday. It will replace the contract which expired June 30.
Hartford remains in negotiation or arbitration with all of its other municipal employee unions, according to Bronin.
"If Hartford's other municipal employee unions were to agree to changes similar to those agreed upon with the Hartford Fire Fighters Association, the city would save nearly $12 million in the upcoming fiscal year, with savings increasing in each subsequent year," said Bronin.
Key provisions include no wage increases for four years; a 70% increase in annual employee contributions into the pension fund; substantial changes to health care plan design, and shifting from a costly preferred provider organization plan to a high-deductible plan with health savings account.
The deal also includes an increase in the years of service required for retirement from 20 years to 25 years for current employees with less than 10 years of service; substantial increases in employee share of health-care premium costs; and a dramatic reduction in the city's exposure for funding retiree healthcare after age 65.
